One of the major criticisms of the previous YS Jagan Mohan Reddy-led government in Andhra Pradesh was its failure to clear pending contractor bills. The situation had reportedly become dire — not only were bills from the TDP era ignored, but even those executed by YCP-aligned contractors after 2019 remained unpaid.
Contractors across the state bore the brunt of this financial neglect, with many businesses pushed to the brink. This issue became a significant factor contributing to the growing anti-incumbency sentiment against the Jagan regime.
In a welcome move, the newly formed NDA government has stepped in to resolve this long-standing issue. Union Minister Pemmasani Chandrasekhar, working closely with central authorities, announced a major relief package for contractors awaiting payment.
“The NDA government in Andhra Pradesh, in coordination with the Central government, is committed to clearing pending contractor bills within 30 days,” Pemmasani declared. “The previous government ignored these dues for years. We are now correcting that injustice.”
According to the minister, around ₹250 to ₹300 crore worth of bills from as far back as 2019 will be cleared. Of this, the Central government will contribute ₹180 crore, while the State government will cover the remaining amount to ensure full settlement.
Pemmasani further stated that the previous administration had created a hostile environment for contractors, adding, “Under the Jagan regime, contractors faced unnecessary delays and neglect. The NDA government is sensitive to their plight and is taking swift action to provide relief.”
Approximately 3.5 lakh bills are expected to be cleared under this process, which will be directly overseen by the state administration. For many contractors who have endured financial strain for nearly six years, this announcement brings much-needed hope. As per Pemmasani’s assurance, the entire clearance process will be completed within a month.
This move is being hailed as a significant step towards restoring confidence among contractors and ensuring smoother infrastructure and public works operations in the state going forward.
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