D K Shivakumar.
Credit: DH Photo/B K Janardhan
Just after completing 100 days in office, Deputy Chief Minister DK Shivakumar said that he has instructed the BBMP to partially pay contractors who have pending bills worth Rs 6,000 crore with the civic body.
This is a sudden change in stand by the Deputy Chief Minister, who had earlier stood against the pressure from contractors to clear bills.
Shivakumar, however, said the entire bill of any project will be cleared only after the special investigation team (SIT) completes its probe.
The announcement is seen as partial relief for the contractors who were up against the government for delaying the payments. Shivakumar defended the delay, saying the inquiry was to ensure contractors who had genuinely carried out works get paid.
Speaking to reporters on Monday, Shivakumar said 50% of the payment would be made now and the rest will be cleared after the inquiry.
At the moment, the BBMP has Rs 675 crore it received from the state government and another Rs 1,300 crore it collected from various sources, including property tax.
Shivakumar also said the BBMP has released payments to contractors who are collecting and transporting waste from residences on a daily basis. Officials said the garbage contractors have been paid up to the month of May this year.