The Centre is working to encourage domestic manufacturers developing power sector infrastructure in order to reduce the transmission network’s vulnerability to Chinese equipment in the backdrop of the recent Sino-Indian border tension.

According to knowledgeable government officials, a decision to this effect will be in line with the recommendations of a committee headed by the Central Electricity Authority, which is looking into the use of Chinese equipment in transmission and distribution.

The Committee, which has representatives from the Ministry of Power, Ministry of Commerce, Power Grid Corporation of India and private domestic industry, has been asked to focus on how such equipment could pose a threat to national security.

Domestic power equipment manufacturers have repeatedly taken up with the government the issue of the use of Chinese equipment in the power sector.

They had flagged the vulnerability of India’s transmission networks to hacking after Chinese companies won contracts to develop SCADA (Supervisory Control and Data Acquisition) systems. They had sought a blanket ban on Chinese project developers claiming that these 18 SCADA projects can be remotely manipulated and are susceptible to hacking.

A Committee member told BusinessLine , “The recommendations have been submitted and the Power Ministry is now examining them. They might have to consult the Union Cabinet and the Ministry of External Affairs since the decision will have far-reaching effects.”

Another official aware of the Committee’s recommendations said the domestic players’ demand for a blanket ban on Chinese equipment has not been accepted.

“A blanket ban is not possible for two reasons: it will result in China banning our companies from their projects, and second, it will be struck down by the World Trade Organisation.”

In addition to providing more preferenc to domestic players, the government may invoke the ‘principle of reciprocity’ to keep Chinese companies out of transmission projects in India.

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