The YSR Congress government had shown the door for the Navayuga Group from the Machilipatnam Port contract. The Navayuga was dropped earlier from the Polavaram Project, which the State government wants to go for fresh tenders. Now, this is the second project where the new government had dropped the Navayuga Group.
The State government had issued orders on Thursday withdrawing the contract for the Machilipatnam Port works. The government also took back the 4000 acres of land that was given to the contractor. The government said that the contractor had breached the contract agreement with the government by delaying the port works, despite giving several opportunities and thus caused a loss to the government. The government, sources said, is also planning to slap some penalty on the contractor for this loss.
Though the project was given to the Navayuga from the Maytas in 2008, it did not start even an inch of the port work, the government said, while withdrawing the company from the work. Chief Minister Jaganmohan Reddy is understood to have decided to go for fresh tenders for the port and complete it during his first tenure. He is planning to complete the two major projects of his father, late Y S Rajasekhar Reddy, in the first term itself. The projects – Polavaram and Machilipatnam Port – were dear to late Rajasekhar Reddy and it is said that Jaganmohan Reddy wants to close them in his first term.
The YSR Congress leaders have been claiming that these two major projects were started by late Rajasekhar Reddy and would be completed by his son Jaganmohan Reddy. It is to be seen what move that Jaganmohan Reddy government would make on these two projects and how it could come out of the legal issues connected to the contracts.