Polavaram: Andhra Pradesh Defies Centre’s Order, Floats Tenders Worth Rs 4900 Cr

The Andhra Pradesh has floated new tenders for Polavaram irrigation project. The bid worth Rs 4,900 crore include a Rs 3,100 crore hydel project and a Rs. 1,800 crore headworks project.

This is apparently in gross violation of the Centre;s directive against re-tendering over concerns of increased costs.

The mega project on the Godavari has been pegged at Rs 58,000 crore, making it one of the most expensive projects undertaken by a state. The cost of the project, however, will be borne by the Centre as it was given national status during the AP Reorganisation Act.

“There is neither enough ground nor any necessity for pre-closure of tenders and retendering of project works. Such a decision will plunge the project into uncertainty,” Polavaram Project Authority CEO RK Jain reportedly wrote in a letter to the Special Chief Secretary in the Andhra irrigation department.

Andhra Chief Minister Jagan Reddy’s YSR Congress cancelled the earlier tender to Navayuga Engineering Limited who had been paid Rs 3,128 crore in violation of norms.

YSR Congress claims to save around 14 per cent with the new re-tendering process and has accused Chandrababu Naidu’s government of misutilising funds related to the project.

Union Jal Shakti Minister Gajendra Singh Shekawat has opposed this re-tendering process in Parliament stating thatit  would delay the project.