Centre opens power bids to four China-linked firms, Pg1

Key Highlights:

• The Indian government has permitted four companies with Chinese ownership or links to bid for power sector projects.
• This decision, dated June 24, 2026, was issued by the Procurement Policy Division of the Finance Ministry's Expenditure Department.
• The exemption from previous restrictions is granted for a two-year period to TBEA Energy India, Nanjing Electric India, New Northeast Electric India, and Taikai Electric (India).
• The move follows a request from the Power Ministry to relax rules mandating government registration for companies from countries sharing a land border with India.
• This relaxation builds on earlier amendments to Press Note 3, which allowed overseas companies with up to 10% Chinese shareholding to invest via the Automatic Route.

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Detailed Insights:

• The decision signifies a continuing thaw in India's stance on Chinese investments, which had been tightened since 2020.
• The exemption was deliberated by the Committee of Secretaries and the Registration Committee under the Department for Promotion of Industry and Internal Trade (DPIIT).
• The four exempted companies are either wholly-owned subsidiaries of Chinese firms or have technology transfer ties with Chinese power sector companies.
• The Procurement Policy Division explicitly stated that this exemption should not be considered a precedent for future cases.
• The original restrictions, introduced in 2020, required prior government approval for investments from countries sharing a land border with India.
• Press Note 3 was initially implemented to prevent opportunistic takeovers of distressed Indian companies during the COVID-19 pandemic.
• The earlier relaxation in May allowed minority investments (up to 10% non-controlling ownership) from land-bordering countries through the Automatic Route.

Key Concepts Involved:

• Press Note 3: A 2020 government order mandating prior approval for Foreign Direct Investment (FDI) from countries sharing a land border with India.
• Department for Promotion of Industry and Internal Trade (DPIIT): A central government department under the Ministry of Commerce and Industry responsible for industrial policy, FDI, and ease of doing business.
• Automatic Route: An FDI entry mechanism where foreign investors do not require prior government approval for investment in eligible sectors.