The Builders Association of India (BAI) and the Maharashtra State Contractor's Association (MSCA), along with the Hot Mix Association and several other groups, have announced that they will step up their protest over the non-payment of government dues amounting to close to Rs 1 lakh crore. A joint meeting, the associations declared their intention to halt work on government contracts and pursue legal recourse if the outstanding payments are not cleared.
Anil Sonawane, State Chairman of BAI, emphasized the dire situation faced by contractors. “We will be left with no option but to seek legal remedy as there is no response from the government despite several requests. It has become difficult for the contractors to survive amid the mounting debts and loans taken from banks for the projects they are working on,” he said. Sonawane highlighted that the infrastructure and construction sectors are critical contributors to the state’s GDP, employing lakhs of people, and underscored the hardships faced in meeting timely salary payments.
This move comes after state government contractors and engineers initiated an indefinite stop-work protest across 35 districts last week, citing the failure of the government to respond to their ultimatum. Despite multiple requests for dialogue, no representative from the state government has engaged with the protesting bodies, leaving the contractors with mounting unpaid bills.
The non-payment issue spans multiple state government departments, including projects under the Public Works Department (PWD), the Rural Development Department, and the Jan Jeevan Mission. Contractors claim that while the government is releasing funds for schemes such as Ladki Bahin, they have failed to settle payments due for work completed.
In a letter addressed to the government, the MSCA and the State Engineers Association (SEA) warned that pending bills of approximately Rs 1 lakh crore remain unsettled. They further cautioned that no new contracts should be awarded unless there is adequate budgetary provision to clear existing dues. The letter also noted that there have been no payments made since July 2023, intensifying the contractors’ frustration.
With an ultimatum set for February 5, contractors across the state have threatened to cease all work on government projects if their demands for the release of funds are not met. The planned legal action and work stoppage mark a significant escalation in the protest, reflecting the deep-seated challenges faced by the construction industry in the state.