The AP High Court issued interim orders to YS Jagan Mohan Reddy government instructing it to stop the reverse tendering process of the prestigious Polavaram project. This is being seen as a huge setback to the Jagan Reddy government. It may be recalled that Jagan Mohan Reddy declared on the very day he took an oath that they would review every contract awarded during the previous TDP government.
The High Court on Thursday issued a stay on canceling the agreement given to Navayuga for construction of Polavaram. The court said there is no merit in asking for fresh tenders for this project. Navayuga Construction Company earlier approached the court challenging the government’s decision to arbitrarily cancel the ongoing works without even clearing the past bills or quoting any specific reason. Navayuga Construction Company is executing works worth about Rs 3400 crore for Polavaram.
What is unclear is how would the government react to the court orders. If the state government decides to fight it out in the Supreme Court, the project may see a perpetual delay. No statement has been issued by the state government as yet since chief minister YS Jagan Mohan Reddy is in his US tour. The irrigation department however is said to have apprised him about the latest developments.
While all opposition parties are welcoming this verdict, former CM Chandra Babu Naidu met with media and advised the government not to create any more hurdles for the project. Analysts on the other hand are reading this as the beginning of an open battle between the state and central governments. It may be recalled that even the Center was against this idea of reverse tendering. Union minister Nitin Gadkari handed over the project to Navayuga Contruction Company last January. So far, Polavaram construction has been on track with regard to the project timelines.