Chinese Firms Granted HVDC Tender Access in India

India's Ministry of Finance issued an order on 24 June 2026 exempting four China-linked power transmission equipment manufacturers from procurement restrictions that have applied to companies from countries sharing a land border with India since 2020. The exemption allows TBEA Energy India, Nanjing Electric India, New Northeast Electric India and Taikai Electric (India) to participate in government tenders for critical power infrastructure projects.

The exemption is valid for two years and applies only to the four named companies, all of which operate manufacturing facilities in India. The finance ministry's office memorandum states the exemption should not be treated as a precedent for other companies and does not amount to a broader easing of the procurement rules introduced in 2020.

Policy Context and Approval Process

The move follows a proposal submitted by India's power ministry in January 2026 requesting an exemption for entities with manufacturing units in India involved in critical power projects. The procurement restrictions were introduced following the 2020 border clash between India and China, requiring Chinese bidders to register with a government panel and obtain political and security clearances before competing for state contracts.

The exemption aims to address equipment requirements for India's large-scale transmission network expansion, which is needed to support rising electricity demand and integrate renewable energy capacity. Industry experts have cited a thin global supplier base for high-voltage direct current components as one of the reasons for delays in laying transmission infrastructure over the past decade.

Market Response

Following reports of the exemption, shares of domestic power equipment manufacturers fell sharply on 4 July 2026. Hitachi Energy India, Siemens Energy India, GE Vernova T&D India, Bharat Heavy Electrical, Transformers & Rectifiers India and CG Power closed between 4.6 per cent and 8.9 per cent lower on the BSE amid investor concerns about increased competition from the exempted Chinese firms. The benchmark BSE Sensex ended 0.3 per cent higher on the same day.

An industry executive commented that the material impact on domestic companies would depend on how many government tenders the newly exempt firms win over the next two years. The decision comes as India undertakes a large-scale expansion of its transmission network to support the integration of renewable energy capacity and meet growing electricity demand, increasing the need for timely availability of specialised power equipment.