The Congress High Command has decided to appoint an internal committee to look into the continuous allegations regarding the Polavaram dam and the contractors involved. Sonia Gandhi was upset when she learnt that two contracting agencies had allegedly been paid Rs 250 crore without actually doing any work.
M/S B. Seenaiah and Company and M/S Madhucon Projects, a company owned by Telugu Desam parliamentary party leader, Mr Nama Nageswara Rao, were awarded the project works and paid mobilisation advance during 2005-09. Since both the companies had failed to start the work, Dr Y.S. Rajasekhar Reddy government had cancelled the work and decided to go for fresh tenders.
The irrigation minister Ponnala Laxmaiah submitted details on the Polavaram tenders and the progress made till now to Ahmed Patel, the political secretary to the Congress president.