India to give a ‘power’ blow to Chinese firms soon.

India to give a ‘power’ blow to Chinese firms soon.

India will soon bar Chinese power companies from projects in the power sector on security concerns after a policy that will define new conditions for foreign firms eyeing the multibillion-dollar market in one of the fastest growing major economies in the world.

A formal office memorandum, expected in a month, will insulate the power transmission sector from companies based in countries that do not allow Indian entities in similar projects, a senior power ministry official told ET. The restriction will be gradually extended to the power generation and distribution sectors as well.

Officials said the new reciprocity-based approach would impact Chinese companies that are looking to invest in the Indian electricity transmission sector. China does not approve of overseas investments in its electricity grid for security reasons but India allows 100% foreign direct investment (FDI) in the power sector. Read More….

 

Credit By : The Economics Times

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