Contractors affiliated with the Navakarnataka Contractors and Consultants Association (NKCCA) have urged the Karnataka government to clear pending payments amounting to Rs 23,000 crore. The contractors are facing severe financial strain as banks intensify recovery proceedings and threaten to seize machinery and mortgaged properties.
According to NKCCA representatives, the delay in payments has created a liquidity crisis, hampering ongoing projects and forcing many contractors to default on loans. The association has appealed to Chief Minister Siddaramaiah and Deputy Chief Minister D K Shivakumar to intervene and release the dues at the earliest.
The pending payments primarily pertain to works completed under various government departments, including public works, irrigation, and rural development. Contractors claim that the non-payment has led to a cascading effect, with subcontractors and laborers also being affected.
In a memorandum submitted to the government, the NKCCA warned that if the dues are not cleared soon, contractors may be compelled to halt work on key infrastructure projects. The association also highlighted that many small and medium contractors are on the verge of bankruptcy due to the mounting debt burden.
Bankers have reportedly started classifying these contractors as non-performing assets (NPAs), further worsening their access to credit. The NKCCA has urged the government to prioritize payment clearance to prevent a complete breakdown of the construction sector in the state.
Deputy Chief Minister D K Shivakumar, who also holds the finance portfolio, has assured the contractors that the government is aware of the issue and is working on a phased payment plan. However, the contractors have expressed dissatisfaction with the pace of action and demanded immediate release of at least 50% of the pending amount.
The NKCCA has threatened to launch an indefinite agitation if the government fails to address their demands within a stipulated timeframe. The association has also sought a meeting with the Chief Minister to discuss the matter in detail.
