With J&K government failing to liquidate works liabilities, the unpaid contractor bills have accumulated to the tune of Rs 2000 crore in the state.
According to a senior government official, the Governoradministration had asked all the departments to come up with the details ofunpaid bills on account of work done, after the contractors had boycotteddevelopmental works across the state.
“The preliminary estimates put the accumulated unpaid billsat over Rs 2000 crore which is a staggering amount that the state owes to itscontractors,” he said adding that “unpaid bills have accumulated due to thefact that previous governments have got works done overlooking the budgetaryprovisions as a result of which liabilities have mounted to this extent.”
The government is finding it difficult to raise funds toclear such a huge debt.
‘This liability has accumulated since 2014. Governoradministration is now working on clearing a part of the liability in order topersuade contractors to resume work as their boycott has caused anembarrassment for the administration,” he said.
Another official in the finance department informed thatChief Secretary BVR Subrahmanyam has asked the finance department to clear thebills.
“Now we are working out on modalities as the amount cannotbe released in one go, therefore the amount will be released in instalments,”he added.
Ironically, work on all developmental projects in the statehas been grounded following the decision of Jammu and Kashmir Joint ContractorsCoordination- an amalgam of over 30,000 contractors –to boycott works followingnon-payment of bills.
Meanwhile a delegation of JKJCCC also met the ChiefSecretary on Wednesday at Civil Secretariat.
Chairman, JKJCCC, Ghulam Jeelani Purza said, “We presented amemorandum of demands to the CS to which he acknowledged that the stategovernment has a liability of Rs 2000 crore towards contractors.”
“He assured that they would release the payments ininstallments so that the grievance of the contractor fraternity is redressed,”Purza said adding that they thanked the state government for starting work onlanguishing projects which were pending for over 2 decades in the state.