Builders stall Rs 200-billion construction works in Telangana

As reported, the contractors have been forced to take the decision of stalling ongoing works, as the Telangana Government failed to respond on settling dues over Rs 65 billion. The situation has arisen just when the Telangana Rashtra Samithi (TRS) government is planning to display the completed works to the public ahead of elections in the state, which is about to take place before December.

As per reports, a large number of sub-contractors took part in the more than a decade-long movement for statehood to Telangana, with the expectation of getting more business opportunities once the state was formed.

After the formation of the state, depending on government assurances, builders reportedly invested a huge amount of money on construction equipment. This was done to carry out contract works for buildings, roads, irrigation and bridges worth Rs 1 trillion. Further, contractors have ended up executing projects in other segments waiting for payments for up to six months due to the government?s preference for certain projects. This has severely impacted their working capital cycle, and also incurred heavy losses.

As reported, many sub-contractors in Telangana had to close their business following huge losses. Some of them even attempted suicide after not being able to handle the financial burden.

The Builders Association of India, Telangana Chapter has notably apologised to the masses for causing inconvenience by putting up several banners and hoardings at the ongoing construction sites of buildings, roads and bridges. The banners have also promised resuming works after the government clears their dues. As reported, the state government has decided to address the grievances in a time-bound manner and adopt necessary measures.