PWD to clear ₹22,000 crore pending dues of small contractors

By November 2025, the total pending dues to contractors working on government schemes and works had reached ₹77,770 crore. PWD alone owed over ₹22,000 crore

MUMBAI: Welfare sops and pre-poll freebies have squeezed the state’s finances, stalling payments to private contractors executing Maharashtra government schemes, with pending bills of over ₹22,000 crore with the Public Works Department (PWD) alone. But with the cabinet approving the Trade Receivables Electronic Discounting System (TReDS) platform last Tuesday to clear dues, contractors are likely to get their bills soon with only a 4% cut.

PWD to clear ₹22,000 crore pending dues of small contractors

In November 2025, contractors in Nagpur had stopped the repair and renovation of government buildings and ministers and MLAs’ residences before the scheduled winter legislature session to demand their uncleared bills of over ₹150 crore from the last winter session. By November 2025, the total pending dues to contractors working on government schemes and works had reached ₹77,770 crore. PWD alone owed over ₹22,000 crore.

After the state cabinet approved the use of the TReDS platform to resolve the issue of the PWD’s pending bills, a meeting was held on Saturday between government contractors, PWD officials and TReDS representatives. Government officials told contractors that their bills would be cleared after approval from the concerned PWD authority in that district and they would get the money with a 4% cut. Relieved contractors have welcomed this.

Subodh Sarode, president of the Nagpur Contractors Association, said the move would benefit small contractors and help to solve their financial crisis. “Due to pending bills with the state government, small contractors were facing financial problems like capital for business,” he said. “We were forced to take a loan at over 8% interest. Now we will receive our own money with a cut of only 4%, and our balance sheets will also improve.”

Milind Bhosale, president of the Maharashtra State Contractors’ Association, also welcomed the decision and said it would help small contractors emerge from their financial crisis. “As of now, the state government is going to pay around ₹5,000 crore towards the PWD pending bills through TReDS,” he said. “In each district, over ₹100 crore will be made available, which will give relief to the small contractors who did repairs and maintenance work for the government. We had a meeting with PWD minister Shivendra Raje Bhosale regarding the TReDs platform in February 2025. He later discussed it with chief minister Devendra Fadnavis, who approved the concept, and last week the state cabinet approved the decision which will help resolve the problem of pending dues.”