Andhra Pradesh

A.P. to call fresh tenders for Polavaram

The State government is taking steps to eliminate snags in the execution of the prestigious Polavaram project. The first step will be calling for fresh tenders for the completion of the spillway, spill channel, approach channel, coffer dam and the earth-cum-rock-filled dam as per schedule.

This, the government proposes to do after “putting aside” Transstroy, the primary contractor of the project. The biggest weapon in the arsenal of the State government to achieve this goal is the extremely poor performance of the contractor. As per the records of the State government, Transstroy could achieve only 27% of the target.

Revising the estimates as per the current rates is one of the biggest hurdles the State government is facing. The Central government, for which the State is executing the project, has given administrative sanction for only ₹16,010 crore as per the 2014 prices. But the cost of the project is said to have escalated over and way above ₹40,000 crore as per the prices of 2017-18.

Setting aside Transstroy is also essential for calling fresh tenders, an official said.

While Transstroy has been issued several notices for not achieving weekly and monthly targets, the State government is prepared to issue a show cause notice under Section 60 C of the Engineering, Procurement and Construct (EPC) contract under which the contract could be terminated.

Officials say it may not come to that if Transstroy steps aside voluntarily and that there are enough indications of that. Transstory stepping aside would be a win-win for the State government and the contractor. There is even a chance of Transstroy being allowed to do a certain percentage of the work, officials said.

The State government is leaving no stone unturned to complete the work as per the schedule it has announced, that is sending water into the canal by gravity by the end of 2018 and completion of project by the end of 2019.


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Printable version | Jun 11, 2021 7:10:07 AM | https://www.thehindu.com/news/national/andhra-pradesh/ap-to-call-fresh-tenders-for-polavaram/article19626756.ece

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