YS Jagan Mohan Reddy’s decision to cancel the tenders of Polavaram Project and showing Navayuga door out did not go well with the Central Government. Delhi is of the view that the State Government is taking unilateral decisions while it should have consulted the Center before taking such major decisions since it is funding the Project.
The Center feels that re-tenders will escalate the cost estimations and will burden the National Exchequer. Prime Minister Narendra Modi is likely to take up the issue while the Chief Minister meets him in Delhi on 6th of this month. Meanwhile, speaking in Parliament the other day, Union Minister for Jalshakti, Gajendra Shekhawat termed this move as regrettable.
He added that Calling for new tenders will delay the project and also escalate the cost. This is not the first time the State Government had overlooked the Center in key issues. Earlier despite the warnings from the Central Governments, the State Government decided to renegotiate the PPAs with Renewable Energy Companies.
As a result, the issue landed up in courts and the entire segment is in distress. This move of Andhra Pradesh Government has impacted the investor sentiment across the country, the Central Government opines. PM Modi is likely to take up this issue as well with the Chief Minister.
