Gujarat Contractors Annoyed: threaten to go on strike and stall govt projects including PMAY
Sharp Rise in raw material costs – GCA wants Revised Charges in order to complete the pending government projects
GCA to not participate in tenders floated by the state government from January 8
BILKULONLINE
Ahmedabad, Jan 5: The Gujarat Contractors’ Association (GCA) is in no mood to carry out Gujarat government’s pending projects. Giving it a hard blow to the state government for its non-coperative and unsupportive approach, GCA is all set to go on strike.
Effectively huge number of state govt projects amounting to thousands of crores could go for a toss as the contractors lull to stop working on it from 8th January.
The GCA, he said, has already made a representation to the Gujarat government with regard to the price escalation in projects of the roads and building department, urban development department, irrigation department, and police housing on December 7, but the government has so far remained silent.
In the wake of increased construction costs, the Gujarat Contractors Association (GCA) has moved a representation seeking that the government pay revised construction charges. GCA members have cited that the increase in prices of steel, cement, tar, sand, gravel and bricks in addition to costlier transportation and increased labour wages have led to an increase of at least 30 to 40 percent in the cost of construction.
However, their representation has not moved the state government and hence the GCA is in a mood to flex their muscles. Consequently, it has threatened to stall work of various government-funded projects that includes 1.5 lakh housing units being built under the Pradhan Mantri Aawas Yojana (PMAY) projects worth Rs 15,000 crore, ahead of the Vibrant Gujarat summit.
Arvind Patel, President of the GCA, in an interaction with the media stated “We will not be able to finish the ongoing state government projects at old rates. Government is not paying heed to our pleas since last several months now; hence we are compelled to spell of this drastic step. We insist to be relieved of our contracts pending with them if the government is not ready to invite revised rates from us”, insisted Patel.
A GCA delegation to the Gujarat government with regard to the price escalation in projects of the roads and building department, urban development department, irrigation department, and police housing on December 7, but the government has so far remained silent.
Kishore Viramgama, vice-president of the association explains that “due to Covid, work had stopped on government projects and deadlines were extended. The government did so without compensating us for the increase in prices. In central government contracts, price escalation clause is in-built whereas it is not so with the state government projects, especially those that have a 12-month duration or less. For those projects having the price escalation clause, the upper limit is five per cent”.
According to GCA, in addition to the PMAY projects worth Rs 15,000 crore that are under way in Gujarat, there are ongoing projects worth Rs 25,000 crore of other departments.
“We are aware that the government can forfeit our deposits and blacklist us. But the price escalation is so much that we cannot carry on. The losses that we are facing are much more than the deposit money with the state government. How can the contractor put his own money in finishing the projects,” Viramgama added.
On Monday, members of the association met and decided not to participate in tenders floated by the state government from January 8.
Earlier on 4th January large number of contractors from all over Gujarat remained present at the meeting called up by the GCA in Ahmedabad, for approval and support from its members. The members agreed unanimously to take up the matter at state level and assured of conducting meetings at all district levels.
K K Patel, Vice Chairman and Kamlesh Shah, honourary Secretary of the GCA also remained present at the meeting.
