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This is an archive article published on February 1, 2025

‘Rs 89k cr dues pending’: Contractors warn of stopping work from Feb 5

In a letter, Maharashtra State Contractors Association (MSCA) recalled a letter of January 14, 2025, demanding the release of funds.

pwd, contractorsAccording to the contractors, the dues include Rs 46,000 crore from the state’s Public Works Department (PWD). (Image: pwd.maharashtra.gov.in)

The associations of Maharashtra’s contractors and engineers have written a letter to state government’s top leadership warning that they would stop all ongoing infrastructure works as payments worth Rs 89,000 crore from various departments are pending since July 2024.

According to the contractors, the dues include Rs 46,000 crore from the state’s Public Works Department (PWD), Rs 18,000 crore from the Jal Jeevan Mission under Water Supply and Sanitation department, Rs 8,600 crore from the Rural development department, Rs 19,700 crore from the irrigation department and Rs 1,700 crore from the works done under DPDC, MLA fund and MP fund.

In a letter, Maharashtra State Contractors Association (MSCA) recalled a letter of January 14, 2025, demanding the release of funds. “Despite our letter, the state government made no arrangements for the same,” said the new letter dated January 30.

It has been sent to Maharashtra Chief minister Devendra Fadnavis, Deputy CMs Eknath Shinde and Ajit Pawar, PWD minister Shivendra Raje Bhosale, Rural Development Minister Jaykumar Gore and Water Supply and Sanitation Minister Gulabrao Patil. A similar letter has been sent by the State Engineers Association.

“We have not been getting payments from the state government since July 2024. We continue to raise the issue with the government but we are being sidelined without any assurance. How can any contractor work without getting paid? Therefore we have decided to stop all ongoing works from February 5,” said Milind Bhosle, state president, MSCA. A statewide meeting of all contractors will be held on February 4.

According to Bhosle, the state has around three lakh contractors who work with the state government on several big or small projects. “The people dependent on these three lakh contractors are in crore. If payments have stopped since July 2024, how are we supposed to continue working,” he asked.

Bhosle added that the contractors have received no positive response from the state government despite several letters.

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Sources within the finance department accepted the problem. “There are certain issues regarding payment of contractors, but those will be addressed in coming time,” an official from the department said.

Alok Deshpande is a Special Correspondent with The Indian Express' Mumbai bureau, recognized for his focused and authoritative reporting on governance, politics, and the socio-economic dynamics of Maharashtra's hinterlands. His unique academic background in Geology and early work in the water sector provides a specialized layer of Expertise to his reporting on resource and environmental issues. Expertise Current Role: Special Correspondent, The Indian Express, Mumbai. Core Authority: Alok provides detailed coverage of Maharashtra politics and governance, with a particular emphasis on how policies and power struggles affect the rural and semi-urban areas (the 'hinterlands'). Key Coverage Areas: His reports frequently focus on high-stakes administrative and political topics, including: State Assembly Proceedings: In-depth reporting on the Legislative Assembly, covering ministerial statements, legislative debates, and inter-party conflict within the ruling Mahayuti alliance. Policy & Finance: Coverage of state finances, including supplementary budget demands, fiscal deficits, and major government schemes (e.g., Jal Jeevan Mission, Ladki Bahin Yojana). Rural and Social Issues: Reports on critical health issues (e.g., child deaths in districts), human-animal conflict (leopard attacks, stray dogs), and agrarian concerns (e.g., farmer suicides). Local and Urban Governance: Covers major announcements regarding urban development (e.g., BMC's OC amnesty scheme, pagdi system push) and local body elections, including political defections and alliance splits. Unique Credentials & Trustworthiness Academic Specialization: Holds a Post-graduate degree in Geology. This background gives him a foundational understanding of natural resources, which directly informs his reporting on environment, water, and infrastructure projects. Early Professional Experience: His shift to journalism came after working with an NGO focused on the water sector. This practical experience strengthens his Expertise in critical areas like water management and rural development, as evidenced by his reporting on the Jal Jeevan Mission. Journalism Training: An alumnus of the prestigious Asian College of Journalism (ACJ), Chennai, confirming his formal training and commitment to rigorous journalistic standards. Alok Deshpande's rare combination of scientific education, non-profit sector experience, and deep political reporting makes him a highly trusted and authoritative voice on the governance and ground realities of Maharashtra. He tweets @alokdesh ... Read More

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