Government contractors in Maharashtra have intensified their protest over unpaid bills amounting to ₹90,000 crore, threatening to halt work on infrastructure projects, including roads, bridges, and buildings.
The Builders Association of India (BAI), Maharashtra State Contractors’ Association (MSCA), and Hot Mix Association have jointly announced a statewide work stoppage, citing severe financial distress due to non-payment.
Speaking to reporters on Monday, the contractors revealed that dues from various government departments, including the Public Works Department (₹46,000 crore), Jal Jeevan Mission (₹18,000 crore), Rural Development (₹8,600 crore), Water Resources (₹19,700 crore), and Urban Development (₹17,000 crore), have remained unpaid for months.
BAI Vice President, Anand Gupta stated that contractors are struggling to sustain operations as they continue to pay hefty interest on bank loans used for project execution. “Despite pending dues, the government is still issuing new tenders, worsening the crisis,” said Avinash Patil, former BAI president. Contractors are now receiving legal notices from banks and tax authorities, pushing many towards insolvency.
BAI Maharashtra Chairman Anil Sonawane warned that if payments are not released, contractors would be forced to take legal action. “Infrastructure is a key sector contributing to the state GDP and employment. The delay in payments is making it difficult to pay salaries, further affecting the industry,” he said.
Contractors blamed the financial strain on populist schemes like the Ladki Bahin Yojana, which provides ₹1,500 monthly to 2.46 crore women, costing the exchequer ₹3,700 crore per month. The state’s fiscal deficit has reportedly surpassed ₹2 lakh crore, raising concerns from the Comptroller and Auditor General (CAG).
Despite repeated appeals, contractors claim the government has ignored their demands, forcing them to suspend work from February 5. With crucial projects, including ₹50,000 crore Jal Jeevan Mission initiatives, at stake, the crisis could significantly impact Maharashtra’s infrastructure development.
