The Karnataka government is mulling a one-time settlement plan to address pending dues of Rs 320 billion owed by eight departments, including the Bruhat Bengaluru Mahanagara Palike (BBMP), to private contractors across the state.

This proposal was discussed in a meeting between Deputy Chief Minister D K Shivakumar and Karnataka State Contractors’ Association president R Manjunath in Bengaluru. Manjunath noted that small- and medium-scale contractors were the most affected by the prolonged payment delays, with some waiting for up to two years.

The Deputy Chief Minister directed officials to prioritise clearing bills below Rs 20 million and release funds based on seniority. Though the scheme may take three to four months to implement fully, the association expressed optimism and described the plan as potentially historic.

The BBMP Contractors’ Association raised concerns over unpaid bills since 2023, despite a simplified billing process. Shivakumar has promised consultations with top officials to resolve the issue.

Contractors also highlighted instances of officials demanding commissions for contracts. While Shivakumar claimed ignorance of such practices, Manjunath remained hopeful that the government would tackle corruption seriously.