Shares of India’s leading power capital goods manufacturers fell sharply on July 3 after the government named four Chinese origin entities for a two year exemption from procurement restrictions applicable to countries sharing a land border with India.
Hitachi Energy India Ltd led the decline, falling 6.42 percent to Rs 31,605, down Rs 2,170 from the previous close of Rs 33,775. The stock hit an intraday low of Rs 31,150 against a high of Rs 32,085. Its 52 week range stands at Rs 16,111 to Rs 38,785, with a market capitalisation of around Rs 1,41,000 crore, a P/E ratio of 142.81 and a dividend yield of 0.03 percent.
GE Vernova T&D India Ltd fell 5.39 percent to Rs 4,562.70, down Rs 260.10 from the previous close of Rs 4,822.80. The stock touched an intraday low of Rs 4,361 before recovering some ground, with the day’s range between Rs 4,361 and Rs 4,581.60. Its 52 week range stands at Rs 2,265 to Rs 5,650, with a market capitalisation of approximately Rs 1,25,000 crore. P/E ratio and dividend yield were not available.
CG Power and Industrial Solutions Ltd declined 4.35 percent to Rs 917.70, down Rs 41.70 from the previous close of Rs 959.40, moving in an intraday range of Rs 890.60 to Rs 922.85 against a 52 week range of Rs 525.50 to Rs 978.90. The stock carried a market capitalisation of around Rs 1,40,000 crore, a P/E ratio of 119.06 and a dividend yield of 0.18 percent, and featured among the most active counters on the exchange with average volume of 4.02 million shares.
Transformers and Rectifiers India Ltd fell 2.55 percent to Rs 348.15, down Rs 9.10 from the previous close of Rs 357.25, trading in a range of Rs 345.20 to Rs 359.65 against a 52 week range of Rs 224.05 to Rs 578.50. The company’s market capitalisation stood at approximately Rs 10,450 crore, with a P/E ratio of 38.41. Dividend yield was not available.
The selloff followed an official memorandum from the Ministry of Finance’s Department of Expenditure, dated June 24, 2026, granting a two year exemption from Public Procurement Order No. 4 to four Chinese origin entities with manufacturing units in India. The exemption covers restrictions under Rule 144(xi) of the General Financial Rules, 2017, and applies specifically to critical power projects. The four companies named are TBEA Energy India, Nanjing Electric India, New Northeast Electric India and Taikai Electric India, all of which will now be able to bid for government and public sector power contracts without the security clearances otherwise mandated for firms from countries sharing a land border with India. The exemption is valid for two years and the order explicitly states it may not be considered a precedent.
The order was issued pursuant to deliberations of the Committee of Secretaries and based on recommendations of the Registration Committee, following an underlying request from the Ministry of Power dated January 15, 2026, seeking exemption for entities with Indian manufacturing units for critical power projects.
The exemption fuelled concerns among investors that domestic and multinational power equipment makers could face intensified competition from Chinese manufacturers in bidding for critical power projects, particularly in segments such as high voltage transformers and gas insulated switchgear.
Brokerage ICICI Securities has characterised the impact as not material, noting that the exemption applies only to Chinese companies with existing Indian manufacturing units rather than to Chinese imports broadly, and that the product scope is likely concentrated in high voltage transformers and gas insulated switchgear, where India faces a near term supply shortfall estimated at roughly 40 percent against project requirements over the next three years. The brokerage described the development as along expected lines and flagged a likely recovery in power capital goods stocks once the limited scope of the notification is fully absorbed by the market.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. The figures and securities mentioned are for analysis and illustration, not recommendations. Markets carry risk, and readers should conduct their own research or consult a registered financial adviser before making any investment decision.
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