India Eases Bidding Curbs on Four China-Linked Power Firms
The Indian government has relaxed restrictions on four companies with Chinese ownership or links, allowing them to bid for government power sector projects for a period of two years. The order, issued by the Procurement Policy Division of the Department of Expenditure under the Ministry of Finance on June 24, 2026, marks a further step in easing India's stance on Chinese investments.
The relaxation comes after the Ministry of Power wrote to the Finance Ministry in January seeking an exemption from a previous order that barred companies from countries sharing a land border with India from bidding for critical power projects. The Committee of Secretaries and the Registration Committee under the Department for Promotion of Industry and Internal Trade (DPIIT) deliberated on the matter before granting the exemption.
The four companies granted the exemption are TBEA Energy India, Nanjing Electric India, New Northeast Electric India, and Taikai Electric (India). TBEA Energy India is a wholly-owned subsidiary of China's TBEA Group; Nanjing Electric India is a wholly-owned subsidiary of Chinese power equipment manufacturer Nanjing Electric; New Northeast Electric India has technology transfer ties with Chinese power sector companies; and Taikai Electric (India) is a subsidiary of the China-headquartered Taikai Group.
The order explicitly states that this exemption should not be considered a precedent. It builds on recent partial relaxations, including a May 2026 notification allowing overseas companies with Chinese shareholding of up to 10% to invest in India under the automatic route, easing the requirements of Press Note 3 issued in 2020 during the COVID-19 pandemic to prevent opportunistic takeovers.
