Contractors reluctant to take up work due to pending dues

Moreover, the Municipal Commissioner has shown little urgency in clearing these arrears from the past three years, insisting that contractors follow the proper procedures, such as submitting the necessary bills. Previously, many small contractors took on work due to political pressure during the YSRC regime. However, now the officials are reportedly reluctant to pass the bills, creating a crisis within the Corporation. The condition of roads and drainage systems, in particular, has worsened significantly.

One contractor shared that he completed development work in Kakinada and is owed `2.5 crore by the KMC. Despite visiting the KMC office for the past two years, his payments have not been released. He emphasized that this issue is not unique to him—around 20 to 25 other contractors are facing the same financial difficulties. As a result, many have been listed as defaulters by banks, having exhausted their overdraft facilities. He also pointed out that excessive political involvement in the allocation and supervision of works has worsened the situation. Some Corporators are said to have benefited from the system by securing works through proxy contractors, allowing them to pass bills with the KMC. When the commissioner or KMC officials attempt to release the payments, political leaders have reportedly created obstacles under various pretexts.

According to sources, some bills for completed works have been cleared, but Telugu Desam (TD) leaders have criticised the officials for doing so.

Kakinada MLA Vanamadi Venkateswara Rao (Kondababu) told the Deccan Chronicle that although the quality of the works is questionable and allegations have arisen, the KMC officials are proceeding to pass the bills. He added that he has already brought the issue to the attention of the municipal and urban development minister P. Narayana.