Maha govt owes ₹89,000 cr to contractors, 500K await dues since July 2023

Over 500,000 contractors await ₹89,000 crore in unpaid dues for state projects; protest held across Maharashtra as associations urge govt to clear payments pending since July 2023

Contractors involved in infrastructure and development projects for the Maharashtra government have claimed that dues amounting to ₹89,000 crore have remained unpaid to them for over a year, news agency PTI reported. Seeking urgent intervention, they initiated a state-wide protest on Friday, submitting appeals to district collectors across 30 districts.

 

Milind Bhosale, president of the Maharashtra State Contractor Mahasangh, told PTI that the protest was organised in coordination with two other bodies — the Builders Association of India and the Maharashtra State Engineers Forum. These three organisations have jointly made representations to the state government seeking prompt disbursal of the overdue payments.   

 

Dues pending since July last year

 

The pending payments relate to a wide range of government-commissioned projects, including road construction and repairs, building maintenance, and relief and rehabilitation work. Bhosale said that the dues have been outstanding since July 2023.

 

“A total of 500,000 contractors are yet to receive the promised payments even after delivering on the work,” he said. The unpaid amounts range from ₹1 lakh to ₹20 crore per contractor or entity.

 

The prolonged delay in payments has put enormous financial pressure on contractors, Bhosale said, adding that many have been unable to clear dues to their suppliers and pay salaries to employees.

 

“This is leading to a lot of stress for all of us. We have not been able to pay our suppliers and employees, which is bound to impact the overall economic growth in the state,” he told PTI.

 

Despite contractors making repeated appeals for months, only 5 per cent of the outstanding amount was released by the end of the financial year in March 2024.   

 

Work orders surged before polls

 

According to Bhosale, the volume of development work announced during FY24 rose tenfold. With Assembly elections scheduled for October 2024, the government had also issued a large number of work orders.

 

"One budget and two supplementary demands have been presented, but our dues continue to be pending," he said, questioning the rationale behind initiating projects without ensuring adequate financial provisioning.

 

He pointed out that, under standard procedure, payments are to be released quarterly in accordance with predefined milestones — a timeline the government has failed to follow.

 

‘Ladki Bahin’ scheme continues despite crunch

 

Bhosale criticised the state for continuing with other big-ticket expenditures like the Ladki Bahin Yojana, for which ₹36,000 crore has been allocated in the FY26 budget, even as contractor payments remain stalled.

 

“Contractors and small enterprises are the second biggest sector in Maharashtra after agriculture. Dozens of people are linked to every entity, and not paying us will have a deep economic impact,” he said.

 

He said the associations have reached out to a few ministers, including Girish Mahajan, but have so far been unable to secure a meeting with Chief Minister Devendra Fadnavis to resolve the issue.

 

(With agency inputs)