Polavaram clause relaxed for TD MP Rayapati Sambasiva Rao

Though the agreement says machinery shall be bought under Joint Venture Company name of Transstroy India and Transstroy Russia, the machinery was bought only in the name of Transstroy India.

The government relaxed the rule stating that the machinery worth Rs 340 crore is at the site and the same hypothecated to the project and invoices rose for the project.

The principal secretary (irrigation) Adityanath Das said, “The agreement has two contradicting clauses. One of the clauses say the machinery can be in the name of one of the partners of the JV Company. The other clause says the machinery has to be in the name of JV Company. So the company has applied to the government for relaxation and the government relaxed the clause agreeing with the applicant. The machinery invoice is in the name of company for Polavaram project and the machinery is stationed at the site.”

He also added that the initial Rs 140 crore was paid earlier, as part of one per cent of total cost of Rs 4,000 crore, of the project. As per the rules five per cent of total cost can be given as part of mobilisation advance. Vigilance Commission rules allow 10 per cent of mobilisation advance for the projects, the AP principal secretary added.