India relaxs rules for Chinese equipment in power sector
India is loosening up restrictions on buying Chinese equipment for its power and coal sectors, after years of tight controls following a 2020 border clash.
State-run companies can now source certain parts from China to tackle project delays and equipment shortages—previously, tough approval processes kept Chinese firms out of major government contracts.
Local manufacturers still get government preference
India is facing a serious shortage—about 40% shortfall—in key power gear like transformers, even as it aims to add 500 GW of non-fossil capacity by 2030.
The relaxed rules are meant to break supply bottlenecks without fully opening the door to Chinese competition.
Local manufacturers still get government preference, so national security and support for Indian industry remain priorities while keeping the lights on.