India eases curbs on Chinese equipment imports for power, coal as projects delayed: sources

India relaxes restrictions on Chinese equipment imports for power and coal projects, citing national interest amid delays and shortages.

India has begun easing ‌its restrictions on buying Chinese equipment after a deadly 2020 border ​clash, allowing state-run power and coal companies to start ⁠limited imports as shortages and project delays mount, two government officials told Reuters.

This is the first significant easing of five-year-old curbs that have largely shut Chinese ‌firms out of India’s $700 billion-$750 billion government contract market.

Reuters reported in January that India is examining broader relaxations on Chinese ‌bidders for government contracts as border tensions ease.

Since the 2020 clash, ‌New ⁠Delhi has required Chinese bidders to register with a ⁠government panel and secure political and security clearances before competing for any state contract.

India has now allowed state-run entities to procure a power-transmission ​component from China without government approval. It ‌is weighing a similar, time-bound exemption for key coal-sector equipment, the two officials said.

The exemption was granted in the “national interest,” as blocking Chinese imports would hurt India’s manufacturing capability, one of the officials ‌said.