Patna, Dec. 14: The state government has notified creation of a new category of contractors, who would take up work valued at Rs 25 lakh only. The step has been taken to promote new and small contractors.

Sharing the details, road construction department minister Nand Kishore Yadav informed about an amendment in the Bihar Contractor Registration Rule, 2007.

“After the amendment in the rule, Grade-4 would be added into it by which a registered contractor can take up work up to Rs 25 lakh. To get registered in Grade-4, Rs 5,000 would be charged as registration fee, which will be renewed after every five years,” Yadav said.

He added: “The registration can be done only through an executive engineer of the RCD. Grade 4 contractors will have to work in the district from where he hails and has to get registered in that particular district. The contractor will work on projects valued at not more than Rs 25 lakh and one contractor cannot take up work in any other district except his registered one,” said the RCD minister.

Restricting the grade 1, 2 and 3-level contractors, the minister stressed: “Work up to Rs 25 lakh will only be taken up by the Grade 4 contractors. From December 25, 2011, the Grade-4 contractors can start registering across the state.”

Yadav added that from now, all the contractors would be registered under the RCD. Earlier, they used to register themselves in the respective departments.

Talking about the importance of the contractors, the minister said: “The government wants to support the business. This will create opportunities for the young, who want to pursue a career in the field of construction. Earlier, the concept of contractors was similar to that of the goons but now the government wants to change this perception.”

He added: “That is the reason why the government has opened it for everyone. Anyone who wants to become a contractor can register with Rs 5,000.”

Yadav said the new category of contractors would be entitled to get work under the Chief Minister Area Development Scheme.

The scheme was launched in Bihar in the current fiscal after the state government decided to do away with legislator area development funds under which an MLA/MLC used to get Rs 1 crore for development work in their respective constituencies.