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India relaxes norms for state-owned BHEL to procure critical equipment from China

NEW DELHI, March 27 (Reuters) - India on Friday relaxed norms to allow state-owned Bharat Heavy Electricals BHEL.NS to procure 21 types of critical equipment from countries with which it shares a land border, a government order showed, paving the way for procurements from China.

Reuters reported last month that India had begun easing its restrictions on buying Chinese equipment imposed after a deadly 2020 border clash, allowing state-run power and coal companies to start limited imports as shortages and project delays mounted.

New Delhi has also eased restrictions on Chinese investments in select sectors to help ease a capital squeeze, marking a significant reset of economic ties after six years of friction.

 (Reporting by Shivangi Acharya; Editing by Jan Harvey)

 ((Shivangi.Acharya@thomsonreuters.com;))

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