Under the relaxation provided, four companies — TBEA Energy India, Nanjing Electric India, New Northeast Electric India, and Taikai Electric (India) — have been granted exemption from the restrictions for a period of two years. File
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In a sign of a further thawing in India’s stance on Chinese investments, the government has issued an order allowing four companies with Chinese ownership or links to bid for projects tendered by the Indian government in the power sector. The order, dated June 24, 2026, was issued by the Procurement Policy Division of the Department of Expenditure under the Ministry of Finance, and has been reviewed by The Hindu.Power Ministry requestIn January, the Power Ministry had written to the Finance Ministry seeking an exemption from a previous order which mandated that companies located in countries that share a land border with India must register with the Indian government before they can bid for critical public power projects. The approval of this registration was solely at the discretion of the government.Following this, the Committee of Secretaries and the Registration Committee under the Department for Promotion of Industry and Internal Trade (DPIIT) deliberated on the matter before passing its order. Two-year exemptionUnder the latest order, four companies — TBEA Energy India, Nanjing Electric India, New Northeast Electric India, and Taikai Electric (India) — have been granted exemption from the restrictions for a two-year period.TBEA Energy India is the wholly-owned subsidiary of the Chinese company TBEA Group, Nanjing Electric India is a wholly-owned subsidiary of the 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 Procurement Policy Division’s order, however, made sure to state that “such exemption for firms may not be considered as a precedence [sic]”. Earlier relaxationsThis order also builds on recent partial relaxations the government has provided companies that have investments from China and other countries that share a land border with India. In May, the Finance Ministry had notified new rules to allow overseas companies with Chinese shareholding of up to 10% to invest in India under the automatic route, rather than first having to obtain government approval. This was a relaxation made to the ‘Press Note 3’ that the Indian government had issued in 2020, ostensibly to prevent opportunistic takeovers and acquisitions of distressed Indian companies due to the COVID-19 pandemic. Published - July 03, 2026 11:51 am IST
