Maharashtra Government Allocates ₹15,000 Crore to Settle Contractor Dues
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Synopsis
The Maharashtra government has allocated ₹15,000 crore to resolve pending payments for contractors in the roads and buildings sector. This funding is a response to the ongoing agitation and a strike initiated by contractors due to unpaid dues totaling ₹89,000 crore from various departments.
Key Takeaways
- Maharashtra government allocates ₹15,000 crore for contractor payments.
- Meeting chaired by PWD Minister Shivendraraje Bhosale.
- Contractors claim dues of ₹89,000 crore from various departments.
- Trade Receivables Discounting System (TReDS) will be used for payments.
- Distribution of funds is ongoing, with ₹64 crore allocated for maintenance.
Mumbai, Feb 25 (NationPress) In response to the persistent demands from aggrieved contractors, the Maharashtra government has allocated ₹15,000 crore for the financial year 2024-25 to address outstanding payments in the roads and buildings sector under the Public Works Department (PWD).
In February 2025 alone, ₹683.72 crore has been disbursed for various components.
This allocation follows a meeting chaired by PWD Minister Shivendraraje Bhosale to discuss the pressing issue of overdue payments.
The ₹15,000 crore set aside is part of the total requirement of ₹18,000 crore needed by the PWD to resolve contractors' issues.
As per the PWD announcement, steps are being taken to distribute unallocated and pending funds from the budget for various schemes under the Public Works Department.
During the meeting, it was agreed to utilize the Trade Receivables Discounting System (TReDS) to facilitate the settlement of outstanding payments.
A proposal has been forwarded to the Finance Department, and the process is currently underway. The maintenance of the ministry and ministerial residences is proceeding efficiently, with over ₹64 crore allocated in February.
Moreover, the distribution process for more than ₹18 crore is ongoing.
After allocating the unallocated budget provisions, the government has several options to ensure necessary funds are available for settling pending payments throughout the remainder of the financial year.
Previously, Bhosale had discussed the clearance of pending payments to contractors in the roads and buildings sector with Chief Minister Devendra Fadnavis and deputy chief ministers Eknath Shinde and Ajit Pawar.
He emphasized that the department is committed to clearing contractors' dues.
Contractors from across Maharashtra initiated a strike on February 5, halting all ongoing infrastructure work, claiming that payments amounting to ₹89,000 crore from various departments have allegedly been unpaid since July 2024.
The claimed dues include ₹46,000 crore from the PWD, ₹18,000 crore from the Jal Jeevan Mission under the Water Supply and Sanitation Department, ₹8,600 crore from Rural Development, ₹19,700 crore from the Irrigation Department, and ₹1,700 crore from works completed under District Plan Committee, MLA, and MP funds.
