Andhra Pradesh Government has issued notification for Reverse Tendering of Polavaram project for the works of Rs. 4,900 crores.
The tender notification includes headworks worth Rs 1,800 crores and Hydel Project of Rs 3,100 crores. The state government finalized the cost 14 percent lesser than 2014 tenders.
In 2014, a private entity had got the tender by quoting a lesser amount than the competitors. The earlier government under CM Chandra Babu Naidu had handed over the works to ‘Navayuga Engineering works’ on the allegations of a slowdown in construction works.
After Jagan Mohan Reddy become the chief minister, he concentrated on irregularities and misuse of funds in the Polavaram Project. Chief Minister Y.S. Jaganmohan Reddy had constituted an expert committee to study the irregularities in the prestigious project.
The committee reported that about Rs. 3,600 crore worth of funds were misused in the Polavaram project.
On the basis of expert’s committee report, the state government decided to go for reverse tendering of the works and cancelled agreement which made earlier with ‘Navayuga’ and asked to stop the work.
Navayuga stopped the construction works and taken away the machinery which is used for it. Even the central government opposed the reverse tendering of Polavaram works as it is a national project.
Polavaram Project Authority CEO RK Jain has written a letter to Special Chief Secretary of Irrigation department of Andhra Pradesh. But the state government did not step back and issued notification for reverse tendering anyway.