Power Equipment Stocks Slide as Government Opens Tenders to Chinese Manufacturers 

Shares of several Indian power equipment companies declined on July 3 after the Centre permitted four Chinese manufacturers with production facilities in India to participate in government tenders for critical power infrastructure projects.

According to a Ministry of Finance order dated June 24, TBEA Energy, Nanjing Electric India, New Northeast Electric India, and Taikai Electric (India) have received approval to bid for specific government projects. The Power Ministry had sought this exemption in January to support companies operating manufacturing units within India and contributing to key power projects.

The announcement triggered a broad sell-off across the sector. Hitachi Energy shares dropped nearly 7.7% to Rs 31,180, while CG Power fell around 6% to Rs 900.75 during morning trade. GE Vernova T&D emerged as one of the biggest midcap losers, declining 7.83%. Thermax and BHEL also traded lower, losing 4.2% and 2.4%, respectively. Among small-cap names, GE Power India and TD Power Systems slipped 5% and 4.08%. The Nifty Energy index also remained under pressure, trading about 1% lower.

Market participants believe the decision could intensify competition in India’s power equipment industry. TBEA Energy manufactures extra high-voltage transformers, while Nanjing Electric India produces components such as insulators and gas-insulated systems used in high-voltage direct current projects. Taikai Electric also maintains facilities for 400 kV and 765 kV gas-insulated switchgear equipment.

The exemption comes at a time when India is rapidly expanding its transmission network to accommodate rising electricity demand and increasing renewable energy capacity. However, the government has clarified that the approval will remain valid for only two years and should not serve as a precedent for other companies. Existing requirements for security and political clearances for Chinese bidders, introduced after the 2020 border tensions, will continue to apply.

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