BJP alleges bias in award of Amravati contracts

Vijayawada: BJP legislature party leader P Vishnu Kumar Raju on Wednesday questioned the state government in Assembly over awarding Amaravati capital construction works worth Rs 50,027 crore to just nine ‘privileged contractors’, while thousands of registered contractors across the state were left without work or payments.

Speaking during Question Hour, the BJP legislature party leader said there are more than 3,000 registered contractors in the state, but only nine were awarded all major Amaravati construction works and were being paid their bills on time. “What happened in the matter of awarding these contracts, how it happened, the government knows, the concerned minister knows, and I know better,” he remarked in the House.

Vishnu Kumar Raju, who represents the BJP in the NDA alliance government, recalled that contractors had faced severe difficulties under the previous YSRCP government due to non-payment of bills. “Even these nine firms were among those troubled then. But after the NDA came to power, their old contracts were cancelled, and they were re-awarded new projects at the 2025–26 Standard Schedule Rates (SSR). For these nine, bills are cleared within a week,” he said.

The BJP member said that while the Amaravati contractors enjoy such privileges, others working in different government departments are still unpaid. Even if they are considered for payment, he said, it is only at the 2016–17 SSR. “What justice is this? The government says only works done in the past 15 months after the NDA took office will be paid. For all earlier works, no bills will be cleared.

Why cancel old works only for Amaravati contractors and not for others? Why not apply the new SSR to everyone?” he asked.

He accused the government of creating special privileges for the Amaravati firms. He pointed out that while steel costs Rs 73,000 per tonne today, contractors elsewhere are being paid only Rs 27,200 under outdated SSR rates. “Why is the government not treating everyone equally?” he asked.

He claimed that this discrimination had pushed many contractors into crisis. “In the last four years, 43 contractors have committed suicide due to unpaid bills. Many others are crushed under debt and interest burdens,” he said, urging the government to at least allow smaller contractors to take up subcontracts in capital projects.Responding, municipal administration minister P Narayana said the issue of pending bills dated back to the previous regime. “The then government did not make payments, nor did it close the contracts. A committee was set up, and its report was approved by the Cabinet. Contractors were asked to work under the old SSR, but they refused,” he said.

On Amaravati the minister said the work in Amaravati was being carried out to international standards, and that was the basis on which tenders were awarded to those contractors. “We cannot dictate to the main contractors to give subcontracts. That is their decision,” he told the House. The minister admitted that capital contractors are being paid within a week. He said the World Bank and Asian Development Corporation sanctioned Rs 1,500 crore for Amaravati, while Hudco sanctioned anotherRs 1,100 crore. Bills for these works, he said, are cleared quickly.

Narayana further said that bills worth Rs 3,350 crore had also been sanctioned for TIDCO housing projects. Remaining payments would be released once further Hudco loans are received, he added.