Avtar Bhat
JAMMU, June 21: With State reeling under severe financial crunch, the liabilities of contractors in various Engineering Departments have accumulated to Rs 700 crore since 2008 in the State and the Government has so far failed to clear them due to paucity of funds.
According to highly placed sources, the main reason for accumulation of the liabilities in Engineering Departments was construction of works by the ministers in their respective constituencies without proper approval and plan.
The non clearance of bills of contractors for years together has led to a lot of resentment among them and they are left with no alternative but to come to streets in protest against it.
The J&K Contractors Coordination Committee which has already given an ultimatum to Government will resort to one day protest in front of the Lok Nirman Bhawan here tomorrow which will be followed by another massive protest at Srinagar on June 26 or 27, said Jeelani Purza president of the Coordination Committee of the Contractors.
Admitting that liabilities have accumulated in Engineering Departments, Tanveer Jahan, Commissioner cum Secretary Works told Excelsior that the delay in release of funds has been due to lack of plan approval and accounting changes. She said in R&B Department liabilities were worth Rs 200 crore to Rs 300 crore and the department is in the process of releasing the funds after the plan approval.
Meanwhile, official sources told Excelsior that liabilities accumulating to Rs 700 crore are lying in various Engineering Departments including R&B, Irrigation & Flood Control, Tourism, UEED, PHE etc and the main reason for it was construction of works on various schemes under “political pressure”.
Sources said that in various areas, the ministers extended the work beyond the approval by Planning Department and later it became a liability as there were no funds kept in plan for these works.
However when contacted Shabir Ahmed Bhat Special Secretary to Planning Department showed ignorance that the liabilities have accumulated due to non release of funds by Planning Department. He said the Planning Department has released the 25 percent funds already and it was going to release next 25 per cent soon.
Balwinder Singh, general secretary of Contractors Coordination Committee said that the liability has accumulated for years together and Government is unable to clear the same forcing the contractors to come to streets.
He said some contractors who have executed the works are so hard pressed that they have mortgaged their houses to seek loan for making payments to laborers etc.
The liabilities are of different nature, said Mr Purza. He said there are liabilities of Rs 32 crore alone of NABARD cost over run schemes while there are projection liabilities of Rs 323 crore in R&B Department in the State. Out of which Rs 141 crore are in Kashmir while 191 crore are in Jammu region, he added.
He said in 13th Finance Commission funds were released by the Centre for these schemes but they were diverted to other side by the Government keeping the liabilities pending.
Besides there are Rs 32 crore liability with Tourism Department Kashmir while Rs 10 crore are with UEED and rest is with PHE, Irrigation and Flood Control, he said.
He said these liabilities have accumulated since 2008 and at that time it was Rs 101 crore in the State out of which 65 crore were of Kashmir valley and rest in Jammu. Now, they have accumulated to Rs 700 crore forcing the contractors to come to streets.
Purza said that another main problem faced by the contractors is deduction of Service Tax of 10.50 per cent at source through cheque and then contractors are asked to file returns.
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