Jagan govt saves Rs 58 crore by opting reverse tenders

Tenders for 65th package of Polavaram connectivity works have been confirmed. Max Infra Company has bagged the contract by quoting a price 15.6% less than the initial benchmark cost of Rs 274.55 Crore. Irrigation Minister P Anil Kumar Yadav said that reverse tendering process by the state government has saved Rs 58 crore.

A total of six companies participated in the technical bids, opened by the water resources department. Financial bids will be opened on Monday.

Minister Anil Kumar Yadav criticised TDP Chief Nara Chandrababu Naidu for making baseless allegations over ‘reverse tendering’ to favour a particular company. “With the vision of our Chief Minister Y S Jagan Mohan Reddy, the government of Andhra Pradesh saved 58 crore and much more public money would be saved in the coming days through the reverse tendering process. Any companym including the old Navayuga Company, can also participate in the tenders.” said the minister.

“Chandrababu Naidu claimed that 70% of the Polavaram project is completed in his tenure. It is completely false, as he never intended to address rehabilitation of the oustees. The Government of Andhra Pradesh would complete nearly 20,000 houses to rehabilitate Polavaram displaced victims” Anil Kumar said.

Chief Minister Jaganmohan Reddy drew flak from main Opposition and the Centre for ousting the Navayuga group and going in for fresh tenders. Union water resources minister Gajendra Singh Shekawat had termed the state government's decision "unfortunate". Shekhawat said the reverse tendering process would delay the project further and would escalate expenditure.

However, Chandrababu Naidu has said that handing over of the Polavaram work to a firm that has no technical experience would put the two districts of East and West Godavari at the risk of inundation. He also criticized Jagan for reportedly agreeing to the Telangana CM K Chandrasekhar Rao’s suggestion that the dam's height be decreased.