The civic authorities of Kochi can heave a sigh of relief as its contractors have called off the strike demanding payment of arrears.
The Kochi Corporation Contractors Association had earlier called for an indefinite strike from Monday demanding payment of pending bills. The strike would have paralysed development works in the Corporation area including repairing and re-laying of city roads, desilting works, and repair, maintenance and construction of drains and canals across the city.
The Kochi Corporation has issued cheques worth ₹6.75 crore. The secretary of the civic body has promised to issue more cheques on Monday for the works that have been completed. The association has decided to put on hold the strike, which was to begin on Monday, considering the assurance given by the authorities, said M.R. Binu, president of the association.
It is estimated that each year the civic body would implement works worth around ₹100 crore using its own resources. The body owes its contractors over ₹100 crore for the works implemented over the years. There has been a delay of three years for the payment for the works. Most of the contractors raise funds for implementing the works through loans and borrowing from private money lenders at exorbitant interest rates. The delay in clearing the bills has forced a large number of contractors into debt traps, he said.
The non-payment of bills and the resultant financial crisis has forced the contractors to boycott new works planned by the civic body. A large number of the contractors have not participated in the bidding process for the works to be implemented during the current fiscal, he said.
Though the strike has been put on hold for the time being, the association will be forced to boycott the works if the civic administration fails to keep its word regarding the payment of bills for the works completed till 2019 September. Kochi Mayor had earlier assured the association that the arrears till September 2019 will be cleared before October 30, 2022, said the association leader.
