India-China: Ban on power equipment imports, India seeks to halt $2.8 Billion worth supplies from China

New Delhi: Union Power and Renewable Energy Minister Raj Kumar Singh on Friday urged state governments to not use Chinese equipment and technology in the strategic power sector.

This announcement comes amid the simmering border tensions between the two neighbors.

 “India will stop power equipment imports from China,” power minister said

Prime Minister Narendra Modi is asking companies to look for Indian suppliers to spur economic recovery and create jobs after restrictions to contain coronavirus halted businesses.

To check imports of renewable power equipment, the country plans tariff barriers instead of a complete ban on any country, Singh said. Meanwhile, China accounts for about 80% of India’s solar module supplies.

Of ₹71,000 crore of power equipment imported in 2018-19 in the conventional space, Chinese equipment accounted for nearly a third or around ₹20,000 crore. India is looking at enabling manufacturing all power sector equipment in India over the next three years.

Citing security concerns as well as cyber threats, another reason why the country is choosing its suppliers carefully.

“Imports from other countries will be inspected for malware.” Singh said. “Power systems are sensitive systems and they’re vulnerable to cyber attacks.”