The Maharashtra government has approved the release of only 5% of the total outstanding dues owed to contractors, a move that has sparked fresh tensions amid an ongoing strike. The Maharashtra State Contractors’ Federation has called the decision “a drop in the ocean” and warned of intensifying protests.
The deadlock has raised concerns over the impact on critical infrastructure projects. The contractors’ association has alleged that funds meant for their payments are being diverted to government schemes like ‘Ladki Bahin’ and other welfare initiatives.
The financial strain is particularly severe in the Public Works Department (PWD), where contractors in the Bhandara, Gondia, and Nagpur regions have pending bills amounting to ₹1,500 crore. At the state level, the dues stand at a staggering ₹63,000 crore. Since February 5, contractors have been on strike, demanding full payment for completed works.
On Friday, representatives from the Maharashtra State Contractors’ Federation and the Nagpur Contractors’ Association met Deputy Chief Minister Devendra Fadnavis at his official residence, Ramgiri, seeking a resolution. Fadnavis assured them that he would discuss the matter with Finance Minister Ajit Pawar. However, the government’s subsequent decision to release only 5% of the pending payments has left contractors dissatisfied.
Officials are now struggling to allocate the limited funds effectively. Subodh Sarode, Vidarbha Divisional President of the Maharashtra Contractors’ Federation, stated that contractors are unwilling to accept partial payments, as doing so would require them to resubmit the same bills multiple times, leading to further delays and administrative hurdles.
With no resolution in sight, the contractors’ protest is expected to escalate, potentially affecting ongoing and upcoming infrastructure projects across the state.