Thiruvananthapuram: Finance minister T.M. Thomas Isaac has promised the Kerala Government Contractors Association that the new Bill Discounting System would be ready by Onam. Arrears amounting to more than Rs 2,200 crore would be distributed within a year. Though BDS was launched during the previous UDF Government's tenure, Reserve Bank of India stalled the process forcing the nationalised banks to withdraw from the scheme.
If the earlier tie-up was between the UDF government and the banks, now it will directly be between the LDF government and contractors where they would be provided with a promissory note. "The Government secretary concerned would write in the promissory notice that this much money has to be paid to the contractor. This can be pledged at a bank and 5 per cent interest would be given to the contractor by the Government," said a contractor to DC. But at the initial stage itself, 10 per cent interest has to be given to the bank. But the Association is ready to bear a 5 per cent loss as the LDF Government will be paying the arrears in a year.
