Chinese firms retaliate termination by suing Indian Railways
With the banning of many Chinese firms in India, Indian Railways has also joined this movement. They have terminated its Rs. 471 crore worth contract with a Chinese company for the upcoming Eastern Dedicated Freight Corridors (DFC). The work is to be done on a 417km long section between Kanpur and Mughalsarai. This DFC project is handled by the DFCCIL (Dedicated Freight Corridors Corporation of India) Limited.
“We have served the termination letter today. We would like this work to be done by some Indian players. We are drawing fresh specifications for a re-bid to that effect,” said Anurag Sachan, Managing Director of DFCCIL.
In April this year, DFCCIL approached the World Bank, which is funding this DFC project, to inform them of this termination and their decision to fund the works on its own but they have yet to receive the NOC.
The DFCCIL issued the termination letter to China’s Beijing National Railway Research & Design Institute of Signal & Communication company after giving them a 14-day notice. The company grabbed this contract in 2016 and since then, has only completed 20% of the work which led to their termination.
However, the Chinese firm is viewing this development as a result of the tensions between India and China due to its timing. The Chinese company has taken DFCCIL to the court to prevent this move