Bill discounting system: Contractors asked to submit October bills at banks next year

Thiruvananthapuram: The state finance department has informed contractors to submit bills and cheques for the month of October to banks by April 16 next year as part of the bill discounting system. This process, where loans are obtained by submitting bills to banks, is commonly referred to as the bill discount system.

Due to the latest instructions, contractors in various government departments, suppliers of different materials and accredited agencies will face delay in receiving funds. The prolonged delay of over five months in receiving adequate loans will affect various construction activities including those happening in the local self government institutions.

Banks usually lend money to contractors as part of the bill discount system but the time gap stipulated by the state government for availing such loans this time around, has left contractors in the lurch.