India to Relax Import Rules on Chinese Power Equipment to Address Project Delays

India has started relaxing restrictions on the procurement of certain Chinese equipment, marking the first meaningful easing of curbs imposed after the 2020 border clash, according to Reuters report. 

Limited Exemptions for Power and Coal Projects 

State-run power and coal companies have been permitted to undertake limited imports of specific equipment from China to address mounting shortages and project delays. 

Reuters reported India has allowed public-sector entities to procure a power transmission component from China without prior government approval. A similar, time-bound exemption for critical coal-sector machinery is also under consideration. 

As per the report, the waiver was granted in the “national interest,” as preventing such imports could hamper manufacturing and infrastructure expansion. A panel of senior bureaucrats has cleared the move, with a formal order expected shortly. 

Case-By-Case Approach Amid Capacity Pressures 

Since 2020, Chinese bidders have been required to register with a government panel and obtain political and security clearances before participating in state contracts, effectively restricting their access to India’s $700–750 billion public procurement market. 

Officials indicated that rather than fully reopening procurement, India may permit imports of essential equipment on a case-by-case basis. The easing follows repeated representations from departments facing delays due to equipment shortages. 

India is targeting 500 GW of non-fossil fuel capacity by 2030, but transmission bottlenecks remain a challenge. Power projects are expected to face nearly a 40% shortfall in transformers and reactors over the next 3 years, one official noted. 

Read More: India Records Sharp Decline in China Imports Across Key Sectors in 2024–25: Jitin Prasada! 

Conclusion 

The calibrated relaxation comes amid gradual efforts by India and China to rebuild commercial ties, even as New Delhi balances infrastructure imperatives with strategic and security considerations. 

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