As expected, YSR Congress party government headed by chief minister Y S Jagan Mohan Reddy has shunted out the main contractor of prestigious Polavaram major irrigation project from execution of the ongoing works and decided to call for fresh tenders.
The Jagan government on Thursday served a termination notice on Navayuga Engineering Company Limited (NECL) for pre-closure of the Polavaram project work. It asked the company to give consent and settle the accounts within 15 days.
Navayuga was hired by the Chandrababu Naidu government on nomination basis to complete the Polavaram project, as the original EPC contractor Transstroy Limited belonging to former MP Rayapati Sambasiva Rao had miserably failed to execute the project.
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The ongoing works included: spillway and spill channel of the project worth Rs 1,244.35 crore, additional works including foundations for hydel power plant costing Rs 918.76 crore and balance works of main dam package including coffer dams, earth-cum-rock-fill dam gap-1, approach channel etc., costing Rs 751.55 crore.
The notice pointed out that the expert committee felt that the deletion of works from original EPC contractor and entrusting the balance works on nomination basis to Navayuga Engineering was inappropriate.
The committee also rapped Naidu government for relaxing agreement clauses to favour Navayuga.
