Vijayawada: The Andhra Pradesh Cabinet, which met here on Wednesday, approved the cancellation of the Polavaram hydel power project contract with Navayuga Engineering Company Ltd. (NECL), worth `3,216.11 crore and called for new tenders with a reverse-tendering process.
The Andhra Pradesh Cabinet also approved a report submitted by the Anjaneya Reddy committee on merger of APSRTC with the state government, as part of which, employees of the APSRTC would be recognised as State government employees.
A new public transport department would be set up in the government to absorb and place them.
Addressing media at the Secretariat, Perni Venkataramaiah said that Chief Minister Y.S. Jagan Mohan Reddy had ordered officials of transport, finance, legal and general administration departments to complete the process of merger of APSRTC into the government within three months.
“All facilities and rules applicable to government employees would apply to RTC employees after the merger into public transport department. Retirement age of RTC employees would be increased to 60 years. The government would take over `3,300 crore of financial responsibility as a result of this move,” the minister said.
