Government Increases PWD Contractor Registration Fees; Non-Refundable Clause Draws Public Criticism

Government Increases PWD Contractor Registration Fees; Non-Refundable Clause Draws Public Criticism

Government Increases PWD Contractor Registration Fees; Non-Refundable Clause Draws Public Criticism

Why in News?

  • The State government’s decision to significantly increase and make non-refundable the registration fees for PWD Roads contractors has caused widespread resentment and unrest among contractors across Assam. The move is aimed at increasing revenue but has triggered backlash, especially since many contractors have pending dues and no guarantee of work.

Important Key Points:

  • Registration Fee Hike:

    • Class I(A): Raised from ₹1 lakh to ₹5 lakh.

    • Lower Categories:

      • ₹2 lakh (up from ₹1 lakh)

      • ₹1 lakh (up from ₹50,000)

      • ₹50,000 (up from ₹25,000)

      • ₹25,000 (up from ₹10,000)

  • Non-Refundable Fees:

    • The registration fee, which was earlier refundable, is now non-refundable.

    • Contractors allege no assurance of work even after paying hefty fees.

  • Financial Strain:

    • Contractors cite pending dues, rising GST, income tax, and no major contracts in recent years.

    • Some Class I contractors claim they haven’t received projects worth even ₹50 lakh in the last 3 years.

  • Widespread Impact:

    • Approx. 3,000 Class I(A), 1,200 Class I(B), and 3,200 Class I(C) contractors affected.

    • Additionally, 500 contractors in each circle and 200 in each division.

  • Unfulfilled Government Promise:

    • Government assured 15% dues payment before Bihu, but only 7.5% disbursed.

  • Contractors’ Reaction:

    • The Greater Guwahati Roads Division Contractors Association has called a state-wide meeting.

    • They are considering legal action against the government decision.

Source: AT

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