India investigates Chinese interest in its power grid
India: India’s ministry of power has set up a committee to investigate concerns related to the participation of Chinese companies in the country’s fast-growing transmission sector.
Indian companies as well as some security experts are concerned about letting large Chinese firms, which typically have close ties to the Chinese government, manage large inter-state power transmission networks in the country, reports Ultra News.
Two Chinese companies — China Southern Power Grid International and CLP (originally China Light & Power) have bid for large power transmission projects in India so far.
In 2015, CLP bid for four projects, but failed to win any of them. At present, it has submitted bids for another three projects, including the Eastern Region Strengthening Scheme project, in consortium with China Southern Power Grid International.
Under India’s foreign investment laws, any foreign company can own 100% of any company engaged in power transmission business in India.
While this has never been seen as a problem so far, the reported aggressive bidding by the consortium has alarmed both the government and the industry, leading to the setting up of the committee.
Source: Ultra News