Contractors warn of strike over non-payment of dues
In a meeting held at Sundernagar in Mandi district today, contractors engaged in government projects across Himachal Pradesh have warned the state government of a possible strike if their long-pending payments are not cleared soon. The contractors, who are struggling with a financial crisis, are demanding immediate release of dues and the reopening of the treasury, which they claim has been shut down, disrupting the functioning of government departments.
The contractors have voiced their concern over the fact that they have not been paid for their bills for several months, resulting in their inability to repay loans from banks and vendors. Some contractors have even reached the brink of selling their homes to meet financial obligations. They stated that this is the first time in the state's history that the treasury has been closed, severely affecting the execution of government projects. The contractors are demanding that the government explain the reason for shutting the treasury.
The meeting, chaired by Keshav Nayak, was attended by government contractors from Mandi, Kullu and Lahaul-Spiti districts. The members pointed out that contractors play a vital role in the development of the state and nation, investing billions of rupees into infrastructure projects. These contractors are the ones who lay the first foundation of government development works, which ultimately benefit the public.
Keshav Nayak stated that "in Himachal Pradesh, contractors directly or indirectly provide employment to more than 5 lakh workers, both local and migrant, along with thousands of educated youth employed as engineers, accountants and in management positions. However, the contractors are now facing a severe financial strain due to a verbal directive issued by the state bureaucracy that has resulted in a freeze on payments for the past three months. The freeze is leading to an increase in unemployment and is affecting businesses related to construction materials like crushers, brick kilns, hardware stores, steel, cement, and other building materials, thereby causing a significant loss in the state's revenue."
Nayak revealed that currently, there is a pending payment of around Rs 600 crore in the treasury and over Rs 2100 crore in bills lying with various government departments. As a result of the non-payment, contractors are also facing an additional burden of nearly Rs 200 crore in GST dues. He further stressed that if the government fails to clear the pending payments before the budget session, it could severely damage the financial reputation of contractors and lead to a massive loss in GST revenue, potentially exceeding Rs 1,000 crore. This would ultimately hamper the state's development progress.
"The meeting concluded with a resolution demanding that the government ensure the clearance of contractors' pending payments before the budget session, failing which the contractors will have no option but to take drastic measures, including a strike," he added.
