The Karnataka SC/ST Contractors’ Association has demanded that the State government drop its order directing the contractors to provide bank guarantee for availing advance mobilisation fund of 5% from the government for executing contract works.
In a press release, association president M. Mahadevaswamy said contractors have to deposit in the bank the same amount that is given as advance mobilisation fund, which would be of no use for contractors.
The government in its February 3 order imposed a condition that contractors should provide bank guarantee for availing advance mobilisation.
“If we have funds, why do we ask the government to provide advance mobilisation funds to take up contract works”, he said and alleged there was no government order on providing bank guarantee by contractors while undertaking works under the Karnataka Road Infrastructure Development Limited (KRIDL). The government has been providing a 50% advance mobilisation fund for contractors to take up contract works under KRIDL, he said.
