Andhra Pradesh Cabinet on Wednesday approved the cancellation of the Polavaram Hydel Power project contract with Navayuga Engineering Company of worth Rs 3,216.11 crore.
Taking this decision at a meeting chaired by Chief Minister Y S Jaganmohan Reddy, the cabinet also called for new tenders in the reverse tendering process.
Polavaram Project is an under-construction multi-purpose national project on the Godavari River in Andhra Pradesh designed to overcome the water deficit. The project is entirely funded by the Centre and is also known as National River-Linking Project.
YSRCP has time and again accused the preceding N Chandrababu Naidu-led TDP government in the state of malpractices and undue escalation of costs in Polavaram project for a long time.
Cabinet also approved recovering the advance amounts given to the contractor in the project.
Further, the Cabinet approved the decision to withdraw 412.5 acres of land allotted to Machilipatnam Port Private Limited as they did not start work and also did not pay the rent for the land given.
The Cabinet also approved the decision to increase the salaries of ASHA workers from Rs 3,000 to Rs 10,000. Salary of ASHA workers in the previous government headed by TDP chief had been increased from Rs 1,500 to Rs 3,000 in 2018.
The extension of a ban on Maoists has also been approved in the meeting for one more year.
( With inputs from ANI )