Jagan ousts Andhra’s Polavaram project contractor hired by rival Naidu govt
The committee, which submitted a 43-page report to the government on July 23, pointed out gross violations of tender norms under Engineering, Procurement and Construction (EPC) contracts inked for Polavaram project.Updated: Aug 01, 2019, 20:51 IST
The construction of Polavaram irrigation project on Godavari river in Andhra Pradesh came to a grinding halt with the YSR Congress government headed by Y S Jagan Mohan Reddy terminating the project contract given to construction major Navayuga Engineering Company Limited by the previous Telugu Desam Party government on Thursday.
“You are requested to give consent/representation on mutual consent basis and also to settle the final accounts within 15 days,” read an excerpt from a July 29 termination notice sent to the company by the Chief Engineer of the Polavaram project head works unit, B Sudhakar Babu.
The state government decided to go in for fresh tenders to complete the remaining work, as per the recommendation by an eight-member expert committee constituted on June 14 to examine the processes followed by the previous TDP government in tendering, launching and executing engineering works for Polavaram project.
The committee, which submitted a 43-page report to the government on July 23, pointed out gross violations of tender norms under Engineering, Procurement and Construction (EPC) contracts inked for Polavaram project. It also alleged that the TDP government had paid Rs 3,128 crore to the contractors in violation of the norms.
In the termination notice, the chief engineer claimed that previous government’s decision to remove the original EPC contractor and hand over the remaining work, valued at Rs 2914 crore, to Navayuga Engineering on nomination or Lump Sum contract basis was “inappropriate”.
The committee also faulted the then government for relaxing agreement clauses to favour Navayuga in procurement of diesel through special revolving fund. It also questioned the departmental supply of steel and cement to the contractors.
Hence the government has decided to terminate the contract with Navayuga as per Clause 89.3 of the agreement and call for fresh tenders in a transparent manner, the notice said.
While Navayuga was not willing to comment on the termination notice, TDP president and former chief minister N Chandrababu Naidu expressed his disappointment over the development.
“The Polavaram will continue to remain a dream. Our government had completed nearly 70 per cent of the project. Instead of completing the remaining 30 per cent works, the YSRC government sought to drive away the contractors who are struggling to complete the works despite a flooded Godavari. It clearly shows the sincerity of the government,” he tweeted.