High monetary norm: Thousands of PWD contractors across TN may lose licence

As per a circular dated July 16, July 31 will be the last date for submitting solvency certificates and renewing contractor licences.

Published: 31st July 2022 06:56 AM  |   Last Updated: 31st July 2022 06:56 AM   |  A+A-

Express News Service

CHENNAI: Thousands of PWD contractors across Tamil Nadu may lose their licences as the State government has increased the monetary limit for bidding for contracts. As per a circular dated July 16, July 31 will be the last date for submitting solvency certificates and renewing contractor licences. According to the new norms, Class 1 contractors must have executed projects worth Rs 10 crore within the past four consecutive years. The earlier criterion was just Rs 75 lakh and no time period was specified.

Several contractors said it would impossible to renew licences and show work experience by submitting solvency certificates in just 15 days.PWD Joint Chief Engineer (JCE) C Isaiarasan said, “Contractors can also provide certificates to include their private work experience.” The State government has decided to revise the monetary limit after nearly thirty years, he said. The JCE also said there was no plan to extend the deadline.

Tamil Nadu PWD Contractors Federation’s State president V Sudharsan said he has been getting work orders from PWD since 1977. He was a Class II contractor under the old system. But since he is unable to satisfy the Rs 5 crore to Rs 10 crore limit fixed for Class II contractors, he is not eligible to renew his licence now.  Sudharsan said, “There are over 14,000 PWD contractors in the State. But only 20 to 30 people are qualified to renew their licences as per the new monetary limits.” B Shankar, a contractor, said several contractors did not get any government or private work during the pandemic and it would be difficult to meet the government’s new eligibility criteria.


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