Andhra Pradesh Chief Minister YS Jagan Mohan Reddy, who has been constantly hinting that he is going to cancel the Polavaram project contract with Navayuga and resort to the reverse tendering process, has finally made it true.
After cancelling the Rs. 3000 crore worth Polavaram Irrigation project recently, Jagan now cancelled the Rs. 3,216.11 crore worth Polavaram Hydel Power Project contract and called for new tenders in the reverse tendering process. Adding to it, the state government also decided to recover the advance amount given to Navayuga.
Unwilling to share the credit with the previous government, Jagan is making sure to erase the marks of TDP in the state. Regarding this, cancelling all the contracts with Navayuga is just a step by Jagan, to show his mark.
Even though the Central government was against the decision and also warned the state government, not to conduct the reverse tendering, Jagan moving forward with it, is something that it anticipated to cost him and his government big soon.
At a point of time, when the state is in deep fund crisis, cancelling the existing contract and conducting the reverse tendering, only to satisfy the ego against TDP, is nothing but foolishness. The acts of this sort, may send wrong signals to the public, that the ruling party is only aiming to go against the TDP, without any such great need.