ITANAGAR, Jul 25: The All Arunachal Contractors’ Welfare Association (AACWA) on Wednesday demanded that the state government adopt 2.5 percent bank guarantee (BG) or performance guarantee (PG) for tribal contractors as security deposit.
In a press conference held here on Wednesday, AACWA president Nabam Akin Hina claimed that neighbouring states like Assam have adopted 2.5 percent BG or PG for their local contractors, whereas in Arunachal, the government has adopted five percent BG and PG.
The AACWA president appealed to the chief minister to issue directions to all departments to formulate rules to adopt 2.5 percent BG and PG as security deposit of all works under state government.
The association also called for modification of the Arunachal Pradesh District Based Entrepreneurs and Profession (Incentive Development and Promotion), Act 2015, stating that a huge gap is being created among the contractors’ fraternity and common public because of the act.
Akin suggested that the state government modify and lift jurisdiction wise participation of tender from Class-III, II & I by making it open to all in these categories. However, he called for continuing the Class IV & V categories according to the present notification of the act.
He also claimed that some departments have notified that the contractors should not quote below five percent of the tender amount as it creates complicacy in the system, adding that such rules in the department clearly indicate that “only those people who have good rapport at the government level get work”.
He further appealed to the state government to abolish the system of not quoting below the five percent price bid in e-tendering by some departments.
Other demands include separate estimate for furniture and electrical items during preparation of estimate for building schemes, and issuance of work order system of work valued below Rs 10 lakh.
Reportedly, the AACWA team on Tuesday called on the chief minister and submitted a five-point memorandum for immediate re-dressal.