Maharashtra Contractors Demand ₹96,000 Crore in Dues, Threaten Work Stoppage
Contractors flag ₹96k-cr dues, give state govt Apr 7 deadline
Hindustan Times
Image: Hindustan Times
Around 3 lakh contractors in Maharashtra are owed ₹96,000 crore in outstanding dues for government projects. They have set an April 7 deadline for the state government to begin clearing these payments or face work stoppages. The dues have accumulated due to a cash crunch linked to government spending and revenue shortfalls.
- 01Maharashtra owes ₹96,000 crore to contractors for government projects.
- 02Contractors threaten to halt work if payments are not initiated by April 7.
- 03Outstanding dues have increased despite a previous payment of ₹20,000 crore.
- 04Key departments with pending payments include Jal Jeevan Mission and public works.
- 05The situation affects approximately 3 lakh contractors across the state.
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The Maharashtra state government owes around ₹96,000 crore to approximately 3 lakh contractors engaged in various government projects. The backlog of payments has arisen due to a cash crunch caused by increased expenditure on populist schemes and lower-than-expected revenue collection. Following a previous protest, the government had cleared ₹20,000 crore in dues last year, but the outstanding amount has only grown since then. The Maharashtra State Contractors’ Association has issued a letter to the government, highlighting that the pending dues have escalated from ₹89,000 crore to ₹96,400 crore over the past one and a half years. Major departments with significant outstanding payments include the Jal Jeevan Mission, which accounts for ₹35,000 crore, and the state public works department, which is owed ₹29,000 crore. If the government does not initiate payments by April 7, contractors have threatened to cease all work, further impacting development projects across the state.
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If contractors halt work, it could lead to significant delays in government projects, affecting infrastructure development and public services in Maharashtra.
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