Government seeks to curb multi-year contracts for small projects

Awarding multi-year contracts to implement low-priority projects under political pressure has strained the state coffers, officials say.

The government has taken steps to discourage the practice of awarding multi-year contracts for smaller projects. While multi-year contracts are common in mega projects, the current rules, which permit such contracts for smaller projects too, have resulted in an accumulation of projects enjoying seamless funding. This has in turn has piled pressure on the state treasury, officials said.