Association says bills worth around ₹4,000 crore are pending, with the government not clearing any payment above ₹25 lakh
Association says bills worth around ₹4,000 crore are pending, with the government not clearing any payment above ₹25 lakh
The Kerala Government Contractors’ Association (KGCA) has threatened to strike work if their demands are not met by the State government even after a token protest scheduled to be staged in Thiruvananthapuram next week.
Addressing a press conference here on Saturday, Varghese Kannampally, State president of the KGCA, said the government had not fulfilled the promises given when the association had struck work for a day in May. He said that bills worth around ₹4,000 crore were pending, with the government not clearing any payment above ₹25 lakh.
Price variation
The association has raised inclusion of price variation clause in agreements as a major demand. At present, rise in the price of construction materials after the agreement is not compensated. “Governments are unable to check the surging prices of construction materials, which is leaving contractors in a debt trap. We want the price difference to be compensated. We are also willing to return the excess to the government in the event of a price drop. The price variation clause included in big contracts should be made part of small and medium contracts as well,” said Mr. Kannampally.
Revision of rates
He also demanded a revision of rates from the existing one under the Delhi Schedule of Rates fixed in 2018. Prices of construction materials have more than doubled in the years since. Quoting below the market rate affects the quality of work as well. Hence, rates should be revised as per the 2021 rates.
The association called for lowering the Goods and Services Tax and easing the related procedures. Exempting works with an estimate of up to ₹5 lakh from e-tendering and allowing electrical contractors to participate directly in tenders were among the 41 demands raised by the association.
24-hour fast
A 24-hour fast under the aegis of a coordination committee raising these demands will be held at Martyrs Column at Palayam in Thiruvananthapuram from 10 a.m. on Tuesday. It will be followed by a march to the Secretariat. V. Joy, MLA, will inaugurate the fasting. Coordination committee chairman Mons Joseph, MLA, will preside. Leader of the Opposition V.D. Satheesan will inaugurate the Secretariat march.
