With ambitious targets in place for the current year, the Government now intends to speed up the payment process for private parties executing infrastructure projects.
A meeting involving various Government departments and private companies is expected to take place within the next few days to finalise a faster payment mechanism.
It is estimated that outstanding dues of private companies involved in infrastructure projects ranges from a low of Rs 12,000 crore to as high as Rs 20,000 crore. These are the undisputed amounts, which have been arrived at after discussions with key private infrastructure players.
A highly placed Government official told
Under the new mechanism, the effort would be to bring various Government departments and the companies together on the same table. Then it will be ensured that payment is made in the shortest possible time. “We are not bringing any matter which is in litigation or pending before the appellate authorities,” the source said.
Delays in payment happen due to various reasons, including lack of required papers, contractors not meeting the target date and allegedly not meeting the quality specification.
However, “these things can be sorted out with effective and regular monitoring and that is being ensured,” the official said, adding, “at the same time, payment cannot be stopped on flimsy grounds.”