Mounting dues: Contractors may stop road works

THIRUVANANTHAPURAM: Only a miracle would now save the roads under the City Corporation as the road development works under it are heading towards a major crisis with the local body yet to find a solution to pay off the huge dues it owes to the contractors. The contractors’ associations in the Corporation are set to meet on June 20 to decide whether or not to call it quits with the ongoing road works. The Corporation has more than Rs 30 crore pending in the way of bills submitted by the contractors and ongoing works would amount to more than Rs 50 crore. The three contractors’ associations in the Corporation, fed up by the local body’s  stand, had decided not to respond to any tenders called by the Corporation from June 10. This was following the failure of talks between the Corporation and contractors as to how the money would be refunded. No further discussions have been held so far, as the Corporation has no idea about how to settle the issue. It seems to be waiting for the help of the State Government. After the meeting on June 20, the associations would decide whether or not to continue with the ongoing road works or dump them too. Though the issue is taking a graver turn, the Corporation stands helpless."The Council had asked for financial assistance from the State as there is a huge amount pending from the State Government to the Corporation. Only if we get the funds shall the problem be solved to any extent. We would hold a discussion with the contractors in three days,’’ said V S Padmakumar, Works Standing Committee Chairman. On the other side, the plight of the contractors is beyond words, they say. According to a contractor, who preferred to remain anonymous, many of them are in difficult times. ‘’We are not big-time contractors, but most of us take up works for Rs 50 lakh to Rs 60 lakh. We have now gone into deep debt as we source the money from banks or financial institutions. Interests on our loans are piling up,’’ he said. The three contractors’ associations in the Corporation are Left-leaning. Had there been a pro-Congress organisation, things would have been different, many of them think. For, the last LDF Government in the State had promised to release the funds for the Corporation for the road works (crores of rupees are pending), but had gone back on its words. With a UDF Government in power now, the associations have no hope that the funds would be released soon.Meanwhile, the Congress councillors have accused the Corporation of allowing the debts to mount and not clearing them during the time of the LDF rule and, instead, demanding that the UDF Government should do the needful. Many contractors allege that it was the mismanagement of funds during the time of the former Council that has now led the local body into debt.