Construction of Andhra Pradesh’s new capital – Amaravati – has been halted after the new YSR Congress Party (YSRCP) government stopped all payments and cancelled the sand mining policy. Construction across the state has also been impacted, The Indian Express has reported.
Construction of bungalows and apartments for ministers, Members of Legislative Assembly (MLAs), judges and government officials has been stopped as well.
The state secretariat, the High Court, and key government offices are currently working out of temporary locations in Vijayawada and Guntur.
The YS Jagan Mohan Reddy-led government, which came to power after the recent Assembly election, is reviewing some of the contracts awarded by the previous Telugu Desam Party (TDP) government.
Several projects sanctioned in the Amaravati Capital Region have come under the scanner.
Contracts on hold include those announced just before the election, worth over Rs 9,800 crore. These contracts are for a bridge connecting Vijayawada with Amaravati, a drinking water project, Vaikuntapuram Barrage and ring roads, among others.
Also read: Opinion | Andhra Pradesh’s parochial policy will hurt national interest
Botsa Satyanarayana, Minister of Municipal Administration and Urban Development, told the newspaper, “Till that probe is completed, all payments are kept on hold. Works that are completed above 50 per cent can continue but payments are temporarily halted.”
Some of the buildings in Amaravati are 70-75 percent complete. However, work has not been able to continue as payments of the previous quarter are pending.
Moneycontrol had reported in late July how the state government’s decision had raised concerns for Larsen & Toubro (L&T).
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
