RECPDCL orders cancellation of contract to Chinese sub-contractors

REC Power Distribution Company Limited (RECPDCL) has directed removal of to a Chinese sub-contractor in a smart metering project being implemented in Jammu and Kashmir.

RECPDCL had awarded a project for installation of 115,500 smart meters in Jammu & Kashmir to Techno Electric & Engineering Company Limited (TEECL) in September 2019. The project has four components — meter, RF communication, meter data management and system integration. TEECL and all its sub-contractors for different components are companies registered in India. However, following MoP’s order regarding testing of imported power equipment, all new/ongoing contracts were reviewed wherein it was found that one of the sub-contractors of the smart metering project was a subsidiary of a Chinese company (though it has manufacturing facility in India). This sub-contractor has been removed from the project by the principal contractor (TEECL) as directed by RECPDCL as it would have led to testing of every equipment supplied and subsequent delays.

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