Andhra Pradesh Government is on the verge of awarding Polavaram Dam Works and Hydel Project Contract to Megha Engineering Infrastructure Limited (MEIL) as the company has bid 12.6% less than the Government's decided rate. jagan Government claims savings of 629 Crores by this contract.
Megha is the single bidder for this contract and so Reverse Tendering is not possible As the government is in the process of having legal consultations regarding what should be done. Reports are that the Centre has almost decided to cancel jagan re-tendering contract given to Megha krishna Reddy. The Union Jal Sakti Ministry will take up the unfinished 30 percent project works. In that way, BJP can claim credit for the project.
Moreover, the central government will not take responsibility for Rehabilitation and Resettlement (R&R) works of Polavaram evacuees because it will require Rs. 33,000 Crore. jagan government will be made accountable for R&R works. This will be a huge financial burden for the State Government which is already suffering from deep financial crunch. It is a way to actually corner the State Government.
