KL News Network
To prevent misuse of government funds and loss to the state exchequer, the Cabinet which met here today under the chairmanship of Chief Minister, Ms Mehbooba Mufti accorded sanction to the proposal of the Finance department to put in place Codal provisions for sanctioning Mobilization Advance in respect of government works.
The step aims to plug loop holes on Mobilization Advance given to contractors and ensure its proper utilization.
Under these Codal provisions, unless a particular scheme of the State or the Centre Government provides for grant of mobilization, no such advance is to be granted to the contractor. Mobilization Advance shall not exceed 10% of the tendered value and restricted to works costing Rs 2 Cr or more. Recovery of Mobilization Advance shall be time based and not linked with progress of work. Mobilization Advance shall be released in two or more installments against Bank Guarantee from a Nationalized Bank.