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Contractors to get interest on dues

HYDERABAD: The decision of the state government to pay interest to contractors for the delay in releasing amounts for completed irrigation works under Jalayagnam can dig a big hole in the coff

Published: 20th April 2012 03:47 AM  |   Last Updated: 16th May 2012 07:38 PM   |  A+A-

HYDERABAD: The decision of the state government to pay interest to contractors for the delay in releasing amounts for completed irrigation works under Jalayagnam can dig a big hole in the coffers of the state.

A decision to this effect was taken during a meeting between chief minister N Kiran Kumar Reddy and ministers for major and medium irrigation P Sudershan Reddy and minor irrigation, T G Venkatesh respectively on Thursday.

Sources said, the CM has given the nod for paying interest on all  bills pending for more than two months. Many contractors who have completed irrigation projects under Jalayagnam are yet to get their money.

The contractors had even threatened the state government that they would boycott all Jalayagnam work, if the government failed to clear the dues.

Many bills are overdue for the past two months. Sources revealed that more than Rs 3,000 cr has to be paid to different contractors. If interest is calculated by atleast 10 percent per annum, the interest will amount to Rs 360 cr per year and monthly would come to a minimum of Rs 30 cr.

The CM has decided to resolve the problems in the Polavaram project.



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