The 2016 contract was for a signaling project. If the World Bank which is funding the project does not accept the decision, the Railways is ready to self-finance it
Mumbai: Amid continuing tensions between India and China at the Line of Actual Control (LAC) in Ladakh, the Indian Railways has decided to terminate a signaling contract worth Rs 471 crore awarded to a Chinese company in 2016.
The Indian Railway had awarded the contract to Chinese company Beijing National Railway Research and Design Institute of Signal and Communication Group (BNRRDISCG). It was funded by the World Bank so the project can be completed. However, amid tensions between India and China in Ladakh the Indian Railways has decided to self-finance this project.
The project pertained to the signaling and telecommunication work in the 417-km-long Kanpur-Deendayal Upadhyaya Junction (previously identified as Mughalsarai) section of the Dedicated Freight Corridor project, which was awarded to the Chinese firm in 2016. In the past four years the project has seen just 20 per cent progress.
An official who did not wish to be named said the Railways had already decided to terminate the contract, and that the decision had nothing to do with the ongoing conflict at the LAC.
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The Dedicated Freight Corridor Corporation of India Limited (DFCCIL) has some continuous issues with Chinese firms. The Indian Railways listed several issues with the Chinese company in the document terminating the contract.
These included the “reluctance of the company to furnish technical documents, as per contract agreement, such as logic design of electronic interlocking”; “non-availability of their engineers/authorised personnel at site was serious constraint”; “physical work could not progress as they have no tie-up with the local agencies”; and “material procurement, which is an independent activity, has not been done earnestly”.
“There is no improvement in progress despite repeated meetings with them at every possible level,” the document states. “In view of poor progress, it is decided by DFCCIL to terminate this contract.”
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