The Indian Railway cancelled a contract given to Chinese company. The Indian Railways has decided to terminate a signalling contract worth Rs 471 crore awarded to a Chinese company in 2016.
The contract was given to Chinese company Beijing National Railway Research and Design Institute of Signal and Communication Group. The project was funded by the World Bank. Sources said in case the World Bank is not agreeable to the Indian government’s decision to cancel the contract with the Chinese company, the Indian Railways is ready to fund the project itself.
The project pertained to the signalling and telecommunication work in the 417-km-long Kanpur-Deen Dayal Upadhyaya Junction section of the Dedicated Freight Corridor project, which was awarded to the Chinese firm in 2016. In the intervening four years, the project has seen just 20 per cent progress.
The decision was taken because the Chinese firm had only completed 20 per cent of the work in four years.
Officials said the Chinese company was reluctant to furnish technical documents as per contract agreement. Also, the Chinese firm has not been able to provide engineers/authorised personnel at the site which was a serious constraint.
The development comes after a face-off between India and China in the Ladakh region in which 20 Indian soldiers were killed. India is mulling economic measures to counter Beijing, people familiar with developments said.
Earlier, the Confederation of All India Traders (CAIT), a powerful lobby of 70 million local traders, has decided to step up its nationwide movement against the boycott of Chinese goods.
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