Naidu asks officials to prioritise small contractors

Naidu asks officials to prioritise small contractors
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Amaravati: Chief Minister N Chandrababu Naidu on Thursday reviewed the clearance of pending bills inherited from the previous government, focusing on dues to employees, retirees, and contractors. The Chief Minister directed that small contractors be given priority in bill settlements, stressing the need to ease financial pressure on those dependent on timely government payments.

At a meeting with Finance Department officials, the Chief Minister sought details on the status of pending payments and the implementation of previously issued directives for settling employee-related dues.

The Chief Minister directed that small contractors be given priority in bill settlements, stressing the need to ease financial pressure on those dependent on timely government payments.

Officials informed him that payments are being processed based on fund availability after completing preliminary groundwork.

Officials told Naidu that measures have been initiated to release pending bills totalling Rs7,358 crore. Of this, Rs 1,848 crore in Provident Fund arrears has already been credited directly to employees’ accounts. In addition, Rs76 crore under the Group Life Insurance scheme has been disbursed, benefitting 4,793 individuals.

The Chief Minister was given to understand that payments are underway for Rs3,411 crore in gratuity arrears, Rs1,800 crore towards pending leave encashment for retired employees, and Rs223 crore relating to surrendered leave benefits in the Police Department. These dues are expected to be cleared within the next two days. Officials described the disbursement as one of the largest single-tranche releases for employees after the one for the ‘Thalliki Vandanam’ scheme, aimed at providing immediate relief.

The Chief Minister directed officials to ensure that all categories of pending bills are cleared in a time-bound manner, prioritising employee-related dues while aligning payments with available financial resources.

During the review, officials briefed the Chief Minister on issues faced by employees during the previous administration, including delays in accessing their own funds. The discussion also touched upon concerns raised earlier regarding diversion of employee funds and related disputes.

Naidu also reviewed pending payments to contractors who had executed works and supplied materials to government departments. Officials said Rs614 crore in arrears has been cleared for small-scale contractors.

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