The state-run RailTel’s plan of purchasing network gear from the United Telecoms-Infinera consortium has faced roadblock.

Following the closure of equipment bid six month ago, the telecom arm of railways has sought modification in the contract. As per the contract signed between the two parties, RailTel had placed order for 40-channel optical networks solution based on dense wave division multiplexing technology (DWDM).  Now, it wants to modify the contract and place an order for 40-channel variant.

At the time of finalising the contract, RailTel had signed letter of intent (LoI) and the letter of agreement (LoA). According to United Telecoms any change in the contract thus signed would amount to violation of the LoA and RailTel?s tender guidelines.

Further, United Telecoms, has approached the Railway Board with apprehension over its bank guarantees being encashed in case it fails to meet RailTel’s demand.

Earlier, RailTel had disqualified optical network systems vendors like Ciena Communications, Huawei, ZTE, WRI and Tejas Networks while awarding the contract to United Telecoms-Infinera.