Railways Ends Contract with Chinese Company, Cites 'Poor Progress'

The Centre will now be looking at involving Indian players instead, reports said.

Tensions are running high after the violent face-off between India and China in Ladakh’s Galwan Valley that killed at least 20 Indian soldiers.

Amid heightened public sentiment and online furore against China, Dedicated Freight Corridor Corporation of India (DFCCIL), a corporation run by Ministry of Railways, has decided to terminate the contract with Beijing National Railway Research and Design Institute of Signal and Communication Group Co. Ltd.

In its statement, DFCCIL has cited 'poor progress' a reason for this move.

VK Yadav, Chairperson Railway Board, said to ANI, "Contract was awarded in 2016, it had a completion period of 3 years, it should have been completed by Aug 2019 but only 20% work has been done. Therefore, Dedicated Freight Corridor Corporation of India took the decision to terminate the contract."

No Chinese Equipment for 4G Upgrade, BSNL to Be Told: Report

Meanwhile, the telecom department has decided to terminate the involvement of Chinese equipment in the upgradation of the 4G equipment of the state-owned Bharat Sanchar Nigam Limited (BSNL), said media reports.

Sources in the government told NDTV that the Centre has decided to “firmly tell BSNL,” citing security issues.

The tender is also expected to be reworked.

The Centre is reportedly even going to urge private operators to “reduce their dependence on equipment made by Chinese firms,” the report stated.

“In the current situation, the safety and security of networks built with Chinese equipment will be under scrutiny. The ownership patterns of Huawei and ZTE could become a sticking point in India’s network upgradation plans,” a source told The Indian Express.

Other telecom companies, Bharti Airtel and Vodafone Idea have been working with the Chinese firm Huawei.

Former Foreign Secretary Kanwal Sibal told The Indian Express that the scope of India’s “political retaliation should be expanded.” He called for immediate exclusion of Huawei from 5G trials and warned India has to be wary of China’s manoeuvres against India.