KANNUR: The Kerala Government Contractors' Association (KGCA) has urged the State Government to revoke the decision to enforce in 2007 the schedule of rates prepared by the Public Works Department in 2005. KGCA State president Varghese Kannampalli said at a press conference here on Saturday that the revised schedule of rates had been prepared in November 2005 to be enforced with effect from January 1, 2006.

It could not be implemented due to the intervention of the Finance Department, he said. The Government had decided to enforce it with effect from November 12 following pressure from the association, he added.

Mr. Kannampalli said that the latest order issued by the PWD Secretary stated that the new schedule of rates would be implemented with effect from April 1, 2007. Contractors would be forced to do works at estimated rates less than the market rate. As the prices of construction materials, including cement, were increasing recurrently, the rates to be implemented from April 1, 2007 should be based on market rates prevailing at that time, he said.

The KGCA president said road works in the State were in a disarray due to the shortage of tar. The Government should set apart Rs.200 crore for the PWD to procure tar. The Government should also supply tar for road works of local bodies, he said. The contractors who purchased tar on their own to meet emergency situations should be paid the market rate of tar.

Mobilise finances

Mr. Kannampalli said the VAT amount for the works completed by the Government contractors should be specially mentioned in the estimates. He said that Rs.2,630 crore envisaged for the construction sector in the draft 11th Five Year Plan was meagre, considering the huge developmental works in the State.

There should be initiatives to mobilise internal finances for infrastructure projects to replace schemes such as the Kerala State Transport Project supported by external finances including the World Bank, he said.

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