They want to be paid before the 2019 elections
Representational image
Hyderabad: The project to build skyways and multi-grade separators to ease traffic congestion on city roads is facing a fresh roadblock with contractors seeking change in contract norms. They want to be paid before the 2019 elections as they are uncertain of the fate of the projects if another party comes to power.
For the first time, these contracts are being awarded on semi-annuity basis wherein payments would be made in instalments after the completion of work. Contractors say it would take three years to complete the projects and they would not get even two instalments by the time the tenure of the government ends in 2019.
The TS government has planned to take up these project as part of the Strategic Road Development Programme by spending Rs 4,051 crore. In the first phase, tenders were called for 18 junctions at an estimated cost of Rs 2,631 crore on August 11. The last date to file bids is September 16.
Officials held a pre-bid meeting with contractors recently, where representatives from firms like Navayuga, NCC, L&T, Simplex, EF Constructions raised concerns over the semi-annuity method.
Official sources said the major concern was the difficulty in securing loans from banks to take up projects. The other problem, contractors said, was that they would be paid by the government after three years in six-monthly instalments for 10 years.
They said there were not enough provisions in the tendering process to ensure payment irrespective of change in government. They suggested dropping the semi-annuity method and also sought extension of deadline.
( Source : deccan chronicle )
Next Story
