Double shock to China, India may end contracts involving railways and telecom

‘Very close’, but still very far ‘This is often said for the economic and political relations of India and China. The economic interests of both are connected, but there are also differences.

China is India’s largest trading partner in terms of goods. Although China sells goods to India more and buys less. That is, China earns more from India.

At present, the situation of tension on the border is believed to have an impact on the economic relations as well. In which sectors this impact can occur, the name of Railways and Telecom is coming first.

On Thursday, news was published in Indian media quoting sources that India has made up its mind to give a blow to China as a retaliation.

Reports said that a major contract of Indian Railways could come out of the hands of a large engineering company in China. The Indian Department of Telecommunications has asked BSNL not to use equipment made in China for its 4G upgrade.




Railways canceled the contract
After this, on Thursday, the Railways issued a press release saying that a major contract worth Rs 471 crore given to China has been canceled.

The contract was launched in June 2016 at Beijing National Railway Research and Design Institute of Signal and Communication Group Co. Ltd. Was given to Under this, signaling and telecommunication work was to be done in the 417-km Kanpur-Deen Dayal Upadhyay (DDU) section.

The Dedicated Freight Corridor Corporation of India Limited (DFCCIL) of the Indian Railways has canceled the contract, saying that the Chinese organization has completed only 20 per cent of the work in the last four years and there are many flaws in its way of working.

Huh. However, after this a railway official said that the decision to cancel this contract was taken in April itself.

China has several contracts with Indian Railways
but currently only one contract has been canceled with China, it is being said that many more such contracts can be broken. If we talk about Indian Railways, then many big contracts have been given to Chinese companies.

Metro Coach and Parts Р According to the official website of Invest India, the Chinese company CRRC, which supplies rail transit equipment, has received more than seven orders for supplying metro coaches and parts in India. The company had received orders to supply 112, 76, 69 metro coaches for the Kolkata, Noida and Nagpur metro projects.

Machines for maintenance of trackA contract of about US $ 487,300 for purchase of 129 equipment of machine used for railway track work in May 2019 with the same company for purchase of 29 points crossing and tamping machine, 19 multi purpose tamper for track There was a contract to buy more than one billion dollars.

In April 2019, the contract for the purchase of Points Crossing and Tamping Machine used for railway track was given to Jemac Engineering Machinery Company of China.

The contract was worth more than 10 million dollars. At the same time, the contract for the blast regulating machine, which works to repair railway track and set the ballast of the track, has been given to heavy duty machinery company Hubei, which is worth about six million dollars.

Tires for passenger trains Apart from this, tires of passenger trains are also bought from Chinese companies. Like in 2017 to Taiyuan Heavy Industry Railway Transit Equipment of China to buy about 27.5 thousand tires of passenger train. Ltd. There was a contract of about $ 96 million.




Telecom sector

Talking about the Indian telecom sector, Chinese companies like Khwave, ZTE and ZTT supply equipment to the Indian telecom industry on a large scale.

For them, India is a big market, as India’s telecom industry is the world’s second largest telecom industry with a 1.2 billion subscriber base.

Recently there has been news that India may stop taking telecom supplies from Chinese companies like ZTE. Sources in the Indian media were quoted as saying that the Department of Telecommunications may completely ban telecom supplies from Chinese companies for government telecom BSNL and MTNL.

According to the Economic Times, a person associated with the department said, “It is being decided not to take equipment, parts and parts from Chinese companies for 4G or fourth generation network starting for BSNL and MTNL.”

The current tensions in India China may have an impact on ZTE’s business in India in Shenzhen. India’s state-run telecom is the largest customer of this Chinese company and maintains its six circles in India.

According to the Economic Times, the BSLL board had approved Chinese ZTE and Finnish Nokia to convert 49,300 2G and 3G sites to 4G technology, but the DoT did not approve it.

At the same time, BSNL had launched a new tender in March, whose deadline has now been extended till June 24, which was earlier on May 25. Seven thousand new sites in Delhi and Mumbai have also been included for MTNL.

The industry estimates that currently the equipment market for Indian telecom is about Rs 12,000 crore annually. In which Chinese companies own about a quarter.

The rest of the market is in the hands of Ericsson of Sweden, Nokia of Finland and Samsung of Korea. It is being said that private mobile operators can also be prevented from taking parts from Khwave and ZTE.

The boycott of Chinese goods has sparked fresh tension at the border. The common people are also in favor of giving an economic blow to China by continuously joining this mission.

Apart from this, along with the slogan of local Prime Minister Narendra Modi, there is also a demand that the goods made in the country should be used more and more.

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