Maharashtra Contractors Threaten Shutdown Over ₹96,000 Crore Pending Payments
Maharashtra: Mahayuti Govt under pressure as contractors threaten statewide shutdown over ₹96,000 crore pending bills
Mint
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The Maharashtra State Contractors' Association (MSCA) warns the BJP-led Mahayuti government of a work stoppage starting April 7 if over ₹96,000 crore in pending payments are not cleared. This financial strain affects approximately 300,000 contractors and is attributed to the government's cash crunch amid extensive welfare spending.
- 01Contractors threaten to halt development work over ₹96,000 crore in unpaid bills.
- 02Pending payments have accumulated due to insufficient government disbursements.
- 03The cash crunch is linked to high welfare program spending and low revenue collection.
- 04Major arrears include ₹29,000 crore for the Public Works Department and ₹35,000 crore for the Jal Jeevan Mission.
- 05The situation affects around 300,000 contractors in Maharashtra.
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The Maharashtra State Contractors' Association (MSCA) has issued a warning to the BJP-led Mahayuti government, stating that they will cease work on development projects starting April 7 unless the government addresses the outstanding payments exceeding ₹96,000 crore (approximately $11.5 billion USD). The MSCA highlighted that the total pending amount had previously risen to ₹1.16 lakh crore (approximately $14 billion USD), with only ₹20,000 crore cleared last year following protests. Major pending payments include ₹29,000 crore owed to the Public Works Department and ₹35,000 crore under the Jal Jeevan Mission. The MSCA president, Milind Bhosale, noted that this financial strain impacts around 300,000 contractors involved in state projects. The Maharashtra government faces a cash crunch due to substantial welfare spending, including allocations of ₹36,000 crore for the Ladki Bahin scheme and ₹14,700 crore for free electricity to farmers, alongside lower-than-expected revenue collections. This fiscal pressure has led to concerns about the state's ability to meet its financial obligations.
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If contractors halt work, it could lead to significant delays in development projects across Maharashtra, affecting infrastructure and public services.
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