Contractors Halt Work Over Rs 900 Billion Unpaid Dues

04 Mar 2025 CW Team

Contractors in Maharashtra have intensified their protest over unpaid government dues exceeding Rs 900 billion (bn) by halting work on public projects. The Builders Association of India (BAI), Maharashtra State Contractors Association (MSCA), and others are demanding immediate payment for road, bridge, and building works.

According to BAI Vice President Anand Gupta, various government departments owe substantial amounts, with the Public Works Department alone accounting for Rs 46,000 crore. Contractors say they are struggling to continue operations, paying heavy interest on bank loans.

The associations have also warned against issuing new tenders until pending bills are cleared. MSCA President Milind Bhosale stated that contractors have not received payments for eight months, forcing them to stop work from February 5.

The contractors attribute the delayed payments to the financial strain caused by the Ladki Bahin Yojana scheme, which costs the state Rs 37 bn monthly. With Maharashtra’s fiscal deficit exceeding Rs 2 trillion, the situation has worsened, prompting contractors to consider legal action.

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