Indian Railways Cancel Chinese Contract Worth Rs 471 Crore: Has Trade War Started Between India-China?

Indian Railways is now following in the footsteps of the Telecom Ministry and announced that their contract with China, which was of Rs. 470 crore, will now be terminated. 

there is news that this decision has been taken because the Chinese firm has been able to complete only 20% of the work in 4 years.

Find out all the details about the railways discontinuing their contract with China right here! 

Indian Railways Terminates Contract With China Worth Rs. 471 Crore; Here’s Why

Taking a similar decision is The Indian Railways’ Dedicated Freight Corridor Corporation of India Limited (DFCCIL) who has announced that it will be terminating its signaling contract that was made in the year 2016. This contract was given to Beijing National Railway Research & Design Institute of Signal & Communication.

The company was given the responsibility to complete the signaling and telecommunication in the 417 km long Kanpur-Deen Dayal Upadhyay section. The contract was worth Rs. 471 crore was canceled as the Chinese company was hesitant to produce technical documents as required by the contract. Additionally, no engineers or authorized personnel were provided at the site by the Chinese form which is quite a serious matter. 

India To Fund Signalling Contract On Its Own; Chinese Firm Unable To Keep Up

However, an official who is close to the development has revealed that the Indian railways had already decided to end the contract prior to the ongoing war at the border.

Anurag Sachan, managing director of the Dedicated Freight Corridor Corporation of India Limited (DFCCIL) confirmed the news about the Chinese firm not keeping up with the work in recent years. 

He said, “We had already approached the World Bank seeking their NOC for the termination. We have not heard from them, but if there is no reply until the end of June, we will unilaterally terminate the contract, and India will fund the project on its own.”

It was yesterday that the Telecom Ministry announced that BSNL, MTNL, and other private companies will not be using any Chinese equipment, however, this decision was taken by the Telecom Ministry because of the ongoing tensions at the border.