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Pre-Decided Contracts? OSD Role Triggers Major Controversy in AP!

Pre-Decided Contracts? OSD Role Triggers Major Controversy in AP!
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“Inflate estimates, extract maximum gains”—this is now being widely discussed as the working model of the Andhra Pradesh government. Even some ministers reportedly feel that the functioning of the current coalition government is quite different from the past. What is more striking, according to sources, is that the entire process is now being carried out in a systematic manner. There have already been allegations that project estimates for the Amaravati capital works were arbitrarily increased. Moreover, in the allocation of works, competitive bidding is said to have been sidelined, with contracts allegedly being designed and awarded only to select, favored companies. Ideally, the focus should have been on assigning work to multiple agencies to ensure faster completion. Instead, by limiting contracts to a few preferred players, the government now finds itself in a position where it has to push these companies to speed up the work.

Meanwhile, in another major development, sources in the power department reveal that the estimated cost of a pumped storage project to be constructed by AP Genco at Yadiki in Anantapur district has been increased by as much as 20%. To secure this ₹5,000 crore project, a minister from a key alliance partner is said to have deployed a “Linga team” on his behalf. Department insiders claim that despite the presence of a major corporate contender, this group is aggressively pushing to bag the project. This has triggered debate within government circles on whether such efforts could succeed without the backing of top leadership. At the same time, there is growing concern within the Andhra Pradesh administration about whether certain ministers and IAS officers are working in the interest of the state or for private companies and contractors.

In a particularly serious allegation, an Officer on Special Duty (OSD) working under a key minister is said to be acting in favor of corporate firms. According to sources, his decisions are allegedly causing losses to the government exchequer while benefiting private entities. It is further alleged that he is informing IAS officials in advance about which companies should be awarded contracts—even before tenders are finalized—highlighting the severity of the situation. There is also talk within the power department that this official is actively working to support the “Linga team” in securing the project. Overall, the developments have sparked intense debate over transparency, governance, and the alleged nexus between political leadership and private interests in the state.

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