Indian firms have been demanding that the government stop power generation and transmission companies from placing orders with Chinese companies for cyber security reasons

New Delhi: Domestic electrical gear makers have urged the government to utilise the COVID-19 crisis to ban Chinese firms from critical power equipment contracts citing security reasons, on the lines of an executive order issued by the United States.

An executive order was moved by the White House last week to block and mitigate transactions involving bulk-power system electric equipment manufactured or supplied by a “foreign adversary”.

While other nations are contemplating protecting local firms from Chinese dumping without violating trade norms, the US is the first one to utilise the public sentiment to oust China-made equipment from its electric grid.

Indian firms have been demanding that the government stop power generation and transmission companies from placing orders with Chinese companies for cyber security reasons.


The US invoked the International Emergency Economic Powers Act and the National Emergencies Act to issue the executive order. The domestic gear makers said such options are available to India too. The industry has been critical of the government awarding contracts of smart meters, supervisory control and data acquisition systems, and transmission and distribution components to Chinese companies. Recently, Tamil Nadu recognised two equipment testing labs in China, attracting criticism from local gear makers.

“The bulk-power system is a target of those seeking to commit malicious acts against the United States and its people, including malicious cyber activities, because a successful attack on our bulk-power system would present significant risks to our economy, human health and safety, and would render the United States less capable of acting in defence of itself and its allies,” the US executive order said.

Indian Electrical & Electronics Manufacturers’ Association (IEEMA) director general Sunil Misra said the electrical grid is the most critical component of national security and any lapse can bring the nation to grinding halt. “We don’t give away defence contracts to China. Electric grid is even more critical in nature than defence contracts. India can bar Chinese firms from critical components on reciprocity basis or security reasons. Right now sentiments are also against China,” he said.

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