Contractors’ union asks Karnataka govt to clear bills pending since 2021

The Belagavi district government work contractors’ association on Thursday held a protest outside the Suvarna Vidhan Soundha, condemning the government for not clearing work-done bills pending since 2021, people familiar with the matter said.

Association state chief Kempanna, who led the protest, told news persons that thousands of contractors are awaiting bills totalling up to ₹22,000 crore, pending for the past four years. As bills have not been provided promptly, six contractors, including one from Belagavi, died by suicide after not being able to repay loans with escalating daily interest.

To offer temporary relief, Kempanna urged the government to act swiftly and clear at least 50% to 60% of the pending bills immediately, providing interim relief to the contractors. “Many contractors have completed projects by borrowing loans and are now in trouble for not repaying them. The loan and its interest have grown two to threefold,” Kempanna said.

He mentioned that for the past eight months, no new project has been allotted, and the current government has only provided a very small percentage of work-done bills allocated by the previous government. The chief minister has assured a decision on clearing dues after the ongoing Legislative Session. “We hope the contractors of the state may be recharged financially if the CM keeps his word,” Kempanna said.

Kempanna criticised the system of the package system of work allotment. He said this system allows a single work estimating the cost of ₹100 crore to be given to 10 to 12 contractors instead of one.

He added that a delegation of the state association met PWD minister Satish Jarkiholi and briefed him on the adverse effects in the field if the package system is introduced. Minister Jarkiholi assured not to implement the package system in his department after being convinced by the explanation.

Association district president Raju Padmannavar informed that contractors from other states, mainly the Reddyies from Andhra Pradesh, are obtaining about 80% of the work. He urged the government to reserve at least 60% of medium and small works for state contractors to ensure their survival. Padmannavar, a class-1 contractor of civil works, alleged that officials intentionally introduced rules and regulations to obtain large-scale works that could benefit contractors from other states. He also claimed that officials are insisting ministers to divide works on the package system.

He suggested that the work of constructing a new residential layout in Belagavi worth ₹100 crore should be given to small contractors and contractors from backward and scheduled tribes.