PWD assures contractors to resolve their issues

Source: The Hitavada      Date: 08 Aug 2017 10:05:05


Business Bureau,

A delegation of Builder Association of India, Maharashtra Chapter led by its President Rajendra Athavale met Chief Engineer of Public Works Department.
The delegation informed the Department that with the introduction of Goods and Services Tax (GST), there is disappointment among contractors as the investment in the Government work has gone up by 9 per cent. In Maharashtra itself, projects worth more than Rs one lakh crore are taking shape. GST was in the middle of the completion of the projects work. Earlier, there was 6.5 per cent VAT and Service Tax. Now, with the introduction of GST, the tax slab has increased to 18 per cent. This has made difficult for the contractors to complete the work on scheduled dates.

“The 12 per cent difference in tax has to be borne by the contractors and therefore they are not taking interest in completion of any projects or taking new
projects in their hand. Government should bail out contractors from this situation,” Athavale pointed out.

After giving patient hearing, Ulhas Debadwar, Chief Engineer of PWD agreed that contractors were facing problems. He said that he would convey their plights to the Government and would try to bring out some amicable solution. Athavale said that earlier State Government used to impose DSR for different districts due to which the prices of sand, bricks, cement, concrete etc., were different.

“Now, State Government has changed the rule and made uniform DSR at State-level. However, contractors in Vidarbha are saying that if they get sand in Vidarbha then the prices of sand should be less for them. It will be costly in places like Mumbai and Nashik. How the prices could be equal throughout the State,” he said demanding that the issue of DSR should be taken on war-footing.

Present on the occasion were Baburao Sakkarwar, Abhay Garde, Rajan Nair, Girish Manapure and others.