The Ministry of Railways on August 21 cancelled a global tender for manufacturing of 44 Vande Bharat trains.
Last month, a Chinese joint venture firm had emerged as the only foreign player among the six contenders for the supply of electrical equipment and other items for the 44 train sets of 16 coaches each.
"Fresh tender will be floated within a week as per Revised Public Procurement (Preference to Make in India) order," it said in the tweet.
Railways, however, did not specify the reason behind the cancellation of the tender.
Following the India-China border standoff, there were calls to bar the Chinese entity (CRRC Corporation) from the tender process.
The Confederation of All India Traders had also written to Railways Minister Piyush Goyal to remove the Chinese company from the bidding process.
The production of the Vande Bharat trains has been mired in controversy even as the first Train 18 was rolled out in record time of 18 months by the Integrated Coach Factory.It was built at a cost of approximately Rs 100 crore and has been providing seamless service on two routes: Delhi-Varanasi and Delhi-Katra.
Tender for manufacturing of 44 nos of semi high speed train sets (Vande Bharat) has been cancelled.
Fresh tender will be floated within a week as per Revised Public Procurement (Preference to Make in India) order.— Ministry of Railways (@RailMinIndia) August 21, 2020
Railway Board Chairman VK Yadav last month had said the 44 Vande Bharat trains will be seen running in the next 2-3 years as planned.Follow our coverage of the coronavirus crisis here