NEW DELHI, July 31: REC Ltd’s power distribution arm, RECPDCL, has directed the cancelation of an order to Dongfang Electric India, an Indian unit of Chinese power equipment manufacturer’s, in order to avoid delays due to gear testing as required by a government order.
In September 2019 RECPDCL granted Techno Electric and Engineering Co Ltd a venture to build 1,155 lakh smart meters in Jammu and Kashmir. The smart metering venture primarily has four components-meter, MDM, system integrator and RF correspondence. Techno Electric and all its subcontractors for different parts are Indian registered organizations, an official statement said.
The July 2 order of the power ministry has been kept in view for the further steps regarding vulnerabilities in the power supply system and network which may occur due to possible cyber-attacks through malware/ trojans etc. embedded in imported equipment.
The request commands earlier authorization of the government for any import of equipment from “prior reference” nations alongside testing of the same in affirmed and certified labs.
“After this order was issued, all new/ongoing contracts are being reviewed and as part of that review one of the sub-contractors of the above project, which though a company registered in India and having manufacturing facilities in India, was found to be a subsidiary of a Chinese company. The said sub-contractor was directed to be removed from the project since the continuation of the subcontractor would have led to the requirements of taking prior permission and testing of every equipment supplied thus leading to unacceptable delays in execution,” RECPDCL said.
The principal contractor has informed RECPDCL that they have removed that sub-contractor. The award of this contract was finalized around a year back and therefore linking it to a subsequent development is wrong and smacks of bias. “The company is committed to follow the law of the land in letter and spirit,” RECPDCL said.