On August 22, the Andhra Pradesh High Court had suspended the cancellation of Navayuga's contract with Polavaram hydel power project. But despite that the Andhra Pradesh Cabinet on Wednesday approved the cancellation of the Rs 3,216.11 crore Polavaram hydel power project contract, calling for new tenders in the reverse tendering process. The cabinet also approved the decision to recover the advance amounts given to the contractor.
The cabinet also withdrew the approval of 412.5 acres of land allotted to Machilipatnam Port Private Limited (MPPL), citing that the company had neither started the work nor paid the rent for the land given. Navayuga is also the major stakeholder in this project. The company has approached the court on this issue as well, alleging that the government did not handover the lands necessary for the project.
The company has informed the court that it has spent 436 Crore on this project so far. The High Court posted the next hearing of the case to 12th of this month due to Lawyers strike going on in the high court. The company urged the court to strike down the government order regarding this issue.
