Indian Railways Boycotts China, Cancels Chinese Company’s Contract

Railways take decision amid India China border dispute – Ends contract with Chinese Company, Beijing National Railway Research

The Government of India has made another major decision amid the ongoing border dispute and tension between India and China. This time the Railway Ministry has taken the decision.

The demand of boycotting China by the large group of people in India is increasing and now the railway venture Dedicated Freight Corridor Corporation Limited has cancelled the ongoing contract with the Chinese company, Beijing National Railway Research and Design Institute of Signal and Communication Company Limited.

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The Chinese company was doing the work of signalling between Kanpur to Deen Dayal Upadhyay station

This Chinese company was given the job of signalling and telecom in the 417 km section between Kanpur to Deen Dayal Upadhyay railway section. This work was worth Rs 471 crore. In June 2016, this work was given to this Chinese firm under a contract. But according to the railways, even after four years of awarding the contract, only 20 per cent of the work was done by the Chinese company. The work was being completed very slowly.

Use of Chinese equipment in the telecom sector of India has been prohibited recently

On June 17, Prime Minister Modi had warned China that he would have to pay the price of China’s fraud and cowardice. After this, the Ministry of Communications for the first time not only prohibited the use of equipment connected with the communication of the Chinese company but also issued instructions to cancel the tender received by the Chinese company. Apart from this, private service providers were also instructed to remove Chinese equipment from use. Two Chinese companies were specifically targeted. The reason behind this is also believed to be the accusations of data theft and spying through these companies.

The negligent attitude of the Chinese firm

Now the Railways has also cancelled the contract of 471 crores of the Chinese company. This action by the Indian Railways is being connected to the tension between India and China. Also, the contractual work was being done at a very slow pace. A satisfactory response was not received on-demand from the corporation. Due to this, the railways cancelled the contract of the Chinese firm. However, the Railways has cited the negligent attitude of the Chinese firm as the reason for the cancellation of the contract.