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The Centre has allowed four companies with substantial ownership by entities from countries sharing a land border with India to participate in procurement bids for power projects for a two-year period beginning from June 24, 2026. The decision is subject to compliance with domestic content norms and comes with strict quality and cybersecurity safeguards. The government said the move is aimed at improving competition, ensuring price stability, addressing supply constraints, and supporting the objectives of the Atmanirbhar Bharat initiative, while maintaining national security through mandatory certification and testing.
The Central government has allowed four companies with substantial ownership by entities from countries sharing a land border with India to participate in procurement bids for power projects for a period of two years starting from June 24, 2026. The permission is subject to the companies meeting the prescribed domestic content requirements, Minister of State for Power Shripad Naik informed the Rajya Sabha earlier this week.
The clarification came in response to a question raised by Rajya Sabha MP Jose K. Mani, who sought to know whether the government had allowed four companies with Chinese ownership or links to participate in government tenders for critical power projects.
In his written reply, Naik did not identify the companies as Chinese-owned. Instead, he stated that the approval applies to four entities with substantial ownership by organisations from countries that share a land border with India. He added that the permission will remain valid for two years from June 24, 2026, provided the companies comply with the domestic content requirements laid down by the government.
The minister said the decision is expected to improve competition in the sector, help maintain price stability, and address supply constraints. He added that the move is also aligned with the objectives of the Atmanirbhar Bharat initiative by ensuring participation under conditions that promote domestic manufacturing and local value addition.
Addressing concerns related to national security, Naik said products manufactured at the India-based facilities of these companies will be subject to mandatory Bureau of Indian Standards (BIS) and Indian Standards (IS) testing and certification through designated agencies.
He further stated that the companies will also have to comply with applicable Indian cybersecurity guidelines and standards, including mandatory cybersecurity testing wherever required.
According to the minister, these measures provide adequate safeguards against potential national security risks without imposing a blanket restriction on such entities. He said the government has adopted a balanced approach that protects national security interests while enabling competitive procurement in the power sector.
The Centre has, in recent years, tightened norms for companies from countries sharing land borders with India in sectors considered strategically important. Participation in government procurement and investments by such entities has been subject to additional scrutiny and regulatory approvals, particularly after changes introduced in procurement and foreign investment rules to safeguard national interests.
Source PTI
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