Mumbai, July 5, 2025 Contractors across Maharashtra have raised the alarm over an alarming backlog of ₹89,000–90,000 crore in unpaid invoices, dating back to at least July 2023. Despite completing critical infrastructure and development work, they say their dues remain largely unsettled, pushing many to the brink of insolvency.
A Protracted Crisis
- According to the Maharashtra State Contractor Mahasangh, Builders Association of India (BAI), and Maharashtra State Engineers Forum, nearly five lakh contractors are awaiting payments that range from ₹1 lakh to ₹20 crore per contractor.
- These outstanding payments encompass projects within PWD, urban and rural development, water resources, Jal Jeevan Mission, road and bridge construction, and rehabilitation works.
Mounting Legal Pressure and Industrial Strain
- The BAI issued a second legal notice on July 2, giving the government a 15‑day ultimatum before escalating the matter to the Bombay High Court.
- Earlier, on June 10, contractors had already served a legal notice demanding ₹90,000 crore in immediate settlement; the PWD alone is said to owe ₹46,000 crore.
- Non-payment has forced contractors to rely heavily on bank loans. Many accounts have turned into NPAs, affecting not only their businesses but also wages for workers and suppliers.
State Spending vs. Pending Dues
Despite the staggering backlog, the state government has continued to allocate large sums towards populist welfare schemes. Contractors highlight that while ₹3,600–3,700 crore per month goes towards the Mukhyamantri Mazhi Ladki Bahin Yojana, developed work remains unpaid.
Economic & Social Implications
- Economic slowdown: Contractors warn that blocked payments will stall around ₹40,000 crore in PWD work, ₹18,000 crore in urban development, ₹13,000 crore in water resources, ₹12,000 crore in Jal Jeevan Mission, and ₹6,000 crore in rural development.
- Employment risk: The construction sector—Maharashtra’s second-largest employer after agriculture—is under threat. As liquidity dries up, subcontractors and daily wage workers face livelihood insecurity.
- Future project freeze: The continued issuance of new tenders while existing bills remain unpaid has been described as “untenable” and undermine confidence in the sector .
What Contractors Want
- Immediate payment of the full outstanding ₹89–90 thousand crore.
- A clear payment schedule and accountability across departments.
- A high-level review meeting including the Chief Minister and finance officials to resolve the crisis.
Milind Bhosale, president of the Maharashtra State Contractor Mahasangh, reported that 30 district collectors received appeals during recent statewide protests. However, despite meetings with ministers like Girish Mahajan, a meeting with CM Devendra Fadnavis remains elusive.
Summary
Maharashtra’s ₹89,000–90,000 crore contractor dues have been accumulating since July 2023, severely straining the financial stability of contractors and the livelihoods of millions dependent on this sector. With legal actions underway and mounting protests, resolution from the government is critical to prevent economic stagnation and preserve confidence in public infrastructure development.
