Indian manufacturers of air-cooled condenser (ACC) systems have urged the government to review and withdraw an exemption that allows Chinese-linked companies to participate in government tenders for thermal power projects. The companies have approached the Prime Minister's Office (PMO) and key ministries, arguing that the move could hurt domestic manufacturing and weaken the government's push for self-reliance in critical power equipment.

The petition is coming days after the government issued a two-year waiver to four Chinese-linked makers of power equipment operating in India, giving them access to tender for important power projects of the government. The move has been made after a plea by the Ministry of Power in a bid to develop power infrastructure and renewables.

The representatives from the industry stated that Indian companies possess the capability to produce and deliver the air-cooled condensers and should be prioritized by the Government in such projects. They added that permitting Chinese firms to participate in bidding for these contracts might lead to less investment in the manufacturing sector of India and result in poor performance by local factories.

Air-cooled condenser is an important element in thermal power plants, especially in areas where there is no access to water, as it utilizes air for condensation instead of water. Given that India is continuously increasing its thermal power plant capacity to cater to growing electricity demand, manufacturers of ACCs believe that the government should procure them from within India.

The industry has requested the government to reconsider the exemption and ensure that future procurement policies encourage indigenous manufacturing while safeguarding strategic infrastructure from excessive dependence on foreign suppliers.