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AP Genco defends contracts

By Our Special Correspondent

HYDERABAD, MAY 6. The Andhra Pradesh Generation Corporation has defended the contracts awarded to three different parties worth Rs 600 crores, stating that it had done so using the power delegated to it by the State Government.

Reacting to reports in a section of the press that the contracts were improper and awarded without the approval of the Chief Minister, the AP Genco said here today that it had neither sought the Chief Minister's approval in the present case nor was it required as under "delegated powers." The contracts cited in the charge related to the Jurala project (to the tune of Rs 386 crores), civil works of Rayalaseema expansion project (Rs 100 crores) and the construction of weir across the Krishna for sustaining the Srisailam Left Bank hydel project (Rs 100 crores).

AP Genco termed the allegation as "false and baseless," stating that it had followed a meticulous procedure in all the three instances. It had selected CMEC of China for executing the Jurala works after duly following the set guidelines, from calling global tenders to fixing the deadlines for completion of the project. It said the Rs 100 crore figure mentioned by the press report relating to Jurala was "an exaggeration." The fact was that it consisted of two contracts, one for manufacturing and stockpiling, worth Rs 7.85 crores, and another for construction of the weir worth Rs 26.83 crores.

It denied the charge that the civil works of the Rayalaseema expansion were awarded to Harji Company. One contract worth Rs 6.73 crores was given to L & T but this too after following the due procedure.

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