The Polavaram Project Authority (PPA), set up by the Centre, on Tuesday said the Andhra Pradesh governments proposal to gofor fresh tendering for execution of the Polavaram multi-purpose irrigation project head works might delay the schedule and lead to cost escalation.
Earlier this month the Y S Jagan Mohan Reddy-led YSRCP government issued termination notice to Navayuga Engineering Company for pre-closure of works.
The PPA, which oversees the implementation of the project being funded by the Centre, met here on Tuesday and discussed throughly about the state governments intention to go for fresh tendering for the head works among other issues, Chief Executive Officer of the authority R K Jain said.
In the meeting, it has been assessed by the PPA that with the re-tendering, the works are likely to get delayed and with the delay there will be some increase in the cost also, although it is difficult to assess how much increase will be there in the cost, Jains told reporters here.
The state government does not need our permission for re-tendering. Tendering process is entirely in the purview of the state government. Our concern is only that the project should not get delayed and there should not be any financial losses also. The financial burden, if any, has to be borne by the state government, he said.
The over Rs 50,000 crore Polavaram project is expected to irrigate 2.91 lakh hectares, generate 960 MW of power and fulfil the water needs of industries and 540 villages in Andhra Pradesh.
As the then Leader of Opposition Jagan had made serious allegations over financial misappropriation in Polavaram project works by the previous Chandrababu Naidu government, which had been denied by the then CM.
Navayuga was awarded various Polavaram works worth Rs 2,914.66 crore on nomination basis in different packages in February 2018 after the previous Telugu Desam Party dispensation was not satisfied with the work being carried out by the original contractor, Transstroy.