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New Grade of Contractors for Works Up to Rs 25L

  • The state government is putting in place a new mechanism for the implementation of schemes worth Rs 600 crore every year under the CM Local Area Development Authority as well as the MP Local Area Development Scheme (MPLADS) on tender basis. The government has created a new category of contractors each of whom can be awarded contract for implementation of these schemes worth up to Rs 25 lakh in their respective districts.For the purpose, the government has made amendments to the Bihar Contractors Registration Rules, 2007. "The state faces acute crisis of contractors and big contractors are least interested in taking up small works in blocks and villages. Hence this arrangement," road construction department (RCD) minister Nandkishore Yadav said on Wednesday.
  • The move is likely to help the ruling NDA to "oblige" the party workers who earlier moonlighted as contractors and executed schemes with local area development funds of MLAs, MLCs and MPs. After the Nitish Kumar government abolished the state legislators' local area development fund and refused permission for the implementation of schemes under MPLADS through DMs, these party workers were rendered jobless. Now, however, they can be awarded contracts for execution of schemes.
  • The process of registration of contractors has also been simplified for the new category. They can get themselves registered with the RCD's executive engineers in the districts by furnishing mandatory documents and depositing the registration fee of Rs 5,000. The registration would be processed within seven days. Even if the authorities fail to finalize their registration, they can participate in the bidding on submission of the receipt of the registration fee. The registration process will start on December 25.Earlier, contractors would register themselves with each department from where they had to get contracts.

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