The Infrastructure and Investment department is gradually returning to the rule book for awarding major infra projects in ports and airports sectors. The I&I move comes in the wake of scams related to indiscriminate selection of projects as well as its developers in total violation of rules in the last six to seven years.
The department recently appointed the Indian Port Association as consultants to prepare a Detailed Feasibility Report for Kalingapatnam and Bhavanapadu ports in the North Coast of the state. The state government also agreed to pay a fee of Rs 1 crore to the Central government agency for the report. “The DFR is crucial as we can arrive at a decision on whether or not to proceed with the project in the first place,” said Mr Sutirth Bhattacharya, who was heading the I&I till recently.
The YSR government sanctioned several infra projects including Vadarevu and Nizampatnam Ports Industrial Corridor, airports in Ongole, Nellore and Tadepalligudem without any preliminary exercise. Besides, it selected developers of its choice through Government-to -Government model to circumvent the regular tender process. In order to turn the otherwise unviable projects, the government also offered more sops as incentive to the developers.
The I&I department, following the decision of former Chief Minister K. Rosaiah, awarded the Machilipatnam port project to a developer, despite objections raised by the CAG who suggested a fresh round of bidding. “We have now firmly decided to follow the tender process for Kalingapatnam and Bhavanapadu ports based on the outcome of the DFR,” said I&I minister Ganta Srinivasa Rao.