Contractors meet Dy CM D K Shivakumar, seek bill clearance

Bengaluru: Karnataka Deputy Chief Minister D K Shivakumar is said to have assured the state contractors’ association on Monday that arrears up to Rs 2,500 to Rs 3,000 crore for projects related to his Irrigation Department will be cleared before the Dasara festival. 

Speaking to DH after meeting the DCM, the association’s president Manjunath explained that overall Rs 32,000 crore arrears had to be cleared from eight departments, adding that Rs 12,000 crore in that were pending from the Irrigation Department.

Four state-run irrigation firms are functioning under the Irrigation Department - Cauvery Neeravari Nigama Limited (CNNL), Karnataka Neeravari Nigama Limited (KNNL), Krishna Bhagya Jala Nigama Limited (KBJNL) and Visvesvaraya Jala Nigama Limited (VJNL). 

According to Manjunath, there are roughly 2,000 persons who have taken loans up to Rs 50 lakh under each board. “The DCM assured that these bills (roughly around 8,000), amounting to around Rs 1,000 - Rs 1,500 crore, will be cleared. He also noted that for bills costing Rs 1, 2 or 3 crore, 25% amount will be provided now. Overall, we may get Rs 2,500-3,000 before Dasara.” 

Shivakumar is also said to have agreed to consider seniority while providing contracts. He directed the MDs of the four boards to follow the same, Manjunath added. 

Contractors had also requested the DCM to pay the Fixed Security Deposits (FSDs) that must be returned after the projects, but contractors have claimed that these FSDs haven’t been returned in the last 7-8 years. Shivakumar is said to have agreed to pay these deposits too.