Polavaram Reverse Tendering: 628.47 Cr Saved, 68,000 Cr Lost

ys-jagan-polavaram-project

Immediately after coming to power in 2019, YS Jagan Mohan Reddy initiated Reverse Tendering saying that there was corruption in many projects and he would achieve substantial savings.

He did similarly with the Polavaram Project as well. Navayuga was shunted out and MEIL was brought in its place.

ADVERTISEMENT

The then Government proudly announced that they saved 628.47 Crores in the Reverse Tendering.

But then, the actual scenario is completely different and shocking.

Forget about 628.47 Crores Savings, Jagan Government paid 2268.68 Crore Extra to the New Contractor.

It is not just about the money. The Polavaram Project Authority and the Government of India strictly opposed the idea of Reverse Tendering but Jagan did not care.

A letter written by RK Jain, the Chief Executive Officer at Jal Shakti Ministry was released to the media.

The letter says there is neither enough ground nor necessity for pre-closing current tenders and retendering the works.

The then Government was further warned: “Such a step will result in unforeseen consequences and plunge the project into uncertainty. The project is not only likely to get delayed, it will have an adverse socio-economic impact as well due to delay in realization of benefits from the project apart from likely increase in the cost of the project”.

RK Jain ‘humbly’ requested to abandon the idea or at least keep it in abeyance until the Government of India takes a considered view in this aspect.

Forget about abandoning the idea, the Jagan Government did not even wait.

Such is the attitude of Jagan Mohan Reddy towards Polavaram which is deemed as the lifeline of Andhra Pradesh.

This Reverse Tendering may have cost 68,000 Crore including the costs of damages to the project, cost escalation due to the delay, and also because of the delayed benefits.

Chandrababu Naidu says the project may take a minimum of four seasons (Four years) if not more to complete from here.

Did the idea of Reverse tendering happen due to ego and escalation due to inability? or Is the reverse tendering done for kickbacks? The New Government should investigate.

jagan-recall

ADVERTISEMENT
Latest Stories