The four firms permitted to bid for local projects are TBEA, Nanjing Electric, New Northeast Electric and Taikai Electric. Of these, only TBEA has meaningful capacity to compete, while the others are still building out.
Last week, the government opened the door for Chinese-owned manufacturers in the country’s power transmission sector, granting a two-year exemption under the Public Procurement Order (PPO) to the four companies.
The relaxation applies to critical transmission components-bushings, insulators, circuit breakers, power transformers, gas-insulated switchgear (GIS) and related equipment-and is limited to tenders from public-sector undertakings (PSUs). The exemption requires these Chinese entities to manufacture in India, with procurement mandating 50-60% domestic content.
“We don’t see any material impact on our business. We have a healthy order book of ₹7,600 crore that gives us visibility of about 30 months,” said Satyen Mamtora, MD & CEO of Transformers & Rectifiers (India) Ltd (Taril), adding that he does not foresee any pricing pressure.
Industry players said the inability of transformer manufacturers to deliver on time has, in many instances, delayed the commissioning of entire substations despite other equipment being ready. This has, in turn, slowed ordering across other product categories and grid equipment.The government has sought to ensure that only locally produced equipment qualifies, making capacity expansions by companies such as Hitachi Energy and Siemens Energy a viable proposition. Industry experts believe that if the exemption is extended to imported components, domestic manufacturers could face pressure.
“While the decision is rooted in the Make in India imperative, I am confident that the Government of India has remained cognisant of maintaining a level playing field vis-a-vis subsidies, incentives and more. This will inspire companies like ours to continue investing deeply in India to support the country’s energy transition with cutting-edge technology and world-class talent,” said N Venu, MD, Hitachi Energy India.