Polavaram Project Authority warns against pre-closure of contract for escalation of project cost

But, they told the authority that they were going for re-tendering and reverse bidding to ensure transparent execution of the project.
Polavaram project in West Godavari district(File Photo |EPS)
Polavaram project in West Godavari district(File Photo |EPS)

VIJAYAWADA:   The Polavaram Project Authority (PPA), which held an emergency meeting on Tuesday in Hyderabad to review the State’s decision to terminate the tenders awarded, is all set to recommend to the Union Ministry of Water Resources to caution the YSRC government against the move. The authority noted that the decision would certainly result in cost escalation, besides delaying the project.

Sources told Express that during the meeting, the State government made a presentation on the recommendations made by the expert committee constituted by the YS Jagan Mohan Reddy government to look into the alleged irregularities in the national project and large-scale financial mismanagement. The State officials did not submit the expert committee report to the Polavaram Project Authority, sources added.

But, they told the authority that they were going for re-tendering and reverse bidding to ensure transparent execution of the project. They also made it clear that they planned to have a new contractor on board by October and have the works resumed by November, so that the project could be completed by 2021.

However, the PPA was not convinced with the argument stating that the State officials did not consider practical aspects which could have led to delays in the project. “The authority was not convinced with the State’s argument. Theoretically, it is easier to chalk out a timeline for project completion, but practically we are certain that there will be a delay.

The PPA advised the State government to look into the aspects of likely delay in the project execution and cost escalation. The authority will now recommend to the Union Ministry of Water Resources to take up the issue with the State government,” a senior official explained. It is also learnt that the PPA cautioned the State officials about the possibility of cost escalation.

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