Amid Anger Against China, Railways Terminates Rs 471 Crore Contract With Beijing Firm

by GoNews Desk 1 month ago Views 1032
Amid Anger Against China, Railways Terminates Rs 4
Following the death of 20 Indian soldiers in the Galwan Valley clash, calls to boycott the Chinese products have begun doing the rounds.

Effigies of Chinese President Xi Jinping have been burnt in many cities amid growing calls to boycott ‘Made-in-China’ products.

Also Read: Will PM Modi Be Able To Handle India's Worsening Relationship With Its Neighbours?

Meanwhile, the Ministry of Railways terminated a Rs 471 crore contract with a Chinese firm.

Indian Railways’ PSU, Dedicated Freight Corridor Corporation of India (DFCCIL) had awarded a contract in 2016 to China’s Beijing National Railway Research and Design Institute of Signal and Communication.

The contract included signalling and telecommunication work to be done at the Kanpur-Deen Dayal Upadhyay 417 km long stretch on the Eastern Dedicated Freight corridor. The World Bank-funded project was valued at Rs 471 crore.

But now the Railways has decided to terminate the contract due to the very poor performance of the company.

Only 20% of the work had been completed “despite the passage of four years”, DFCCIL said in its termination notice. In view of poor progress, it is decided by DFCCIL to terminate this contract, it said.

The company was reluctant to furnish technical documents, the railways PSU said, citing the reasons for the termination of the contract. “Non-availability of the engineers/authorised personnel was a serious issue,” it said.

The Railways has also accused the firm of not agreeing to the agreements in the contract.

According to media reports, the Telecom Ministry has also taken similar steps.

BSNL, MTINL and other private companies have been asked not to use any Chinese equipment, citing security reasons.

The Government is also considering to prohibit private mobile phone operators from using gears supplied by Chinese brands like Huawei and ZTE.

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