| Work Detail |
Weeks after deciding to review around Rs. 3 lakh crore irrigation and capital region contracts awarded by the previous regime, the Andhra Pradesh government headed by YS Jaganmohan Reddy has decided to terminate the Polavaram large irrigation contract awarded to Navayuga Engineering.
In a termination notice served on Navayuga Engineering on Monday, the Andhra government said its decision to pre-close Rs. 2,914.66 crore of works awarded on a nomination basis was based on the report of an expert committee appointed to look at irregularities.
The YSR Congress government of Jaganmohan Reddy has been alleging irregularities in award of irrigation and capital region contracts by the previous government headed by Telugu Desam Party (TDP) president N Chandrababu Naidu and review them.
The government, which claimed that the expert committee found it inappropriate to award the contract to Navayuga on a nomination basis from the original EPC agency, said it would now entrust the balance works to a new firm by calling for fresh tenders.
Of the three works entrusted to Navayuga Engineering— Rs. 1,244.35 crore works of spillway and spill channel and ?918.76 crore works of spillway, spill channel and power house foundation were to be completed by August 26. The third work of ?751.55 crore of main dam package, coffer dams and approach channel were to be completed by10 July next year.
In its termination letter served on Navayuga, the Andhra government said the expert committee opined that part works deleted from the original EPC agency and awarding them to Navayuga on a nomination basis was “not appropriate.” Accordingly, the government told Navayuga that “it is proposed to pre-close and terminate the above LS contract agreement with you as such you are requested to give consent/ representation on mutual consent basis and also to settle the final accounts within 15 days so as to take necessary action by this office.”
Further, the state government has directed Navayuga to “approach the agreement authority at an early date for pre closure of the contract and settle their accounts.”
When contacted, a Navayuga spokesperson refused to comment on the matter.
Rebutting the allegations of irregularities in the Polavaram project, senior TDP leader and former minister KS Jawahar said Navayuga was paid only Rs. 2,700 a cubic metre for concrete works at Polavaram in Andhra as against Rs. 5,700 per cubic metre paid for Kaleshwaram project in Telangana. “Polavaram project suffered years of delays in the past when YS Rajakeshara Reddy (Jaganmohan Reddy’s father) government in 2009 terminated the contract awarded to Madhucon. The latest decision of Jaganmohan Reddy government will further delay the project and adversely affect public interests. Thanks to Navayuga, nearly 71 per cent of Polavaram works were completed at a time when 16 national irrigation projects across the country were progressing at snail’s pace.”
BJP spokesperson Nagothu Ramesh Naidu also opposed the decision of the AP government and said the government failed to establish any irregularities in the project. “The Andhra government has no right to terminate the project. Any such decision will have to be taken by the Polavaram Project Authority or the Central Water Commission.” |
