Shares of Bharat Heavy Electricals Ltd. (BHEL), along with other capital goods names, ABB India Ltd., Siemens India Ltd., along with Larsen & Toubro Ltd. (L&T) fell up to 12% on Thursday, January 8.This is the biggest single-day drop that the BHEL stock has seen since June 4, 2024, when the stock had declined 21%. That day happened to be the day of the Lok Sabha election results.
According to a Reuters report citing sources, India’s Finance Ministry is planning to scrap a five-year-old restriction on Chinese firms bidding for Government Contracts.
These curbs, that were imposed in 2020 after the Galwan border clash, required Chinese bidders to register with a government committee and obtain political and security clearance.The report goes on to state that curbs on imports from China of equipment for the power sector have hindered India’s plans to raise its thermal power capacity to nearly 307 GW over the next decade.
According to a Reuters report citing sources, India’s Finance Ministry is planning to scrap a five-year-old restriction on Chinese firms bidding for Government Contracts.
These curbs, that were imposed in 2020 after the Galwan border clash, required Chinese bidders to register with a government committee and obtain political and security clearance.The report goes on to state that curbs on imports from China of equipment for the power sector have hindered India’s plans to raise its thermal power capacity to nearly 307 GW over the next decade.
A high-level committee headed by former cabinet secretary Rajiv Gauba has also recommended easing these restrictions, as per the report.
CNBC-TV18 has not managed to verify the story independently.
Shares of BHEL ended with losses of 9% seeing a modest intraday recovery, while shares of L&T ended lower by 2.7%, while those of ABB India and Siemens India ended with losses of 5% and 4.2% respectively.
