Chief Minister Jagan Mohan Reddy suffered a major setback on Thursday after the Andhra Pradesh High Court issued interim orders cancelling a pre-closure notice sent to an engineering firm involved in the Rs. 58,000 crore construction of the Polavaram Hydel Project. The firm - Navayuga Engineering Limited - had taken the state government to court after its contract was cancelled citing irregularities and non-fulfillment of contractual obligations.