India China Clash : Railways Cancels Rs 471 Crores Contract of Chinese Company

China’s betrayal at Galwan valley at the night of 15th June have strained the relationship between India and China. Indian government is determined to teach China a lesson. Today, Indian railways cancelled  the contracts given to Chinese companies in the Dedicated Freight Corridor (DFC). 

The railways contract was awarded to  Beijing National Railway Research & Design Institute of Signal & Communication Group in June 2016 for Signalling & Telecommunication work worth Rs 471 crore in Kanpur-Deen Dayal Upadhyay (DDU) section for 417 kms. The contract was infact funded by World Bank.

india china clash

The cancelling of contract comes after India lost its 20 men in Galwan Valley in a clash with Chinese troops. China too is reported to have lost over 30+ men in the clash. Several reasons were cited by the Railways which led to the cancelling of contract.

  1. Reluctance of the company to furnish the technical documents as per the contract.
  2. Non-availability of contract engineers/authorsed personnel at the site.
  3. Material procurement has not been done earnestly.
  4. No improvement/progress in working despite having several meetings.

Thought the railways have cited the above mentioned reasons, it is clear that Indian government is determined to teach China lesson for hurting India which does more than $80 billion business with it annually.

On Wednesday, Telecom Ministry has ordered BSNL, MTNL and other private companies to ban all Chinese deals and equipment. They have been asked to avoid Chinese equipment in upgradation. Confederation of All India Traders (CAIT) also called for boycott of Chinese goods, listing 450 imported items including cosmetics, bags, toys, furniture, footwear and watches.

Government of India is mulling to cancel more projects awarded to Chinese companies. The project that may get affected also included Delhi-Meerut underground tunnel awarded to Shanghai Tunnel Engineering Co by Narendra Modi led Government. The contract is worth 1126 crores. It is also reported that on 17th June Chinese Mobile Company, Oppo cancelled it live mobile launch event after the boycott call of Chinese brands in India.

Since 15th of June, the situation at the border became more tense. PM Modi in his public address had already assured the nation that lives of martyrs will not go in vain. Since Monday, several level of meetings have been between Government Heads and Defence Chiefs. Meeting are also been held between military heads of India and China to find a common ground and to make sure that the matter does not extend.

India and China had always had a strained relation but since 1975 there has been no loss of lives at the borders. The incident of 15th June may not go well for both the countries. However, it is for time to decide what will be the final outcome of the Monday incident.

Read : India China Clash : What Happens After War?