Dues running into ‘crores’: Maharashtra contractors write to FM, RBI governor; seek waiver, GST relief

May 26, 2026 Headlinesnews

2 min readMumbaiMay 26, 2026 09:32 PM IST

Days after a showdown with the Maharashtra government over massive pending dues, associations representing small contractors in the state have written to Union Finance Minister Nirmala Sitharaman and RBI Governor Sanjay Malhotra seeking loan waivers, GST exemption and low-interest loans.

In a letter sent by the Maharashtra State Contractor Association and the Maharashtra State Unemployed Civil Engineer Association, the organisations claimed that nearly three lakh small contractors and developers across the state were facing severe financial distress due to prolonged non-payment of dues by government departments.

“All small contractors and developers in Maharashtra, undertaking works up to Rs 25 crore, are carrying out government development works for various departments of the state. However, for the past several years, they have not received payments for the works completed by them,” the letter stated.

The associations further said that the financial crisis had stalled fresh projects over the last one-and-a-half to two years, worsening the condition of small contractors.

Contractor association president Milind Bhosle said that small contractors, who usually execute projects worth up to Rs 25 crore, were increasingly being pushed out as the government floated larger contracts favouring big companies. “In recent years, the state government is releasing works worth more than Rs 100 crore, benefiting big companies. It means that small contractors are not eligible for that. With pending dues and no new works, the condition of small contractors is deteriorating every single day,” he said.

The associations have demanded waiver of outstanding loans of contractors and developers, exemption from GST payments and immediate provision of long-term loans at low interest rates to help the sector survive the ongoing crisis. “It is the responsibility of both the central and state governments to support and protect these contractors who contribute to the development works of the state,” the letter said.

Last month, alleging pending dues worth Rs 96,400 crore, the umbrella body of contractors had warned of stopping ongoing works across various departments from April 7 unless their demands were addressed. The strike was withdrawn a week later after assurances from Maharashtra Public Works Department Minister Shivendraraje Bhosle.

Alok Deshpande is a Special Correspondent with The Indian Express’ Mumbai bureau, recognized for his focused and authoritative reporting on governance, politics, and the socio-economic dynamics of Maharashtra’s hinterlands. His unique academic background in Geology and early work in the water sector provides a specialized layer of Expertise to his reporting on resource and environmental issues.
Expertise

Current Role: Special Correspondent, The Indian Express, Mumbai.

Core Authority: Alok provides detailed coverage of Maharashtra politics and governance, with a particular emphasis on how policies and power struggles affect the rural and semi-urban areas (the ‘hinterlands’).

Key Coverage Areas: His reports frequently focus on high-stakes administrative and political topics, including:

State Assembly Proceedings: In-depth reporting on the Legislative Assembly, covering ministerial statements, legislative debates, and inter-party conflict within the ruling Mahayuti alliance.

Policy & Finance: Coverage of state finances, including supplementary budget demands, fiscal deficits, and major government schemes (e.g., Jal Jeevan Mission, Ladki Bahin Yojana).

Rural and Social Issues: Reports on critical health issues (e.g., child deaths in districts), human-animal conflict (leopard attacks, stray dogs), and agrarian concerns (e.g., farmer suicides).

Local and Urban Governance: Covers major announcements regarding urban development (e.g., BMC’s OC amnesty scheme, pagdi system push) and local body elections, including political defections and alliance splits.

Unique Credentials & Trustworthiness

Academic Specialization: Holds a Post-graduate degree in Geology. This background gives him a foundational understanding of natural resources, which directly informs his reporting on environment, water, and infrastructure projects.

Early Professional Experience: His shift to journalism came after working with an NGO focused on the water sector. This practical experience strengthens his Expertise in critical areas like water management and rural development, as evidenced by his reporting on the Jal Jeevan Mission.

Journalism Training: An alumnus of the prestigious Asian College of Journalism (ACJ), Chennai, confirming his formal training and commitment to rigorous journalistic standards.

Alok Deshpande’s rare combination of scientific education, non-profit sector experience, and deep political reporting makes him a highly trusted and authoritative voice on the governance and ground realities of Maharashtra.
He tweets @alokdesh … Read More