Karnataka govt owes Rs 10,000 crore to civil contractors | Hubballi News – Times of India
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DHARWAD: The North Karnataka Civil Contractors’ Association has pointed to the enormous dues that the state government has piled up for the inability of its members to initiate work on new projects. President of the association Subhash Patil said that the state government owed the contractors a sum of nearly Rs 10,000 crore for the various projects undertaken across the region.
“We have been urging the government to pay our bills at the earliest. If the government continues to dilly-dally, contractors will be forced to suspend work and launch an indefinite strike,” Patil warned.
Citing the rule pertaining to tenders, he said that the government was legally obliged to settle its bills within 60 days of a project’s completion. “In case of the government’s failure to meet this deadline, it is liable to pay interest on the principal amount. But the government recently withdrew this rule, owing to which many of the bills have been left unattended to for a year,” said Patil, who also appealed to the government to abolish the package tender system.
Association’s general secretary Ravindra Mane said, “Before the Goods and Services Tax (GST) regime, the levy imposed on the tender amount was 4%, whereas this has been hiked to 12% now. Having to pay 8% more tax has hit the fortunes of the contractors badly.”