Angry govt contractors take the ₹86,000-crore pending dues fight to Azad Maidan

The Mahayuti government’s various freebies before the 2024 assembly elections have eaten into the funds required to pay contractors’ bills, plunging the latter into a financial crisis. There are over 300,000 small, medium and big contractors carrying out different government projects in the state

MUMBAI: Irate government contractors, who have been waiting for over a year for their joint dues of approximately ₹86,000 crore, on Monday launched a protest at Azad Maidan, where they also alleged that the Mahayuti government was implementing policies to favour big companies and finish off small and medium contractors. Meanwhile, the cabinet on Tuesday approved the setting up of a mechanism to pay the dues of the public works department (PWD).

Mumbai, India - Aug. 18, 2026: Contractors stage a protest, demanded their pending dues from the Maharashtra government, at Azad Maidan in Mumbai, India, on Tuesday, August 18, 2026. (Photo by Anshuman Poyrekar/Hindustan Times) (Anshuman Poyrekar/HT Photo)

The Mahayuti government’s various freebies before the 2024 assembly elections have eaten into the funds required to pay contractors’ bills, plunging the latter into a financial crisis. There are over 300,000 small, medium and big contractors carrying out different government projects in the state.

Speaking at the Azad Maidan rally, Ranjit Shinde, a contractor from Nashik, said he wanted to question Nashik guardian minister Girish Mahajan about the government’s new “anti-small and medium contractor policy”. “Earlier, works used to be awarded on a project-to-project basis but now the government is clubbing projects together so that only big companies are eligible,” he said, adding that a big company that recently won such a tender had sub-contracted the work to small contractors. “Big companies are profiting without doing any work,” he said.

Another contractor, Shashikant Awhad, who has been struggling to obtain dues of around ₹4 crore, alleged “favouritism” in payment, saying that earlier, contractors would receive equal amounts when funds were disbursed to a department. “Now interference from officials and politicians has begun, and their favourites get paid more,” he said. Vineet Shirsath, another contractor, alleged that officials now told contractors to get a recommendation from an MLA or MP to get their rightful dues. Shirsath said he had completed works of ₹40 crore from 2021 but had got only around ₹13 crore.

Subodh Sarode, president of the Nagpur Contractors Association, listed the demands of the Maharashtra State Government Contractors’ Federation: the immediate clearing of all pending bills, an announcement of a department-wise, time-bound payment schedule, immediate allocation of funds for the arrears, and a joint meeting with the CM, finance minister and other concerned. He said that no one from the government had approached the Federation this time.

Minister of state for finance Ashish Jaiswal, while speaking with the media, said that the government was implementing several public welfare schemes and giving thousands of crores to various sections of societies, including farmers. “We will resolve the contractors’ pending dues,” he said. “I urge them to withdraw the protest.”