NewsIndiaIndian Railways to terminate mega-contract with Chinese firm amid...

Indian Railways to terminate mega-contract with Chinese firm amid border strife

-

In a dramatic development of the India-China conflict, rising as a result of the recent faceoff in Ladakh, Indian Railways is reportedly showing doors to a Chinese firm, engaged for a megaproject.

According to an official document obtained by Indian Express, the Dedicated Freight Corridor Corporation of India Limited (DFCCIL) is terminating a nearly 500-crore contract with M/s Beijing National Railway Research and Design Institute of Signal and Communication Group Co. Limited.

The contract was for designing, supplying, testing signaling, and telecommunication in hundreds of kilometer-long dedicated freight corridors in the Kanpur-Deen Dayal Upadhyay (DDU) corridor, according to the report.

“The Dedicated Freight Corridor Corporation of India (DFCCIL) has decided to terminate Chinese signalling firm contract,” Indian Railways spokesperson told Indian Express.

Railway spokesman: DFCCIL has decided to terminate Chinese signalling firm contract. @IndianExpress

[Beijing National Railway Research & Design Institute of Signal & Communication Group is a solely-owned subsidiary of China Railway Signal & Communication (CRSC) Corp] https://t.co/wAUSlvvsFY pic.twitter.com/aredzDu1oG

— Avishek Dastidar (@avishekgd)
June 18, 2020

According to the IE report, in 2016, China Railway Signal and Communication Corporation (CRSC) won the contract of installing a signal system on over 400kms tracks of the Eastern Dedicated Freight Corridor. They were the only Chinese player in the mega Indian Railways project.

The official documents obtained by IE outlines, so far, only 20% of progress was made by the Chinese firm, despite the project being awarded 4 years back.

While citing the reason for the termination, DICCIL stated:

Lack of improvement in work progress despite meetings at all possible levels.
The reluctance in finishing technical documents like logic design in electronic interlocking.
Unable to finish material progress earnestly
Authorized engineers and personal of the company absent on-site
Stagnant physical work progress owing non-tie-up with local agencies

The 2016 project was funded by the World Bank and “in views of the poor progress it is decided by DICCIL that the contract will be terminated.” the document reads. Reports also suggest BSNL is reworking an old tender to keep Chinese telecommunication-provider out.

What do you think about this news? Let us know your thoughts in comments.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Swiss unanimously votes for same-sex union referendum

GENEVA — In Switzerland, a controversial same-sex marriage referendum has been resoundingly approved by voters of the conservative, rich Alpine...

New Covid surge overwhelms hospitals in parts of US

WASHINGTON, D.C. — According to one of the country's top health officials, the spike in coronavirus cases in the...

China wants effeminate male celebs to man up

WASHINGTON — Macho men are in and effeminate male performers are out as Beijing expands its crackdown on China's entertainment...

Billie Eilish, BTS to perform at climate change concert

Billie Eilish, BTS, and Elton John, among others, will donate their star power to Global Citizen Live on Saturday...

Google faces off EU in court over record $5.1 billion antitrust fine

This week, Google will face the European Commission in a five-day court hearing, appealing a record $5.1 billion fine...

WHO’s Covax misses 2021 target. What went wrong?

The latest supply forecast for Covax – the programme for sharing COVID-19 vaccines around the world – suggests that accelerating vaccination...

Must read

You might also likeRELATED
Recommended to you