Polavaram: Centre blackmailing Jagan?

It appears the NDA government at the Centre is virtually blackmailing the YSR Congress party government in Andhra Pradesh headed by Y S Jagan Mohan Reddy on the issue of conducting reverse tendering of Polavaram project contract.

The Centre is said to be bringing pressure on Jagan to withdraw his move to terminate the present contractor (Navayuga) and go in for fresh tenders through reverse tendering process.

It was evident from the report submitted by Polavaram Project Authority to the Union water resources ministry on Friday night.

According to sources, the Centre is going to write to the Jagan government that it is not going to bear the additional financial burden that might arise out of the decision to go in for reverse tendering.

The PPA warned that there will be definitely huge delay in the construction of Polavaram project if the state government goes in for reverse tendering.

“The termination of contract of the existing company will have legal issues. The state is still facing the legal and contractual issues from the original bidders of 2009. Same issues will come up again now. If the project is delayed and cost goes up, the Centre will not bear the additional expenditure,” the PPA said.

It said the pre-closure of existing contract will also have additional cost by way of compensation to be provided to the contractor for demoblisation etc.

It also warned that the new contractor might not agree for operation and maintenance of the project work done by the previous contractor. It might further hamper the pace of construction of the project, the PPA said.

It remains to be seen how Jagan would counter this negative campaign by the Centre on Polavaram project.

Irrigation minister P Anil Kumar said the state government would ensure there was delay and cost escalation in the execution of Polavaram project.