Brahmavar: Bills worth Rs 1,205.99 crore for completed works under various government departments and corporations in Udupi district remain unpaid, the Udupi District Contractors’ Association has said, urging the state government to release the pending funds and restart development activities.

The association submitted a memorandum to Karnataka Chief Minister D K Shivakumar at Hebri, seeking immediate clearance of the outstanding bills.

Earlier, association office-bearers held a press conference in Brahmavar, where they detailed the financial difficulties being faced by contractors due to the prolonged delay in payments.

Major departments account for bulk of dues

Association president Uppunda Gokuldas Shetty said the pending bills include Rs 189.86 crore under the Public Works Department, Rs 322.42 crore under the Varahi Project Division and Rs 4.92 crore under Rural Development and Panchayat Raj.

The Minor Irrigation Department accounts for Rs 618.85 crore in pending bills, while Rs 21.88 crore is due under Rural Drinking Water and Sanitation.

Another Rs 43.01 crore remains pending under Ports and Fisheries, apart from dues under various other divisions, including the Panchayat Raj Engineering Department.

According to the association, the bills relate to works that have already been completed by contractors. The non-payment has affected the contractors’ ability to meet financial commitments and take up fresh works.

Contractors cite loan and payment burden

Shetty said the delay had placed small and medium contractors under considerable financial pressure.

Contractors have to service bank loans, pay interest and instalments, and settle dues to workers and material suppliers even when payments for completed government works are delayed, he said.

“Contractors in other districts are receiving at least some payments, while no bills are being cleared for contractors in Udupi. Such discriminatory treatment is not justified,” Shetty said.

The association has sought a mechanism for clearing the pending bills, with priority given to long-pending claims, particularly those belonging to small and medium contractors.

Working capital arranged through borrowings

Association general secretary Halady Praveen Kumar Shetty said contractors had arranged working capital through bank loans, overdrafts and private borrowings to execute government projects.

The contractors had incurred expenses in advance towards workers’ wages, machinery rentals and diesel, besides purchasing construction materials such as cement, steel, jelly, sand and pipes.

They had also made statutory payments, including GST, royalty and labour cess, he said.

With payments for completed works remaining pending, contractors are now facing difficulties in meeting these financial obligations and continuing their operations.

New projects also affected

The association said the financial strain was not limited to existing liabilities.

According to the contractors, the prolonged delay in receiving payments has reduced their ability to participate in and execute new government projects.

Small and medium contractors, in particular, depend on regular cash flow to maintain equipment, pay workers and purchase construction materials. The association said the accumulation of unpaid bills was therefore affecting the broader construction ecosystem.

Machinery owners, workers, material suppliers and other businesses associated with government infrastructure projects are also dependent on timely payments from contractors.

Appeal to Chief Minister

The association has urged Chief Minister D K Shivakumar to ensure that the funds required to clear all pending bills are released and that the concerned departments are directed to make payments without further delay.

It has also requested that bills that have remained pending for a longer period be taken up on priority.

The memorandum was submitted to the Chief Minister during his visit to Hebri, where he was interacting with residents and representatives on issues concerning the region.

The contractors said the release of the pending amount would provide immediate financial relief to the contracting community and help revive stalled development-related economic activity.

Association seeks revival of development activity

The Udupi District Contractors’ Association said clearing the outstanding bills would have an impact beyond the contractors themselves.

According to the association, payments would help contractors repay loans, settle dues to workers and suppliers, maintain machinery and participate in new projects.

The association maintained that the release of funds would also help restart development works and support economic activity linked to the construction sector in Udupi district.

The Rs 1,205.99 crore figure covers pending bills across multiple departments and agencies, making the issue a significant financial concern for contractors involved in government works in the district.

The association has now sought government intervention to resolve the payment issue and ensure that completed works are followed by timely settlement of contractors’ bills.

Honorary president B B Poojary, vice-presidents A B Shetty, Vadiraaj Shetty Hebri and Heggunnje Pramod Shetty, treasurer Cherkadi Ratnakar Shetty, secretaries Pavan Shiriyar, Ravikiran D’Costa and Umesh Shetty Muniyalu, along with executive committee members, were present.