CRRC failed to execute ₹855 crore Rolling Stock contract of Bangalore Metro Phase 2

Bengaluru, India (Metro Rail Today): Chinese Rolling Stock firm CRRC Nanjing Puzhen Co. Ltd. has failed to execute the contract worth Rs 854.95 crore which was awarded for the supply of 126 cars with distance-to-go (DTG) technology and 90 cars with communication-based train control (CBTC) technology for Phase 2 of Banglore Metro Rail Project.

CRRC Nanjing Puzhen Co Ltd, is a subsidiary of CRRC Corporation Ltd. Now the Bangalore Metro Rail Corporation Limited (BMRCL) is planning to end the contract and float a fresh tender for procurement of Rolling Stock.

BMRC started sending notices to the company after it couldn’t keep up with the schedule specified. “We were more than willing to work with the company and extended the deadlines repeatedly. However, the company could not come up with a solution to its problems. The work has been delayed by nearly two years now,” said BMRCL.

On December 2, 2019, BMRC awarded the contract worth Rs 854.95 crore to Chinese firm CRRC Nanjing Puzhen Co Ltd to supply the cars. The work order included the supply of 126 cars with distance-to-go (DTG) technology and 90 cars with communication-based train control (CBTC) technology. While DTG trains can operate at 2.5 minutes frequency, the advanced CBTC trains can run at a frequency of 1.5 km, which is crucial on a line with high traffic.

According to terms of tender notice, the successful bidder was two options to execute the order. Either they establish their own factory to produce the cars or partner with a domestic company to ensure timely delivery. Despite fulfilling the conditions, CRRC had moved the Karnataka High Court seeking an injunction to restrain BMRCL from encashing two cheques given as bank guarantees of USD 57,12,162 and Rs 85.49 crore.

“We submitted the status to the court, including the delay caused by the extension of the deadline, in an affidavit. The court dismissed the company’s petition after that. The company has time till the end of May 31 for obtaining approval for either the manufacture of trains locally or tie-up with a company to deliver trains that are made here,” said an official.

"The Phase 2 infrastructure was getting ready and the new cars were necessary to begin operations. The deadline for the Whitefield line is December 2022 and we are confident of meeting it. Work on the other lines is also going on as per the schedule. It will be an infructuous expenditure if we don’t get the trains on time,” said Anjum Parvez, Managing Director, BMRCL.