Contractors warn of statewide strike over Rs 96k cr unpaid dues

Alleging arrears of Rs 96,400 crore, a joint letter was sent by the Maharashtra State Contractors Federation, State Engineers Association and Maharashtra State Water Supply Contractors Association.

ContractorsAlleging arrears of Rs 96,400 crore, a joint letter was sent by the Maharashtra State Contractors Federation, State Engineers Association and Maharashtra State Water Supply Contractors Association. (File Phot)o

In a letter to Chief Minister Devendra Fadnavis and Deputy CMs Sunetra Pawar and Eknath Shinde, industry bodies warned of a statewide halt to development works from April 7 if payments were not cleared.

Alleging arrears of Rs 96,400 crore, a joint letter was sent by the Maharashtra State Contractors Federation, State Engineers Association and Maharashtra State Water Supply Contractors Association.

“The new government took office in November 2024. While the financial budget was showered with mere promises, the state treasury is actually empty. During the previous fiscal year 2025-26, development works across various departments were not sanctioned, and even where some were approved, the government has become financially crippled. This is a grave matter,” the letter stated.

The associations claimed that arrears reduced only marginally over the past 17 months.

“This means that in 17 months, the government has paid only RS 20,000 crore to the 3 lakh contractors and developers in the state,” the letter said.

The letter further highlighted a slowdown in new projects.

“Furthermore, due to a lack of funds, local self-government bodies and municipal corporations have not initiated any new works,” it said.

Milind Bhosle, president of the contractors’ federation, said multiple representations had been made to the government.

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“Despite requesting time from the Chief Minister and both Deputy Chief Ministers ten times to discuss this serious issue, they only provide false promises of holding a meeting; no actual meeting takes place. Consequently, contractors will stop all development works across all departments in the state from April 7,” the letter said.

Bhosle added that the warning was formalised at a state-level contractors’ meeting in Karjat on March 9, 2026.
“Developers and contractors were waiting in hope that the government would release some funds in March; however, the government has deliberately pushed everyone—including developers, contractors, and the state’s development—into a financial abyss,” he alleged, adding that nearly 4 crore people dependent on the sector could be impacted.
Officials are yet to respond to the contractors’ ultimatum.

Dept wise pending dues

Public Works Department (Roads and Buildings) Rs 37,000 crore 2025-ߪ Rs 29,000 crore in 2026-2027
Jal Jeevan Mission and Maharashtra Jeevan Authority Rs 39,000 crore in 2025-ߪ Rs 35,000 crore in 2026-2027
Rural Development and Water Conservation Department Rs 8,500 crore in 2025-ߪ RS 6,500 crore in 2026-2027
Tourism Development Corporation Rs 4,300 crore in 2025-ߪ this year, Rs 3,800 crore in 2026-2027
Urban Development Department (Special Fund Works) Rs 2,700 crore in 2025-ߪ Rs 2,100 crore in 2026-2027
Water Resources Department Rs 11,000 crore in 2025-ߪ Rs 9,000 crore in 2026-2027
District Planning Committee and Other Departments Rs 14,000 crore in 2025-ߪ Rs 11,000 crore in 2026-2027

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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