Maha PWD Clears Bills Of 4,800 Small Contractors, Releases ₹9,700 Crore Towards Pending Payments

Mumbai: The Maharashtra Public Works Department (PWD) has released around Rs 9,700 crore towards clearing pending payments of contractors, with the remaining dues to be settled on priority once additional funds are received, Public Works Minister Shivendrasinh Raje Bhosale said on Wednesday.

Bhosale said the department had already cleared 100% of the pending bills of around 4,800 contractors undertaking small projects costing less than Rs 1 crore. He directed officials to ensure the immediate distribution of available funds to resolve the payment backlog.

The minister was speaking at a meeting held at Mantralaya with representatives of the Maharashtra State Contractors' Federation and the State Engineers' Association to discuss pending bills and other issues faced by contractors.

Contractors Raise Payment And Cost Concerns

The meeting discussed several concerns, including delays in payments, building repair works, rising construction material costs, the Goods and Services Tax (GST) payment mechanism, tendering procedures, renewal of contractor registrations and allocation of works to educated unemployed engineers.

Bhosale said a proposal seeking funds for payments related to building repair works had been submitted to the Finance Department. The dues would be cleared immediately after the funds were sanctioned.

Relief Measures For Rising Material Costs

On the issue of rising bitumen prices, he assured contractors that necessary action would be taken within a week. He also said the department would issue a circular allowing the length or scope of road projects to be proportionately reduced within the sanctioned budget if increased material costs made it difficult to execute the entire work.

The minister added that the schedule of rates for electrical works was in its final stage, while the process of finalising rates for civil works was underway.

GST Payment Mechanism Under Review

Regarding difficulties arising from the revised GST payment mechanism, the PWD has requested the Finance Department to restore the earlier system. A separate meeting will be held with the Finance Department to arrive at a decision in accordance with the applicable rules, he said.

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Contractor Registrations And Engineer Opportunities

Bhosale also assured contractors that completed works would be considered for renewal of registration even if their bills remained unpaid due to a shortage of funds. The government would also take a positive decision on extending the validity of registrations.

He further directed officials to ensure effective implementation of the government resolution reserving certain works for educated unemployed engineers and to ensure that such projects are distributed across all districts.

Representatives of the Contractors' Federation and the Engineers' Association thanked the minister for releasing funds towards pending payments and taking steps to address their long-standing demands.

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