Chinese Power Companies May Be Barred From Indian Market
Soon, Chinese companies will be barred from investing in the power sector in India with a policy on how foreign-backed power projects operate in India coming into play.
According to a report in the Economic Times, India will soon bring about a policy that bars investment in the power transmission sector by countries that don’t allow foreign investment in their own power sectors. Later on, power generation and distribution will also come under the purview of this policy. Officials of the power ministry said that this move will hit Chinese firms the most as China doesn’t allow foreign investment in its grid for security reasons while India allows 100 per cent foreign direct investment (FDI) in its power sector.
The move will help India in many ways, including protection from cyber attacks because the power sector is increasingly software driven with intelligent technology and control systems being used.Sunil Misra, Director General of the Indian Electrical & Electronics Manufacturers’ Association (IEEMA)
Last week, CEO of GE Renewable Energy, Jerome Pecresse referred to the plan as a fair move’. Power minister Piyush Goyal had earlier stated that India won’t allow investments in power from countries where Indian firms are banned.
Discussions have already been held with the commerce ministry. There should be reciprocity in trade. Other countries should not be allowed to exploit the Indian market while they protect their domestic players and space.An official of the power ministry
Sunil Misra, Director General of the Indian Electrical & Electronics Manufacturers’ Association (IEEMA) , said that the principle of reciprocity exists in all diplomatic relations, including economic ones. The memorandum is being drafted and state governments will also be made aware of it shortly.
Domestic players had earlier voiced their concerns as smart grids controlled power supply to crucial installations such as water supply and military bases and allowing Chinese firms to invest in these areas put them at risk. Goyal’s ministry is working on a security management system to avert cyber attacks on the electricity grid in order to prevent any adverse impact on security, governance and the economy of the nation. The system will shortly be extended to other crucial sectors such as banking, transport, telecom and defence.