The Andhra Pradesh government on Thursday issued a termination notice for the pre-closure of Polavaram Project work here.
On July 29, the Water Resources Department had sent a mail to Navayuga Engineering Company Ltd seeking immediate closure of the ongoing work. Though the contract was about to end on August 26 this year, the government urged the company to settle the final accounts within 15 days.
The termination comes after an expert committee which was formed on June 14 after Chief Minister YS Jaganmohan Reddy came to power, opined that the entrustment of part works deleted from the original Engineering, procurement and construction (EPC) agency on nomination basis by converting EPC contract to lump-sum contract (LS) is not appropriate.
"The committee opined against the issue of relaxing the agreement clauses to Navayuga for procurement of diesel through special revolving fund and procurement of steel and cement through direct payments by the Department to the suppliers," read the letter issued by the Chief Engineer of Polavaram Project.
"In view of the above opinion to pre-close and terminate the above nominated L.S contract agreement for convenience as per clause 89.3 of G.C.0 of Agreement and entrust the balance works to the new agency by calling fresh tenders by ensuring transparency in the tendering system," the letter added.
YSRCP has time and again accused the preceding N Chandrababu Naidu-led TDP government in the state of malpractices and undue escalation of costs in Polavaram project for a long time.
Polavaram Project is an under-construction multi-purpose national project on the Godavari River in Andhra Pradesh. It is designed to overcome the deficit in water in the country. The project is entirely funded by the Centre and is also known as National River-Linking Project.
( With inputs from ANI )