2 weeks ago
Vijayawada Contractors End Strike After Agreement On Pending Bills
Vijayawada’s municipal contractors stopped working because the city corporation had not paid them for completed work.
They said they were owed about Rs 350 crore.
Their strike began on August 10.
The contractors met Minister P Narayana and VMC Commissioner HM Dhyanachandra.
Officials promised to help arrange about Rs 50 crore through banks.
This money would give contractors some immediate financial relief.
About Rs 140 crore of the dues is expected to be paid in October.
More payments are planned for February and March 2027, with the remaining amount expected through the bank facility in June and July 2027.
Vijayawada Municipal Corporation contractors withdrew their indefinite strike after reaching an agreement with civic authorities.
The contractors had struck work since August 10 over approximately Rs 350 crore in unpaid dues.
The VMC said it would mobilise about Rs 50 crore to expedite development works.
Banks are expected to provide around Rs 50 crore through the Trade Receivables Discounting System for immediate relief.
About Rs 140 crore is scheduled for payment in October, with further settlements planned through 2027.
- Who
- Vijayawada Municipal Corporation contractors, civic authorities, Minister P Narayana and VMC Commissioner HM Dhyanachandra.
- What
- Contractors called off an indefinite strike after receiving assurances about payment of long-pending bills.
- Where
- Vijayawada, Andhra Pradesh.
- When
- The strike was withdrawn on Tuesday night after beginning on August 10; payments are planned from October through July 2027.
- Why
- The contractors had demanded payment of approximately Rs 350 crore owed by the Vijayawada Municipal Corporation.
Contractors’ demands
Civic authorities’ response
Payment of dues
Contractors’ demands
Contractors demanded clearance of approximately Rs 350 crore in long-pending bills owed by the corporation.
Civic authorities’ response
The VMC agreed to a phased payment plan, including about Rs 140 crore in October and further payments in 2027.
Immediate relief
Contractors’ demands
Contractors sought financial relief so they could address the impact of unpaid bills and resume work.
Civic authorities’ response
The VMC said it would arrange a bank-backed credit facility of around Rs 50 crore through the Trade Receivables Discounting System.
Development works
Contractors’ demands
The strike halted the contractors’ participation until assurances were provided.
Civic authorities’ response
The Commissioner said the VMC had arranged to mobilise around Rs 50 crore to expedite development works.
Key facts
- Strike duration
- The indefinite strike began on August 10 and was withdrawn on Tuesday night.
- Outstanding dues
- Contractors said the Vijayawada Municipal Corporation owed them around Rs 350 crore.
- Immediate financial facility
- Around Rs 50 crore is to be arranged through banks under the Trade Receivables Discounting System.
- October payment
- Approximately Rs 140 crore of outstanding dues is expected to be cleared in October.
- Further payments
- Additional payments are planned for February and March 2027.
- Remaining settlement
- The remaining amount is expected to be settled through the Trade Receivables Discounting System in June and July 2027.
Quotes
Commissioner HM Dhyanachandra
VMC Commissioner
“A credit facility of around Rs 50 crore would be arranged through banks under the Trade Receivables Discounting System (TReDS) to provide immediate financial relief.”
thehansindia.com
“Around Rs 140 crore of the outstanding dues would be cleared in October this year, followed by further payments in February and March 2027.”
thehansindia.com
Sources
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