Maharashtra: Contractors threaten to halt work over ₹96,000cr payment delay
What's the story
The Maharashtra State Contractors' Association (MSCA) has threatened to stop all development work across the state from April 7 if the government doesn't clear pending payments of over ₹96,000 crore. The MSCA sent a letter to Chief Minister Devendra Fadnavis and Deputy CMs Sunetra Pawar and Eknath Shinde. Meanwhile, other industry bodies like the Maharashtra State Contractors Federation, State Engineers Association, and Maharashtra State Water Supply Contractors Association sent a joint letter.
Financial concerns
Slowdown in new projects
The contractors' letter expressed dissatisfaction with the government's financial management, alleging that only ₹20,000 crore had been paid to the three lakh contractors and developers in Maharashtra over 17 months. The associations also highlighted a slowdown in new projects due to lack of funds, which has affected local self-government bodies and municipal corporations.
Unmet expectations
No actual discussions took place
Milind Bhosle, the president of the contractors' federation, said several representations had been made to the government. He alleged that despite repeated requests for meetings with top officials, no actual discussions took place. Consequently, contractors will stop all development works across all departments in the state from April 7, he warned.
Fiscal pressure
State government facing cash crunch
The state government is facing a cash crunch due to high spending on welfare schemes and lower-than-expected revenue collections. This fiscal pressure was aggravated in 2024 when the Mahayuti government announced several pre-poll welfare schemes, including ₹36,000 crore for Ladki Bahin scheme and ₹14,700 crore for free electricity to farmers. The contractors have demanded immediate payment of pending dues to avoid disruption of development work across Maharashtra.