Dedicated Freight Corridor Corporation of India Ltd, (DFCCIL), a railway PSU, has decided to terminate a Rs 471-crore contract with Beijing National Railway Research & Design Institute on grounds of poor performance.
The decision comes after sudden rise in tensions between India and China after 20 Indian Army personnel were killed in violent clashes with Chinese troops along the Line of Actual Control in Eastern Ladakh.
The project awarded by DFCCIL was for signalling and telecommunication work in Kanpur-Deen Dayal Upadhyay section spanning 417 kilometers. The project, which was awarded in June 2016, is only 20 percent complete, the railway PSU said. The entire cost of the contract was through a loan from the World Bank.
DFCCIL has listed multiple reasons for deciding to terminate the project. These include reluctance of the Chinese company to furnish technical documents, non-availability of engineers and authorised personnel at site, no tie-up with local agencies, glitches in material procurement, and no improvement in progress.