CM sanctions Rs 125 crore, MCC still owes Rs 70 crore to contractors

MANGALURU: Though chief minister BS Yediyurappa had announced Rs 125 crore to the MCC, the city corporation is yet to take a decision on the huge amount of pending dues of contractors, who had taken up various development works in the city.
Yediyurappa, who was in the city on Thursday, while announcing Rs 125 crore under the Mahatma Gandhi Nagar Vikas Yojana (MGNVY), had said that he has already ordered the release of Rs 50 crore to the MCC. However, the city corporation must clear pending dues of contractors to the tune of Rs 70 crore.
Premanand Shetty, chief whip of the ruling BJP, told TOI that the government has already sanctioned Rs 125 crore for the MCC and the funds will be released soon. “Very soon, a meeting will be convened by MLA D Vedavyas Kamath and mayor Diwakar to discuss about future plans with regard to the funds sanctioned under the MGNVY. While all existing development works will be expedited, new projects will be taken up through the funds. Meanwhile, the pending bills to the tune of Rs 70 crore that the city corporation owes to contractors towards works taken up in the previous years also have to be cleared. However, a final decision will be taken at the meeting to be chaired by the MLA,” he said.
Meanwhile, opposition leader in the council Abdul Ravoof said the Rs 125 crore under the MGNVY was announced by the then urban development minister UT Khader in 2018. “It was the then minister UT Khader announced the funds under the scheme, but due to political developments and Covid-19 pandemic, funds were not released. The funds under the scheme can be utilised only for specific development projects and it cannot be used to clear pending dues the city corporation. The city corporation should either clear pending bills on its own or the government should announce special sanctions,” he added.
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