India rejects two Chinese companies’ bids on development of Delhi-Mumbai expressway.

India has rejected bids of two Chinese companies that emerged as the lowest bidders for developing two stretches of the upcoming Delhi-Mumbai expressway, citing security concerns.

The ministry of highways and road transport will not award these projects, entailing a cost of about Rs. 800 crore each, to the subsidiaries of Jiangxi Construction Engineering Corporation, a government official told ET.

“We have denied letters of award to two Chinese companies for executing stretches on the Delhi-Mumbai expressway,” the official said, adding that there are security clearance issues at present. The government will now offer the contracts to the second-lowest bidders and will award it to them if they match the rates offered by the Chinese companies, the official said.

Road transport and highways minister Nitin Gadkari had said recently that Chinese companies would be barred from highway.

ET