Chinese companies to lose Indian Businesses in Telecom, Railway..

Chinese companies to lose Indian Businesses  in Telecom, Railway..

India initiated the first set of actions against Chinese firms as they will lose business in railways and telecom in India, amid Lakdhak clashes which left 20 Indian soldiers losing their lives.

A Chinese engineering major is set to lose a significant contract with the Indian Railways, and the Department of Telecommunications (DoT) has conveyed to state-owned Bharat Sanchar Nigam Ltd (BSNL) not to use Chinese-made equipment in its upgradation, top sources in both sectors said on Thursday.

DOT  has conveyed to BSNL not to use Chinese-made equipment in the upgradation of its 4G facilities,” a source in the government said. “The entire tender will be reworked now,” the source said.

DoT, this official said, was “actively considering” telling private mobile service providers to “reduce their dependence on Chinese made equipment”. “In the current situation, the safety and security of networks built with Chinese equipment will be under scrutiny. The ownership patterns of Huawei and ZTE could become a sticking point in India’s network upgradation plans,” the source said.

Likewise, the process has started to terminate the contract of the Chinese signaling behemoth China Railway Signal and Communication (CRSC) Corp., in the Eastern Dedicated Freight Corridor. CRSC had won the contract in 2016 to install signaling systems in over 400 km of railway lines. This is the only Chinese presence in the mega project, which is now keen to engage Indian players, officials said.

The around Rs-500 crore contract involves designing, supplying, constructing, testing, and commissioning signaling, telecommunications, and associated works for two lines of 413 km in the New Bhaupur-Mughalsarai section in Uttar Pradesh.

As per sources, the Dedicated Freight Corridor Corporation Limited has already applied to the World Bank, which is the funding agency, to initiate the process. It is learned that DFCCIL made up its mind to show the Chinese firm the door after being continuously dissatisfied with the progress of work, and other issues. Officials did not attribute the impending decision to the latest tensions between the two countries.


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