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Railways to terminate Chinese company’s contract

Railways to terminate Chinese company's contract due to 'poor progress' (Image for representational Purpose only).

New Delhi, June 18 | The Railways has decided to terminate the contract worth Rs 471 crore to Beijing National Railway Research and Design Institute of Signal and Communication Group in 2016 due to “poor progress” on the signaling and telecommunication work on the Eastern Dedicated Freight Corridor’s 417-km section between Kanpur and Mughalsarai.

They were supposed to complete the work by 2019, but only 20 percent of the work has been completed so far, the Railways said.

Officials, however, said it was a poor performance and inability to deliver the project on time that led to the decision by the implementing agency, the Dedicated Freight Corridor Corporation Limited (DFCCIL), to terminate the contract.

Officials said the DFCCIL has already applied to the World Bank, which is the funding agency, to initiate the process.

Apart from performance issues, officials said that the Chinese company had also shown reluctance in furnishing technical documents, as per the contract agreement, such as logic design of electronic interlocking.

It also did not have engineers or authorized personnel at the project site which was a serious concern, they said.

The company also failed to have tie-ups with local agencies which harmed the physical progress of the work, officials pointed out.

The work entrusted with the Chinese engineering major includes design, construction, supply, testing, and commissioning of signaling, telecommunication, and related works for the 417-km section.

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