Indian government has allowed four Chinese companies in power equipment segment, which have manufacturing facilities located in India to participate in select government tenders for critical power transmission projects. The exemption, approved by the Ministry of Finance in June, 2026 following a recommendation from the Ministry of Power, applies exclusively to TBEA Energy, Nanjing Electric India, New Northeast Electric India, and Taikai Electric (India).  

The government has clarified that the decision is a one-time, sector-specific measure and should not be treated as a precedent for other companies. The move marks a calibrated relaxation of procurement restrictions introduced after the Galwan Valley conflict in 2020, when India mandated political, security and registration clearances for companies from countries sharing a land border with India before they could participate in government contracts. 

Addressing Transmission Infrastructure Needs 

The exemption comes as India accelerates investments in its power transmission network to meet rising electricity demand and facilitate the integration of renewable energy. Industry stakeholders have pointed out that certain critical transmission equipment, including power transformers, Gas-Insulated Switchgear (GIS), bushings, insulators and circuit breakers, continues to face domestic supply constraints, resulting in project delays. 

The relaxation is limited to tenders floated by public sector undertakings (PSUs) and requires participating companies to manufacture in India while meeting domestic value addition norms of approximately 50–60% local content. 

Not Reversal of Restrictions  

The government has emphasized that the exemption represents a targeted policy adjustment rather than a broad reversal of restrictions on Chinese participation in strategic infrastructure projects. Regulatory oversight and security clearances remain in place for foreign-linked companies operating in sensitive sectors. 

The easing follows requests from several government departments that had reported shortages of critical equipment and delays in infrastructure projects due to the procurement restrictions. A high-level committee chaired by former Cabinet Secretary had also recommended a calibrated relaxation of the norms. 

Indian Manufacturers Remain Confident 

Despite the limited re-entry of Chinese companies, Indian transformer manufacturers remain largely unfazed. Industry participants note that domestic manufacturers continue to enjoy strong order books and are already expanding production capacity to cater to India’s rapidly growing transmission market. 

Among the four approved companies, TBEA is considered the only player with significant manufacturing capability to compete in the near term, while Nanjing Electric India, New Northeast Electric India and Taikai Electric (India) are still scaling up their operations. 

About Shirdi Sai Electricals Limited 

Shirdi Sai Electricals Limited (SSEL) was founded in the year 1994 at Kadapa in Andhra Pradesh. It was established by Mr N Visweswara Reddy, who currently serves as Chairman and Managing Director (CMD) for the organisation. The organisation was initially served as transformer repair unit, but it has metamorphosed into one of the largest transformer manufacturing companies in India over three decades.  

SSEL has grown into reliable energy solutions provide in India and across the world over the last three decades. It currently operates 5 manufacturing facilities with different product portfolio. It manufactures Power and Distribution Transformers. SSEL products are exported to over 40 countries across the world. It has state-of-the-art manufacturing facilities located at Kadapa in Andhra Pradesh, Naini in Uttar Pradesh and Kancheepuram in Tamilnadu.