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Angry govt contractors take ₹86,000-crore pending dues fight to Azad Maidan in Maharashtra

Contractors protested at Azad Maidan over 86,000 crore in pending dues, while the government said it would resolve the payment issue

Updated on: Aug 19, 2026, 14:09:10 IST
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Irate government contractors, who have been waiting for over a year for their joint dues of approximately 86,000 crore, on Monday launched a protest at Azad Maidan, where they also alleged that the Mahayuti government was implementing policies to favour big companies and finish off small and medium contractors. Meanwhile, the cabinet on Tuesday approved the setting up of a mechanism to pay the dues of the public works department (PWD).

Government contractors protest at Azad Maidan over pending dues, alleging financial distress and policies favouring large companies (Anshuman Poyrekar/HT Photo)
Government contractors protest at Azad Maidan over pending dues, alleging financial distress and policies favouring large companies (Anshuman Poyrekar/HT Photo)

The Mahayuti government’s various freebies before the 2024 assembly elections have eaten into the funds required to pay contractors’ bills, plunging the latter into a financial crisis. There are over 300,000 small, medium and big contractors carrying out different government projects in the state.

Also read: Punjab employees step up ‘Maha Bandh’ protest plans on August 27 as DA dues deadline ends

Contractors allege policies favour big companies

Speaking at the Azad Maidan rally, Ranjit Shinde, a contractor from Nashik, said he wanted to question Nashik guardian minister Girish Mahajan about the government’s new “anti-small and medium contractor policy”. “Earlier, works used to be awarded on a project-to-project basis but now the government is clubbing projects together so that only big companies are eligible,” he said, adding that a big company that recently won such a tender had sub-contracted the work to small contractors. “Big companies are profiting without doing any work,” he said.

Contractors allege favouritism in release of pending dues

Another contractor, Shashikant Awhad, who has been struggling to obtain dues of around 4 crore, alleged “favouritism” in payment, saying that earlier, contractors would receive equal amounts when funds were disbursed to a department. “Now interference from officials and politicians has begun, and their favourites get paid more,” he said. Vineet Shirsath, another contractor, alleged that officials now told contractors to get a recommendation from an MLA or MP to get their rightful dues. Shirsath said he had completed works of 40 crore from 2021 but had got only around 13 crore.

Also read: Mounting govt arrears trigger cash crunch for contractors

Subodh Sarode, president of the Nagpur Contractors Association, listed the demands of the Maharashtra State Government Contractors’ Federation: the immediate clearing of all pending bills, an announcement of a department-wise, time-bound payment schedule, immediate allocation of funds for the arrears, and a joint meeting with the CM, finance minister and other concerned. He said that no one from the government had approached the Federation this time.

Govt says pending contractor dues will be resolved

Minister of state for finance Ashish Jaiswal, while speaking with the media, said that the government was implementing several public welfare schemes and giving thousands of crores to various sections of societies, including farmers. “We will resolve the contractors’ pending dues,” he said. “I urge them to withdraw the protest.”

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