MUMBAI:Town planning authority MMRDA has scrapped the bidding process for sourcing 10 rakes for the Jacob Circle-Wadala-Chembur monorail project wherein two Chinese firms had expressed their interest to supply the rakes, saying the companies were "dictating" terms. The size of the contract is roughly ₹500 crore.

The decision has come at a time when the clamour for boycott of Chinese products growing louder, following China's attack on the Indian soldiers at Galwan Valley in Ladakh which left 20 Indian Army personnel dead and many others severely injured.

According to the Mumbai Metropolitan Region Development Authority (MMRDA), the decision to scrap the tender process was taken as the Chinese firms were "dictating" the authority to change its terms.

"In the situation that the two Chinese companies are dictating us to change tender conditions, MMRDA administration has decided to search for technology partners in India and develop it in India. As we do not require large quantities, it is possible for Indian companies to manufacture and supply in less time," metropolitan commissioner R A Rajeev said in a statement.

Last year, the MMRDA had first invited global tender to design, manufacture and supply 10 rakes and received bids from China's CRRC Corporation (China Rail Road Corporation), a part of the state-owned enterprise CRRC Group, and BYD (Build Your Dream), as well as from an American firm.

However, the authority later cancelled the tender in January this year, when the bidders were seeking changes to the terms.