Kathmandu. The Federation of Contractors’ Association of Nepal (FCAN) has said that more than 30,000 projects have been left in limbo due to lack of financial resources.

Organizing a press meet organized by FNCCI, FNCCI said that over 30,000 projects were in limbo due to the government’s impractical policies and regulations and various other problems.

The Federation has said that the data on minimum capital expenditure allocated by the state annually is very weak and the projects of national pride including Melamchi Water Supply Project, Nagdhunga Tunnel Road and ‘Fast Track’ have not been completed. According to the federation, impractical acts and rules since almost two decades have been the obstacles to the construction industry.

Federation general secretary Roshan Dahal stressed the need of fact-finding the reasons behind the delay in the construction sector. The FNJ stressed on the need for a restrained expression from the leaders and office-bearers of the responsible political parties.

Among the demands put forth by the federation are amendment to Clause 59 of Public Procurement Act-2063, making arrangements for automatic rejection of tender accepting less than 15 per cent, simplifying the monthly payment system, formulating an integrated umbrella act related to construction industry and ensuring easy availability of construction materials.

Likewise, the memorandum calls on the government to reduce the limit on construction work through the users’ committee, to enhance the expertise of the regulatory body and to guarantee the safety of the contractors and equipments. Stating that the construction industry has been providing employment to more than 25 lakh people as the biggest employment sector after agriculture, the Federation stressed the need of industry-friendly policy and modern technology for the rapid development of infrastructure sector.

The contractors have demanded that the government guarantee peace and security in the project site as well as safety of contractors and construction equipments. Rabi Singh, president of the Federation of Contractors’ Associations of Nepal (FCAN), said that the physical infrastructure sector should be made dynamic and the cumbersome rules related to this sector need to be changed. He said that the construction sector would gain momentum only when easy and practical policies and rules were implemented.