Should contractors proceed with the strike? Government responds.
Synopsis
Key Takeaways
Bengaluru, Feb 18 (NationPress) Deputy Chief Minister D.K. Shivakumar criticized the Karnataka State Contractors’ Association's announcement of a potential state-wide strike on March 5. The strike stems from claims of unpaid dues ranging from Rs 37,000 crore to Rs 37,370 crore, with Shivakumar asserting that payments will be disbursed strictly according to budgetary allocations.
During a press briefing in Bengaluru, Shivakumar challenged the contractors to proceed with their planned strike if they desired. He remarked, “They can lodge a complaint regarding this issue. If they wish to halt work over the non-payment of over Rs 30,000 crore in outstanding bills, let them do so. Who authorized these projects? I had advised contractors against taking on work during the previous BJP administration due to a lack of government funds. Why did they proceed?”
He accused the former BJP government of allocating projects without proper financial resources or Finance Department approval. “If a department only had Rs 2,000 crore available, tenders were issued for works valued at Rs 30,000 crore to Rs 40,000 crore,” he asserted.
Shivakumar attributed the current predicament to previous financial mismanagement by the BJP government. “They created this chaos and now seek the clearance of bills. I challenge them on why they accepted the projects initially. I can present the facts from my department. They should have only undertaken projects for which budgetary provisions existed. I have reached out to the contractors and provided as much assistance as possible,” he stated.
While acknowledging the financial strain on contractors, he emphasized that payments would be made based on available resources. “Yes, they require funds. But if they were aware of the lack of finances, why did they proceed with the projects? Those who wish to stop work are free to do so. The government will disburse payments according to the allocated budget. We will continue to release funds as much as feasible,” he noted.
“We are also compassionate. We will explore ways to address their issues. But if they decide to exert pressure on us, they are welcome to do so,” he added.
Shivakumar also mentioned his upcoming visit to Assam, scheduled for Thursday, after adjusting his earlier plans. He has been designated as the AICC Special Observer for Assam.
In the meantime, the Karnataka State Contractors’ Association has confirmed a statewide strike on March 5, 2026, citing unpaid dues of nearly Rs 37,000 crore to Rs 37,370 crore for development projects statewide.
The association has reported significant irregularities and accused the government of neglecting to clear long-standing bills despite numerous appeals. Contractors are demanding immediate fund releases, warning that development project work will cease if their requests are not fulfilled.
The Water Resources Department and the Public Works Department are reportedly responsible for a considerable portion of the delayed payments. The association has indicated that ongoing delays are pushing many businesses toward financial hardship and adversely affecting workers reliant on government contracts.
The proposed strike, the association stated, would encompass all districts across Karnataka if the outstanding dues remain unresolved.