Jagan Reddy-Led AP Government Cancels Rs 3,216 Crore Contract For Polavaram Hydel Project On Godavari River

Continuing the move to review Chandrababu Naidu-term projects in Andhra Pradesh (AP), the Jagan Mohan Reddy-led new state cabinet has decided to cancel the contract given to Navayuga Engineering Company Limited for construction of the Polavaram Hydel Project, IANS reports.

The project on the Godavari river in AP, worth Rs 3,216 crore, will now be reverse-tendered and the advance given to Navayuga will be recovered. The government had earlier issued a pre-closure notice to the company.

The YSRCP had stormed to power in May with the party sweeping the national as well as state assembly election in AP. The new government has appointed a committee to look in alleged irregularities in according projects by the Nadidu-led TDP government,

The cabinet also approved revoking a land allotment made to Machilipatnam Port Private Limited (MPPL) worth Rs 412.5 crore as the company had failed to start work on the project. It had also failed to pay rents on the land allotted to it.

The cabinet is also reviewing the sand mining policy and has decided to increase the salaries paid to ASHA workers from the current Rs 3,000 to Rs 10,000.