With several infrastructure projects in the pipeline, the government of India has decided to fast track the payment process for private companies executing these projects.
Outstanding dues of private companies involved in infrastructure projects varies between Rs.120bn and Rs.200bn. Moreover, these are the undisputed amounts, which have been arrived at after discussions with key private infrastructure players.
A meeting between various Government departments and private companies is expected to take place within the next few days to finalise a faster payment mechanism, reports added.
Delays in payment happen due to reasons such as lack of required papers, contractors not meeting the target date and allegedly not meeting the quality specification.