The Yuvajana Sramika Rythu Congress Party (YSRCP,) on the 1st of August, b to the Navayuga Engineering Company, which was working on the construction of the Polavaram Project.
The Polavaram Project is a major multipurpose irrigation project situated on the Godavari river, in the East and West Godavari districts of Andhra Pradesh. The Project is under construction and was designed as a solution to the issue of scarcity of water in the State.
The Y.S. Jagan Mohan Reddy led AP Government served the notice period to the Company based on the allegations of financial irregularities.
The Navayuga Engineering Company was given the project by the former Government of AP, the Telugu Desam Party (TDP.)
The YSRCP constituted a special committee to probe the allegations and asked the Navayuga Engineering Company to compensate for the loss.
The Water Resources Department of Andhra Pradesh issued the notice to the Company under Section 89(3) of the Companies Act, 2013, after receiving orders from an expert committee.
According to sources, the panel found flaws such as slow progress and price escalations in the project’s execution.
After making Navayuga exit, the YSRCP Government will call for fresh bidders to complete the Polavaram Project.
The reason for reconsidering the Company working on the Polavaram Project and giving it to a company which fills the tender with the lowest bid is said to be the scarcity of funds.
Yerneni Nagendranath, a TDP member, said, “Now they (YSRCP) will probably give the contract to someone else. We don’t know how long it will take. Most projects in the state have been stalled. I feel they should at least take up a few projects and ensure their completion. Polavaram is an important project which needs to be completed soon. There’s no assurance that the new contractor will do a better job.”
The TDP alleged the YSRCP Government of halting the project and said after the completion of 70 % of the work under the tenure of the TDP, the project should not remain incomplete.
TDP leader Gorantla Butchaiah Chowdary expressed his concern and slammed the YSRCP Government for trying to halt the progress of all the development projects initiated by the TDP in the State.
The new contractor for the Polavaram Project will be announced soon, after the exit of the Navayuga Engineering Company.
Stay tuned for further updates.
