Date:01/08/2008 URL: http://www.thehindu.com/2008/08/01/stories/2008080152540300.htm

Tamil Nadu

Rural water schemes affected

A.V. Ragunathan

Owing to spiralling costs of construction materials

— Photo: C. Venkatachalapathy

VOICING PROTEST: TWAD Board contractors observing a fast in Cuddalore on Thursday.

VILLUPURAM: Implementation of rural water supply schemes in the State has suffered a setback owing to spiralling costs of construction materials. Water projects to the tune of about Rs. 200 crore are either pending or facing uncertain future, president of Tamil Nadu Water and Drainage Board Contractors’ Association, Villupuram, T.L. Ramesh has said.

The high cost of materials has made the contractor either to shun the government works or to delay their execution, Mr. Ramesh told The Hindu. However, the TWAD Board has not made any provisions to offset the losses suffered by the contractors on account of the escalating costs, he said.

The contractors were observing a day’s fast in Villupuram and Cuddalore on Thursday to urge the TWAD Board to finalise contracts on the basis of prevailing market prices and to revise rates.

The Board did not revise the tender schedule for the past four years even though the prices of materials had gone up manifold during the period, Mr. Ramesh said.

For instance, the price of steel rods had gone up from Rs. 32,000 a tonne to Rs. 57,000 a tonne. There was also steep hike in the prices of cement and wages of construction workers .

Mr. Ramesh said that after the introduction of National Rural Employment Guarantee Scheme, in which the minimum wages had been fixed at Rs. 80 a day, it was difficult to find adequate workforce. Hence, several rural water supply schemes had not taken off and many had come to a standstill.

For instance, there were no bidders for Anantapuram comprehensive water supply scheme inaugurated at Ginjee recently by Local Administration Minister M.K. Stalin. Tenders floated at least eight times drew a blank, Mr. Ramesh said.

R. Muruganandam, president of the Cuddalore chapter of the Association, said that since the tender schedule of the TWAD Board did not provide for cost escalation, it was left to the contractors to absorb all the loss. Besides demanding market rates, the contractors also urged the authorities to assign works to small contractors for speedy execution, he said.