Andhra Pradesh owes contractors Rs 7,000 crore
The contractors say that they are in such a pathetic condition that they are not even able to bid for tenders and don’t have the money
KAKINADA: Contractors in Andhra Pradesh are in dire straits. It is estimated that the state government owes contractors more than Rs 7,000 crore from all departments for the works executed in the state.
They are giving vent to their anguish at several places urging the state government to clear their dues immediately and enable them to survive.
The contractors say that they are in such a pathetic condition that they are not even able to bid for tenders and don’t have the money.
Contractors from Amalapuram in East Godavari District, even put up a banner at the municipality stating that in the past, they used to give employment to others by executing works, but now they have been reduced to begging and the government should clear their dues and help them survive.
“We are not able to pay even EMIs or initial tender application cost. Some of the contractors are facing hardships even for their survival’’ said Arigela Kelananda Krishna Rao alias Babi, a contractor of Amalapuram Municipality. He said that the bankers are exerting pressure on them to clear their loans when the government is not clearing the bills. “Their condition is very pathetic’’, he said and added that Amalapuram itself has to clear nearly Rs 14 crore due to the contractors.
He said that unless the government clears the bills on a war-footing, the contractors could take extreme steps.
The AP Contractors Association President Pankaj Reddy said that it is true that the contractors are in pathetic condition due to non-clearance of their bills. He said that nearly Rs 7,000 crore has to be given to the contractors in the state.
He expressed concern that even Central government funds which were released to the state government account has not been also cleared for the contractors.
He said that if the government stops welfare schemes for one year, the state would develop vastly, in particular development of the roads which are now in a very pathetic condition like not being able to travel on the roads in the state.
“The Central government has released funds for the works worth nearly Rs 200 crore previously to the state government, but the state government did not pay it to the contractors. How can we take up the further works,’’ questioned Medapati Anjaneya Reddy.
He said that the state government has to pay nearly Rs 300 crore to the contractors of East Godavari District for the past six months.
The bankers have given overdraft amounts to the contractors beyond their permissible limits.
He said that the financial institutions seized the equipment of the contractors in some places and they are not able to clear the bank loans and the bankers are exerting great pressure on them as the loans have turned into NPAs.