Amid border tension, Railways terminates contract with Chinese firm citing ‘poor progress’

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By: Express Web Desk | New Delhi | Updated: June 18, 2020 5:19:17 pm

According to the report, decks were also being cleared to terminate the contract of the Chinese signalling behemoth China Railway Signal and Communication (CRSC) Corp., in the Eastern Dedicated Freight Corridor.

Amid heightened tensions with China after the killing of 20 Indian soldiers at Galwan valley in Ladakh, the Indian Railways Thursday terminated the contract it had granted to a Chinese firm for the signalling and telecommunication work on the 447-km Kanpur-Deen Dayal Upadhyay stretch.

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

The Beijing National Railway Research & Design Institute of Signal & Communication Group was given the contract worth Rs 471 crore, funding of which was done through the World Bank. The contract was awarded in June 2016.

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

The Indian Express had earlier reported that a Chinese engineering major is set to lose a significant contract with the Indian Railways, and the Department of Telecommunications (DoT) has conveyed to state-owned Bharat Sanchar Nigam Ltd (BSNL) not to use Chinese-made equipment in its upgradation.

According to the report, decks were also being cleared to terminate the contract of the Chinese signalling behemoth China Railway Signal and Communication (CRSC) Corp., in the Eastern Dedicated Freight Corridor. CRSC had won the contract in 2016 to install signalling systems in over 400 km of railway lines. This is the only Chinese presence in the mega project, which is now keen to engage Indian players, officials said.

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