Fighting against the stiff opposition from different sources, the Jaganmohan Reddy government had started reverse tendering on various engineering works including the Polavaram project. It was just two days ago, the chief minister had directed the officials and his cabinet colleagues not to succumb to any pressures on going for reverse tendering. He had indirectly hinted at the pressures on him too from different sources. Even in his Independence Day address, he had referred to the stiff resistance being put up in the State against his decisions of reverse tender, review of power purchase agreements and other issues. However, standing by his words, the government had issued guidelines for the reverse tendering. The government had also asked the existing contractors to participate in the reverse tendering and quote the prices afresh. The government is confident that the process would bring down the cost of the on-going irrigation projects in the State, where the YSR Congress saw huge corruption.
There were pressures from the private power companies, when Jaganmohan Reddy started the process of reviewing. The influential companies have made Union energy secretary to write a letter to the government against the review of the power purchase agreements. As the government proceeded further, the lobbies seems to have prevailed upon the Union energy minister to write against the review. The lobby is so strong that it had even made Japan embassy to talk against the review and every such advice was greatly presented in the local media. The TDP, which is worried about its involvement being exposed, is using all its political influence in the country, particularly in the Central government to stop Jaganmohan Reddy from going for reverse tendering in the irrigation works and review of the power purchase agreements.
As Jaganmohan Reddy is firm on his decisions and speaks about saving government money from his initiatives, it is to be seen how much he would save to the exchequer with these two initiatives.