The North Karnataka Civil Contractors’ Association (NKCCA) has appealed to the state government to immediately clear pending payments amounting to nearly Rs 23,000 crore, warning that prolonged delays have pushed contractors into severe financial distress.
Memorandum Submitted to Chief Minister
In a memorandum submitted to Chief Minister DK Shivakumar, the association detailed that approximately Rs 4,000 crore is pending under the Public Works Department, Rs 5,000 crore under Major Irrigation, Rs 2,000 crore under Minor Irrigation, and nearly Rs 12,000 crore under other departments.
Financial Strain on Contractors
NKCCA President Subhas Patil stated that contractors are facing mounting pressure from banks, which are initiating recovery proceedings and threatening to seize machinery and mortgaged properties. Many contractors are struggling to survive due to escalating debts and delayed payments.
Key Demands
- No fresh tenders until all pending bills are cleared.
- Mandatory payment within 60 days, with interest for delays beyond that period.
- Exemption from mineral dispatch permit (MDP) requirements for government works, citing harassment, delays, and corruption during transportation of construction materials like stone, sand, and murram.
- Decentralisation of tender approvals and simplification of the Contract Management Module, proposing it be mandatory only for tenders above Rs 5 crore.
Criticism of Current Practices
The NKCCA criticised the practice of floating road and building tenders during the monsoon, terming it impractical and unscientific. It also opposed the mandatory five-year maintenance clause for resurfacing works above Rs 2 crore, arguing that such works typically last only about two years.
The association further objected to package tenders, stating that they limit opportunities for small local contractors. Allegations of corruption in departments, harassment by officials, and frequent police checks on construction vehicles were also raised.
Call for Policy Reforms
Citing sharp increases in bitumen and diesel prices, the contractors urged the government to revise project estimates and introduce policy reforms to ensure timely execution of public works.
