Chinese firm sues India Railways, On termination of the contract on developing signaling and telecommunication work - TNBC USA

On Friday, Indian Railways showed the exit door to the Chinese company who bagged the contract of 471 Crore in the year 2016 for developing the signaling and communication of the DFC project, Which involves two corridors Eastern DFC and Western DFC.

The managing director of DFCCIL ( Dedicated Freight Corridor Corporation of India), Anurag Sachan informed, the termination was issued after giving a 14 days notice to China’s Beijing National Railway Research & Design Institute of Signal & Communication company Citing the reason of poor progress of the Firm.

Meanwhile after the termination. The Chinese firm has dragged Indian Railways to the court stating the actual reason for the termination is the bitter ties between the two nations, after 20 soldiers killed in a clash with the Chinese troops, last month in Galwan valley.

On the contrary, officials informed the process of termination has already been started in the month of January. When the firm failed to finish the work within a stipulated time period. By then the Chinese had only managed to complete 20% of the Work. In the month of April, The project funding company DFCCIL had approached the World Bank, Informing the decision to terminate the Company from the project.

Mr. Sachen also added, the project already has been delayed immensely due to the poor progress of the Chinese firm and has confirmed the World Bank will fund the work on its own.

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