The Centre's decision to allow select Chinese companies with manufacturing facilities in India to bid for power sector projects is a pragmatic step that addresses supply chain challenges while preserving the government's 'Make in India' focus, according to Hitachi Energy India & APAC Managing Director and CEO N Venu.
The government has allowed select Chinese companies with manufacturing plants in India to participate in bids for power projects, marking a calibrated easing of procurement restrictions in the sector.
Commenting on the decision, Venu said it reflects the realities of India's rapidly expanding renewable energy ecosystem and the supply chain disruptions witnessed in recent years.
"The decision is clearly a reflection of the unprecedented growth of renewable energy integration and the impact of the recent geopolitical crisis on the supply chains which have faced stress," Venu told NDTV Profit.
India has significantly accelerated renewable energy capacity additions over the past few years, driving higher demand for transmission and grid infrastructure. However, global supply chains have faced disruptions amid geopolitical tensions, affecting the availability of critical equipment and components.
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Venu said the government's approach continues to align with its broader manufacturing agenda while ensuring fair competition.
"While the decision is rooted in the Make in India imperative, I am confident that the Government of India has stayed cognizant of maintaining a level playing field vis a vis subsidy, incentive and more," he said.
According to Venu, maintaining policy certainty and competitive neutrality will encourage companies to continue expanding their manufacturing footprint in India.
"This will inspire companies like us to continue to invest deeply in India to support India's energy transition with cutting-edge technology and world-class talent," he added.
Four Chinese-affiliated power equipment manufacturers with domestic factories—TBEA Energy, Nanjing Electric India, New Northeast Electric India, and Taikai Electric (India)—are now permitted to compete on government contracts thanks to a two-year, time-bound exception that India has accepted, Reuters reported.
In order to enhance India's power transmission network, this change aims to ease equipment shortages. India's power ministry requested the exception in January for companies with Indian manufacturing facilities engaged in vital power projects, according to the government order accessed by the news agency.
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