Andhra Pradesh Government is mulling to cancel the Tenders of Polavaram Main Contractor, Transstroy. Subsequently, that will cancel all the tenders of the sub-contracts as well which means the entire Project Tendering will happen from scratch. Transstroy bagged Polavaram Project works in 2013 by quoting 14% less.
Within no time, it was revealed that the company is not efficient to handle the project of such scale. But due to the complexities involved in canceling the Tenders and the legal implications, the previous Government brought in effective sub-contractors like L&T, Baver, Triveni, Keller, and others to finish the project on time.
Transstroy already defaulted on the Bank Payments and has become Bankrupt. The entire re-tendering process can be tricky if the Main Contractor goes to court and obtains a stay on the Re-Tendering Process urging the court to defy the process until his issue is legally settled.
Also, there are some advance amounts of the State Government to various contractors and recovering that will also become difficult. As a result of all this, the Project which is considered as the lifeline of Andhra Pradesh will be delayed. So, the Government should carefully tread from here on.
