Resolve payment issue with private firm, Principal Secy asks Ludhiana civic body

Tribune News Service

Ludhiana, December 31

After a private firm that handles LED Street Light Project complained over delay in release of their due payments, the Principal Secretary, Local Government, has written to the MC Commissioner, Ludhiana, to look into the matter.

The firm has claimed that the Municipal Corporation (MC), Ludhiana, has been inordinately delaying due payments against invoices raised from July 2021 to November 2021.

It further claimed that the outstanding amount is Rs 11.83 crore as of now. The firm also highlighted the issue of ‘non-payment of energy saving for extra operational hours’.

The Principal Secretary held a meeting with the TPL (private firm) and the MC’s SE concerned on December 17. In the meeting, the firm’s representative intimated that the company continuous to suffer significant financial losses.

The MC’s Superintending Engineer concerned had pointed out that the civic body did not have sufficient funds currently to honour these liabilities, as per the letter written by the Principal Secretary to the MC President.

The letter reads that it was emphasised that any financial repercussions arising out of contractual clauses/litigation due to delayed /non-payment would have to borne by the MC and officers concerned.

Regarding the question of ‘non-payment of energy saving for extra operational hours’, the MC has been told to conduct in-depth study of eligible payments as per the contract and make an early decision on merits.

MC Commissioner Pardeep Kumar Sabharwal said the civic body was releasing the payment to the firm, as per the status of funds.

A former councillor, Inder Aggarwal, said: “It seems the MC is deliberately delaying the release of payment to the private firm so that the company can take a decision to terminate its services. The civic body must resolve the matter.”

Firm: MC inordinately delaying payments

The private firm that handles LED Street Light Project has claimed that the Municipal Corporation, Ludhiana, has been inordinately delaying due payments against invoices raised from July 2021 to November 2021. It claimed that the outstanding amount is Rs11.83 crore as of now.