: Arrears due to government contractors have mounted to over Rs.2,500 crore, Varghese Kannampally, president, Kerala Government Contractors’ Association, has said.
Talking to The Hindu here on Sunday, Mr. Kannampally said the government had settled bills only up to December 2013.
“No efforts are being made to clear the dues during the January 2014 - January 2015 period. The government has stuck to its position that it would not be possible to settle the arrears before May 2015, by when it would be 16 months since the bills were last cleared,” he said.
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Representatives of the association visited Chief Minister Oommen Chandy at his residence in Puthuppally on Sunday, but failed to receive an assurance of an immediate resolution to the issue.
Mismanagement
“Financial mismanagement and indiscipline of the current dispensation have resulted in the current situation. There were no dues to contractors during the previous government’s term,” Mr. Kannampally said.
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He said several contractors were unable to avail themselves of loans from banks to complete the ongoing works with their accounts being declared non-performing assets.
“The prevailing scenario threatened to affect works estimated to cost Rs.4,000 crore that were being undertaken. Paucity of funds could ultimately have a cascading effect upon the quality of the ongoing works,” he said.
The association has decided to launch an agitation by taking out demonstrations to government offices and courting arrest.
The agitation will begin in Kottayam on February 2.
“We have decided to resort to protest as the government is turning a blind eye to our demands. A major overhaul is required in the functioning of certain departments, including the Public Works Department and the Water Resources Department,” he said.
Contractors claim they are unable to take loans
Their accounts are being declared as NPAs, they say