Home Project News Transport Infrastructure News “Infrastructure projects hang fire, Rs 1,000 crore dues pending”

    “Infrastructure projects hang fire, Rs 1,000 crore dues pending”

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    Infrastructure

    HYDERABAD: Post-demonetisation, the Telangana government’s decision to tighten purse strings, has had a major impact on contractors who had taken up irrigation, road and other infrastructure works in the state.

    An event to discuss the issue under the aegis of the Telangana chapter of the Builders’ Association of India (BAI), a body of engineering construction contractors, was held at the National Academy of Construction (NAC) campus on Wednesday, where the contractors addressed the gathering and said that dues worth a staggering Rs 1,000 crore have piled up over the last three years.

    “When the TRS came to power in 2014, the chief minister had sanctioned a huge amount of money for infrastructure projects, all of which were kicked off at the same time. After demonetisation, it is contractors from Panchayat Raj and R&B who have been worst hit as we are not able to get loans from banks for these projects, after exhausting all our funds. To complete works, we need costly concrete machinery, tippers and other advanced equipment, which can’t be procured without ample funds, “ said Soma Srinivas Reddy , Nalgonda chairman of BAI.

    According to B Sugunakar Rao, state chairman of BAI, while the state government had officially stopped giving them monthly payments since November, 2016, certain pending bills from as early as April and May , 2016, still have not been cleared.“While the government wants to develop Hyderabad into a global city, it isn’t re leasing funds for the same. The state government has to release funds on a monthly basis and they have stopped doing so from as early as April last year. Not only are we unable to procure equipment to complete works, we are not even in a position to pay workers’ salaries. We need the CM to address contractors’ concerns at the earliest,“ stated Rao. Members of the association have now decided to wait untill February 15, before taking further action. “If all payments are not made, all sanctioned projects will be hampered and will come to a standstill,“ Rao warned.

    News Source – realty.economictimes.indiatimes.com

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