High court suspends Jagan government’s Polavaram order

In a major setback to YS Jaganmohan Reddy government’s ambitious “reverse tendering” process, the Andhra Pradesh high court on Thursday suspended an order of the state generation corporation (APGENCO) terminating Navayuga Engineering Company’s services from execution of the Hydal power plant works of the Polavaram multipurpose irrigation project. The HC also directed the state government against proceeding with reverse tenders.

The APGENCO on 29 July issued orders terminating Navayuga from execution of the nearly Rs 3220. 28 cr worth part of the project work. The irrigation department floated fresh tenders on 19 August. The government suspects massive corruption in the award of contracts by the previous Telugu Desam Party government. Arguing that the AP government’s move to scrap the deal as unilateral, company’s director Y Ramesh in his petition said that the company is working in completing first three units of hydal power project in time and even successfully tested the turbines in France.

It further said that the company even agreed to bring down the power house 30 meters below the agreed level in February 2019. “Despite of that the land was not handed over to us by the government so far,” the company said. “On 1 July, the new government under YS Jaganmohan Reddy summoned us for a review and without giving reasons they scrapped the contract. We have spent Rs 398 cr so far. And the agreement is between us and the Genco, not with the government,” the petitioner argued. Justice DVSS Somayajulu who heard the arguments gave his directions on Wednesday.

Meanwhile, leader of the opposition and Telugu Desam party president N Chandrababu Naidu said the Jagan Mohan Reddy government must answer to the people of the state for the delay its vengeful attitude would result in the execution of the project. “Time and again we have said that there is no corruption, the union minister said there is no corruption, but YS Jaganmohan Reddy opted for prestige in cancelling all development works initiated by the previous government, “Naidu said.

"Government tried to prove corruption that was not there. The court order proved it now. The project is getting delayed because of the government's wrong decisions", he added.