As things stand today, the Polavaram Project seems to be entering the phase of uncertainty. Situations are changing drastically for the Project ever since the new government assumed charge. Despite several concerns by Polavaram Project Authority, Jagan Government did not heed to them and went ahead by issuing notification for the Re-tenders.
The Central Government is fuming about this development and instructed the PPA to submit a comprehensive report about what is happening and why it is not kept in the loop line while taking important decisions. Union Jal Shakthi Minister asked the PPA to submit the report by this weekend which indicates the urgency of the matter.
On 16th of this month, the PPA had written a letter asking the State Government to withdraw the proposal. The PPA even asked to postpone the re-tenders at least till the Government of India takes a decision. But the State Government did not care about both and went ahead issuing the notification.
On the other side, Navayuga had approached Andhra Pradesh High Court against the Pre-Closure of Polavaram Hydel Project Contract. In the petition, Navayuga alleged that the government has taken a unilateral decision without giving any reason. They said that they have suffered financial and also reputation losses due to this move. Navayuga sought a stay on giving the project to any other contractor. Center stopping the funding or a stay by the Court will only complicate the things. With both these events, the Project now enters the zone of uncertainty and the Government has to blame itself for this mess.
