Exit Polavaram Project: AP To Navayuga

The YS Jaganmohan Reddy Government has decided to look for new tenders for Polavaram Project. The decision to take away the project from Navayuga Engineering Company Limited was made because of various parameters and loopholes noticed in the execution of the project. The project was started in the former TDP government’s rule.

Large scale irregularities in the execution of the project came into a highlight. From transfer of the contract from original bidder Transtroy Limited to Navayuga and granting mobilization advance, the process was not proper. The YSR Government created a community of retired engineers and asked them to go through the deals and create a report.

The committee reported that irregularities were seen in the initial release of the funds to the contractor. Converting the Engineering Procurement and Construction mode to Lump-sum mode was also faulty. Even several clauses of the agreement were relaxed for Navayuga.

After the inputs from the expert committee, the government has directed to suspend all the contracts associated with the Polavaram project. The decision to cancel the project was taken in view of cleaning the system. The central government has to accept the decision of the state government as the Polavaram project was funded by the Union government.