The Hindu : Karnataka / Bangalore News : E-payment facility for NHAI contractors launched

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Friday, Jan 18, 2008
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Karnataka

Karnataka - Bangalore

E-payment facility for NHAI contractors launched

Staff Reporter

It will cut delay in payments to them: Muniyappa

The facility is now restricted to five southern States
It will be extended to other parts of the country by March-end

BANGALORE: Union Minister of State for Shipping, Road Transport and Highways K.H. Muniyappa on Wednesday launched e-payment facility to facilitate the National Highways Authority of India to make its payments to vendors and contractors. While the facility, the first of its kind in the country and enabled through a tie-up with Syndicate Bank, was confined to the five southern States, it would be extended throughout the country by March-end, the Minister announced.

This move, Mr. Muniyappa said, was to reduce delays in payment to contractors and agencies involved in road construction.

He said Syndicate Bank, the banker for the Ministry for the past three decades, would transfer funds to the account of the vendor/contractor within 24 hours on receipt of the advice after the bills were processed and pay order/advice issued by the Regional Pay and Accounts Office.

Thus, inordinate delays in payments to contractors and vendors could be eliminated and projects could be taken up faster with the new system. The vendor/contractor would get an SMS alert by the bank upon the money being credited to his account. The electronic transfer even eliminates possibilities of fraud, he added.

Mr. Muniyappa claimed that his department was the first to introduce this novel method among all other Central government departments and Ministries. Chief Controller of Accounts, Department of Road Transport and Highways, Sudhir Kumar, said e-payment facility would only help speeding up the projects as vendors and contractors got payments immediately towards their bills.

According to Mr. Krishna, the State Government is planning to seek a soft loan from the Japanese Bank for International Cooperation to develop and maintain 37,000 km of major district roads.

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