Andhra Pradesh government has issued a pre-closure termination notice for works over ₹3,000 crore, given to Navayuga Engineering Construction. The company has been asked to consent to the termination or exit the project and settle accounts in 15 days. The grounds on which Navayuga is terminated are interesting.
Navayuga is given 3,301 Crore worth works on Nomination Basis and the government says such largescale works can not be given in Nomination Basis. Also, the state government has created a special fund for the purchase of Diesel, Steel, and Cement. But then, the government seems to have used these things as the reason for removing the contractor.
Navayuga agreed to finish the works for 2011 rates in 2018 which is a big step by the contractor. The State Government had relaxed both these rules so that the Project works go on at a brisk pace. The Special Fund was against the rules but to give some space to the contractor who is liberal in the rates.
Polavaram Authority and the Water Resources Ministry of the Union Government also agreed to these relaxations back then. The current government seems to have decided to change the contractor first and later searched for reasons to do that. The Project will go for fresh tenders now and Navayuga is also allowed to participate in that.
