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High Court Lifts The Stay On Polavaram Project

By:  Tupaki Desk   |   1 Nov 2019 10:26 AM GMT
High Court Lifts The Stay On Polavaram Project
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The High Court of Andhra Pradesh has lifted the stay order on the execution of the Polavaram Multipurpose Irrigation Project clearing the obstacles for the recommencement of the work. This court order is a big relief to the AP government. The Navayuga Engineering Company Limited (NECL) has challenged the decision of the Jagan government to cancel the construction of the hydro-power project.

The High Court has quashed the stay order issued by the lower court agreeing with the argument of State Advocate General S Sriram that the petition filed by the Navayuga was not tenable. "Since the arbitration process is going on, the petition filed by NECL cannot be entertained by the High Court," said Advocate General

The HC has also put aside the orders given by the lower court that prevents the State government from encashing the bank guarantees produced by the NECL for not completing the project on time.

Further, the HC also set aside the injunction granted by the lower court preventing the State government from encashing the bank guarantees given by NECL for not commencing the project on time. The HC also directed the lower court to hear the arguments of both the parties and review its judgment.

The new contract was given to Megha Engineering and Infrastructure Limited (MEIL). Interestingly only MEIL has participated in the bidding, which quoted 4,359.11 crore, which is almost 628.42 crores less than the estimated cost. The previous contract was given to NECL when Chandrababu was in power in 2017. Anil Kumar Yadav, AP Water Resources Minister welcomed the High Court order and said all the problems have been solved.