Polavaram project: Andhra Pradesh High Court stays re-tendering process

By: |
Published: August 23, 2019 3:58:07 AM

The contract, which was awarded by APGENCO, is estimated to be Rs 3,400 crore of civil works, apart from Rs 3,000 crore of hydel power project on the engineering, procurement and construction basis.

Polavaram project, Andhra Pradesh High Court, Andhra Pradesh, economy news, TDP, YSR, Polavaram dam, Polavaram high court, Polavaram hydel project, Polavaram reverse tendering, Polavaram news  The high court was hearing a plea filed by NECL which won the contract during the Telugu Desam Party (TDP) regime. The YSR Congress Party had cancelled the contract and called for fresh tenders. (PTI)

The Andhra Pradesh High Court has stayed the state government’s move to cancel a Polavaram project contract awarded to Navayuga Engineering Company (NECL). The court also stayed the state government’s move to go in for reverse tender process to find a new contractor to execute the order.

The contract, which was awarded by APGENCO, is estimated to be Rs 3,400 crore of civil works, apart from Rs 3,000 crore of hydel power project on the engineering, procurement and construction basis.

The high court was hearing a plea filed by NECL which won the contract during the Telugu Desam Party (TDP) regime. The YSR Congress Party had cancelled the contract and called for fresh tenders.

After hearing the arguments from both the sides, the high court cancelled the pre-closure notification and asked the government not to call for re-tendering of the project. However, sources said the government is likely to approach the Supreme Court in the issue.

The APGENCO on July 29 issued orders terminating NECL from execution of the project work worth nearly Rs 3,220 crore. NECL has argued that the project site is not yet totally handed over to it and there should be no question of penalising it. The company also told the court that APGENCO cancelled the tenders on the insistence of the state government.

The company said it is willing to execute the work as per the schedule, but the pre-closure without a valid reason would cause financial loss as it has already invested significantly. NECL also argued that it would damage its reputation as a leading construction company.

Polavaram is a national project sanctioned to Andhra Pradesh as one of the compensatory packages at the time of bifurcation in June 2014. The project will irrigate 42 lakh acre of ayacut in two phases, supplying water to all the 13 districts of Andhra Pradesh.

The Centre recently approved Rs 55,000-crore revised estimates for land acquisition, rehabilitation and resettlement.

Do you know What is Wholesale Price Index (WPI), Public Debt, Finance Commission Grants & Other Transfers, Economic Survey, State Finance Commission? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.