Karnataka State Contractors' Association President R Manjunath.
Credit: X@ANI
The Karnataka State Contractors’ Association (KSCA) has issued a stern warning to the state government, threatening a statewide stir if pending bills amounting to Rs 37,370 crore are not cleared immediately. The association, which was at the forefront of the ‘40 per cent commission’ allegations against the previous regime, now claims that the situation under the current Congress-led government has turned “more chaotic.”
Addressing a press conference in the city on Thursday, KSCA President R Manjunath expressed frustration over the government's continued negligence. “It has been two and a half years since this government took charge, yet our pleas remain unheard. Except for minor releases in the PWD and BBMP, no funds have reached contractors in other major departments,” Manjunath said.
Financial distress
According to a memorandum submitted to Chief Minister Siddaramaiah, the Water Resources Department leads the list of defaulters with Rs 13,000 crore in outstanding dues, followed by the Public Works Department (PWD) at Rs 8,370 crore. Other departments, including Urban Development and Minor Irrigation, account for the remainder of the Rs 37,370.76 crore debt.
The association alleged that while it was a historical practice to release payments during major festivals like Dasara and Deepavali, the current administration has failed to do so, pushing small-scale contractors to the brink of financial ruin.
Middlemen menace
Adding a fresh layer to the conflict, General Secretary G M Nandakumar alleged that the Urban Development
The department is being run by “middlemen” operating from private offices. “Tender approvals and fund releases are being managed by a nexus of intermediaries. Corruption has not only persisted but has doubled in some sectors,” he charged.
The KSCA has demanded an official meeting with the Chief Minister within the next few days to fix a timeline for the phased release of payments, failing which they plan to halt all ongoing public works across the state.