Bengaluru: The Karnataka govt is considering relaxing tender eligibility norms, including the turnover requirement, as contractors on Monday urged chief minister DK Shivakumar to clear Rs 38,000 crore in pending bills and stop inviting tenders for works without budgetary allocation.
The association sought extending the turnover assessment period from five to 10 years. Under existing norms, contractors must have an annual turnover equivalent to 50% of the tender value in three of the previous five years. It argued that the Covid-19 pandemic had affected business and made it difficult for many contractors to meet the requirement.
It sought an end to interference by MLAs in tendering and scrapping of the package system, which, it said, excluded small and medium contractors. During the meeting, Shivakumar is said to have agreed to consider some of their demands, including relaxing tender norms and curbing MLA interference. Currently, we are bringing this under control,” the CM said. At the district and taluk levels, we ask the CM to immediately issue directions to award the tenders to the local contractors,” the association said. The finance department has agreed to reconsider the clause, officials said. Seeking transparency in bill payments, the association demanded that dues be cleared according to seniority. The CM has asked the finance department, along with his financial adviser LK Atheeq and additional chief secretary to the CM Tushar Giri Nath, to work towards resolving the contractors’ crisis, sources said.
In a memorandum submitted at a meeting with the CM, the Karnataka State Contractors’ Association demanded that new development works be taken up only after clearing outstanding bills. He, however, declined to disclose details, describing the meeting as fruitful. “Some of the demands have been agreed upon. The previous BJP govts under former CMs BS Yediyurappa and Basavaraj Bommai had taken up a high number of works without allocating funds, which has led to this problem. The govt has agreed to follow this system for PWD and Greater Bengaluru Authority bills and is considering extending it to other departments.