Railways to terminate Chinese company’s contract due to ‘poor progress’

BusinessRailways to terminate Chinese company’s contract due to ‘poor progress’

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Railways to terminate Chinese company’s contract due to ‘poor progress’

New Delhi: In view of the poor progress of work, the Dedicated Freight Corridor of India has decided to terminate the contract with Beijing National Railway Research and Design Institute of Signal and Communication Group Limited. This move of the railways is being linked to the ongoing tension between India and China.

The company got the contract to build the Kanpur-Deen Dayal Upadhyay section. It is about 417 km long corridor. The total cost of this contract was Rs 471 crore. The contract was awarded by China to the Chinese company in June 2016 for Rs 471 crore. Railways said that only 20 per cent of the work has been done in the last four years whereas the work was said to be completed in 2019.

On Wednesday, Prime Minister Modi had warned China that he would have to pay the price for China’s deception and cowardice.

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