The Chinese companies that are regarded as blacklisted in their country, won several contracts to aid the Indian power transmission sector by supplying equipment. This gave stiff competition to the local firms by beating them on price.
According to the local companies, their rivals sell substandard products. The vendors from the neighboring countries vanished from the Indian equipment markets and strengthened their presence in distribution and transmission gear contracts.
An industry source said that a significant proportion of the current Chinese suppliers have been marked as blacklisted in their own country. This is because of some issues including inability to deliver on time and quality issues, thereby causing project delays. The Chinese players aggressive in the segment of the Indian gas-insulated substation are facing disqualification and thus have been blacklisted in China.
Several years ago, Chinese companies were accused of underbidding the Indian power generation equipment suppliers, such as Bharat Heavy Electricals Ltd.
The gas-insulated substation is manufactured by various hi-end companies in India such as Siemens, ABB and Alstom T&D India. These companies are facing stiff competition from the cheaper South Korean and Chinese imports.
India’s imports (between 2005-06 and 2013-14), increased 19.73% to 58,354 crore and China’s share in the imports rose by approximately 40% in the period 2013-14. Due to cheaper imports, the local sector of distribution equipment manufacturing is operating at less capacity, i.e. less than 70% of its capacity.