India cancelled a tender for making 44 semi high speed “Vande Bharat” trains on Friday, after a Chinese firm made a bid.
The Indian Railways will issue a fresh tender to give preference to companies that ‘Make In India’.
This is a huge setback to a Chinese joint venture, CRRC Pioneer Electric (India) Pvt Ltd, was the only foreign bidder among the six contenders to supply 44 sets of trains.
Indian Government is keen to give an opportunity to domestic firms.
The Indian Railways’ Integral Coach Factory in Chennai had floated the tender on July 10.
The other five bidders were Bharat Heavy Electricals Ltd, Bharat Industries, Sangrur, Electrowaves Electronics Pvt Ltd, Medha Servo Drives Pvt Ltd, and Powernetics Equipment India Pvt Ltd, according to the Railway Ministry.
Tender for manufacturing of 44 nos of semi high speed train sets (Vande Bharat) has been cancelled.
Fresh tender will be floated within a week as per Revised Public Procurement (Preference to Make in India) order.
— Ministry of Railways (@RailMinIndia) August 21, 2020
The tensions between India and China have soured heavily after the recent border tensions in the Ladakh region where India lost 20 soldiers in a deadly faceoff.
Since then there is a growing anti-China sentiment in India. Recently, there was some kind of intervention by the custom departments at various ports over Chinese imports in India.
India has banned use of 59 Chinese apps including TikTok, which had a massive user base in India.