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Andhra Pradesh High Court stays scrapping of contract for Polavaram irrigation project

Friday, 23 Aug 2019

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The Andhra Pradesh High Court has issued interim orders suspending the reverse tendering process initiated by government order issued to scrape the contract given to the Navayuga Engineering Company (NEC).

The interim orders were issued by the Andhra Pradesh High Court on a petition by the NEC challenging the government order.

The state government decided to scrap the contract given to NEC for a portion of the head works in the Polavaram irrigation project on the Godavari river on 14 August 2019.

The national project is being executed by the state government under the supervision of the Polavaram Project Authority. The 700 MW hydel power project was also given to NEC.

The government issued an order scrapping the agreement between Andhra Pradesh Power Generation Corporation (APGENCO) and the Navayuga Engineering Company on the hydel project. It later called for fresh tenders under the reverse tendering process for the remaining head works as well as the hydel project for Rs 4,987.55 crore including the hydel power project component worth Rs 3,216.11 crore.

The Andhra Pradesh High Court had suspended the orders on the hydel power project component, on the plea of the company stating that the delay was not their fault and that the land required for the project was not handed over to them.

Moreover, it had mobilised all the equipment for executing the power project and it will be completed according to time schedule.