The Hindu : Front Page : Corporation, contractors face off

Online edition of India's National Newspaper
Thursday, Jan 12, 2006

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Front Page

Corporation, contractors face off

S. Ganesan

Civic works worth Rs.25 crore may be affected

205 contractors boycott tenders called in two batches The civic body planned to take up 218 works

TIRUCHI: The stand-off between the Tiruchi Corporation and its registered contractors over the latter's demand for a hike in rates for raw materials threatens to snowball into a major row and derail development work worth Rs.25-crore.

All the 205 registered contractors of the civic body have decided to boycott the tenders called in two batches for executing the works. The contractors desisted from purchasing tender schedules for the first of the two tenders on Monday and made it known that they would boycott the next batch of tenders too on Thursday. On Monday, a lone contractor, that too `an outsider,' bought the tender schedules reportedly at the persuasion of Corporation authorities.

Polls coming

With the notification of Assembly elections due anytime, which would put a freeze on new development works, the Corporation could lose funds sanctioned under Tamil Nadu Local Bodies Road Development Scheme 2005, if it were not used before this financial year. The civic body had planned to take up as many as 218 works under the project. The State Government has come forward to provide a grant of Rs.6 crore while the Corporation would contribute Rs.9 crore and mop up about Rs.10 crore as loan from Tamil Nadu Urban Finance and Infrastructure Development Corporation (TUFIDCO).

The project envisages relaying of over 120 roads besides blacktopping of several kutcha roads and construction of roadside pavements and drainages.

The Corporation seems to have been caught off guard by the contractors' decision. The contractors, who often resort to syndicates while bidding for tenders, contend that the rates for the raw/construction materials was very low. The Corporation rates for even `tar' and sand, supplied by government agencies, were much lower than the government rates. Even the cost of tender schedules is very high.

"We have been sustaining heavy losses due to a vast difference in the market rates and Corporation rates. Our repeated representations have gone unheeded," say contractor association representatives. Officials say that the demand for a revision in rates was not specific to Tiruchi alone and similar demands were raised in Coimbatore and Salem also.

"This is a vital project for us. The contractors cannot hold the Corporation to ransom. Moreover the rates are fixed by the government," the Mayor, Sarubala R.Tondaiman, told The Hindu .

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