In a significant relief move, the Andhra Pradesh Finance Department has sanctioned the clearance of pending bills worth ₹400 crore to small contractors, alleviating years of financial strain. This initiative covers contractors who performed projects between 2014 and 2019, with contract values up to ₹5 crore, as well as those whose works from 2019 onward are valued up to ₹5 lakh. The decision was taken on orders from Chief Minister N. Chandrababu Naidu, who emphasized the need for timely payments and support to grassroots builders.
Small contractors across the state had been awaiting these dues for years, often struggling with cash flow, loan interest, and operational continuity. The payment will be credited in phases, restoring financial stability for these firms. By prioritizing these clearances, the state government aims to boost execution of ongoing works, ease contractor distress, and reinforce trust in administrative processes.
Analysts view this move as part of Andhra Pradesh’s broader emphasis on transparent governance, infrastructure delivery, and honoring public contracts. As funds reach contractors’ accounts, expectations are high that execution of development works—including local roads, maintenance, and small civic projects—will gain fresh momentum.
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