While the Indian Army is battling the Chinese on LAC Indian Railways has decided to fight them economically. Doing so a contract worth around INR 470 Crores given to Chinese firms has been canceled. The contract was awarded in 2016 to the firm. Officially Railway has given slow progress as the reason.
Indian Railway’s Dedicated Freight Corridor Corporation of India Limited (DFCCIL) has terminated the contract of Beijing National Railway Research & Design Institute of Signal & Communication. The contract was for the signaling and telecommunication work on the 417-km long Kanpur-Deen Dayal Upadhyay section.
DFCCIL has said that only completed 20 percent of the work has been done in four years by the Chinese firm. “Chinese company was reluctant to furnish technical documents as per contract agreement. Also, the Chinese firm has not been able to provide engineers/authorized personnel at the site which was a serious constraint“, said the officials. “There have been meetings at every level, but no improvement in progress”, said DFCCIL.
It is to be noted that for actual cancelation, DFCCIL needs a non-objection certificate (NOC) from the World Bank. “Hopefully, good sense will prevail (upon China). We have several options and we will not hesitate to exercise them depending on the situation“, said a government official on termination of the contract.
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