THIRUVANANTHAPURAM: The Kerala Government Contractors Coordination Committee has demanded a debt relief scheme for contractors.
A convention of the committee presided over by its chairman Najeeb Mannel said a large majority of its members are caught in a debt trap owing to pending bills, GST issues, shortage of construction materials and steep price rise. It urged that banks should not initiate attachment proceedings or levy penal interest against contractors who are awaiting arrears from the government. Loans should be restructured before action is initiated under the SARFAESI Act.
The committee pointed out that it was impractical for contractors to repay loans before receiving payments from the government. The convention called on the chief minister to hold talks with the State Level Bankers’ Committee and contractors’ organisations to arrive at a fair solution. A special debt relief scheme should be implemented for debt-ridden contractors if required, it said.
R Murukan, former national vice-president of the Builders Association, who inaugurated the convention said contractors should tap the potential of new technology in the construction sector.