Govt contractors threaten to stop work over ₹1 lakh cr dues
Government departments started defaulting on payments after the launch of the Ladki Bahin scheme in July 2024, said Maharashtra State Contractors Association
Mumbai: Contractors working on development projects across the state have threatened to suspend work from Wednesday over pending dues worth ₹1 lakh crore. Government departments started defaulting on payments after the launch of the Ladki Bahin scheme in July 2024, and any further delay would push nearly 300,000 contractors and 3 crore people dependent on them into financial distress, the Maharashtra State Contractors Association (MSCA) has warned.

“Given the mounting dues, we are left with no other alternative but to suspend all construction works,” Rajesh Deshmukh, general secretary, MSCA said on XXXX, in a letter to chief minister Devendra Fadnavis, deputy chief ministers Eknath Shinde and Ajit Pawar, public works department (PWD) minister Shivendra Singh Raje Bhosale, rural development minister Jaykumar Gore and water supply and sanitation department (WSSD) minister Gulabrao Patil.
Since the formal launch of Ladki Bahin scheme in July 2024, the state government has been paying about ₹3,700 crore per month to 2.46 crore women enrolled under the scheme. Payouts under the scheme have led to a fund crunch across government departments, affecting payments to civil contractors engaged by the PWD, WSSD, rural development department, and Mumbai Metropolitan Region Development Authority and other government agencies, sources in MSCA members told Hindustan Times.
The PWD alone owes approximately ₹46,000 crore to various contractors, while in some cases, payments of projects executed for district planning and development councils, MLAs and MPs are also pending, the sources added.
MSCA had raised the issue of pending payments with the state government in September 2024 as well, yet there has been no improvement in over five months, said Milind Bhosale, president, MSCA.
“We are close to the end of the financial year and it is crucial for the government to decide on the issue. Otherwise, 300,000 contractors across the state and others dependent on them will be in financial distress,” he said.
Representatives of a couple of infrastructure firms executing projects for MMRDA said while bills are piling up, they are expected not to pause work and to ensure that project deadlines are met.
“We have been incurring out-of-pocket expenses and the financial burden is increasing on day-by-day. Whenever we seek release of payment, no timeline is shared with us. It has become an endless wait for nearly a year now,” said one of the representatives, requesting anonymity.
The contractors’ association will hold on review meeting on Tuesday to take a final call on the decision to suspend work from Wednesday.

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