Contract scrapped, Polavaram irrigation project work stops

The construction of the Polavaram major irrigation project on river Godavari in Andhra Pradesh has come to a halt with chief minister Y S Jagan Mohan Reddy terminating the contract given to Navayuga Engineering Company Limited by the previous Telugu Desam Party government.

The state irrigation department has served a termination notice on the construction major for pre-closure of work. “You are requested to give consent/representation on mutual consent basis and also to settle the final accounts within 15 days,” said B Sudhakar Babu, chief engineer of the Polavaram project head works unit, in his notice dated July 29.

The YSR Congress party government has decided to go in for fresh tenders to complete the remaining work on the recommendation of an eight-member committee set up on June 14 to examine the processes followed by the TDP for tendering, launching and executing engineering work. The committee, which submitted a 43-page report to the government on July 23, pointed out gross violation of tender norms under engineering, procurement and construction (EPC) contracts in Polavaram and said the TDP government had paid ₹ 3,128 crore to the contractors in violation of the norms.

In the termination notice, the chief engineer pointed out that the previous government had terminated the original EPC contractor and entrusted the balance work to Navayuga Engineering on nomination basis (lump sum contract). This was inappropriate, the notice said.

The works included: spillway and spill channel of the project worth ₹1,244.35 crore, additional works including foundations for hydel power plant costing ₹ 918.76 crore and balance works of main dam package including coffer dams, earth-cum-rock-fill dam gap-1, approach channel etc., costing ₹ 751.55 crore.

Navayuga authorities declined comment on the termination notice. But TDP president N Chandrababu Naidu expressed regret over the development.

“Polavaram will continue to remain a dream. Our government had completed nearly 70% of the project...,” he tweeted.