Hitachi Energy, GE Vernova, Siemens Energy, other power equipment stocks crash up to 10%. Here’s why

The shares of power companies like Hitachi Energy, GE Vernova T&D India and others crashed up to 10% on Friday morning despite the overall market uptrend, after media reports said that the government has granted two-year exemption to four Chinese electrical equipment companies to participate in government tenders for critical power projects.

Hitachi Energy India shares tumbled nearly 8% to Rs 31,150 apiece, while those of GE Vernova T&D India crashed around 10% to Rs 4,361 apiece. Siemens Energy India shares dropped over 6%, while CG Power and Industrial Solutions plunged over 7%. Cummins India shares fell 2% on Friday morning.

Chinese power equipment suppliers to participate in govt tenders

The government granted exemptions to four Chinese companies, namely TBEA Energy, Nanjing ‌Electric India, ⁠New ⁠Northeast Electric India and Taikai Electric (India), for a period of two years, allowing them to supply electrical equipment in India and participate in the tenders, the order from India’s Ministry of Finance dated June 24 and reviewed by Reuters said. The reported government notification highlighted that the exemption should not be treated as a precedent for other companies.

The Economic Times couldn’t independently verify the report.

Earlier this year, Reuters reported citing government officials that India has begun easing its restrictions on buying Chinese equipment after a deadly 2020 border clash, allowing state-run power and coal companies to start limited imports as shortages and project delays mount.

Following the 2020 clash, Indian government mandated that Chinese bidders must register with a government panel and secure political and security clearances before competing for any state contract. However, the report had then said that India has now begun to allow state-run entities to procure a power-transmission component from China without ⁠government approval.

Also Read | India eases curbs on Chinese equipment imports for power, coal as projects delayed

India-China ties

This comes at a time when India and China are beginning to rebuild their commercial ties. China has overtaken the US to emerge as India’s largest trading partner in 2025-26, with bilateral trade reaching $151.1 billion, while the country’s trade deficit with Beijing widened to an all-time high of $112.16 billion during the period, according to the Indian Commerce Ministry data.

India’s exports to China rose 36.66% to $19.47 billion during the last fiscal year, while imports increased 16% to $131.63 billion. The trade deficit swelled to an all-time high of $112.6 billion in 2025-26 as against $99.2 billion in 2024-25.Also Read | Indian envoy holds talks with senior Chinese commerce ministry official on trade ties

(With inputs from agencies)

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