Navayuga Engineering Company has moved the Andhra Pradesh High Court with regards to the case related to their sub-contract to to execute some of the head works and also the hydel project at Polavaram.
The sub-contract awarded to the company by the previous Telugu Desam (TDP)Government, with the consent of the then Union Irrigation Minister Nitin Gadkari and with the approval of the Polavaram Project Authority, was revoked by the present government earlier this month. Earlier, fresh tenders were called by the present Government for works worth more than Rs. 4,900 crores at Polavaram including the hydel project component.
Polavaram is a mega multi-purpose irrigation project being constructed in West Godavari district on the Godavari, a national project being executed by the State Government under the supervision of the Polavaram Project Authority.
Navayuga challenged the action of the Government, stating that the action of the State Government was arbitrary and unilateral. The company sought a directive from the Andhra Pradesh High Court to the State Government on the matter, allowing it to continue the project work.
The court heard the arguments on Tuesday and the order was reserved. Meanwhile, the Union Government asked the Polavaram Project Authority to submit a comprehensive report on the matter with all the details of the reverse tendering process initiated by the new State Government, which has come in for criticism from many quarters.
The Polavaram Project Authority also made it clear to the YSR Congress Government that the reverse tendering process would delay the project and lead to cost escalation. They advised the state government against such a course of action. But the advice was rejected by the YSR Congress government.
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