Railways scraps deal with Chinese company to install signal network

Railways scraps deal with Chinese company to install signal network

A day after Telecome Ministry asked public sector company BSNL not to use any Chinese-made equipment while upgrading its 4G facilities, a Chinese engineering company has lost a railway contract it won in 2016.

The Chinese company, Beijing National Railway Research & Design Institute of Signal and Communication Group Co Ltd, had secured a contract for designing and installing signal and telecommunication network for the 417 km long dedicated eastern freight railway corridor (DEFRC) segment between Kanpur and Deen Dayal Upadhyay Station in Uttar Pradesh.

They accessed a note prepared by the Ministry of Railways that underlines that even 4 years after the award of the contract, the Chinese company has completed only 20 per cent of the work from which it’s supposed to earn Rs 471 crore, funded by a World Bank loan. And that is why the DDFCIL, the nodal agency for freight corridors, has decided to terminate the contract.

The note states a series of charges against the company. Foremost being that the company has refused to "furnish technical documents on the logic design of electrical interlocking as per the contract agreement".