Polavaram project: AP scraps Rs 3,216 cr Navayuga deal

YS Jaganmohan Reddy at the cabinet meeting on Wednesday. (DH Photo)

 Andhra Pradesh Cabinet on Wednesday approved the cancellation of the Polavaram Hydel Power Project Contract with Navayuga Engineering Company, worth Rs 3,216.11 crore and called for new tenders in the reverse tendering process.  Cabinet also approved to recover the advance amounts given to the Contractor.

Andhra Pradesh Cabinet approved the extension of the ban on Maoists for one more year. Cabinet approved the decision to increase the salaries of ASHA workers from Rs3, 000 to Rs 10,000. Salary of ASHA workers had been increased from Rs 1,500 to Rs 3,000 in 2018 in the previous government. Cabinet approved the decision to withdraw 412.5 acres of land allotted to Machilipatnam Port Private Limited as they didn’t start work and also didn’t pay the lease amount for the land given.

In yet another significant development, the AP government in principle approved the creation of the AP Public Transport Department (APPTD) for the merger of the AP State Road Transport Corporation (APSRTC) with the government. The government which has assured the employees of the corporation that the organization will be merged with government however was forced to keep the APSRTC intact but absorb all its employees into APPTD. All employees of the RTC will be on the rolls of the APPTD.

The proposal came after members of the expert committee submitted the final report on the merger to the Chief Minister on Tuesday. The expert committee headed by former IPS officer C. Anjaneya Reddy studied merger issues for over two months. Speaking with media APSRTC union leaders said that their main concern has been job security and payment of salaries at par with the government employees.

The APSRTC operates 12,027 buses, connecting 14,123 villages.  The total employee strength is 53,261 men and women that operate in 3,803 routes, touching 427 bus stations in  13 districts of the State.

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