KOCHI: The Kerala Government Contractors’ Association has asked the Reserve Bank of India (RBI) to revisit its decision opposing the bill discounting scheme of the State Government.
The scheme being followed for over one year allows contractors to discount bill amounts in banks, at 10 per cent interest, by paying half of the interest amount. The State Government repays the amount along with five per cent interest by the due date.
“The construction sector in Kerala would come to a standstill if the bill discounting scheme is discounted, putting many contractors in debt trap. We request the government and the MPs to take up the issue,” said Association state president Varghese Kannampally, adding that so far contractors had received Rs 2,500 crore from various banks through bill discounting and the State Government repaid Rs 2,200 crore plus interest.
The Finance Department has issued an order to pay back the remaining amount within three months.
The Association, meanwhile, welcomed the High Court order staying the previous government’s decision to award five public work projects worth Rs 977.7 crore to Uralunkal Society without floating tenders. The order was issued on a petition filed by Varghese Kannampally.