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AP HC stalls Jagan’s reverse tender for Polavaram hydel work

22-08-201922-08-2019 13:23:55 IST
Updated On 22-08-2019 13:55:31 ISTUpdated On 22-08-20192019-08-22T07:53:55.007Z22-08-2019 2019-08-22T07:53:47.033Z - 2019-08-22T08:25:31.292Z - 22-08-2019

AP HC stalls Jagan’s reverse tender for Polavaram hydel work

In a major setback for the YS Jaganmohan Reddy government, the Andhra Pradesh High Court on Thursday ordered an interim stay on the state government’s plans to go ahead with Polavaram hydel project construction works through its proposed reverse-tendering system.

The interim orders were issued on a petition filed by Navayuga Engineering Company Limited, the contracting company that the state government had recently asked to exit from the project.

The latest high court interim orders restraining the state government from proceeding with fresh tendering pertained only to the works related to the hydel power project which falls under the ambit of the Polavaram irrigation project.

The high court also directed the state government not to entrust the hydel power plant works to anyone else until the final verdict is delivered on the Navayuga petition. The contracting company approached the AP High Court on August 20th challenging the state government’s termination notices served on it.

The hydel power plant is part of the works to the tune of over Rs 4,000 crores, awarded to Navayuga by the previous TDP regime. The power plant works are however far from completion. After serving notices on Navayuga, the YSRCP government on August 17th called for fresh tenders for Polavaram head works and the hydel power plant construction as part of its ‘reverse-tendering’ policy.

The state government intends to take up these two works at a cost of Rs 4,900 crores.

Arguing for Navayuga in the high court, its counsel questioned how the company can be held responsible for the delay in the construction of the hydel power plant when APGenco failed to provide the suitable place for the purpose.

Since the high court has only issued an interim stay on the process, it certainly heightens the suspense on what would be its final call when it disposes the Navayuga petition in the future.

-Durga Prasad Kanamaluru

Newssting Desk
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