GHMC’s Fiscal Woes: Unpaid dues of Rs 1,100 crores leaves 2,500 contractors in limbo

Hyderabad: Over Rs 1,100 crores are yet to be paid to 2,500 contractors in the Greater Hyderabad Municipal Corporation limits as of February 2023. Due to this, the GHMC contractors have refused to take up work across various divisions in Hyderabad.

Pending amounts promised after elections

High-value contractors have payments between Rs 5 crores to Rs 10 crores pending as civil infrastructure work such as road engineering and drainage pipe laying were not paid.

A contractor in Secunderabad, who worked on new drainage lines, said, “I have got a work order of Rs 10 crores but not a single penny has been given to me. The earlier Bharat Rashtra Samithi government told me that I would be paid after the elections. Now, we have approached the Congress government and met with chief minister Revanth Reddy. We have done our work. So, until the pending bills are cleared, no new works will be taken up.”

Where is GHMC money?

The property tax collection is the biggest source of income for GHMC. This collection is done every March. In the year 2022-23, the GHMC collected Rs 1,600 crores as property tax. In 2021-22, GHMC collected Rs 1,520 crores as property tax.

Madhu Yashiki Goud, a senior Congress party leader said, “Money collected by the GHMC has not been utilised for the development of Hyderabad by the earlier BRS government. They have also diverted the funds meant for the Kaleshwaram irrigation project and Mission Bhagiratha. Due to this, the department is in debt. CM Revanth Reddy had a meeting with the municipal commissioner and a solution will be reached out soon. Not only GHMC but also other municipalities in the state are facing the same issue.”

Who is most affected?

Municipal councillors state that since November 2023, when the election code of conduct for Telangana State Legislative elections kicked in, the works were stopped. Now with the Lok Sabha elections, they fear that further works will face the same issue.

A councillor on condition of anonymity said, “The registered contractors of GHMC have told us that they will not take up any works (maintenance or engineering) till their bills are cleared. We are asking the State government to help as civic works in the city are important.”

No one bidding for contracts

GHMC officials at the ward level state that they have no money to hire labour for work in various colonies for cleaning. This staff crunch means they must use the existing staff for all the work.

Fresh tenders are not being issued as the contractors have refused to bid, stating that no one will bid until their money is cleared. This situation is not allowing pending works from November 2023 which were listed by the GHMC to be taken up.

With the standing committee elections to be held on March 7 the contractors are hoping that their money will be cleared. This will also pave the way for the pending works to be taken up in the city.