At last, decks have been cleared for the commencement of works on Polavaram irrigation and hydel power projects, with Andhra Pradesh high court vacating the stay on the project works.
The court also dismissed the petition filed by the earlier contractor Navayuga Engineering Company Limited (NECL) stating that there is no merit in the petition.
It agreed with the contention of advocate general Sriram Subrahmanyam that the company had already gone in for arbitration and so, the writ petition in the high court had no value once the arbitration process has commenced.
The high court also set aside the injunction granted by the lower court preventing the state government from encashing the bank guarantees given by Navayuga for not commencing the project on time. It found fault with the hasty judgement of the lower court.
However, the high court directed the lower court to hear the arguments of both the parties and review its judgement.
The high court judgement clears the way for the YSRC government to start the works of Polavaram project, the contract for which was granted to Megha Engineering and Infrastructure Limited (MEIL) through reverse tendering process.
The works are expected to commence anytime in the first week of November, sources said.