Pune: Amid repeated protests by contractors over unpaid dues, the state public works department (PWD) has drawn up a three-pronged funding plan to clear pending bills of Rs17,562 crore for state highways and major district road works.Responding to opposition members’ questions over non-payment to contractors during the recent assembly session, state PWD minister Shivendrasinh Bhosale said the department would seek additional funds through supplementary demands, tap the Centre’s interest-free loan scheme and use the trade receivables discounting system (TReDS) to clear dues and meet fresh liabilities in 2026-27. The questions were raised under Rule 293, which allows members to discuss urgent or critical matters.“According to the department’s payment plan for road and bridge works, pending bills stood at Rs20,857 crore in May. The PWD released Rs3,296 crore in June, bringing the outstanding amount down to Rs17,562 crore,” he said.The department has a budgetary provision of Rs18,950 crore for state highways and major district roads for 2026-27. Of this, Rs3,296 crore was released in June. PWD calculations show that even if the remaining budgetary provision is fully used to clear dues, bills worth Rs1,908 crore would remain unpaid. The minister’s response comes against the backdrop of sustained protests by contractors over delayed payments.In April, the Maharashtra State Contractors Association (MSCA) and allied bodies announced a phase-wise shutdown of road and govt building works, claiming unpaid dues across departments had crossed Rs96,000 crore. The associations had warned that projects across the state could be affected if payments were not cleared.The payment crisis had been flagged by contractors earlier too. In Feb 2025, contractors’ and engineers’ associations claimed Rs89,000 crore was pending across state departments, including Rs 46,000 crore from the PWD, and threatened to stop infrastructure works.In May this year, organisations representing small contractors also approached Union finance minister Nirmala Sitharaman and RBI governor Sanjay Malhotra, seeking loan relief, GST concessions and access to low-interest credit. They claimed prolonged non-payment had pushed nearly three lakh contractors and developers into financial distress.Contractors, however, disputed the PWD’s latest assessment. MSCA state president Milind Bhosale told TOI that the association had pegged the department’s pending dues at nearly Rs28,000 crore, against the govt’s figure of around Rs18,000 crore. “We are demanding a clearance of Rs28,000 crore. The budgetary allocation is inadequate considering the spillover liabilities,” Bhosale said.He said work orders worth nearly Rs52,000 crore had already been sanctioned, though several works were yet to be completed. “Fresh bills will continue to be generated. Unless adequate funds are allocated, the pendency will only increase,” he added.
