The Pattiseema Lift Irrigation Project was given to Megha Engineering and Infrastructure Ltd. The company quoted Rs 1300 crore for the project which was 21% higher than the actual cost. Nevertheless, they got the contract.
Now the Andhra Pradesh government has come out with instructions to give them 5% extra as incentive for early completion of the project. This will come to around Rs 260 crore. This logic of CBN is very hard to understand.
When you are purchasing something worth Rs 100 for Rs 121, why do you need to pay Rs 5 extra for timely delivery? Is that not implicit in the agreement? Definitely not the act of a responsible administrator or one at the helm of an impoverished state.
Naturally, the High Court has taken up the matter and asked the government for a suitable explanation.
