Andhra Pradesh

Jagan saves another Rs 780 crore after re-tendering Polavaram project

After saving Rs 53 crore by doing a reverse tender in the Polavaram Left Connectivity Works, now the YS Jaganmohan Reddy government claims it has saved another Rs 629 crore for the Andhra Pradesh exchequer by doing the same in the case of the Irrigation project’s head works and the hydro power station. On Monday, the tenders were opened and only Megha Engineering and Infrastructure Limited (MEIL) had participated in the bid. 

According to B Sudhakara Babu, the Chief Engineer at Polavaram, MEIL had quoted Rs 4358 crore for the execution of both works. The Irrigation department had called for tenders at basic price of Rs 4987 crore. 

“Since the bid amount is 12.6 per cent less than the basic price, it is savings to the state exchequer and it may be appropriate to award the contract to MEIL,” Sudhakara Babu has written to the Special Chief Secretary of the Water Resources department. 

Additionally, another Rs 152 crore has been realized, according to the Chief Minister’s Office, in the PIP Hydro Electric project.

Navayuga Engineering whose contract had been cancelled, had been awarded the contract at the basic price quoted. Its petition challenging the cancellation is pending in the Andhra Pradesh High court. The contract to MEIL can be given only after the case has been decided upon. The Jagan government had alleged corruption in the project under Chandrababu Naidu and decided to call for bids again. 

MEIL has been involved in the construction of the Kaleshwaram irrigation project in Telangana and is seen as one of the biggest names in the field of engineering of such projects. 

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