New Delhi: The Indian Railways has officially terminated the Rs 471 crore signalling, telecom contract of a Chinese firm stating “poor progress” on the work underway in Eastern Dedicated Freight Corridor’s 417-km section between Kanpur and Mughalsarai. Also Read - Galwan Clash: 'Onus Not on China, Discipline Frontline Troops': China 'Urges' India to Stop 'Provocative Acts'

China’s Beijing National Railway Research and Design Institute of Signal and Communication Group Co. Ltd had signed a roadway contract with Dedicated Freight Corridor Corporation of India (DFCCIL) – a public sector unit under the Railways – to finish the signalling and telecommunication work in the 417 km-long Kanpur-Deen Dayal Upadhyay (DDU) section. Also Read - US Senate Condemns Chinese Aggression on India, Introduces Resolution on Ladakh Tensions

However, last month, the Indian government decided to cancel the project amidst ongoing stiff discussions on the India-China border in Ladakh’s Galwan Valley. Also Read - Here We Go Again! China Claims it Found Coronavirus on Packaging of Imported Frozen Seafood

The Indian Railways PSU stated that the partner company had been reluctant to furnish the necessary documents as per contract and complete the roadway project that has been under construction for nearly 4 years. They were supposed to fully complete the project by 2019, but only 20 per cent of the work has been completed till date, the Railways stated.

On June 15, tensions between India and China escalated following a massive face-off at the Line of Actual Control (LAC) in the disputed Galwan Valley. At least 20 personnel of the Indian Army including a Colonel were martyred, along with a number of Chinese soldiers. On the Chinese side too, nearly 45 soldiers were believed to have been killed. China, however, has not confirmed the reports.