CGPOWER SURGE UP AS US LIKELY TO BAN CHINESE POWER EQUIPMENT

Shares of Indian transformer and power equipment manufacturers rose in Thursday’s trading session after US President Donald Trump signed an executive order declaring a national emergency and introducing restrictions on certain foreign-made equipment used in the US electricity grid. CG Power led the gains among its peers, climbing as much as 4 percent. GE Vernova rose up to 3 percent, while Transformers and Rectifiers (India) and Hitachi Energy India gained 2.71 percent and 2.13 percent, respectively. The executive order, signed by Trump on Wednesday, is the latest step by Washington to address what it considers potential technology and national security threats linked to China. The move follows the European Commission’s decision earlier this year to restrict Chinese-made inverters from publicly funded energy projects. The White House said foreign-made bulk-power systems could pose an “unusual and extraordinary foreign threat” by creating potential vulnerabilities in critical US infrastructure. However, the order does not amount to a blanket ban on all foreign-made grid equipment. Restrictions will be based on assessments by the US Department of Energy, including whether specific suppliers are linked to covered foreign entities and pose national security risks. The department may also create a list of pre-qualified equipment and vendors. The developments are being viewed positively for Indian power equipment manufacturers, as tighter restrictions on Chinese products could create additional opportunities for non-Chinese suppliers in the US market.