HYDERABAD: The contractors executing Jalayagnam projects in the state, have threatened to stop works from January 10 if the government fails to pay 20 per cent more than the cost of the works which they are yet to complete in view of the steep rise in the prices of construction material.“What we are asking is reasonable. The government is responsible for the delay as it failed to get approvals and clearances and acquire land for the projects within stipulated time. This has led to all EPC works, which are to be completed within 24 to 30 months, take more time. We want 20 per cent more for works whose execution has gone beyond the agreement period,” said Builders’ Association of India state chairman P Mohan Reddy.According to the association, payment of 20 per cent more for the works is economic.If the government goes for fresh tenders, the cost of works will increase by up to 100 per cent because it will be computed in accordance with the new Standard Schedule of Rates.“Works relating to some projects did not start at all during the agreement period,” Mohan Reddy said, adding: “We are driven to bankruptcy. Nobody believes our words. We are portrayed as thieves and dacoits of public money but the situation we are in now is pathetic.”After YS Rajasekhara Reddy took over as the chief minister in 2004, the budget for irrigation department had gone up to Rs 45,000 crore from a mere Rs 2,000 core in the earlier government. As quite a number of irrigation projects were taken up without supporting infrastructure, delays occurred, which finally hit contractors. The land acquisition was a major problem and some projects could not be started during the agreement period and the cost of materials had gone up steeply by about 60 per cent, he said.Payments were made in time till June 2008, but they became very irregular in 2008 and 2009 and as there was escalation in rates, it became difficult for us to continue the works, he said.
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