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Maharashtra Contractors Threaten April 7 Work Halt Over ₹96,000 Crore Unpaid Bills

The ultimatum underscores a cash squeeze throttling payments across key departments.

Overview

  • Contractor groups representing state project builders sent an ultimatum on Friday, warning they will stop all development work from Tuesday, April 7, unless payments begin.
  • The letter to Chief Minister Devendra Fadnavis and Deputy CMs Eknath Shinde and Sunetra Pawar cites unpaid bills of about ₹96,000 to ₹96,400 crore owed to roughly 3 lakh contractors.
  • Contractors say arrears had peaked near ₹1.16 lakh crore in the past 18 months and only about ₹20,000 crore was cleared after earlier protests.
  • The biggest backlogs are in water supply schemes and roads, including about ₹35,000 crore under Jal Jeevan Mission and Maharashtra Jeevan Pradhikaran and ₹29,000 crore in the Public Works Department.
  • Officials have not responded publicly, as reports tie the delays to a cash crunch from heavy welfare spending and weak revenues that could stall projects and squeeze small firms.