Activities on projects totalling Rs 20,000 crores have come to a halt in Telangana. Infrastructure projects involving road, bridge and building construction works have ceased across the State on account of “long-pending dues”, correct tax “anomalies” on equipment and check rising input costs, according to news reports.
“Post Telangana formation, going by the assurances of the government, we had invested heavily on the construction equipment to implement contract works running into over Rs 1 lakh crore for roads, bridges, buildings and irrigation,” D Venkat Narsimha Reddy, chairman of Telangana chapter at Builders Association of India’s (BAI) said.
“The government’s selective preference to certain projects has resulted in contractors executing projects in other segments waiting for payments for up to six months and ending up with severe stress on working capital cycles and plunging into sever losses,” he added.
According to a report from ET, Telangana chief secretary Shailendra Kumar said, “The state government has agreed to look into their grievances in a time-bound manner and take necessary action.”