NEW DELHI, AUG 18 (DNA) – India is tightening the rules for businesses entering its power transmission sector and making stringent checks on both power and telecoms equipment for malware – moves that government and industry officials say aim to check China’s advance into sensitive sectors. Chinese firms such as Harbin Electric (1133.HK), Dongfang Electronics (000682.SZ), Shanghai Electric (601727.SS) and Sifang Automation either supply equipment or manage power distribution networks in 18 cities in India.
Local firms have long lobbied against Chinese involvement in the power sector, raising security concerns and saying they get no reciprocal access to Chinese markets.
With India and China locked in their most serious military face-off in three decades, the effort to restrict Chinese business has gathered more support from within the administration of Prime Minister Narendra Modi, worried about the possibility of a cyber attack.
The Indian government is considering a report prepared by the Central Electricity Authority (CEA) that sets new conditions for firms bidding for power transmission contracts, tipping the scales in favor of local companies.