Chief Minister N. Chandrababu Naidu on Saturday said that he explained to the Central Government the various options for expediting the Polavaram project, including the scope for outsourcing some works.
“There is, however, no chance of increasing the rate the contractor may be expecting,” he said at a press conference here.
He stated that bank credit was ring-fenced, under which they (the banks) were supposed to make disbursement as it is, which apparently was not happening. He said the project was hit by fund crunch due to other factors as multiple agencies were working on it.
Basically, the project was awarded at a quoted price, which was less than the internal benchmark of 14%.
“Congress party did all sorts of things and it is creating a problem now,” he said. Some expenses were being met from the imprest amounts, but the overall situation needed a speedy resolution.
Nevertheless, the State government streamlined 28 projects, which would be completed by March 2018, he asserted.
