VIJAYAWADA: Builders Association of India (BAI) on Wednesday urged the State Government to clear their bills amounting to `3,000 crore from various government departments like Roads & Building, Irrigation and Panchayat Raj.Addressing a press conference here, BAI National committee member Ch Ramakotaiah said that around 1,500 contractors across the State are facing hardship due to delay in payment by various departments since nine months.
Of the total `3,000 crore dues, R&B department alone should clear dues worth `2,000 crore to the contractors and `1,000 crore is to cleared by Panchayati Raj department, he said. A majority of the contractors had availed loans from various banks to execute development works in the State and are now burdened with paying loan interests. On several occasions, members of BAI met Chief Minister N Chandrababu Naidu over the issue. As on date, there has not been any affirmative response from his side in clearing the due bills, said Ramakotaiah.
‘’We are not against the development that is being initiated by the Chief Minister in the State. As part of our responsibility, we extended necessary support and carried out several works, even though the government has been delaying our payment since nine months. Now we are not in a position to resume the activities and hence, have decided to call off the works from November 20,” said P Raja Babu, president of Andhra Pradesh Centre, BAI.
Raja Babu also wondered why the State Government is so keen on hiring multi-national contracting companies in executing development works rather than local contractors. He said that if the government has fund scarcity, it should first inform the contractors that it will take time for the payment of bills.
But, now it is not fair to postpone payment after completion of the works. Several higher officials in the government departments are pressurising the contractors at various levels to complete the works and have warned that failure to do so will invite hefty penalties, he added.