Pune: Small contractors and developers executing government works valued up to Rs25 crore in Maharashtra have urgently sought the Centre's intervention, alleging that prolonged non-payment of dues over the past several years has pushed nearly three lakh contractors into a severe financial crisis.
Representation to Union Finance Minister
In a representation to Union Finance Minister Nirmala Sitharaman on May 25, contractors' representatives requested three key relief measures from the Centre. These include a waiver of outstanding loans, exemption from goods and services tax payments, and immediate access to long-term loans at low interest rates to help the sector survive the ongoing crisis.
Non-Payment of Dues
The representation stated that small contractors and developers undertaking projects for various state government departments have allegedly not received payments for completed works for several years. This has resulted in mounting financial stress and disruption of business operations. Milind Bhosale, one of the signatories, told TOI that the issue has persisted for years.
The non-payment of pending dues has halted the sanction of new work over the past one and a half to two years, worsening the economic condition of contractors dependent on public infrastructure projects. Nearly three lakh small contractors and developers across the state are facing extreme economic hardship as a result.
Responsibility of Governments
The representation emphasized that both the central and state governments are responsible for supporting contractors who contribute to development works in Maharashtra. It urged the finance ministry to take an "appropriate decision at the earliest." Copies of the letter were also marked to RBI Governor Sanjay Malhotra and Maharashtra Chief Minister and Finance Minister Devendra Fadnavis.
