THIRUVANANTHAPURAM: The LDF government has issued detailed guidelines on the bill discounting system (BDS) to pay the pending bills of contractors. Mr Minhaj Alam (secretary, finance resources) issued a GO on June 23 for department-wise schedule of payment by December 2016. Currently, Rs 2,000 crore is pending for the Kerala Government Contractors Association whereas at the end of the UDF government's term, only three months' dues of Rs 400 crore were pending.
The latest GO has set the schedule for the issuance of letter of credit of pending bills according to which the bills of PWD contractors (roads and bridges, buildings and water resources department) will be settled soon. Mr Varghese Kannampally, president of KGCA, told DC that as per the latest GO, the pending bills of November- December, 2015 would be paid off by mid-December this year.
Similarly, the buildings section dues of January- February 2016 will be settled by mid-November. For the pending bills of October 2015, PWD's roads and bridges and water resources department's dues will be paid by November 15, said Mr. Kannampally. If the scheduled date is a holiday, the payment would be made on the next working day. Government sources told DC that the LDF government had released Rs 400 crore- worth LoC.
The RBI had raised some objections to releasing huge funds when the state treasury was looking bleak. But Finance Minister Dr. T. M. Thomas Isaac has promised the KGCA officials that he would do the needful once the budget is presented in the Assembly on July 8. Due to funds shortage, contractors under water resources have been doing only emergency works related to pipe burst.
