VIJAYAWADA: Following the State government’s decision to terminate the contract awarded to Navayuga Engineering Company Ltd (NECL), the Polavaram Project Authority (PPA) has submitted a report to the Union Ministry of Water Resources on the latest development. The authority has informed the ministry that the State government did not give any intimation to the PPA before serving the notice, sources told TNIE.
The YSRC government’s decision has drawn the Centre’s attention with Union Jal Shakti Minister Gajendra Singh Shekhawat expressing regret over it. He, in Parliament last week, said the decision might lead to cost escalation besides delay in project execution. Following this, the ministry, which decided to review the State’s decision, sought a report from the PPA on the issue.
‘Move will lead to cost escalation’
“We have submitted a report on the state government’s decision as per the ministry’s direction. We have informed the Centre that the State government has served notices on the contractor. If the ministry seeks more information, we will give that as well,” a senior official explained. When asked if the PPA was kept in the loop regarding the pre-closure of contract, the authority officials replied in the negative.
“We were not given any prior information. A copy was sent to us later. We have informed the ministry of the same in our report,” the official added. The PPA has also informed the State government that it would like to convene a meeting to discuss the issue. “As soon as the State is ready with information, we will hold a meeting,” the official said.
Sources added the Union ministry would take a call on the State’s decision cancelling the contract after examining the report. “The major concern is that calling fresh tenders would lead to cost escalation and delay in project execution. The State government says it would ensure that cost would not go up, but the Centre is concerned,” another official added, pointing out that the ministry was not even keen to go for new tenders when the TDP wanted to replace Transstroy in January 2018.