L&T, BHEL drop on report India plans to scrap curbs on Chinese firms bidding for government contracts

Bharat Heavy Electricals

08/01/2026 10:35

** Shares of Bharat Heavy Electricals BHEL.NS slumped 10.5% while infrastructure behemoth Larsen & Toubro LART.NS ended 3.1% lower at market close on Thursday

** India's finance ministry plans to scrap five-year-old restrictions on Chinese firms bidding for government contracts, Reuters reports, citing two sources

** The curbs, imposed in 2020 after a deadly clash between the neighboring countries' troops, required Chinese bidders to register with an Indian government committee and obtain political and security clearances

** Government projects make up a significant share of the order books for companies such as BHEL and LART

** In 2025, BHEL gained 25% while L&T rose 13%

 (Reporting by Nishit Navin in Bengaluru)

 ((nishit.navin@thomsonreuters.com))