×
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Palike goes broke, contractors rub it in

Last Updated 28 February 2013, 20:29 IST

Public works in the City have been severely affected as tenders floated by a cash-strapped Bruhat Bangalore Mahanagara Palike (BBMP) have ceased to attract bids from contractors.

The Palike first realised that its bids were not attracting contractors several months ago, when not a single contractor applied for the Rs 75-lakh tender for asphalting and improving roads in the Central Business District of the City. The Palike now plans to re-float the tender, although chances of bidders applying for it remain slim.

In Rajarajeshwari Nagar, the BBMP had floated tenders for the improvement of two roads, but no contractor came forward to take up the project.

The BBMP is also on the verge of floating tenders for five signal-free corridors in the City, but Palike engineers have expressed fears that lack of interest will leave many of their ambitious projects — worth hundreds of crores of rupees — languishing on the drawing board. Palike engineers are also worried about the fate of a Rs 140-crore project to asphalt 81 arterial and sub-arterial roads.

Much of the problem stems from the fact that the Palike owes various contractors about Rs 1,200 crore in back payments. To pay some of its dues, the Palike has been forced to mortgage many of its properties, including KR Market and Utility Building.

Works have come to a halt at many places and public representatives have been pressuring the Palike to resume them. “Many are worried that development works not taking off can mar their election prospects,” sources said. 

A senior BBMP engineer explained, “We are under tremendous pressure these days as political leaders want us to start the works. But, no contractor is keen to take up our tenders. We are literally begging contractors to start work at any cost, but they are afraid that their investments will not be honoured.”

There is also tremendous pressure on revenue officers to generate the moolah.

ADVERTISEMENT
(Published 28 February 2013, 20:29 IST)

Follow us on

ADVERTISEMENT
ADVERTISEMENT