Quick Note - India Capital Goods – grid equipment - Overreaction to narrow exemption

研报英文原文证据摘录

Quick Note - India Capital Goods – grid equipment - Overreaction to narrow exemption

Global Markets Research

India Capital Goods – grid equipment 5 July 2026

EQUITY: CAPITAL GOODS

Overreaction to narrow exemption Research Analysts

India Capital Goods

Umesh Raut - NFASLQuick Note umesh.raut@nomura.com

+91 22 403 74035

Aritra Banerjee - NFASL

On 24June2026, India's Ministry of Finance (Department of Expenditure) exempted four aritra.banerjee@nomura.com

China-origin power equipment manufacturers with existing India-based manufacturing +91 22 672 34609

units - TBEA Energy India, Nanjing Electric India , New Northeast Electric India , and

Taikai Electric India - from the Public Procurement Order No. 4 / GFR Rule 144(xi)

security-clearance requirement, for a period of two years, to bid on government and

public-sector power contracts. The order explicitly states it creates no precedent. Market

players read it as a competitive threat and sold off listed power-equipment stocks such as

- GE Vernova T&D India (GVTD IN, Buy), CG Power (CGPOWER IN, Buy), Hitachi

Energy India (POWERIND IN, Not rated), Siemens Energy India (ENRIN IN, Not rated).

We engaged with multiple industry experts to assess the potential implications of this

policy. Several factors - historical Chinese win-rates in PGCIL-style tenders, wide

dispersion in the four entities' actual manufacturing readiness, the explicit sunset/no-

precedent framing, the fact that the restriction traces back to cybersecurity policy rather

than a documented quality failure, the short window's disincentive to fresh capacity

investment, the structural cushion that diversified and export-oriented incumbents carry,

and the exemption's confinement to conventional transformers/GIS with no read-through