700 cr profit or 7000 cr loss?

In a sharp counter to Jagan administration, TDP chief and former CM Chandrababu Naidu has found fault with reverse tendering of Polavaram works. Dubbing government’s claim of saving Rs 700 Cr with reverse tendering as false, TDP in a statement opined that the reverse tendering would incur a huge loss of Rs 7000 Cr to state exchequer on the whole.

TDP core leaders who reviewed Polavaram tenders also found fault with the government’s decision to handover the Polavaram works to Megha Engineering Infra Ltd (MEIL) as the company alone has filed its solo bid.

TDP slammed the fresh move of the state government to extend the hydro-power project of Polavaram from existing 28 months to 58 months time to MEIL. Earlier TDP government had given 28 months time to Navayuga to complete hydro-power project whereas MEIL has now been given 58 months to finish the same.

Slamming the move, TDP said this would incur loss of hydro-power for two-and-half years. It said the state is buying Thermal Power from outside for its usage and the loss of hydro-power for two-and-half years. In addition to this, Navayuga had already ordered for Turbines and Gates. TDP leaders pointed out that the company would demand the losses from state government for terminating its contract and calling for reverse tendering.

A senior TDP leader commented that the state would have benefited Rs 7000 Cr had Navayuga was allowed to complete the Polavaram irrigation and hydro-power project.

TDP leaders also came down heavily on YCP for handing over the Polavaram to MEIL. Citing that YCP had dubbed MEIL as Naidu’s Benami when Naidu had handed over Pattiseema to MEIL, TDP leaders questioned YCP’s move to hand over Polavaram works to Megha Engineering and Infra Ltd. TDP leaders pointed that YCP had earlier alleged that MEIL got benefited to the tune of Rs 350 Cr with Pattiseema Irrigation project. And TDP leaders now demanded YCP to recover that money from MEIL. TDP leaders also expressed concern over the quality of Polavaram works with the reverse tendering and reduction of cost. TDP went onto raise doubt whether AP state government would benefit MEIL in other means for quoting less in the bid.


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