The Hindu : Front Page : Higher bonus for State employees

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Saturday, Aug 11, 2007
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Higher bonus for State employees

Special Correspondent

THIRUVANANTHAPURAM: The Government has decided to enhance the bonus ceiling and the bonus amount payable to employees.

Finance Minister T.M. Thomas Isaac told a news conference here on Friday that the exact quantum of the bonus would be decided by the Cabinet.

The Minister was briefing reporters about the Government’s efforts to solve the stand-off between it and contactors. He said the contracts had thrown a challenge to the Government and the people by refusing to take up road repair work. The crisis, he said, was not the result of delay in paying the arrears due to the contractors. The Government had released Rs.147 crore on Friday alone taking the total amount released to Rs.506 crore so far this financial year.

Mr. Isaac said the payment made so far had brought down the arrears sharply from that relating to 24 months to 21 months. In the case of building contractors, the payment had resulted in clearance of arrears relating to eight months of 2005-06 and in the case of irrigation contractors, from 14.7 months to 11 months. Mr. Isaac said the Government now owed the contactors Rs.710 crore for the work that had already done. The amounts due to them for on-going works would come to between Rs.700 crore and Rs.1,000 crore. The Government had proposed a Discount Scheme to bridge the time lag.

He said the Discount Scheme had been accepted by majority of the contractors. However, some had rejected it. The present stand-off is the result of the stubborn attitude taken by this minority group of contractors. Some people, including contractors and officials, appeared to be keen to perpetuate the corruption in the construction sector. The Government would not allow this to happen. It would not go back on the investigations already on but would be ready to accept to consider any genuine grievances of the contractors.

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