AP High Court Cancels the Government Order of Scrapping Polavaram ContractAugust 22, 2019 18:04
(Image source from: News18.com)
AP High Court Cancels the Government Order of Scrapping Polavaram Contract:- Andhra Pradesh High Court gave a rude shock for the AP Government which canceled scrapping Polavaram contract. YS Jaganmohan Reddy terminated the contract of Navayuga Engineering Company Limited for executing Rs 3216 crores hydro-power project of Polavaram irrigation project on the Godavari river. A bench headed by Justice D V S S Somayajulu heard the arguments after Navayuga Engineering Limited on Tuesday filed an emergency petition. The bench suspended the pre-closure order that is issued by AP Power Generation Corporation on August 14th that canceled the contract for Navayuga Engineering Limited.
The judge also revoked the order of the government to go in for reverse tendering for the construction of the 960 MW power project. The counsel for Navayuga argued that there was no delay in the project from their side and the delay was mainly due to APGenco. Navayuga clarified that they spent Rs 398 crores on turbines, generators and other works but the government canceled the contract. Navayuga said that the company would suffer huge financial loss if the contract was canceled without any valid reason. They also said that it would damage the reputation and they reminded that they had time up to November 20th 2021 to complete the project.
The High Court said that Navayuga should be given the opportunity to continue the project works. TDP Chief Chandra Babu Naidu said that this is a tight slap for YS Jagan and his government.
(Video Source: Mahaa News)