Maharashtra contractor dues: MSCA warns Mahayuti government of April 7 work stoppage

Contractors working on Maharashtra government projects warned that development work could stop from April 7. The Maharashtra State Contractors Association (MSCA) said unpaid bills have crossed Rs 96,000 crore. The group wrote to the Mahayuti government on Friday. MSCA said delays are affecting projects across several departments and agencies.

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MSCA said the pending amount rose sharply over the past 18 months. The association said dues touched Rs 1.16 lakh crore during this period. MSCA said payments later brought the figure down. Yet new bills from running and finished works pushed arrears back near earlier levels.

Maharashtra government dues and MSCA warning

"In last over one-and-half years, the pending bill amount went up to Rs 1.16 lakh crore. Now it is around Rs 96,400 crore, which means the state government only paid around Rs 20,000 crore. We hoped that in March there would significant payment towards the pending bills but it didnt happen,\" the MSCA letter said.

The association said the state cleared about Rs 20,000 crore last year after protests. MSCA said this relief did not last long. Fresh bills added to the backlog from ongoing work and completed contracts. MSCA described itself as a state-level body representing contractors across departments.

Maharashtra government dues across key departments

MSCA listed large unpaid amounts under major departments and schemes. The largest figures were under the Jal Jeevan Mission and Maharashtra Jeevan Pradhikaran. Other big arrears were flagged under Public Works and water resources. The association also cited dues linked to district development plans and several special funds.

The table below summarises the arrears MSCA listed by department and scheme.

Department or scheme	Pending amount
Public Works Department	Rs 29,000 crore
Jal Jeevan Mission and Maharashtra Jeevan Pradhikaran	Rs 35,000 crore
Rural development and water conservation works	Rs 6,500 crore
Maharashtra Tourism Development Corporation	Rs 3,800 crore
Urban development special fund works	Rs 2,100 crore
Water resources department	Rs 9,000 crore
District development plans	Rs 11,000 crore

Maharashtra government dues impact on contractors

MSCA said unpaid bills also relate to works done for local and civic bodies. The association said this has hit smaller contractors. It said these contractors depend on steady payments to manage labour and material costs. MSCA said delays in these payments have widened stress across the supply chain.

Contractors would halt work if payments do not begin soon, MSCA president Milind Bhosale said. After March 31, the pending dues have gone up to Rs 96,000 crore, which has affected three lakh contractors involved in state government works, Bhosale added.

Maharashtra government dues linked to fiscal stress

Officials said the state is facing a cash crunch. They cited high welfare spending and weaker revenue collection. Pressure grew in 2024 after welfare measures were announced before assembly elections. These included Rs 36,000 crore for the Ladki Bahin scheme and Rs 14,700 crore for free power to farmers.

Officials said borrowing also rose, reflecting strain on the budget. The state borrowed Rs 1.38 lakh crore in the last financial year, officials said. Even so, capital expenditure stood at Rs 98,000 crore. The contractors’ body said bills remain unpaid across departments and warned of a work stoppage from April 7.

With inputs from PTI