Defence contractors, who have been fighting to get their bills—for work that has been completed—cleared from the ministry of defence (MoD) say that the amount has now crossed the Rs 2,000 crore-mark as they feared, affecting hundreds of firms and impacting key projects.
The fact that the dates for the Lok Sabha elections have already been announced has contractors further worried, as they feel that the money won’t be released until a new government is formed. The TOI had first reported in January that the MoD owed contractors more than Rs 1,600 crore, following which a small tranche of Rs 230 crore was released by the Centre. However, the money released has not resolved any problem.
“That money was insufficient, and about 45 days ago, when we calculated the amount that was pending from the MoD it was Rs 2,000 crore. Now, it has risen to touch almost Rs 2,500 crore,” Praveen Mahana, president, MES Builders Association of India (MESBAI) told TOI. Read More