Wednesday, July 25, 2012

Parties in AP at loggerheads over controversial Polavaram project


BY Ratikant Mohanty

Bhubaneswar, July 25: Political parties are at loggerheads over the controversial Polavaram project over the river Godavari in Andhra Pradesh.

The Telugu Desam Party (TDP) and Telangana Rashtra Samiti (TRS) are once again engaged in a war of words over transparency of the project.

The TDP chief N. Chandrababu Naidu has demanded that Chief Minister N. Kiran Kumar Reddy place all files pertaining to tenders and the project before the Speaker for perusal by Assembly Floor leaders.

TRS Floor leader Etala Rajender, however, wants all the tenders and the project scrapped, and a probe to be instituted by a sitting judge.

Two ministers, Danam Nagender and M. Mukesh, have also objected to the selection of Soma Constructions as the contractor for the Rs 4,600 crore project and have questioned the cost escalation.

“The government should ensure transparency and remove doubts raised by parties in the Polavaram project. Three months back, the tenders were given to ineligible people and subsequent delay cost the exchequer Rs 600 crore,” Mr Naidu claimed.

In a letter to the Chief Minister, he said the project which was to be completed in 2007, has been repeatedly delayed due to an incompetent government and selfish motives of some ruling party leaders who see it as a source of income rather than as fulfilling the needs of people, especially farmers.

TRS leader Etala Rajender has lashed out at both the Congress government and the TD for leveling baseless allegations at his leader K. Chandrasekhar Rao when the earlier tenders were finalized.

Mr Rajender questioned the cost escalation and alleged that the Congress and the TD were trying to share the booty and the increase in the cost of the project was part of the game.

“We want immediate cancellation of tenders, scrapping of the project and probe by a sitting judge,” he demanded.

He also alleged TD MP C. M. Ramesh had stakes in the company and would get works worth Rs 1,000 crore. “Why was the project cost hiked in a matter of a few months? There is clearly a diabolic game to corner works and share the booty by the Congress and the TD,” he alleged.

YSR Congress leader M.V. Mysoora Reddy said, “The government should immediately cancel the tenders and call for fresh ones. There is a scam worth Rs 500 crore. Officials in the CM's office formed a cartel to loot the state exchequer. How could the government allow only two companies to file bids and shortlist them when they quoted Rs 500 crore more than the earlier tenders?”

Congress Rajya Sabha member Palvai Govardhan Reddy questioned. “How can the government go ahead with the construction despite being ordered not to by the Union environmental ministry unless the issues raised by both Chhattisgarh and Odisha governments were resolved. If the tenders are not cancelled, I will approach the High Court.”

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Key words: Odisha, Andhra Pradesh, Polavaram, Naveen Patnaik, Kiran Kumar Reddy, Conflict, BJD, BJP, TDP, YSR Congress, Telgu, Odia
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Polavaram gets embroiled with fresh controversies at home
By Our Correspondent

Hyderabad: July 25: Odisha government’s objection apart, the Indira Sagar Polavaram project in Andhra Pradesh, is getting embroiled with newer controversies everyday.

In fresh such a case, two sets of unsuccessful bidders moved the Andhra Pradesh High Court on Tuesday challenging the bidding process for Rs 4,600-crore project.

While CGS-Gammon-AMR filed the petition over its disqualification on technical grounds, Madhucon-Sinohydro, another joint venture company, questioned the price bid in its plea.

CGS-Gammon-A MR urged the court to declare the government’s action in not disclosing reasons for rejecting their technical bid as illegal and arbitrary. The petitioner asked the court to direct the authorities concerned to furnish all particulars, including grounds on which bidders were disqualified and details of relaxation, if any, granted to bidders deemed technically qualified.

The JV company told the court that the government's action resulted in losses amounting to several hundred crores for the state exchequer. The petitioner also said it was not seeking any relief adverse to the successful bidders.

In its petition, Madhucon-Sinohydro urged the court to stay all further proceedings, including finalisation of tenders. The company sought a direction to declare the tender process illegal, as the authorities disqualified it in respect of price bid without giving any reasons.