Bengaluru, Mar 30 (IANS): In an apparent bid to win over the significant SC/ST communities, after increasing the quota of reservation from 15 to 17 per cent for SCs and from 3 to 7 per cent for STs, the ruling BJP in Karnataka has increased the limit of ceiling in tender works for SC/ST contractors from Rs 50 lakh to Rs 1 crore.

The move comes just before the model code of conduct comes into effect in the state following the announcement of date for assembly elections. The state SC/ST Contractors Association has been demanding for increasing the ceiling from Rs 50 lakh to Rs 1 crore for years.

N. Mahadevaswamy, President of the association, welcomed the decision by the ruling BJP government. "It would benefit contractors belonging to SC/ST communities to compete against contractors with deep pockets and help them to grow in terms of finances," he said.

The Siddaramaiah-led Congress government had introduced the reservation in public tender works to financially empower the oppressed classes. The public works amounting to a total of 24.10 per cent under Rs 50 lakh budget were reserved for SC/ST contractors.

BJP-led Karnataka government passed an ordinance to increase the ceiling for tender works reserved for SC/ST contractors on Wednesday, just before the model code of conduct was implemented in the poll-bound state.