October 20: The construction companies entitled to receive due amount from the government for undertaking development projects funded by the government will finally receive their due amount.

The Finance Ministry on Wednesday decided to release the due amount of the previous year to the construction companies.

The amount that the contractors will get is Rs 6 billion.

A ministerial-level meeting of the Ministry of Physical Infrastructure on Wednesday decided to allow the Ministry of Physical Infrastructure and Transport, the Ministry of Energy, Water Resources and Irrigation and the Ministry of Water Supply and Urban Development to make the payment of the previous year. It has been mentioned that the concerned bodies (departments) of these ministries can release the dues that have not been paid in the last fiscal year.

The finance ministry has instructed the concerned bodies to release the amount through budgetary transfer if the amount is not received from foreign sources by the third quarter under budgetary support.

Although the Ministry of Finance has decided to release the payment, there are doubts that the builders will get the amount. The decision was taken on Wednesday and the festival of Dashain has already started. Therefore, the businessmen are doubtful they will not get the money anytime soon.

Ravi Singh, the president of the Federation of Contractors Association of Nepal, said that they are likely to get the dues cleared by the government bodies that have adequate budget. But since the government offices will remain open till Friday before being closed for Dashain, Singh said this decision will not have an immediate impact.

"Even though we are not in a position to get the money right away, we are hopeful of getting the due amount once the offices open after Dashain," Singh said, "It has given us relief, but if we want to keep the construction sector running, the government needs to extend the deadline and remove other obstructions."