Andhra Pradesh Chief Minister N Chandrababu Naidu’s attempt to cancel the contract works awarded to Transstory Company, owned by TDP MP Rayapati Sambasiva Rao, for the construction of national project – Polavaram project, triggered a political storm.
The MP lodged a strong complaint with Prime Minister Narendra Modi Office against Chandrababu for denying his company from taking up the works ever since the two parties entered agreement.
Rayapati also brought to the notice of the centre the AP government awarded sub contract works to four other companies without his company’s knowledge. Funds were also released directly to the sub contractors.
The MP took serious note of the Chandrababu’s meeting with Union Water Resources minister Nithin Gadkari in Nagpur recently. In the meeting, the CM informed Gadkari the proposal to cancel the agreement with Transstory. However, the minister warned the estimations of the project will increase by 30 percent if the contract is awarded to a new company. Chandrababu already escalated the estimations from from Rs 16, 000 crore to Rs 50,000 crore eyeing to cash in on the multi crore project.
The AP government criticised the Transstory was not taking up works on fast pace but it did not serve any notice so far. The process to terminate the agreement was also not initiated. In these circumstances, the cancellation of agreement was not possible . On the other hand, Chandrababu government worried project works will come to a grinding halt if the company knocked on the court doors.