KOCHI: Even the minor repairs and patch works to be carried out on the damaged roads in the State, apart from the major works, have been stopped due to the financial crisis facing the State Government that has led to non-payment of arrears.
As per norms, for road works with estimated costs of less than Rs 1 crore, the State Government has to provide bitumen to contractors for executing them. With the government currently owing Rs 96 crore to Bharat Petroleum Corporation Limited (BPCL) on account of the purchase of bitumen, the company has stopped supply.
Kerala Government Contractors Association State president Varghese Kannampally said that for around one month, even the minor works have been stopped due to the government’s financial problems. The contractors are ready to go ahead with such works, but the government is not able to provide them bitumen.
“As the arrears of around Rs 2,250 crore pertaining to completed road works are pending the contractors have decided not to undertake any of the State-funded works. Only the works funded by outside agencies like Nabard are now being carried out,” Kannampally said.
It is learnt that the government had given Rs 32 crore as Letter of Credit to the BPCL to overcome the crisis. However, the government cannot release the amount due to shortage of funds in the treasury. This indicates that the pitiable condition of the roads will continue, causing hardships for the motorists.
Reconstitution of Department
While the government is haunted by financial crisis, the traditional style of functioning of the Works Department is also causing delay in sanctioning works and settling the payments. A reconstitution of the Department is the need of the hour, which will be discussed at the three-day Nirmithi Summit-2014, scheduled to held in Kochi on November 1 and 2.
“On the one hand, the government is yet to find a solution to make payments for the completed works, while on the other hand it has been reluctant to hike the contract amounts for the last one year in accordance with the rise in prices of construction materials. The prices have increased 40 per cent, but the government is yet to consider revision of the contract terms,” he said.
When the Association called a strike, the government had ensured that the arrears from November 2013 will be paid shortly. Until now, the arrears are not paid, and the contractors have decided not to undertake any new work unless a portion of the amount is released.
Meanwhile, PWD Minister V K Ebrahim Kunju said that the Finance Department has to take the decision on settling the arrears.