The most interesting part of the story is this:
The power ministry, in a 24 July letter to the coal ministry, seen by Mint, said, “...Ministry of Power recommends coal linkage for such projects (less than 200MW) subject to the condition that the main plant equipment for such projects will be ordered from reputed domestic manufacturers.”
The article claims that this is to stop Chinese entry in the energy market in India. While it makes sense some way to stop China's entry in such critical sectors as energy, but do our domestic manufacturers have the technology know how and capacity to meet India's growing energry requirements?
To the best of my knowledge there are only 2-3 domestic players in this area: BHEL, L&T and Suzlon. Now if these domestic manufacturers are competitive on price, quality and delivery promises as international one, why the need for such protection? When our companies are trying to compete the global markets does it make sense to have restrictions of these kind on our domestic market?
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