The Andhra Pradesh Cabinet conducted a meeting on the 4th of September, at the AP Secretariat in Velagapudi village, Guntur district.
The meeting was conducted to discuss the tenders of the Polavaram Irrigation Project and to approve the exit of the Navayuga Engineering Company Limited (NECL) from the Project.
Y.S. Jagan Mohan Reddy, the Chief Minister of Andhra Pradesh (AP,) chaired the meeting, during which he discussed the various issues in AP, including the Polavaram Project and the Machilipatnam Port project.
Although the Yuvajana Sramika Rythu Congress Party (YSRCP) issued an exit notice to NECL on the 1st of August, the Cabinet Committee approved it formally on the 4th of September.
Apart from the cancellation of the tender, the YSRCP also cancelled the allocation of 412 acres of land to NECL in Machilipatnam and asked the Company to compensate for the loss incurred by the AP Government.
On the 1st of August, the YSRCP Government served an exit notice to NECL based on the allegations of corruption and financial irregularities in the project.
NECL was given the contract to construct the Polavaram Project by the former Government of AP, the Telugu Desam Party (TDP.) However, the YSRCP constituted a special committee to probe the allegations of corruption, following which, the YSRCP approved NECL’s exit. Apart from the Polavaram Project, the Cabinet Committee also expelled NECL from the Machilipatnam Port construction project.
The Irrigation and Water Resources Department said now that the NECL is no more a part of the Polavaram Project, the Department can officially call for fresh bid for the Machilipatnam Port construction and the Polavaram Project.
During the Cabinet meeting, the ministers also approved the salary increment of Asha workers. From now on, the salaries of Asha workers will be Rs.10,000. Previously, under the TDP, Asha workers used to get a salary of Rs. 1,800, which was later increased to 3,000.
It is expected the Cabinet Committee will soon decide the new construction company for the Polavaram Project and resume the construction work.
Stay tuned for further updates.
