Power Equipment Stocks Slide as Govt Opens Bids to Chinese Firms with Indian Units

Shares of !CG Power and $POWERINDIA i Energy tumbled up to 8% on July 3, dragging other power equipment majors lower, after the Centre allowed four Chinese-linked manufacturers to bid for critical government power transmission projects. GE Vernova T&D, Hitachi Energy, and CG Power emerged among the top midcap losers, with declines of 7-9% in intra-day trade. Thermax, Siemens Energy, BHEL, and smaller names like TD Power Systems also faced selling pressure. The Ministry of Finance order, dated June 24, grants a two-year exemption to TBEA Energy India, Nanjing Electric India, New Northeast Electric India, and Taikai Electric (India). These firms have manufacturing facilities in India and can now participate in tenders for high-voltage transformers, switchgear, and related equipment. The Power Ministry had sought the relaxation in January to support India's massive grid expansion amid rising electricity demand and renewable integration. The move heightens competition for domestic and multinational players in a sector long restricted for Chinese firms since the 2020 border tensions.