Hans News Service Bengaluru

TheKarnataka State Contractors’ Association has urged Chief Minister D.K. Shivakumar to release around Rs 38,000 crore in pending bills, while expressing dissatisfaction over what it described as delays in fulfilling earlier assurances given to the contracting community.

In a letter to Shivakumar, the association recalled assurances made when he was Deputy Chief Minister that the government would stand with contractors and clear their pending payments. It said that after nearly three years of the government, several promises had not been implemented.

The association said Shivakumar met its office-bearers on June 30, 2026, and assured them that pending dues would be cleared within two months. It claimed that the chief minister had also instructed the Finance Department to make arrangements for the payments.According to the association, around Rs 38,000 crore is pending across development departments, with dues dating back to 2021-22. It sought immediate release of the amount and demanded that payments be made according to the seniority of pending bills.

The contractors also urged the government to stop issuing Special Letters of Credit and ensure greater transparency in tendering and payment procedures. They sought the release of the eight per cent VAT-GST difference for 2017-18 and 2018-19.The association also demanded withdrawal of the requirement to upload work details on the Contract Management Module before treasury payments are released. It sought preference for local contractors at district and taluk levels.

The association said small and medium contractors had faced financial difficulties since the Covid-19 period and requested measures for licence renewal and continuation of government works.