Ludhiana: Development works stalled as civic body awaits release of ₹56 crore

Officials said the MC has submitted bills worth ₹13 crore to the treasury for various development projects from the sanctioned amount and is awaiting their clearance

Several development works in the city have stalled as the municipal corporation awaits release of ₹56 crore sanctioned recently, delaying payments to contractors executing ongoing projects.

Contractors unwilling to proceed without clearance of running bills, say officials. (HT File)

According to MC officials, the finance department has cleared ₹56 crore for the civic body to make payments for ongoing development works. However, the funds are yet to be released.

Officials said the MC has submitted bills worth ₹13 crore to the treasury for various development projects from the sanctioned amount and is awaiting their clearance.

Among the projects hit by the delay is the ₹4.4 crore reconstruction of Gill Road between the canal and Janta Chowk. Work on the key stretch began last month, but the contractor stopped operations after removing the old asphalt layer.

The contractor has submitted a running bill of ₹88 lakh for

the work completed so far and has refused to resume construction until pending dues are cleared.

Officials said most of the works affected by the delay are road construction projects.

They added that contractors executing development works are allowed to submit running bills and receive payments in tranches as projects progress. Since contractors are reluctant to invest the full project cost upfront, work is usually carried out in phases and payments are sought accordingly.