Andhra Pradesh to Settle Pending Bills Worth Rs 2,000 Crore of Small Contractors
The finance minister said, "Despite numerous challenges, we are committed to clearing pending bills. These payments will contribute significantly to stabilising the state’s financial framework, especially addressing bills that have been pending for three to four years.”
Vijayawada: Finance minister Payyavula Keshav held a crucial meeting with his department’s officials on Sunday, coinciding with the Ugadi festival. In line with Chief Minister Nara Chandrababu Naidu's directive, the meeting focused on settlement of pending bills of small contractors.
Post the meeting, Keshav disclosed that the finance department is set to release pending payments totalling to approximately Rs 2,000 crore. This will benefit about 9,000 small-time contractors and 8,000 beneficiaries who took up Neeru/Chettu-related projects.
The finance minister underlined that in clearance of various long-standing pending bills, the state government will follow the FIFO (First In, First Out) process.
Keshav clarified 90 per cent of the released Rs 2,000 crore will go to small contractors. Only 10 per cent of larger contractors will benefit. He further underlined that bills valued under Rs 1 crore will be paid first. Contractors to benefit include those involved in water and tree initiatives, pothole-free roads and NABARD projects. Some bills will be related to maintenance of the Polavaram project.
The finance minister said, "Despite numerous challenges, we are committed to clearing pending bills. These payments will contribute significantly to stabilising the state’s financial framework, especially addressing bills that have been pending for three to four years.”
