The North Karnataka Civil Contractors' Association (NKCCA) has demanded the immediate release of pending bill dues amounting to Rs 23,000 crore from the state government. NKCCA president Subhas Patil highlighted that contractors are under immense financial strain due to delayed payments, which have led to banks initiating recovery proceedings and threatening to seize machinery and mortgaged properties.
Financial Crunch Worsens
Patil stated that the prolonged non-payment of dues has created a severe liquidity crisis among contractors. Many have been forced to halt ongoing projects, leading to job losses and stalled infrastructure development. The association warned that if the dues are not cleared soon, the situation could escalate, affecting the state's overall construction sector.
Banks Step Up Recovery Efforts
With contractors defaulting on loans, banks have become aggressive in their recovery measures. Patil noted that several contractors have received legal notices, and some have already faced asset seizures. The NKCCA urged the government to intervene and facilitate a payment plan to prevent further economic hardship.
Impact on Infrastructure Projects
The association emphasized that the release of funds is crucial for the completion of key public works, including roads, bridges, and irrigation projects. Delays in payments have also discouraged new contractors from bidding for government tenders, potentially slowing down development in the region.
The NKCCA has appealed to Chief Minister Siddaramaiah and other senior officials to prioritize the clearance of these dues. They have also called for a transparent mechanism to ensure timely payments in the future, preventing similar crises from recurring.
