While contractors claim pending bills of over 1,300 crore rupees, Chief Minister Joshi said the figure was less than half of that amount. However, the delay in payment of bills brought all the works under the ambitious KVDC Project to a grinding halt. Joshi promised the contractors that the money will be paid to them without further delay.

A delegation of KVDC contractors, which met Joshi last week, called on the Finance and Planning Minister Mahadeo Shivankar today afternoon and pressed their demands. Shivankar assured the delegation that he had ordered the officials concerned to transfer the amount to the account of KVDC in Pune. ``The first installment of the pending bills will be paid from this money,'' Shivankar told the contractors.

It is also learnt that Shivankar has assured the contractors that the KVDC would borrow loans to the tune of over 500 crore rupees from different financial institutions to enable the KVDC to pay the bills. ``A public issue of KVDC bonds will also be floated soon by the State Government to raise the money,'' Shivankar said.

The contractors also pressed for abolishing the 8 per cent Works Contract Tax levied upon them. Shivankar assured the contractors that the State Government would reduce the tax to certain extent but said it was impossible to abolish it completely.

However, the contractors are not satisfied with these assurances and are planning to go ahead with the proposed hunger strike from September 14. Addressing a press conference here today, Mahendra Satav, leader of the delegation of the KVDC contractors, said: ``We will continue agitating till the Government pays every single rupee it owes to the contractors. So far, we have got only assurances and nothing else. The first installment of Rs 100 crore will not calm down hundreds of contractors and thousands of labourers waiting for the money. The government must arrange for the remaining amount without any delay.''

The contractors delegation announced the schedule of the agitation and hunger-strike, that is to start in front of the historical Shaniwar Wada in Pune on September 14. ``We want our hard-earned money,'' Satav said.