Maharashtra Contractors Announce Strike Over Unsettled Bills, Posing Threat To Development Projects

More than two lakh contractors in the state of Maharashtra are gearing up for a strike starting November 27, a move poised to disrupt various developmental projects across the region. The contractors allege that the state government has withheld payments totaling nearly Rs 10,000 crore.

Milind Bhosale, the president of the state's contractors association, asserted that three inquiry letters were dispatched to the government before Diwali, urging the settlement of outstanding bills related to work carried out in the Departments of Rural Development, Water Resources, and Water Conservation. However, no payments were made by the government prior to the festival.

In the event that the bills remain uncleared by November 26, contractors across the state plan to halt all pending work and initiate a strike the following day, according to Bhosale.

The pending bills encompass various categories, including Rs 1,700 crore for construction and repairs, Rs 6,500 crore for new roads and repairs, Rs 1,800 crore for bridge repair and pothole filling, Rs 780 crore for village and rural roads, and a substantial Rs 40,000 crore for sanctioned works. Additionally, there is a provision of funds amounting to Rs 4,000 crore.

The Contractors and Engineers Association has outlined specific demands to address the situation. They are calling for the immediate allocation of full funds to the Public Works Department of the state, covering account heads from the Departments of Rural Development, Water Resources, and Water Conservation, to settle pending bills. Furthermore, they advocate for the inclusion of a provision in the tender process that ensures 50 to 65 per cent of the budget is earmarked for payment of related work.

The association also demands the cessation of political interference in the tender process for development work, urging a transparent and unbiased tendering process. They express concern about the delayed opening of tenders and propose measures to address the issue. Additionally, they highlight discrepancies in the distribution of work, particularly for projects under Rs 15 lakh, which, in violation of regulations, are directly assigned to Gram Panchayats instead of through online tenders.

In an effort to foster equitable distribution of work, the association proposes a monthly lottery system to allocate projects within Rs 15 lakh to educated unemployed civil engineers and small contractors in the state.

Lastly, the contractors call for an end to the administration's imposition of conditions such as penalties for time extension, non-submission of work bills on time, GST invoice compliance, and inappropriate specifications in the tender process. They stress the importance of halting the immediate awarding of work to specific agencies by the concerned Executive Engineer.