The Revanth Reddy-led Congress government has imposed new e-procurement charges on contractors undertaking development works in the state. The Information Technology, Electronics and Communications Department issued GO No. 6 with amendments.
These new regulations came into effect on October 15. This has placed a severe financial burden on contractors and bidders participating in government works.
Contractors are already struggling with debt due to pending old dues and thousands of crores in unpaid bills for completed works. The increase in e-procurement charges is exacerbating their difficulties.
The hike in e-procurement fees will further harm contractors who are already facing issues with delayed payments. The higher the project value, the greater the financial impact on the contractors.
Even small contractors are now subject to this corpus, with charges tripling compared to previous rates, severely affecting them. Previously, there was an upper cap for contractors on large-budget tenders.
Observers state that these new regulations risk pushing contractors into a severe financial crisis. Strong opposition to this decision is emerging from the contractor community.
