The reputation and prestige of Andhra Pradesh has already hit a low due to the controversial and hasty decisions taken by Chief Minister YS Jaganmohan Reddy after assuming office eight months ago. Several prominent national and international companies have withdrawn their investment proposals from AP on account of CM Jagan’s ‘reverse decisions’.
Thanks to YSRCP government defaulting on payment of contract arrears to German companies, the AP has earned a bad name even at international level.
The AP government owes Rs 91 crore to renowned German company Bauer Group.
This company was awarded contract to build a cut off wall for the Polavaram dam in AP.
The company finished the works in time but AP government failed to clear the dues.
The company has been running around AP government to claim the bills in vain.
Vexed with this, the company lodged a complaint with the German embassy in New Delhi.
The German embassy officials approached union ministry of commerce and industry and complained against AP government. The Centre took this issue seriously and asked AP government to clear the dues immediately saying that such acts will damage the reputation of India at international level.
Not only this, one more German company complained to German embassy against AP government.
German company TUV Rheinland was awarded contract to create infrastructure for AP Medtech Zone for manufacture of world class medical devices.
The AP government failed to clear Rs 29 crore arrears to TUV even after it completed the works.
The company made several requests to AP Government to clear arrears in vain.
Angered at this, the company lodged a complaint with the German embassy.
The German embassy took serious view of AP government not paying bill to their firms and violating the agreements. It lodged a strong protest with the union ministry of commerce and industry.
The Centre too is very angry at YSRCP government for damaging the reputation of India at international level.
The dues to both German companies does not exceed Rs 120 crore.
Is this such a big amount which AP government cannot clear?
Is it necessary for Jagan government to play with the reputation of not only AP but also of India for the sake of just Rs 120 crore arrears?