Contractors Federation in Thane Demands Rs 50,000 Crore to Clear State Dues
Addressing a press conference at the Thane Government Rest House in Thane on August 24, 2026, the Maharashtra State Contractors Federation criticized the state government over unpaid dues amounting to Rs 86,000 crore, alleging that payment delays over the past two years have led to the suicides of six debt-ridden contractors.
Federation State President Milind Bhosale questioned the administration's responsibility regarding the deaths and pointed out the mounting financial distress across the sector. Representatives noted that the payment freeze has severely impacted the state's construction industry, which stands as Maharashtra's second-largest employer after agriculture.
The pending payments involve several major government bodies, including the Public Works Department (PWD), Rural Development, the Jal Jeevan Mission, and Tribal Development. Bhosale noted that the payment situation had turned critical over the past eighteen months, adding that repeated representations sent to the Chief Minister yielded no appointments.
Following consultations involving state leadership and financial advisory committees, a resolution framework is slated to launch on September 15, 2026, coinciding with Engineer's Day. Under this pilot framework, the government has proposed an initial outlay of Rs 6,572 crore.
However, federation leaders rejected the proposed sum as insufficient. The association is demanding an immediate escalation of the allocation to between Rs 40,000 crore and Rs 50,000 crore, which would clear at least 50 percent of the total outstanding dues across all project categories.
Mangesh Awale, Mumbai Division President of the federation, issued an ultimatum regarding future demonstrations. Awale stated that while contractors raised concerns during the budget session, they were left stranded by the administration. He demanded that the financial framework be expanded to cover all contractors, warning that the federation will take its protest to the streets if the government fails to meet their demands.
