Bangalore: Transport Minister H. Cheluvaraya Swamy on Sunday said that the Government was considering a proposal to pay at market rate for the construction works instead of scheduled rates to protect the contractors from cost escalation for getting quality work from them.

Mr. Cheluvaraya Swamy, who was deputed by Chief Minister H.D. Kumaraswamy to inaugurate a conference organised by the Karnataka State Contractors' Association, said that the contractors were put to hardship for three years in the absence of scheduled rates, which had since been announced. But sometimes, even this would not help contractors because of cost escalation.

Keeping this in mind, Mr. Cheluavaraya Swamy said that both the Chief Minister and Public Works Minister H.D. Revanna had agreed to the proposal to pay at market rate and it would come up before the Cabinet. The Minister, however, exhorted them to maintain quality.

Industries Minister Katta Subramanya Naidu, who released the souvenir, exhorted them to discontinue the "system of percentage business." Under this, the contractors pay a portion of their bill amount to the influential sections for getting the tender, sacrificing quality.

Under the public-private partnership, ten airports would be taken up. But, the contractors had no training in handling such huge projects and the association should set up a training institute.

Association president A.S. Chinnaswamy Raju welcomed the gathering. Expressing disappointment over the inability of the Chief Minister to inaugurate the conference, he said it was fixed after much deliberations with him. He urged Mr. Kumaraswamy to end the package system which led to fall in standards. The contractors had been asked to start work without notifying them and were denied payment. The various departments owe Rs. 500 crore dues to them.

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