Andhra Pradesh To Terminate Navayuga’s Polavaram Contract


Weeks after deciding to review around `3 lakh crore irrigation and capital region contracts awarded by the previous regime, the Andhra Pradesh government headed by YS Jaganmohan Reddy has decided to terminate the Polavaram large irrigation contract awarded to Navayuga Engineering.

In a termination notice served on Navayuga Engineering on Monday, the Andhra government said its decision to pre-close `2,914.66 crore of works awarded on a nomination basis was based on the report of an expert committee appointed to look at irregularities.



The government, which claimed that the expert committee found it inappropriate to award the contract to Navayuga on a nomination basis from the original EPC agency, said it would now entrust the balance works to a new firm by calling for fresh tenders. Of the three works entrusted to Navayuga Engineering— `1,244.35 crore works of spillway and spill channel and Rs 918.76 crore works of spillway, spill channel and power house foundation were to be completed by August 26. The third work of  `751.55 crore of main dam package, coffer dams and approach channel were to be completed by 10 July next year.

In its termination letter, the Andhra government said the expert committee opined that part works deleted from the original EPC agency and awarding them to Navayuga on a nomination basis was “not appropriate.” Accordingly, the government told Navayuga that “it is proposed to pre-close and terminate the above LS contract agreement with you as such you are requested to give consent/ representation on mutual consent basis and also to settle the final accounts within 15 days so as to take necessary action by the office”.