Contractors seek Rs 23,000 cr dues, demand policy overhaul

Dharwad: The North Karnataka Civil Contractors’ Association (NKCCA) has urged the state govt to immediately clear pending payments of nearly Rs 23,000 crore, warning that prolonged delays have pushed contractors into severe financial distress.

In a memorandum submitted to chief minister DK Shivakumar, the association said around Rs 4,000 crore is pending under the public works department, Rs 5,000 crore under major irrigation, Rs 2,000 crore under minor irrigation, and nearly Rs 12,000 crore under other departments.

NKCCA president Subhas Patil said contractors are facing mounting pressure from banks, which are initiating recovery proceedings and threatening to seize machinery and mortgaged properties. He said many contractors are struggling to survive due to escalating debts and delayed payments.

The association demanded that no fresh tenders be floated until all pending bills are cleared and sought mandatory payment of bills within 60 days, along with interest for delays beyond that period.

Contractors also sought exemption from mineral dispatch permit (MDP) requirements for govt works, alleging harassment, delays and corruption during the transportation of construction materials such as stone, sand and murram. The association demanded decentralisation of tender approvals and simplification of the Contract Management Module, proposing that it be made mandatory only for tenders above Rs 5 crore.

The NKCCA criticised the practice of floating road and building tenders during the monsoon, terming it impractical and unscientific. It also opposed the mandatory five-year maintenance clause for resurfacing works above Rs 2 crore, arguing that such works typically last only about two years.

The association further objected to package tenders, stating that they limit opportunities for small local contractors. It also alleged corruption in departments, harassment by officials and frequent police checks on construction vehicles.

Citing sharp increases in bitumen and diesel prices, the contractors urged the govt to revise project estimates and introduce policy reforms to ensure timely execution of public works.