Indian Firms Urge govt to Review Chinese Participation in Power Sector Tenders

Indian power equipment manufacturers have urged the Prime Minister’s Office (PMO) to review the participation of Chinese companies in India’s power sector tenders, citing concerns over national security, unfair competition, and the long-term impact on domestic manufacturing. The industry has requested stricter scrutiny of bids involving Chinese firms, particularly in projects related to power transmission and critical infrastructure.

The appeal comes as India continues to expand its electricity network through large-scale investments in transmission lines, substations, renewable energy integration, and grid modernization. Domestic manufacturers argue that greater participation by Chinese suppliers could undermine the government’s efforts to strengthen local manufacturing under the ‘Make in India’ initiative.

Indian Manufacturers Seek PMO Intervention

Leading Indian power equipment companies have approached the PMO, requesting a review of current procurement policies that allow Chinese firms to participate in power sector tenders.

The industry believes critical power infrastructure should prioritize trusted domestic manufacturers and suppliers from countries that meet India’s national security and strategic requirements.

Manufacturers have reportedly sought clearer guidelines regarding the eligibility of Chinese companies in government-backed transmission and power projects.

Concerns Over National Security

One of the key concerns raised by Indian companies relates to the strategic importance of the power sector.

Electricity transmission networks form part of the country’s critical infrastructure, supporting industries, transportation systems, communications, healthcare, and defense installations.

Industry representatives argue that greater reliance on foreign suppliers—particularly from countries with which India has strategic concerns—could expose critical infrastructure to potential security risks and increase dependence on external technology providers.

Domestic Companies Cite Unfair Competition

Indian manufacturers have also expressed concerns over pricing practices adopted by some Chinese companies.

According to industry representatives, domestic firms often struggle to compete against lower-priced imports, which they say benefit from large-scale manufacturing, government support, and pricing advantages.

Manufacturers argue that ensuring a level playing field is essential to encourage investment in domestic production capacity, research, and technology development.

Supporting ‘Make in India’

The industry’s request aligns with the government’s broader efforts to strengthen domestic manufacturing through initiatives such as ‘Make in India’ and the Production Linked Incentive (PLI) scheme.

Indian companies believe prioritizing locally manufactured power equipment would:

• Strengthen domestic manufacturing.
• Generate employment opportunities.
• Reduce import dependence.
• Improve supply chain resilience.
• Support indigenous technology development.
• Enhance long-term energy security.

They argue that greater domestic participation would help India build a more self-reliant power equipment ecosystem.

India’s Power Sector Expansion

India is investing heavily in expanding its power infrastructure to meet rising electricity demand and integrate renewable energy into the national grid.

Major investments are being made in:

• High-voltage transmission lines.
• Grid modernization.
• Renewable energy evacuation infrastructure.
• Smart grid technologies.
• Battery energy storage systems.
• Cross-country transmission corridors.

These projects represent significant business opportunities for both domestic and international equipment manufacturers.

Balancing Competition and Strategic Interests

While India continues to encourage foreign investment and international participation in infrastructure projects, policymakers also face the challenge of balancing competition with strategic and security considerations.

The government has previously introduced measures requiring prior approval for investments from countries sharing land borders with India and has tightened procurement norms for certain sensitive sectors.

Industry participants believe similar safeguards should be consistently applied to critical power infrastructure projects.

Outlook

The request by Indian power equipment manufacturers highlights the growing debate over balancing open competition with strategic self-reliance in critical infrastructure sectors. As India accelerates investments in its electricity network and renewable energy transition, procurement policies are likely to remain under close scrutiny.

Any decision by the government to review Chinese participation in power tenders could have significant implications for domestic manufacturers, international suppliers, and the future development of India’s rapidly expanding power sector. The outcome will also reflect India’s broader strategy of strengthening energy security while promoting domestic industrial growth.