18 Jun 2020, 03:50 pm By Rohit Sindhu
Indo-China Trade War? India terminates contract of this Chinese Company

Taking an action against Chinese company Dedicated Freight Corridor Corporation India Ltd (DFCCIL) terminates contract with the company. The decision to terminate contract with Beijing National Railway Research and Design Institute of Signal and Communication Group a Chinese company, has been taken over poor progress on Thursday. The decision from Indian side comes just within a week of violent clash with PLA Soldiers in Galwan Valley in Ladakh.

According to News Agency ANI "In view of poor progress, it is decided by Dedicated Freight Corridor Corporation of India (DFCCIL) to terminate the contract with Beijing National Railway Research and Design Institute of Signal and Communication Group Co. Ltd". Indian side releasing the progress report of Chinese BNRDISC Group Co Ltd finishes contract signed in 2016.

Recently sources from Indian Government hinted over the possible steps from Indian side, after martyrdom of 20 Indian Soldiers at LAC on Monday. The decision from Indian side hints an initiative to plug a limited scale trade war with China, an expert said.

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The progress report of China based Railway Research & Design Institute of Signal and Communication Group stated that the contract shown unsatisfactory report. The poor report card is elaborated with data on scope of work & progress, issues and status.

Here is Brief report on System awarded to M/S Beijing National Railway Research & Design Institute of Signal & Communication Group Co Ltd" shared by DFCCIL India.

The Contract with Chinese company was of 471 Crores INR and funding for the project was through World Bank. The Infrastructure designing and development contract was signed in 2016. But report states that there was only 20% progress has been made by Chinese company in past four years. On Thursday June 18, 2020 DFFCIL reviewing the progress report decided to terminate the contract with Chinese company.