Contractors worried over pending bills

Contractors have kept their fingers crossed over the bills pending with the Vijayawada Municipal Corporation (VMC). They are more worried about the State governments reluctance to release funds for the works undertaken under the Special Development Funds (SDF).

Lack of funds

The Corporation has to clear amounts in excess of Rs. 25 crore including Rs. 15.96 crore under the head general funds, due to the contractors for more than three years. Of this, Rs. 7 crore to Rs. 8 crore was relating to the SDF works. And, another Rs. 12 crore has to be paid for the works taken up under general funds.

We have taken up works like repair of roads following assurance from sitting MLAs (during 2013-14) that the government would clear the bills immediately under the SDF. But, bifurcation, general elections and change in guard have impacted the bills. The government is said to be reluctant to release funds under the SDF head, says a contractor R. Subba Rao.

Municipal Contractors Association vice-president A. Ankeswara Rao said the Municipal Commissioner released Rs. 1.02 crore worth bills couple of days ago. The VMC released about Rs. 1.20 crore in three to four tranches, he says.

Then Municipal Commissioner C. Hari Kiran had promised to pay Rs. 50 lakh a month to contractors last year. Had the promise been kept, the Corporation would have cleared all the dues, he said.

Mr. Rao said the Corporation has stopped payment of bills ever since the Model Code of Conduct came into force in 2014.

First, it was the municipal polls. Then, it was the ZPTC and MPTC elections. Though the ZPTC and MPTC elections code is not applicable to the city, the officials cited it as a reason for stopping the payment, he recalled.

Contractors are up in arms against the VMC for the inordinate delay in payment of the pending bills.

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Contractors worried over pending bills