Karnataka contractors seek release of Rs 38,000 crore in pending dues
The Karnataka State Contractors’ Association met Chief Minister DK Shivakumar to demand payment for works executed since 2021-22.
A delegation from the Karnataka State Contractors’ Association (KSCA) met Chief Minister DK Shivakumar at his official residence, Krishna, on Monday to demand the immediate release of nearly Rs 38,000 crore in pending dues. According to The New Indian Express, the association stated that bills for works executed since 2021-22 remain unpaid across various departments, affecting approximately 1.5 lakh contractors and their dependents.
The association, led by President R. Manjunath, urged the government to stop inviting tenders for works without budgetary allocations. They requested that the state clear old dues before taking up new development projects, such as the Rs 16,000 crore worth of work approved under the CM’s Rural Road Connectivity Scheme.
The KSCA also demanded the abolition of the package tender system, which they said is inconvenient for small and medium contractors. They further alleged interference by approximately 70 per cent of MLAs in the tender process and requested that local contractors be given priority at the district and taluk levels.
Other demands included extending the eligibility period for work experience and turnover to 10 years and releasing the 8 per cent VAT-GST differential for 2017-18 and 2018-19. The association also raised concerns regarding the Karnataka Forest Department, alleging irregularities in awarding works under Section 13(B).
Responding to the representation, Chief Minister Shivakumar told presspersons that the government is working to bring the situation under control and will address valid demands. He noted that the government is holding discussions with officials from Bescom, KPTCL, and the Energy Department to resolve issues.