PMO Serious on Polavaram Contract Cancelation?

PMO has taken cognizance of the State Government canceling the tenders of Polavaram Project. Polavaram Project Authority has written a letter to the Water Resources Department of the State Government to explain the rationale behind the move. They also asked to come to Hyderabad for a meeting on 13th to discuss the possible repercussions of this move.

The PPA may even call the representatives of Navayuga to the meeting. PPA is established to audit all the bills submitted by the State Government. Only after it ratifies, the Center is reimbursing the funds spent by the State Government. Chief Minister Jagan explained the reasons behind this move to the Prime Minister in their meeting earlier this week.

There were reports that the Central Government is of the opinion that the State Government has behaved unilaterally in this issue and felt Jagan Government erred in not keeping the Center in loop line while taking such big decision even as Polavaram is a National Project.

Union Jal Shakthi Minister in the Parliament announced that this move will delay the project and will also escalate the costs.