Maha govt allocates Rs 15,000 crore to clear pending dues of agitating contractors

Mumbai, Feb 25 (IANS) Amid strong demand by the agitating contractors, the Maharashtra government on Tuesday made an allocation of Rs 15,000 crore so far in the financial year 2024-25 to clear pending payments in the roads and buildings sector under the Public Works Department (PWD). 

Additionally, a total of Rs 683.72 crore has been distributed for various components in February 2025.

The allocation was made after the PWD minister Shivendraraje Bhosale chaired the meeting to address the issue of pending payments.

The allocation of Rs 15,000 crore of the total requirement of Rs 18,000 crore by the PWD in the current fiscal is to sort out the issues of the contractors.

According to the PWD release, the department is taking necessary actions. The process of distributing unallocated and pending funds from the budget for various schemes under the Public Works Department is underway.

In the meeting, it was decided to use the Trade Receivables Discounting System (TReDS) to settle pending payments.

A proposal in this regard has been submitted to the Finance Department, and the process is in progress. The maintenance work of the ministry and ministerial residences is running smoothly, and for this, more than Rs 64 crore was allocated in February.

Additionally, the process of distributing over Rs 18 crore is currently underway.

After distributing the unallocated budget provisions, the government has multiple options to make the necessary funds available for pending payments during the remaining period of the financial year.

Earlier, Bhosale had raised the issue of clearance of pending payments to contractors from the roads and buildings sector with Chief Minister Devendra Fadnavis and deputy chief ministers Eknath Shinde and Ajit Pawar.

He said that the department is quite serious to clear the dues of the contractors.

The contractors from across Maharashtra had gone on strike from February 5 stopping all ongoing infrastructure work, alleging that payments worth Rs 89,000 crore from different departments have not been allegedly paid since July 2024.

Among the claimed Rs 89,000 crore dues of the constructors include Rs 46,000 crore from the PWD, Rs 18,000 crore from Jal Jeevan Mission under Water Supply and Sanitation department, Rs 8,600 crore from Rural Development, Rs 19,7000 crore from Irrigation Department and Rs 1,700 crore from the works done under District Plan Committee, MLA and MP funds.