Modi Govt Bans $2.8 Billion Of Power Gear Imports From China

NEW DELHI: The Ministry of Power on Friday announced that India will stop power supply systems and networks imports from China citing security and cyber threats amid rising tensions between India and China. The order issued by the Power Ministry states that, "All equipment, components, and parts imported for use in power supply systems and networks shall be reviewed in the country for any kind of embedded malware, Trojans or cyber threats, and for adherence with Indian standards."

Power supply equipment includes devices used in power transmission and distribution systems, such as transmission poles, transformers, wires, metres, and motors. As the power infrastructure is increasingly powered by information technology and artificial intelligence, there will be more chances for the cyber attacks. Power Minister Rajkumar Singh said that India can manufacture all kinds of electrical equipment. He further added that "China accounted for Rs 210 billion ($2.8 billion) of a total of Rs 710 billion for non-renewable energy projects imported in the year ended March 2019."

After Mr. Singh's comments, the shares of state-run Bharat Heavy Electricals Ltd, the largest manufacturer of power equipment in the world, have risen to 5.3 percent. Prime Minister Narendra Modi is asking the firms to look for Indian suppliers to boost economic recovery and build employment following restrictions to contain the coronavirus halted businesses. Addressing the states on Friday, R K Singh, Union minister of state for power, new and renewable energy, said that the “The power system is vulnerable to malware attacks, which can shut down our communications, database, and defence systems. That is why all imports need to be inspected and a few countries need to be banned.”

He further quoted that, "We cannot tolerate a country that transgresses into our territory. We create jobs in that country when we can manufacture it (equipment) ourselves. We have decided not to buy from prior-reference countries. Any equipment imported will need permission. And we will not give permission for equipment from China and Pakistan.”

Mr. Singh said that China accounts for 80% of the country's solar module supplies. So, India is choosing its suppliers carefully as power systems are sensitive systems and they are vulnerable to cyber-attacks.