AP Government and Center to Lock Horns on Polavaram Re-Tenders

Central Government had decided to put all the bills of Polavaram Project – Old and New on hold until there it gets the details of the expert committee’s recommendations. A report given by the Polavaram Project Authority to the Central Government stated that the project will be delayed and result in an approximate additional expense of Rs.300 crore per month.

So, the Central Government has decided to stop the funding until the recommendations of the Expert Committee comes and also until the State Government completes the Re-tendering process. Andhra Pradesh Cabinet has recently canceled all the tenders of Nayayuga Engineering Company.

The construction giant was asked to consent to the termination or exit the project and settle accounts in 15 days. Center has opposed this move since the start but Chief Minister YS Jagan Mohan Reddy is adamant. The Center could not digest the fact that the State Government is bulldozing it when it is actually funding the project in entirety.

It has to be seen where this lockdown between the Center and AP Government leads to.