Kerala Water Authority to follow PWD, plans bill discount for contractors

Thiruvananthapuram: Water resources minister Mathew T Thomas said that Kerala Water Authority, like the PWD and the Irrigation Department, might consider “bill discounting” to pay off arrears to contractors. Mounting dues have forced contractors to stop work on major drinking water projects. “I already had discussions with the Finance Department on the issue. We will adopt the method if it is found feasible,” the minister said in response to a Calling Attrention moved by Kerala Congres MLA Mons Joseph in the Assembly on Monday on KWA’s role in tackling drught in the state.

Mr Joseph, during his Calling Attention, said KWA contractors had stopped work as nearly Rs 1000 crore of their money remains unpaid. “More than 140 drinking water projects have therefore been stalled at a time of acute drought,” Mr Joseph said. Contractors, too, have been in favour of bill discounting system. Under the system, the money is paid to the account of the contractors by banks on the basis of a guarantee that the government will pay back the money after a certain date. The interest will be shared by the government and contractors on an equal basis.

The State Government had issued guidelines for bill discounting way back in 2015. He added that the delay in payment was mainly because of a cut in central funds. “The arrears are mostly for NRDWP (National Rural Drinking Water Programme) projects,” the minister said. “Normally, the state used to receive Rs 200 crore from the Centre under NRDWP. We use that money to initiate projects worth Rs 400 crore. But from this fiscal, the central share was drastically cut to Rs 45 crore,” he added.