New Delhi: Due to the slow pace of work, the contract of Rs 471 crore related to signalling and telecom of Chinese firm has been cancelled by Indian Railways. This work was to be done on a 417 km long corridor between Kanpur and Mughalsarai. Regarding the matter, the Chinese firm has decided to drag the railway to court. The Chinese company has approached the Delhi High Court.

The matter was heard in the court on Thursday, however, no decision has been taken in this matter yet. The World Bank, which is funding the Eastern Dedicated Freight Corridor, has not yet given a NOC certificate for termination. Railways have decided not to wait for the World Bank and fund the project itself. DFCCIL Managing Director Anurag Sachan said on Friday that, "the letter of cancellation has been issued today."

Sachan further said that the cancellation letter has been issued after sending a 14-day notice to the Beijing National Railway Research and Design Institute of Signal and Communication Group. In 2016, the same group was given the tender of Rs 471 crore. Officials said that the work to pull the Chinese company out of this project started in January 2019 as it could not work within the stipulated time.

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