Andhra Pradesh Business Educational Legal

Polavaram price escalation due to ‘revised scope’

Vijayawada: Amid criticism by opposition parties over the revision of Polavaram costs, the state water resources department, which termed the allegations baseless, clarified that changes in the price were largely due to revised scope of works as per revised designs approved by the Central Water Commission. The department prepared a statement showing the difference between administrative approvals given for the head works of Polavaram Irrigation Project and what necessitated the revision of cost.

According to the statement, the government had given administrative sanction for Rs 5,535.45 crore (pre-GST) on September 8, 2016. After reverse tendering, changes in designs and thereby scope of works and other non contractual works, the department issued an order on April 19 this year according administrative sanction for a revised amount of Rs 7,192.02 crore. The officials explained that only Rs 799.15 crore worth additional works were added to the scope due to changes in the designs that too as approved by the dam design review panel/Central Water Commission.

While the head works estimated value in the recently given order is in fact Rs 268.93 crore lesser than the 2016’s approval (Rs 5,266.52 crore), the officials added that non-estimated contract value items of Rs 919.75 crore were included.

Even in the Rs 919.75 crore, Rs 515.45 crore is towards GST provision and another Rs 404.27 crore is for works such as construction of a three-floor building for control room, safety and lighting arrangements, sub-stations, land acquisition in dump areas, construction of a model house, ghat road, road improvement from Kovvur to Ramayapet, power charges and others.

“A probable price escalation of Rs 153.36 crore for Transstroy joint venture and Navayuga Engineering Company Ltd in 2018-19, and another Rs 53.24 crore for deviations approved in works of spill channel, diaphragm wall cut off, protection of cofferdams, executed by NECL in 2018-19, were included in the latest sanction,” a senior official explained.