In a blow to China, the Indian Railways has dismissed a joint bid of Beijing based CRRC Yongji Electric Ltd and India’s Pioneer Fil-Med Ltd for the 1,800 crores worth manufacturing of 44 Vande Bharat trainsets,Times of India reports.
As per the law, companies that have beneficial ownership in countries sharing land borders with India are mandated to get registered before they participate in public procurement contracts.
Though CRRC-Pioneer Electric India had applied for the same and had even submitted their bids earlier this year, the continuing standoff at the Line of Actual Control (LAC) attracted criticism, leading to the tender getting cancelled on “technical ground”.
To ensure such situation do not accor again the ministry altered the conditions for tender and fixed a minimum local content of 75 per cent to convert it into an indigenous tender.
Eventually offers made by BHEL and Medha Servo Drives are the only one that fulfils the criteria.