The Telangana Government has convened a high-level meeting in the Assembly premises on Thursday to decide on the fate of Srisailam left bank canal project. The contracting firm -- JP Associates -- has refused to continue the work until it is paid Rs. 723 crore as price adjustment due to cost escalation of the project.
The announcement about the meeting was made by Chief Minister K. Chandrasekhar Rao during a debate on the project in the Assembly.
The Irrigation Minister T. Harish Rao earlier told the House that it was not only the Rs. 723 crore that the firm has demanded but another Rs. 150 crore as advance against bank guarantee to get possession of the cutters for the excavation of the underground tunnel as part of the project. The cutters were held up in various ports, he said.
