The Centre has objected to the Andhra Pradesh government’s decision to issue pre-closure notices to the contractor building the multi-purpose Polavaram irrigation project. Replying to a question in the Lok Sabha on Friday, Jal Shakti Minister Gajendra Singh Shekhawat warned that the state’s move could seriously hold up work on the project.

The Centre’s objection

Shekhawat said that a fresh round of bidding would push up the overall cost sharply and make it impossible to predict when the project would be finished. “The responsibility of completing the project lies with state government only,” he told the House.

Why the state wants to re-tender

After taking office, the YSR Congress government led by Chief Minister Jagan Mohan Reddy chose to re-tender several major projects through a reverse tendering process, alleging irregularities under the previous Naidu administration. It has claimed that ministers and senior leaders of the former Telugu Desam Party government gained from increases in Polavaram’s cost estimates.

The state set up an expert panel to look into the alleged irregularities in the project, around 70% of which was completed under the earlier government. In a report submitted on July 24, the panel said it had found irregularities amounting to Rs 3,797 crore.

Acting on that report, the government served a pre-closure notice on the contractor, Navayuga Engineering Company Limited, asking it to pull out of the works and settle the outstanding amount with the state.

What the state plans

The Jagan government intends to invite fresh bids soon, with the contract going to a firm that quotes less than the previous agency. It expects work on Polavaram to restart from November 1, 2019, once the re-tendering is complete.

See also: state elections

Originally published on 3 August 2019. Rewritten on 9 October 2026.

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