Maharashtra Government Contractors Protest at Azad Maidan Over ₹86,000-Crore Dues
Government contractors from across Maharashtra launched a protest at Azad Maidan in Mumbai on Monday, demanding the clearance of approximately ₹86,000 crore in pending dues that have remained unpaid for over a year.
The contractors stated that pre-election welfare spending and freebies by the Mahayuti government ahead of the 2024 assembly elections depleted state funds required to pay bills, triggering a financial crisis for more than 300,000 small, medium, and large contractors handling state infrastructure projects.
Protesters at the rally also criticised changes in government procurement policies. Ranjit Shinde, a contractor from Nashik, said the administration had begun clubbing multiple works together rather than awarding tenders on a project-to-project basis, making only large corporations eligible to bid. He stated that large firms were subsequently subcontracting the projects back to smaller contractors while profiting without executing the work directly.
Other contractors raised concerns regarding partial payments and political interference. Shashikant Awhad, who is awaiting dues of approximately ₹4 crore, alleged favouritism in departmental disbursements. Another contractor, Vineet Shirsath, stated that he had completed ₹40 crore worth of work since 2021 but had received only around ₹13 crore, adding that officials were advising contractors to seek recommendations from MLAs or MPs to obtain their payments.
Subodh Sarode, president of the Nagpur Contractors Association, detailed the demands of the Maharashtra State Government Contractors’ Federation. The association called for the immediate clearance of pending bills, a department-wise time-bound payment schedule, the allocation of funds for arrears, and a joint meeting with the chief minister and finance minister.
Following the demonstration, the state cabinet on Tuesday approved the setup of a mechanism to pay the pending dues of the Public Works Department. Minister of State for Finance Ashish Jaiswal stated that the government was implementing public welfare schemes and providing funds to various sections, including farmers, while assuring contractors that their dues would be resolved and urging them to withdraw the agitation.
