AACWA opposes modification of entrepreneurship act

ITANAGAR, Nov 3: The All Arunachal Contractors Welfare Association (AACWA) has strongly opposed the modification of the Arunachal Pradesh District Based Entrepreneurs and Profession (Incentive Development and Promotion) (Amendment) Act, 2020.

Claiming that the modification of the act “is anti-contractor” in a press conference held here on Tuesday, AACWA president Nabam Akin Hina stated that there are no proper rules and regulations for the work order system.

“We are not against the work order systems of amount below Rs 50 lakhs, but there is no proper rules and regulations for the work order system as to whether work order would be given by name of individual or a firm,” Hina said.

“There is very much chances of tax leakages, corruption and possibilities of nepotism influenced through politically. It can be created misunderstanding among in the area,” Akin added.

The ACCWA president informed that the association submitted several memorandums to the department concerned to put forward suggestions for enhancement of tender limit for Class 5 to Class 3 contractors. However, Hina stated that the government had turned a blind eye

and issued a modified notification of the act, “where there are several mistakes and confusions.”

“The government had issued a notification amount upto Rs 20 lakhs that would be eligible for registered contractors of Class 5 and VA, whereas works order system had been approved for state funding schemes then is sure that all registered contractors of Class 5 (A) and 5 will get work orders,” he stated.

Hina claimed that central schemes never sanction such low amounts, and as such, tendering of central schemes of below Rs 50 lakhs “is not possible.” He demanded that the tender limits for Class 5 should be enhanced upto Rs 1 crore and amount upto Rs 20 lakhs to Rs 50 lakhs be made eligible for Classes 5 and 4, “whereas work order system has been approved.”

“How will tender be floated as central schemes are never sanctioned in such low amounts schemes?” Akin questioned.

According to the notification, upto Rs 50 lakhs to Rs 1 crore are eligible for Class 4 and 3 contractors, while, as per the modification to the act, Class 4 contractors do not need to submit work experience, tools and plans. The association said that the notification would create “contradiction and Class 4 contractors may be victimized while competing with the higher classes.”

“In the latest modified notification, amounts from Rs 1 crore to Rs 3 crore are enumerated for Class 3 and 2 contractors, whereas Class 2 tender limit is Rs 8 crore. How can a Class 3 contractor compete with higher classes?” Akin questioned, and urged the government to fix the tender limits for Class 3 by segregating it from Class 2.

Hina also demanded that eligibility of Rs 8 crore to Rs 20 crore “should made open to all registered contractors of the state with the PWD.” He asked the government to halt the latest notification from being implemented.