The Ministry of Finance has granted a two-year exemption to four Chinese power equipment manufacturers with production facilities in India, allowing them to participate in government tenders for critical power sector projects without complying with the registration requirements applicable to entities from countries sharing a land border with India.
The exemption applies to TBEA Energy, Nanjing Electric India, New Northeast Electric Indiaand Taikai Electric (India). Under the June 24 order issued by the Department of Expenditure, the companies have been exempted from provisions of the Public Procurement Order that require bidders from neighbouring countries to register with the competent Indian authority before participating in government procurement.
The Finance Ministry clarified that the exemption will remain valid for two years from the date of the order and “should not be treated as a precedent for other companies,” indicating that the decision is specific to the four manufacturers.
The move follows a proposal submitted by the Ministry of Power in January seeking relaxation of procurement rules for certain companies with manufacturing facilities in India, citing the need to ensure timely execution of critical power infrastructure projects.
According to the order, the exemption was approved after deliberations by the Committee of Secretaries (CoS) and based on the recommendation of the Registration Committee constituted under the Department for Promotion of Industry and Internal Trade (DPIIT)which examines applications from entities covered under the procurement restrictions.
India introduced stricter public procurement rules in 2020 following the military confrontation between Indian and Chinese troops along the Line of Actual Control (LAC). Under those rules, companies from countries sharing a land border with India—including China—must obtain registration and mandatory political and security clearances from the Ministries of External Affairs and Home Affairs before becoming eligible to participate in government tenders.
The latest exemption reflects the government’s effort to balance national security considerations with the operational requirements of the power sector, particularly where domestic manufacturing capacity and project timelines are involved.
Neither the Ministry of Finance nor the Ministry of Power had issued a detailed public statement explaining the rationale behind selecting the four companies as of Friday.
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