Fund crunch: Development works stalled in Telangana

Hyderabad: An unofficial ban on development works seems to be in force these days in Telangana. Contractors have already stopped works because of pending dues.

"Dues worth over Rs2,000 crore are pending and we are waiting for the disbursal of bill amount," said a leading contractor. The fund shortage may continue until the new financial year begins with fresh budgetary support, said sources.

The state government is taking up the emergency, and high-priority works only. Otherwise, nothing is going on in the state, said the contractor.

A senior official shed more light on the crisis. "There's no funding support and how can we clear the bills. So, contractors have also stopped the works and are not taking up any new projects."

Fund disbursal is being done only for Food for Work and other emergency activities. Telangana Chief Minister K Chandrashekhar Rao in a recent meeting directed officials to embrace financial discipline in all departments.

The situation is so bad that the Telangana government is unable to contribute its share of 10 percent to the Food for Work. The Centre bears the cost for the remaining 90 percent, added the official.

MPs, MLAs, MLCs and other lawmakers have been told to stall the development works in their constituencies. Special Development Fund is also not in use owing to the cash crunch in the government, he said.

Moreover, tax revenues are declining during the past few quarters. "How long the unofficial status quo on development works continues is a billion-dollar question," asked the contractor.

According to the government official, the Chief Minister will review the situation once again soon and may take key decisions after that.