A major shock to a Chinese company, Indian Railways cancels contract of 470 crores

Following the violent clash between India and the Chinese military in Ladakh recently, Chinese companies and products are protesting across the country. After the cancellation of the tender by BSNL, the Chinese company has now lost a big contract with the Indian Railways. Dedicated Freight Corridor Corporation of India (DFCCIL) has cancelled the contract with Beijing National Railway Research and Design Institute of Signal and Communication Group Company Limited.

The cost of this project was Rs 470 crore.

On Wednesday, the Dedicated Freight Corridor Corporation of India, which works under the Ministry of Railways, announced the cancellation of the contract to Beijing National Railway Research and Design Institute of Signal and Communications Group Company Limited. The railways have cited the main reason for the cancellation of the contract. This Chinese company was given the work of signalling and telecom in a 417 km section between Kanpur to Deen Dayal Upadhyay railway section. The cost of this project was Rs 471 crore.

Reason for cancelling the contract:

In a statement issued by the Indian Railways, it said that even after 4 years of awarding the contract to Beijing National Railway Research and Design Institute of Signal and Communications Group Company Limited, only 20 per cent could still work. The work was being done very slowly. The contract was awarded to the Chinese company in 2016. Along with this, a reason has also been given in this notice not to tie up the Chinese company with local agencies.

BSNL also banned the purchase of Chinese equipment

Earlier, the Communications Department of the Government of India had announced that Chinese goods would not be used to upgrade BSNL’s 4G equipment. According to government sources, the ministry has asked BSNL not to use Chinese goods due to security reasons. The department has decided to rework the tender in this regard. The department is also considering private mobile service operators to reduce their dependence on devices made by Chinese companies.

Polity Press Staff

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