Mr Rosaiah has approved the proposal of the infrastructure department as well as the recommendations of the advocate general, Mr D.V. Seetarama Murthy, to replace the scam-hit Maytas with NEC as the lead partner in the port project.
Official sources said Mr Rosaiah only wanted the department to obtain the credentials of NEC and assess the company’s ability to complete the project.“The Chief Minister did not reject the proposal of the replacement of the lead partner with another company,” sources said.
The infrastructure department has sought the company’s profile, balance sheets, experience in executing similar projects and other related information. The NEC has handled several infrastructure, road and irrigation projects across the country. The promoters enjoy a close rapport with a powerful Congress MP.
Interestingly, neither the department nor the Chief Minister’s Office went into the agreement clauses that prohibit exit of the lead partner for five years from the date of commencement of the port operations.
The Maytas-led consortium got the project in inter- national bidding. Maytas and another infrastructure company, Nagarjuna Construction Company, hold 51 per cent stake in the consortium. The government agreed to pay Rs 300 crore as compensation for shifting the location of the project even though officials raised doubts about the genuineness of the claim.
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