It looks like the hegemony of Transstroy India Limited, belonging to Telugu Desam Party MP from Narsaraopet Rayapati Sambasiva Rao, in the prestigious Polavaram project seems to have come to an end.
Two major developments have taken place with regard to Polavaram on Friday.
First, The Centre has finally succumbed to the pressures of TDP chief and Andhra Pradesh chief minister N Chandrababu Naidu and given permission to him to delink major works of spillway headworks and channel works from Transstroy and call for fresh tenders to complete them on fast track mode.
Secondly, the authorities of Dena Bank and Canara Bank confiscated the vehicles and equipment belonging to Transstroy near the project site in West Godavari district as the company failed to clear their loan arrears.
The Transstroy had dues worth Rs 120 crore to Dena Bank and Rs 725 crore to Canara Bank. The bankers asked Transstroy authorities not to go ahead with the works till they cleared the loans.
A few days ago, Canara Bank filed a petition before National Company Law Tribunal, Hyderabad asking it to declare Transstroy as insolvent and initiate the process for winding up of all its business activities, auction its properties and repay the dues to the banks.
With the Friday’s development, the regime of Transstroy in Polavaram appears to have come to an end. But till the new contractors take over, the works will come to a halt!