Indian Railways cancels Chinese company?s contract worth Rs 470 Cr; Govt to drop Delhi-Meerut Delhi-Meerut RRTS project after SJM?s call to #BoycottChina

The Indian Railways’ Dedicated Freight Corridor Corporation of India Limited (DFCCIL) has decided to terminate the contract with China. The China-based Beijing National Railway Research & Design Institute of Signal & Communication had got the signalling contract worth Rs 471 crore in 2016.

As per the contract, the Chinese company was supposed to complete the signalling and telecommunication work of the 417-km long Kanpur-Deen Dayal Upadhyay section. However, the Chinese firm had only completed 20 per cent of the work in four years.

The decision came close on the heels with Chinese attack in Ladakh region in which 20 Indian soldiers were martyred.

Amid the Chinese aggression in Ladakh, the Ministry of Urban Development may retender Delhi-Meerut RRTS (Regional Rapid Transit System) project as the China-based Shanghai Tunnel Engineering Co Limited (STEC) emerged as the lowest bidder for the construction of a 5.6 km underground section between New Ashok Nagar and Sahibabad of Delhi-Meerut RRTS corridor.

According to reports, five national and multinational bidders including L&T, and Tata Projects Limited, had submitted their bids for the project being managed by the National Capital Region Transport Corporation (NCRTC). STEC bid Rs 1,126.9 crore versus L&T’s Rs 1,170 crore. The Centre had invited bids for the project in November last year. The technical bid was opened on March 16 earlier this year.

The Swadeshi Jagran Manch (SJM) had come up with a strong objection against the tender, urging the government to cancel STEC’s bid and award the project to Indian companies.

In the wake of the Chinese aggression and under mounting pressure from the SJM, the Union Ministry of Urban Development has not finalised the tender. According to the sources, the Urban Development Ministry will review the entire process. The 39 per cent of the project is funded by the Asian Development Bank (ADB).

Even though there are reports that the contract cannot be cancelled as it is against the norms of the ADB, the sources in the Government said that the MoHUA would not award the contract to the Chinese firm. The Ministry may consider retendering the project as there are many Indian companies have already come forward to bid for the project.