On Thursday, the national transporter announced that due to "poor progress" on the signalling as well as telecommunication work on the Eastern DFC's 417 km section between Kanpur and Mughalsarai, it has decided to terminate the contract of a Chinese firm.
Indian Railways to give a boost to ‘Make in India’ initiative! After cancelling the contract of a Chinese firm in a signalling project, Piyush Goyal-led Indian Railways now eyes to use only made-in-India components and reduce imports to zero. Recently, Chairman of Railway Board, VK Yadav said that mostly domestic players are only allowed in railway tenders, according to a PTI report. Indian Railways, for the past two-three years, has taken various measures to reduce the import content, Yadav said. He further gave an example of Indian Railways’ signalling system, saying that the way they have initiated the tender policy, the Make-in-India component has become more than 70%. According to Yadav, the focus is on exporting products of Indian Railways.
On Thursday, the national transporter announced that due to “poor progress” on the signalling as well as telecommunication work on the Eastern Dedicated Freight Corridor’s 417 km long section between Kanpur and Mughalsarai, it has decided to terminate the contract of a Chinese firm. In the year 2016, the contract worth Rs 471 crore was given by Indian Railways to the Beijing National Railway Research and Design Institute of Signal and Communication Group. According to the national transporter, the company from China was supposed to complete the work by the year 2019, but so far, only 20% of the work has been completed.
The move came after, earlier this week, 20 Indian soldiers were killed in a clash with Chinese troops in Ladakh’s Galwan Valley. However, according to officials quoted in the report, the decision to cancel the contract of the Chinese firm has nothing to do with this. According to the Dedicated Freight Corridor Corporation Limited (DFCCIL), which is executing the Eastern Dedicated Freight Corridor, the contract was cancelled due to the company’s poor performance and inability to deliver the project on time. To initiate the process of cancellation, the DFCCIL has already applied to the funding agency- World Bank, the officials added.