The Railways on Thursday said that it has decided to terminate the contract of a Chinese company due to “poor progress” on the signalling and telecommunication work on Eastern Dedicated Freight Corridor’s 417-km section between Kanpur and Mughalsarai. (Representational)

Indian Railways aims to use only made-in-India components and reduce imports to zero, a top official said on Friday, a day after the transport behemoth decided to cancel the contract of a Chinese firm in a signalling project.

Chairman, Railway Board, V K Yadav also said during an online media briefing, “We are making efforts to see that the products manufactured by the Railways are exported.”

Replying to a question from The Indian Express on whether the Railways was considering banning Chinese companies from participating in its infrastructure biddings, Yadav said mostly only domestic players are allowed in railway tenders. “Mostly we are inviting tenders where only domestic bidders are allowed to participate,” he said.

For the past two-three years, Railways has taken many steps to reduce the import content, he said. “We have implemented the Make in India policy. For example in our signalling system, the way we have initiated the tender policy, our Make-in-India component has become more than 70 per cent.”

“Our effort is to ensure that we use more and more made-in-India products and make the import component zero. We are also making efforts to see that the products manufactured in railways are exported,” Yadav said.

The Railways on Thursday said that it has decided to terminate the contract of a Chinese company due to “poor progress” on the signalling and telecommunication work on Eastern Dedicated Freight Corridor’s 417-km section between Kanpur and Mughalsarai.

Earlier this week, the DFC brass in a meeting with World Bank had stressed the need to terminate this contract, sources confirmed to The Indian Express.

The Railways had given the Rs 471-crore contract to the Beijing National Railway Research and Design Institute of Signal and Communication Group, a subsidiary of China Rail Signal and Communication Corp in 2016. They were supposed to complete the work by 2019, but only 20 per cent of the work has been completed so far, the Railways had said.