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Why Centre opposing Jagan's reverse tender plan?

Why Centre opposing Jagan's reverse tender plan?

The way the Central government is becoming so serious on the decision of YSR Congress party president and Andhra Pradesh Y S Jagan Mohan Reddy to go in for reverse tendering in case of Polavaram major irrigation project is raising many eyebrows.

On the face of it, it appears the Centre is angry with Jagan for ignoring the letters and requests made by Polavaram Project Authority (a wing of Union water resources ministry) not to pre-close the tenders of Navayuga Engineering Limited and go in for reverse tendering on Polavaram project.

With Jagan going in for fresh tenders in spite of the letters by the PPA, the Centre called for a detailed report on the whole issue within a week.

But what makes one wonder why the Centre should have any objection for reverse tendering process, since Jagan’s whole objective is only to reduce the project cost.

Since it is the Centre which is bearing the entire expenditure of the irrigation project component of the Polavaram, if the cost of construction comes down due to reverse tendering, it would only reduce the burden on the Centre.

“Instead of getting angry with Jagan, the Centre should in fact appreciate his attempts to bring down the expenditure. That way, he is only helping the Centre,” an analyst argued.

The Centre is apprehensive that the reverse tenders would delay the project result in cost overrun. But, Jagan government is assuring that the tendering process would be completed soon and works would commence before November itself.

“In any case, no work will be taken up during the flood season. So, practically, there is no delay in the construction of project,” the analyst argued.

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Tags: Jagan Congress Polavaram PPAs reverse tendering