Chinese firms seek to buy Indian power, EPC assets
Attracted by India’s infrastructure development programme, state-run Chinese firms, including China Harbour Engineering Co. Ltd and China Datang Corp (CDC), are looking to buy stakes in Indian companies in the engineering, procurement, construction (EPC) and power generation space, respectively to drive their business, two people aware of the Chinese firms’ interest said.
While CDC, one of China’s largest power generation utility, has been attracted by India’s stressed power projects, another government-owned firm, China Southern Power Grid, plans to bid for power transmission projects, said one of the two people cited above.
India’s plan to invest ₹3.96 lakh crore in the current financial year to fund its new integrated infrastructure plans comprising roads, railways, waterways and civil aviation is attracting interest from foreign firms, including Chinese companies.
Local companies have, however, been raising concerns about the participation of Chinese firms in India’s infrastructure projects given their strategic importance. There have been instances in the past when India stopped giving clearances to telecom equipment imported from China over security concerns.
“China Harbour Engineering is looking for acquisition in the