Over the last several years, China has made inroads into the development of Indian infrastructure. China's focus has been on price control, knowing that it competes against many local vendors. Thus far, China has been competitive, but not dominant in its energy imports into the country of India.
With the recent electrical crisis in India, affecting nearly 600 million people, demand has risen for a longer term solution to serve the massive Indian populous.
The Arun Maira Committee has recommended that energy importers ought to be charged a 14 percent duty. The Committee ruling came after extensive research, but was painfully vague in explaining its rationale, though their recommendation marks a decrease in duty from 20 percent, which may only be a temporary response to the immediacy of the energy crisis inside of India.
While China's involvement in the region may be taking money and jobs away from Indian companies, China's imports have brought a higher quality infrastructure to the region, deploying equipment that operates at a higher level of reliability.
Chinese suppliers such as Dong Fang, Harbin and Shanghai Electric are now delivering equipment to many of the Indian companies that generate their own power like Adani, Jindal and Reliance.
Some in the region are calling for India to subsidize infrastructure development, especially in energy equipment upgrades, while others are furious that the government would invite Chinese companies to import energy and electrical equipment into the country at the new 14 percent rate.
One thing is certain: India faces an immediate energy crisis that requires action. While various parties may argue about the method of response, all agree that something drastic must be done to address the unreliable Indian power grid.
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Edited by Brooke Neuman