Maharashtra govt owes us Rs 90,000 crore: Road, bridges, building contractors

Representatives take out press conference in SoBo to shine light on problem; they said it was time to stop work, till all dues were paid at a fiery press conference at the Cricket Club of India’s (CCI) C K Nayudu hall on Monday afternoon

The Builders Association of India (BAI) and Maharashtra State Contractor's Association (MSCA) amongst others like the Hot Mix Association and more, took aim at the Maharashtra government which they claimed has not cleared bills of the contractors working on government projects like roads, bridges, and building construction in the State.

Representatives of various associations representing contractors said, “collective bills of over R90,000 crore are outstanding with the Maharashtra government”. They said it was time to stop work, till all dues were paid at a fiery press conference at the Cricket Club of India’s (CCI) C K Nayudu hall on Monday afternoon.
At the outset, they made it clear that the focus was on a lot of rural projects, interior roads and bridges in smaller places within the State. “The problem is with the non-payment of dues by the State Government, these smaller projects are affected. Projects funded by the central government or which have World Bank funds are not affected,” they stated.

Anger and ire was the mood of a people driven to the edge at a press conference at the CCI on Monday

Sword

Anand Gupta vice-president, BAI, said, “The total outstanding is more than R90,000 crore. It has become difficult to survive without money. We have been running from pillar to post for the money. We have been given false assurances for months. Banks have started sending notices to contractors to pay back loans taken for the work, with non-payment how will they clear the loans? I want to tell the state government: play your political games but do not put a sword to our head (neck). As a respectable state government, they need to get their priorities right.”

Unprecedented

BAI former president Avinash Patil from Nashik explained that the government is inviting tenders and issuing work orders, “without clearing earlier dues.” He added, “This situation is unprecedented. Even earlier, we did have pending bills but the government. would clear them after five to six months. At the most eight months, as contractors, we could tide over till six to eight months. There has never been a backlog quite like this, with non-payments for three to four years. We all have read about farmer suicides. You may have contractors dying by suicide, with bank notices raining down.”

Most speakers endorsed the suicide view, not as alarmists but as realists. Milind Waykar, state secretary, BAI, stressed that it is on just the contractor that is affected, but the hundreds that work under him, “There is an entire chain reaction. We want the money to be cleared by March end.”

The organisations jointly said in a statement that unpaid bills are a result of the populist schemes launched by the state government ahead of the Assembly polls last year. “Ladki Bahin Yojana is one of the schemes that has taken a major toll on the state exchequer,” contractors claimed.

They added, “Due to the Ladki Bahin Yojana government expenses have increased beyond revenue, pushing the fiscal deficit beyond R2 lakh crore. The Comptroller and Auditor General (CAG) had previously warned that the State’s financial condition was deteriorating.”

Specifics

In the interactive session following the press conference, where the press asked some questions, the speakers were told to cite examples of particular projects that were stalled due to payment trouble. They claimed, “These are roads, infra in smaller places, many in the interiors of the state.”

Pressed for specifics they stated, “Kopargaon Bridge in Ahilyanagar district, Ahmednagar and the Chief Minister Gram Sadak Yojana – Pune, Nashik and Ahmednagar.” A contractor claimed that there are several persons in the industry waiting for very long for dues to be cleared for repairs on buildings in the Worli Police Camp area.

There were several takeaways from the grim meeting: The State Government leaders are placating contractors with false assurances, rather than paying up. Tenders are being floated even when earlier dues are not paid up. Contractors are forced to stop work, an unfortunate and unwanted situation. They felt they must hold this conference as the Fourth Estate (press) can highlight just how desperate and unfair the situation is. There is a cascading effect as there are several industries dependent on this one, and with no money, thousands or even lakhs will be affected. People have been driven to the absolute edge with no payments, a very dark space that may push them off the cliff altogether.

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