Chinese firm’s Rs 470 cr contract terminated by Railways after India - China Ladakh faceoff

The Indian Railways’ Dedicated Freight Corridor Corporation of India Limited (DFCCIL) has called off their contract with China. The signalling contract was given to Beijing National Railway Research & Design Institute of Signal & Communication in the year 2016. The project was estimated to be somewhere around 471 crores. The decision was taken because the Chinese firm had only completed 20 per cent of the work in four years. 

Officials revealed that the Chinese company was reluctant to furnish technical documents as per contract agreement. The other reason which is stated is the lack of proper professionals on the working site. The development comes after a face-off between India and China in the Ladakh region in which 20 Indian soldiers were killed. According to reports, the Chinese side also suffered casualties during the physical clash. Sources revealed that an Indian colonel was attacked by Chinese Army personnel with iron rods without any provocation leading to a strong retaliation from the Indian side.