In a swift turn of events, the government is looking to bar Chinese firms from participating in government contracts in the sensitive power sector, especially for procurement of digital products that are prone to malware threats.
Sources in the government said that already global bidding has been barred for public procurement of upto Rs 200 crore, and more specific restrictions may be imposed on use of Chinese gear in the critical power sector.
A blanket ban on use of sensitive digital equipment from China by the power sector may also be looked at but a decision on this is pending, said the source quoted earlier.
The power ministry has already put restrictions on imports as such proposals will now be vetted by it before permission is given. Also, individual digital equipment would be scrutinised for malware before being allowed inside Indian territory.
Besides, power companies have been told to source locally in all categories where domestic capabilities exist.
An indication that firmer action is being looked at to prevent use of Chinese equipment in the power sector, sources said is the postponed move to blacklist Chinese entity PT Hexing Technology from participating in any future government tenders post.