Re-tender for Polavaram project;govt claims it saved Rs 780 cr

In what it claimed could result in a saving of Rs 780 crore, the Andhra Pradesh government on Monday received a single bid in the re-tender for the Polavaram project head works (balance) and the 960 MW hydropower project, with the bidder quoting Rs 4,359 crore as against the estimated commercial value of Rs 4,987 crore.

Last week, the government announced it 'saved' Rs 58 crore on a package of works related to Polavaram by going for reverse tendering.

The gross saving, thus, would be over Rs 839 crore on various balance works of Polavaram, the government claimed on Monday.

The re-tender process comes after the High Court staying the cancellation of Polavaram hydropower project contract, previously awarded to Navayuga Engineering Company and also the reverse tendering the government planned.

Also, the Centre, which is supposed to provide 100 per cent funding for Polavaram (irrigation component) since it has been declared a national project, raised objections over the ...