Nomura calls GE Vernova T&D India and CG Power selloff an ‘overreaction’ after four Chinese firms are cleared to bid for tenders
AI Market Summary
India's finance ministry allowed four China-origin manufacturers with Indian plants to bid in select power equipment tenders for two years, explicitly non-precedent. Nomura argues the sharp selloff in domestic grid-equipment names reflects an overread of competitive risk: historically these firms won only ~9% of relevant PGCIL tenders due to technical qualification, execution track record, servicing and certification barriers. Near-term volatility in listed power equipment peers may persist, but policy impact looks contained.
Impact level
● Low
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● Neutral
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India’s Ministry of Finance has allowed four Chinese manufacturers—TBEA, Northeast Electric, Nanjing and Taikai—to participate in domestic power equipment tenders for two years, while stating the move does not set a precedent. Nomura said the four firms have won only 9% of PGCIL tenders over the past 11 years due to structural barriers such as qualification requirements, local execution track record and certification cycles. The exemption applies only to specified companies that already manufacture in India and does not open the door to Chinese imports. Nomura said recent pullbacks in GE Vernova T&D India and CG Power shares reflect an overreaction and it maintained a “Buy” rating on both.
