628.47 Cr Saved, 68,000 Crores Lost in Polavaram Reverse Tendering
Reverse tendering was started by jagan MOHAN REDDY' target='_blank' title='ys jagan mohan reddy-Latest Updates, Photos, Videos are a click away, CLICK NOW'>ys jagan mohan reddy as soon as he took office in 2019, claiming that he would save a significant amount of money and that corruption was present in many projects. He also performed admirably on the polavaram Project. After Navayuga was replaced, MEIL was introduced.
With pride, the government of the time declared that the Reverse Tendering had saved 628.47 crores. The real situation, however, is startlingly different. Disregard the savings of 628.47 crores; the government of jagan paid the new contractor an additional 2268.68 crore. Money is not the only consideration. jagan showed little concern for the strong opposition of the indian government and the polavaram project Authority to the concept of reverse tendering.
With pride, the government of the time declared that the Reverse Tendering had saved 628.47 crores. The real situation, however, is startlingly different. Disregard the savings of 628.47 crores; the government of jagan paid the new contractor an additional 2268.68 crore. Money is not the only consideration. jagan showed little concern for the strong opposition of the indian government and the polavaram project Authority to the concept of reverse tendering.
The Chief Executive Officer of Jal shakti Ministry, rk Jain, sent a letter to the media. The letter claims that preclosing the present tenders and retendering the job is not necessary nor sufficient justification. "Such a step will result in unforeseen consequences and plunge the project into uncertainty," the then-Government was further cautioned. The project is not only likely to be delayed, but it will also likely have a negative socioeconomic impact since it will take longer for the benefits to be realised than expected, in addition to potentially increasing in cost.
RK Jain "humbly" asked that the concept be shelved or at the very least put on hold until the indian government adopts a more thoughtful stance on the matter. Never mind about giving up on the concept—the jagan government didn't even wait. That is jagan Mohan Reddy's attitude towards polavaram, which is considered Andhra Pradesh's lifeblood. This reverse tendering may have cost up to 68,000 crore when including in project losses, cost increases brought on by the delay, and advantages that were not received until later.
According to Chandrababu Naidu, finishing the project from here may need at least four seasons, or four years. Was the concept of reverse tendering the result of escalation brought on by incapacity or pride? or Does reverse tendering occur in exchange for bribes? The New government ought to look into this.