The Centre’s decision to allow four Chinese power equipment manufacturers with factories in India to bid for critical government projects is expected to intensify competition. However, domestic players say they have invested heavily in manufacturing, research and development (R&D), and localisation to strengthen their capabilities and remain competitive.
The finance ministry’s move follows a request from the Power Ministry in January seeking an exemption from an earlier order that required companies from countries sharing a land border with India to obtain prior government registration before bidding for critical public power projects. Approval of such registrations was entirely at the government’s discretion.
Recently, the ministry granted a two-year exemption to TBEA Energy, Nanjing Electric India, New Northeast Electric India and Taikai Electric (India), allowing them to participate in public tenders.
Domestic Manufacturers
Satyen Mamtora, managing director and chief executive officer of Transformers and Rectifiers India (TARIL), said the government’s decision is likely to make bidding for transmission projects more competitive.
“However, this industry has always been driven by factors beyond pricing. Utilities and developers evaluate suppliers on technology, manufacturing capability, quality, execution track record and long-term reliability,” he said.
Mamtora said Indian manufacturers have invested significantly over the years in advanced manufacturing, localisation, R&D and testing infrastructure, enabling them to support the country’s expanding transmission network.
“We are confident that companies with strong engineering expertise, proven execution capabilities and a long-term commitment to India’s power sector will continue to play a key role in powering the nation’s growth,” he said.
“As the country expands and modernises its power infrastructure, we remain focused on strengthening our manufacturing capabilities, driving innovation and delivering reliable, high-quality transmission solutions.”
N. Venu, managing director and chief executive officer for India and APAC at Hitachi Energy, said that while the decision is rooted in the Make in India agenda, he was confident the government would ensure “a level playing field in terms of subsidies, incentives and other policy support.”
“This will inspire companies like us to continue investing deeply in India to support the country’s energy transition with cutting-edge technology and world-class talent,” he said.
Supply Chain Pressures
Venu added that the move reflects the unprecedented expansion of renewable energy integration as well as the strain recent geopolitical developments have placed on global supply chains.
A senior executive at CG Power said the entry of the four companies would increase competition in tenders, but added that the impact may be limited.
“The four companies that have manufacturing facilities in India can now participate in tenders, and to that extent competition will increase,” the executive said.
However, raw material costs are broadly similar for all players. “Demand is exceptionally strong, both domestically and from overseas markets. Order books remain robust,” the executive added.
Sharan Bansal, executive director at Skipper, one of the country’s largest transformer manufacturers, said there could be some pressure on pricing but not enough to materially affect domestic companies.
“There is enough demand in the market. Most manufacturers already have order books stretching two to three years, so they are unlikely to be overly concerned,” he said.
“The government’s move should also help improve the availability of equipment and components, leading to faster execution of power transmission projects.”