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Financial burden on PWD contractors! Non-refundable fee of Rs 5 lakh without guarantee, has the government done too much?

Financial burden on PWD contractors! Non-refundable fee of Rs 5 lakh without guarantee, has the government done too much?

The state government has increased the registration fee of contractors of PWD (Public Works Department) Roads Division several times and has also declared it non-refundable. The government says that this decision will help in increasing revenue but it has caused a lot of resentment among the contractors. The amount which was refunded till now will not be refunded now and no guarantee of getting work has been given. Contractors say that depositing such a huge amount without any assurance is sheer injustice.

Fees increased several times in every category

According to the new rates, the registration fee for Class I(A) category contractors has been increased from ₹1 lakh to ₹5 lakh. For Class I(b), now ₹2 lakh will have to be paid which was earlier ₹1 lakh. The fee for Class I(c) has been increased from ₹50,000 to ₹1 lakh. Apart from this, in other categories, this fee has increased from ₹25,000 to ₹50,000 and from ₹10,000 to ₹25,000. Contractors say that this change is not only increasing the financial burden but it is beyond comprehension to implement it in a non-revenue department like PWD.

Financial burden on PWD contractors! Non-refundable fee of Rs 5 lakh without guarantee, has the government done too much?

Why non-refundable fee even when there is no work?

Contractors say that this decision has been implemented unilaterally and without any concrete plan. A class I contractor said that in the last three years he did not get any contract even up to ₹50 lakh, then how can a non-refundable registration fee of ₹5 lakh be paid? Contractors also said that they are already burdened with GST, income tax and other expenses and now this new fee will completely break them. Also, the government is not giving any guarantee of any kind of job or project.

Union’s protest and preparation for legal action

The Guwahati Roads Division Contractors Association has called a meeting of all the contractors of the state in protest against this decision. In this meeting, further strategy will be discussed and legal options are being considered. There are about 3,000 Class I(A), 1,200 Class I(b) and 3,200 Class I(c) contractors working in the state. Apart from this, there are 500 contractors in each circle and 200 in each division. The contractors also allege that they have not received payment for many months. The government had promised to give 15 percent amount before Bihu but only 7.5 percent was given. In such a situation, they are considering this new policy as unjust and insulting.

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