States

Govt. contractors to boycott tenders from today

Demand payment of arrears totalling ₹ 4,000 crore

Government contractors will boycott tenders floated by various departments from Thursday in protest against the pending dues of nearly ₹ 4,000 crore.

A statement issued by the All Kerala Government Contractors Association said the departments had been harassing the contractors with new orders to stall payments.

The Local Self-Government Department owes the contractors over ₹1,300 core over the last eight months while the PWD owes them about ₹2,200 crore. There were over ₹500 crore dues from various other departments.

Notwithstanding such dues, the Government brought in new orders that added to their woes, said K.A. Abdulla, district president of the association. For all category contractors, the Government is demanding a capability certificate to be issued by a bank, which is mandatory to renew licences. The contractors have to pay ₹20,000 to ₹50,000 for the certificate, he said.

Mr. Abdulla said the Government used to give a bonus of 1% to contractors for completing the work on time. The Government stopped the bonus and instead started charging fine for non-completion of projects, despite the fact that most of the works during the last two years had been delayed due to the floods.

The contractors would stage a march to the Assembly on February 5.

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Printable version | Feb 20, 2020 1:03:23 AM | https://www.thehindu.com/news/states/govt-contractors-to-boycott-tenders-from-today/article30628514.ece

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