India is tightening the rules for companies to enter their energy transmission sector and rigorously controls both power and telecommunications equipment to detect malware.
Chinese companies such as Harbin Electric, Dongfang Electronics, Shanghai Electric and Sifang Automation supply equipment or power distribution networks in 18 cities in India.
Local firms have long struggled against Chinese participation in the energy sector, raising security concerns and saying they do not have reciprocal access to Chinese markets.
With India and China locked in their most serious military clash in three decades on the remote Doklam plateau, across the border in China, the effort to restrain Chinese businesses has garnered more support within the administration of Prime Minister Narendra Modi, Concerned about the possibility of a cyber-attack.
The government of India is considering a report prepared by the Central Authority of Electricity (CEA), which establishes new conditions for companies bidding energy transmission contracts and guides the scales in favor of local companies.
According to an official involved in the drafting of the report that asked not to be named, it says that companies looking to invest in India should have been operating there for at least 10 years, have Indian citizens as top executives and foreign firm employees should have He lived in India for a certain period, the official said.
These companies have to detail where they obtain raw materials for transmission systems and will be prohibited from continuing their operations in India if their materials contain malware.
Although the report makes no direct reference to China, the official said the recommendations are intended to discourage China from furthering India because of security risks.
CEA chairman RK Verma said the possibility of a cyber attack on India’s energy systems was a key consideration when it came to drafting the policy. “Cyber attacks are a challenge,” he told Reuters.
A representative of a Chinese company dedicated to exporting electric power equipment in India told the Chinese state-owned Global Times that the Indian industry has tried to block foreign competition under the garb of security issues.
“Now, as Sino-Indian relations intensify, the old melody ignites again, but in fact, it is not realistic to totally ban energy investment cooperation from China and India. India will pay a huge price for this”, The paper said.
Shanghai Electric, Harbin Electric, Dongfang Electronics and the state of China Southern Power Grid Co Ltd, all involved in India or trying to enter, did not immediately respond to emails seeking comments on proposed investment rules of India.
The Indian government moves simultaneously in the telecommunications sector, demanding higher levels of security in an area dominated by Chinese equipment manufacturers and smartphones.
In a letter reviewed by Reuters, the ministry of electronics and information technology has asked 21 Chinese-language smartphone manufacturers to provide details on “security and safety practices, architectural frameworks, guidelines, standards, etc.” in the country.”
Chinese sellers such as Xiaomi, Lenovo, Oppo, Vivo, and Gionee together account for more than half of India’s $ 10 billion smartphone market. The letter, dated Aug. 12, was also sent to Apple, Samsung Electronics, and local maker Micromax, a ministry source said.
India has also privately raised objections to Chinese company Shanghai Fosun Pharmaceutical Group’s proposed $ 1.3 billion acquisition of Indian pharmaceutical company Gland Pharma, which emerged last month.
“There is a lot of resentment against China for intrusion into our internal affairs, supporting Pakistan’s cross-border terrorism and, on the other hand, representing a huge loss for our trade and industry each year,” said Satish Kumar, Swadesh national president Jagran Manch, which has ties to the ruling BJP.
The group conducts a campaign this year urging Indians not to buy Chinese products to protect the local industry and restore a trade deficit of more than $ 51 billion.
India has used Chinese equipment for the generation and distribution of electricity as it seeks to provide electricity at an affordable price to about 250 million people out of network.
