The Andhra Pradesh cabinet on Wednesday gave its approval to the decision taken by chief minister Y S Jagan Mohan Reddy to terminate the contract of Navayuga Engineering Company Limited for constructing Polavaram hydro-electric project.
The cabinet, which met at the state secretariat in the morning, approved the decision to go in for reverse tendering for the hydro-electric project works worth Rs 3,266.11 crore.
The cabinet also decided to recover the advances paid to Navayuga Engineering for the execution of the project.
Another approval given by the cabinet was the decision to cancel the contract given to Navayuga group for executing Machilipatnam Port Private Limited project.
The cabinet decided to take back 412.5 acres of land given to the company, as it had not yet started any work.
The officials of the industry department explained to the cabinet that the company had not even paid lease amount for the lands allotted to it.
Among the other decisions taken by the cabinet are: extension of ban on Maoists for yet another period of one year and increase in payment of salaries to ASHA workers from Rs 3,000 to Rs 10,000 a month.