The state government has no funds to pay more than Rs 1000 crore it owes to thousands contractors for development works they did in the past five years.
Unless the pending bills are cleared, the contractors have said, they wouldn’t take up new works. This has brought development works to a grinding halt in Kashmir.
“The government is finding it difficult to raise funds to clear such a huge debt.
This liability has been accumulated from 2014. So there is provision in the budget 2019-2020 approved by State Administrative Council. Governor administration is now working on clearing a part of the liability in order to persuade contractors to resume work as their boycott has caused an embarrassment for the administration,” he said.
