The Hindu Business Line : KRL may stop supply of bitumen to PWD

THE road works of Kerala State Public Works Department (PWD) might come to a standstill soon as Kochi Refineries Ltd (KRL) is understood to have taken a decision to stop supply of bitumen to the department due to mounting dues.

The outstanding payments have mounted close to Rs 100 crore as against Rs 60 crore during this time last year, sources told Business Line.

Non-compliance of agreed terms of payment by the PWD has resulted in payments pending against bitumen supplies made even during January 2005. "If KRL suspends supplies of bitumen the road works of the PWD in the State will come to a standstill," a contractor said.

KRL officials, when contacted, declined to comment on the matter. KRL has been supplying different grades of bitumen to all the divisions of the PWD, irrespective of delays in receipt of payments.

The reasonably good condition of the Kerala roads despite the heavy monsoon last year testifies to the support KRL has been extended to the PWD, the sources said.

It is understood that even though the refinery has taken up the issue at all levels in the State authorities, government has not taken any steps to lessen the burden on the refinery.

Such a huge outstanding is said to have increased the financial burden of KRL.

The majority of road works in Kerala is taken up during summer and in case the works get stopped during this period, the condition of roads during monsoon would be precarious.

The government needs to look into long-term solutions to address the issue of funding raw materials such as bitumen for development of highways and interior roads, a contractor said.

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