Contractors await payments for school modernization works

Metro India News | Hyderabad 

Contractors who carried out works under the "Mana Ooru Mana Badi" (Our Village, Our School) program during the previous BRS government continue to wait for long-pending payments from the state government. Despite assurances from the government that it would release Rs 50 crore every month toward clearing the dues, contractors say only one installment of Rs 50 crore was paid in April, with no further payments made since then. 

According to several contractors, a significant portion of the Rs 50 crore released in April—approximately Rs 46 crore—was paid to a major company, leaving smaller contractors with little relief. The contractors point out that it has been nearly three years since they completed the assigned works, yet many of their bills remain unpaid. The previous BRS government launched the Mana Ooru Mana Badi program to modernize and upgrade around 9,000 government schools across the state. 

Nearly 1,000 contractors participated in the initiative. While a large company was entrusted with painting works and the installation of digital boards for smart classrooms, smaller contractors undertook construction of dining halls, toilets, compound walls, electrical works, and other minor and major infrastructure projects.

Among the contractors involved, around 600 are believed to have executed works worth less than Rs 10 lakh. Contractors claim that dues amounting to roughly Rs 350 crore remain pending for small-scale contractors alone. In contrast, payments worth around Rs 650 crore owed to larger companies have reportedly been largely cleared, according to one contractor associated with the project. Affected contractors allege that the government prioritized payments to large contractors while neglecting smaller firms.

Many contractors who completed works valued below Rs 5 lakh say they have been waiting for nearly three years to receive their dues. They argue that while approximately 99 percent of payments to major contractors have been settled, smaller contractors continue to face delays and uncertainty. Expressing frustration over the situation, one affected contractor said government officials routinely respond to payment requests by stating that funds are currently unavailable and payments will be made once resources are available.

While officials have reportedly stated that another Rs 50 crore has been sanctioned this month, contractors say the funds have not yet been credited. According to them, officials continue to assure that the payments will be deposited "today or tomorrow," but the delays persist. The issue has intensified concerns among small contractors, many of whom say the prolonged non-payment of dues is affecting their businesses and financial stability.