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Contractors working on Maharashtra government projects are protesting delayed payments totaling INR 89,000 crore, pending for over a year. Represented by the Mahasangh, Builders Association of India, and Maharashtra State Engineers Forum, they appealed to over 30 district collectors for urgent dues clearance. The unpaid amounts cover work like roads, building repairs, and relief projects. Milind Bhosale, president of the Contractors Mahasangh, said only 5% of payments were released by FY24-end, despite a surge in sanctioned projects. The delay is affecting over 5 lakh contractors, impacting supplier payments, employment, and state economic growth. Protestors are questioning the state's fiscal planning amid mounting distress.
Contractors working on Maharashtra government projects have claimed payments totalling INR 89,000 crore have been unpaid over a year, and have sought early release of dues. Grappling with the dues for so long, they launched a state-wide protest on Friday, in an attempt to appeal to over 30 district collectors for early clearance of the dues. Advertisement
A total of three bodies, comprising the Mahasangh, Builders Association of India and Maharashtra State Engineers Forum, have jointly made the representations. The pending dues pertain to development works like road construction and repairs, building repairs and relief and rehabilitation work carried out for the government. According to Milind Bhosale, the president of Maharashtra State Contractor Mahasangh, the dues have been pending since last July.
A total of 5 lakh contractors are yet to receive the promised payments even after delivering on the work. The dues range from INR 1 lakh to up to INR 20 crore at an individual contractor or entity level."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," Bhosale said.
The contractors have been pressing for their dues for many months now, but just 5 per cent of the dues were released before the financial year ended in March. In FY24, there was a 10-fold increase in the amount of development works which were announced. With elections due in October 2024, this also got followed up with the work orders being released,
Bhosale said."One budget and two supplementary demands have been presented, but our dues continue to be pending," Bhosale said, wondering why the works were ordered at all if there was no financial ability.
Typically, the payments are to be released at the end of every quarter as per the milestones agreed upon in the case of every work that is undertaken but the same has not been adhered to by the state government.
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," Bhosale warned.
Source: PTI
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