The Federal government's decision to scupper a bid from Chinese state-owned investors for majority control of one of Australia's biggest power concerns could leave key NSW infrastructure projects fiscally stranded.

Beijing-controlled China State Grid and Hong Kong listed Cheung Kong Infrastructure planned to enter a $10 billion deal to obtain a 50.4 per cent stake in Ausgrid under a 99 year lease. State-owned utility giant Ausgrid owns and oversees the electrical distribution networks that supply power to an estimated 1.6 million customers across Sydney and…