VIJAYAWADA: In a setback to the YS Jagan Mohan Reddy government, the AP High Court on Thursday suspended the order issued by AP Genco to cancel the hydel power project contract awarded to Navayuga Engineering Company Limited (NECL).
The NECL, which was executing the hydel project, moved the High Court of Andhra Pradesh against the AP Genco scrapping the contract given to it for construction of hydel project.
The NECL maintained that they could not go ahead with the construction of hydel project as the AP Genco did not show them the location for the construction of the project in the initial stages. The NECL informed the court that they have time till November 2021 to complete the project as per the contract and it is going ahead with the project meeting the deadlines.
The state government, represented by advocate general S Sriram, informed the court that going for fresh tenders would bring down the prices of the project.
The state government has called for reverse tenders under which more bidders will be able to participate in a fresh bidding process.
After hearing both sides, the High Court on Thursday suspended the AP Genco order cancelling the hydel power project awarded to the NECL.