Andhra Pradesh High Court has stalled the Reverse Tendering Process of Polavaram Project. However, the Chief Minister is adamant to let go of this issue and is mulling the option to approach Andhra Pradesh High Court’s Divisional Bench. The earlier verdict is given by a Single Judge. Moreover, Center is also differing with the State Government in this issue.
At this juncture, the State Government is planning to convince the Central Government about No Cost Escalation. It is going to give a written assurance to the Central Government to bear the Cost Escalation if any in case such a situation arises. This is unnecessary risk being taken by Jagan just to cancel the contract given in the previous government.
Both the Polavaram Project Authority and the High Court felt that there is no single valid reason for the Pre-Closure of the Contract. So, it is just an ego issue now. Reverse Tendering will ensure in the delay of the project which will also incur an indirect expense.
If there are any legal issues with Navayuga going to courts, the damage will be very huge both in terms of the cost escalation and time delay. Center will intelligently push the blame on Jagan’s Government and relinquish its responsibility on this project. It has to be seen if Jagan will walk into the Trap.
