Maharashtra Contractors Unanimously Withdraw Strike After PWD Minister Assures ₹9,000 Crore Extra Funds And Project Extensions

Maharashtra Contractors Unanimously Withdraw Strike After PWD Minister Assures ₹9,000 Crore Extra Funds And Project Extensions

Contractors in Maharashtra withdrew their strike after the government assured ₹28,000 crore to clear dues and support ongoing works. The PWD minister also granted project extensions till March 2027, allowed faster bill payments and promised DSR revision. The move is expected to resume stalled infrastructure projects across the state.

Kalpesh MhamunkarUpdated: Sunday, April 12, 2026, 10:38 PM IST
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Maharashtra Contractors Unanimously Withdraw Strike After PWD Minister Assures ₹9,000 Crore Extra Funds And Project Extensions |

Mumbai: In a major relief to infrastructure works across Maharashtra, contractors on Sunday unanimously decided to withdraw their statewide strike following crucial assurances given by Public Works Department (PWD) Minister Shivendrasinhraje Bhosale during a high-level meeting held at his residence in Satara.

Minister Shivendrasinhraje Bhosale Convened Urgent Meeting

The contractors had earlier launched a work stoppage from April 7 after warning that their pending dues must be cleared by March 31, 2026. With projects across the state coming to a halt, the government took serious note of the situation and convened an urgent meeting, following which the deadlock was resolved.

During the discussions, the minister announced that the government has made substantial financial provisions to clear pending dues. In addition to the existing budget allocation of ₹19,000 crore under the relevant departmental heads, an extra ₹9,000 crore has been sanctioned, ensuring that funds will be available for timely payments. He also assured that all ongoing and incomplete works across the state would be granted an unconditional extension until March 2027, taking into account the rising cost of materials such as asphalt and other inputs.

All Ongoing and Incomplete Works

Addressing employment concerns, the minister directed that works up to ₹1.5 crore be immediately allocated, with a share reserved for educated unemployed engineers as well as open category contractors. He further instructed officials to propose new works under specific budget heads and ensure their prompt allocation, backed by an additional provision of ₹1,200 crore.

In a move aimed at easing liquidity concerns, contractors will be able to submit their bills under the 5054 head starting monday, with clear directions issued for swift disbursement. The government also indicated that similar provisions would soon be extended to other budget heads.

Contractors Can Submit Bills Under 5054 

Another major concern raised during the meeting was the outdated Schedule of Rates (DSR), which has not been revised for the past four years. The minister assured that a revision process would be initiated immediately through a meeting in Nagpur under the chairmanship of the Chief Engineer, in consultation with contractor representatives.

The government has also agreed to relax norms related to contractor registration renewals, particularly conditions concerning work completed and work in hand. Additionally, a mechanism has been put in place for contractors to submit their grievances directly to the department, with assurances of prompt resolution.

Importantly, the minister stated that a portion of the funds received by the government would be reserved to ensure payments to educated unemployed engineers, with necessary guidelines to be issued to concerned officers.

Following these assurances and decisions, contractor associations announced that they would immediately withdraw their strike, paving the way for the resumption of stalled public works projects across Maharashtra.

The meeting, which was attended by PWD Secretary Sharad Rajbhoj along with senior officials, representatives of the Maharashtra State Contractors Federation, State Engineers Association and Maharashtra State Water Supply Contractors Association, lasted for several hours and resulted in a series of significant decisions aimed at resolving the long-pending issues of contractors.

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