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Railways To Terminate Contract With Chinese Firm Amid India-China Tensions

Mumbai: Despite on-going tensions with China at the Line of Actual Control (LAC), Indian Railways has decided to cancel a Rs 471 worth contract given to a Chinese company in 2016.

Briefing about why the contract will be cancelled, Dedicated Freight Corridor Corporation of India Limited (DFCCIL) said that even after four years of intervening Chinese company just did 20 per cent of the work.

As the contract gave the Chinese company Beijing National Railway Research and Design Institute of Signal and Communication Group is funded by the World Bank. Indian railways said that it will fund the project itself if the world bank doesn’t agree with governments decision.

The Chinese company had to pertain signalling and telecommunications work in a total of 417 km long Kanpur- Deen Dayal Upadhyay Junction section.

“We had already approached the World Bank seeking their NOC for the termination,” Sachan said. “We have not heard from them, but if there is no reply until the end of June, we will unilaterally terminate the contract, and India will fund the project on its own,” said Anurag Sachan, managing director of DFCCIL.

According to some sources, the decision has nothing to do with the conflict at LAC and railways had already decided to terminate the contract.

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