Uncertainty looms over development projects in the State as the 4,600 government contractors have decided to suspend operations if their bills were not to be cleared by November-end.
The All-Kerala Government Contractors’ Association has informed Chief Minister Oommen Chandy, Finance Minister K.M. Mani and Public Works Minister V.K. Ebrahim Kunju about its decision. Over Rs.1,000 crore is due to the contractors for works completed. The bills of Water Resources Department works have been pending since March.
The buildings and road section of the Public Works Department (PWD) has kept bills pending from May.
A financial crunch and poor financial discipline are cited as the main reasons for the government’s inability to settle the bills.
It is learnt that the PWD has allocated 10 times more funds than its budgetary share.
The works on roads, bridges, government buildings and other projects will be the worst affected by the decision of the contractors. This is likely to invite the wrath of the public.