Birla Firm Texmaco Proposes To Take Over Work of Chinese Firm Ousted From Railway Contract
Speaking to The Indian Express, a top company executive said that the offer to step in was “in national interest” but the financials of the balance work would depend on how much of the Chinese signalling system already installed is compatible with other systems, like that of the Japanese
The offer from Texmaco brings in a fresh angle to the whole consideration process, DFCCIL sources said.
The Birlas have evinced interest in completing the unfinished work of the Chinese signalling major which was ousted of a Rs 470-crore railway contract recently.
Texmaco Rail and Engineering Limited, one of the oldest railway engineering firms in India controlled by the KK Birla group, has written to the Dedicated Freight Corridor Corporation Limited (DFCCIL) proposing to take over the work on Monday.
“We understand that the sudden termination of the existing contract will push back the existing schedule by a considerable amount of time,” said MS Manohar, Chief Executive (Projects) of the company representing Kalindee Rail Nirman, an arm of Texmaco which had qualified as the technically-approved, second-highest bidder in the 2016 tender losing the race to China in rates quoted. It had then partnered with Japan’s signalling major Kyosan.
“..in the overall interest of the project and in national interest, we will be willing to explore the possibility of taking over the (contract) package,” the proposal from the company said.
Speaking to The Indian Express, a top company executive said that the offer to step in was “in national interest” but the financials of the balance work would depend on how much of the Chinese signalling system already installed is compatible with other systems, like that of the Japanese. “Texmaco is already carrying out the biggest signalling work in Western Dedicated Freight Corridor from Rewari to Vadodara in partnership with Hitachi,” he said.
The offer from Texmaco brings in a fresh angle to the whole consideration process, DFCCIL sources said.
“No work usually takes place during monsoon. So we want to use this time to complete the formalities to select a new player so that work can start right after the rainy season is over,” said a senior DFCCIL official.
Sources told The Indian Express that the Railways would be funding the balance work of the tender and that there would be a re-bid process to select the new player to finish the job.
The Chinese major after losing the contract has taken DFCCIL to the Delhi High Court against the move.
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