The Andhra Pradesh government has ordered Navayuga Engineering Company, a sub-contractor for the Polavaram irrigation project on the Godavari, to stop working on the project.
Andhra Pradesh Chief Minister YS Jaganmohan Reddy has accused the previous TDP government of favouring Navayuga for the contract. He has also alleged large-scale corruption in the execution of the Polavarm project, which was declared a national irrigation project in the AP Re-organisation Act, 2014. The Centre is releasing funds for the project.
Navayuga was appointed as a sub-contractor by the previous government.
The new YSR Congress government has appointed a committee of experts to probe into the corruption charges in the Polavaram project execution.
It is also learnt to have asked Navayuga to stop work in the Machilipatnam port.