Kerala: Contractors seek easier bank loans

Thiruvananthapuram: Kerala Government Contractors Association has sought the urgent intervention of works minister G. Sudhakaran against the banks not accepting the power of attorneys (PoA) for working capital loans. They met the minister on Thursday and submitted a memorandum. With the finance department delaying for more than eight months their arrears to the tune of Rs 1500 crore, the contractors are already finding it difficult to take up new works. They claim that without the support of bank loans they are unable to undertake road works and its maintenance.

The existing norm is that the contractors take up works availing of loans from banks using PoAs. “There have been several instances where PoAs being misused and cases registered. In fact, two deputy chief engineers have been pulled up which we believe that they don’t have any role when someone in the section must have done it. PWD ministry has initiated a comprehensive enquiry on the misuse of PoAs,” said Varghese Kannampally, president, KGCA.

Mr Sudhakaran has asked the current PWD principal secretary Asha Thomas to look into the issue, sources said. The contractors are peeved with the sudden move which has otherwise been in existence for close to five decades. The association leaders have decided to give a mass memorandum to the chief minister with three points – improve the calibre of the PWD engineers, the small-scale works being undertaken by the contractors are not getting due recognition and to regularise the tendering process for all works.