Municipal Commissioner C. Hari Kiran held parleys with municipal contractors here to sort out the issue of pending dues here on Thursday.
The Vijayawada Municipal Corporation (VMC) has to pay Rs.16 crore to the contractors for the works taken up under general funds.
The Commissioner assured them that Rs.4 crore would be released immediately and remaining in instalments.
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The Commissioner told them that Rs.50 lakh would be paid every month to them. The contractors, however, were of the view that at least Rs.2 crore be paid every month.
Else, the dues would be pending for another two years from now.
The VMC has to pay Rs.30 crore towards the works taken up under JNNURM programme.
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The Commissioner, in this regard, told the contractors that it would be cleared shortly as the government had assured to release Rs.50 crore, sources say.