VIJAYAWADA: Three days after Canara Bank requested the National Company Law Tribunal (NCLP) to declare Transstroy (India) Ltd, the agency executing the prestigious Polavaram project, as bankrupt, Water Resources Minister Devineni Umamaheswara Rao stated that the development is unlikely to pose a problem for the progress of project works. Speaking to Express, on the sidelines of a review meeting on Sunday, the minister said, “Since the contracting agency which is constructing the Polavaram project is a joint venture (JV) in which Transstroy (India) Ltd is a part of, it should not be a problem. Our legal team is following up the issue.” The project is being executed by a consortium formed by Transstroy and JES United Engineering Services (Russia).
However, if the request of Canara Bank is admitted by the NCLP, the Water Resources department officials feel that the works will be further delayed. It may be recalled that the State government wanted to terminate the Transstroy JV for the slow progress in works, but dropped its plans after the Union government did not favour the decision as engaging a new contracting agency would escalate the costs. Subsequently, a month’s time was given to the firm to see if it would expedite the works.
Devineni Uma said that Union Water Resources Minister Nitin Gadkari will visit the Polavaram project site in the second week of January. “Before his visit, the Dam Design Review Committee and other authorities concerned will meet in the first week of January and take a call on the upper cofferdam issue. The date of Gadkari’s visit would be finalised soon,” Uma added.
“Whoever is the contractor, we want the project to be completed in time. Nitin Gadkari had given one month time to the main contractor Transstroy, let him know the reality and take a decision, was what the statement made by Chief Minister N Chandrababu Naidu when asked whether Transstroy is in a position to take up the project works,” he added.