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India-China faceoff: shock to China: REC Power Distribution cancels contract for Chinese company

In a statement RECPDCL said that the allocation of the project was given to the Indian company Techno Electric and Engineer Company Limited. The company hired subcontractors for various parts of the project.

31st July, 2020

New Delhi: REC Power Distribution Limited (RECPDCL), a public sector REC entity, said on Thursday that it had removed the Chinese company from the smart meter project in Jammu and Kashmir. This step has been taken immediately after the government issued an order regarding the import of equipment from 'former reference countries'. In September last year, REC Power Distribution Limited had given the task of installing 1.155 lakh smart meters in Jammu and Kashmir to Techno Electric and Engineering Company Limited.

In a statement RECPDCL said that the allocation of the project was given to the Indian company Techno Electric and Engineer Company Limited. The company hired subcontractors for various parts of the project. The company reviewed all new / existing contracts after mandating the approval of the Ministry of Power prior to the import of any equipment from the previously referenced countries or with which India shares a border. The Ministry gave these orders to avoid cyber attack through Malware / Trojan.

According to the statement, 'after the order is issued, all new or existing contracts are being reviewed and under review a sub-contractor of the Jammu and Kashmir project was found to be a subsidiary of the Chinese company. However, the company is registered in India and also has its manufacturing plant. It says that this sub-contractor has been directed to be removed from the project. The reason for this would be to get approval in advance to maintain the sub-contractor and every equipment supplied would need to be checked. This will cause unnecessary delay in the implementation of the project.

The main contractor has informed RECPDCL that it has removed the sub-contractor. This statement has been released after the allegation of Congress. The party had alleged that the government claims that Chinese companies are being banned from working in India, but the project to install the meter in Jammu and Kashmir has been indirectly awarded to the Chinese company and this company has given Pakistan I have also worked

Although the company did not mention the name of the contractor, but according to the Congress it is Dongfang Electric India. It is the Indian unit of a Chinese power equipment manufacturing company. RECPDCN said that the contract of the project was finalized a year ago and hence it is not appropriate to link it with the events that followed. The company is committed to following the laws of the country literally.

Category: Business

Tags:
Contract
India China Faceoff
RECPDCL
Chinese company

Reported by:
Rachna Kumari