After Losing Rs 470 Crore Contract, Chinese Firm Moves Delhi High Court Against Indian Railways

The Chinese engineering firm, whose Rs 470 crore signalling contract was terminated recently, has moved the Delhi High Court against Indian Railways, reports Indian Express.

On Friday (17 July) the Piyush Goyal led Railways had terminated the contract of a Chinese company for signalling and telecommunication work on the DFCCIL’s Eastern Dedicated Freight Corridor (DFC) citing poor progress of work.

“We have served the termination letter today. We would like this work to be done by some Indian player. We are drawing fresh specifications for a re-bid to that effect,” said Anurag Sachan, Managing Director of Dedicated Freight Corridor Corporation of India Limited (DFCCIL) was quoted as saying in the report.

Notably, the Chinese firm was tasked to install the signalling system on 417 km stretch of railway lines in the Eastern Dedicated Freight Corridor between New Bhaupur (Kanpur) and Mughalsarai (now Deen Dayal Upadhyay) section.

The contract worth Rs 500 crore was awarded in 2016 but since then the authorities had been dissatisfied with the work of the Chinese firm. As per the report, the firm had just completed about 20 per cent of the work since then.

The Dedicated Freight Corridor Corporation Limited (DFCCL) had also applied to the World Bank (the main project financier), informing them of their decision to terminate the contract of the Chinese company.

Sachan further added that the termination of contract with the Chinese firm was done after a 14-day notice due to poor performance in the progress of project.