GUWAHATI: In a move aimed at boosting state revenue, the Assam government has significantly increased the registration fees for contractors under the Public Works Department (PWD) road work, triggering resentment among those in the construction sector. The revised fee structure, which has now come into effect, also removes the refundable component that contractors previously benefitted from.
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According to the updated rules, the registration fee for Class I(A) contractors has been hiked from ₹1 lakh to a steep ₹5 lakh. For other categories, the fees have also seen a sharp rise: ₹2 lakh (up from ₹1 lakh), ₹1 lakh (up from ₹50,000), ₹50,000 (earlier ₹25,000), and ₹25,000 (up from ₹10,000), as per contractors who spoke with the media.
What has particularly agitated the contractor community is that these new fees are non-refundable, regardless of whether any government work is awarded to them.
"Earlier, the registration fee was refundable. But now it has been made non-refundable. Moreover, there is no job guarantee even after paying the non-refundable amounts. Some Class I contractors have not even received ₹50 lakh worth of work in the last three years. How will they manage to pay such a huge registration fee?" questioned a contractor on condition of anonymity.
Several contractors have expressed concerns that the increased financial burden could push smaller and mid-level players out of the system entirely, effectively narrowing the field to only the most well-funded firms. This could not only affect competition but also the quality and diversity of public infrastructure work, they warned.
When contacted, a PWD official confirmed the revision, saying, “The notice was issued around a year ago, and now it has come into effect.”
With public infrastructure work being a significant driver of employment and development in the state, the fallout from this decision is likely to be closely watched in the coming months.
