Payment delays, contractors halt Rajgarh projects
The Contractor Welfare Association in Rajgarh has announced the suspension of all ongoing government projects in response to a two-month delay in payments. The association submitted a memorandum to the Secretary of Public Works through the Executive Engineer of Rajgarh, expressing their grievances.
Association officials highlighted that the government had effectively halted treasury operations for the past three months, resulting in unpaid bills for contractors and other stakeholders. Despite department approval, these bills were initially held by the treasury and have now been returned to the respective departments without processing.
The payment delays have severely impacted contractors’ ability to settle dues for essential materials such as cement, steel, sand, gravel and fuel. Additionally, labourers have been deprived of their wages, making it challenging for them to meet daily needs. This financial strain has forced many labourers to migrate, while contractors grapple with mounting debts and market liabilities.
In a related development, the state government has taken steps to alleviate the financial burden on contractors. On January 14, it was reported that the government released an initial amount of Rs 80 crore to address the pending payments in the Public Works Department (PWD).
This decision aims to clear bills that have been stuck in the treasury since November 21, 2024. PWD Minister Vikramaditya Singh stated that payments would commence in phases, starting with smaller contractors, followed by larger ones. He acknowledged that while economic challenges had caused payment delays, the government is committed to resolving the issue promptly.
Despite this development, the Rajgarh Contractor Welfare Association remains resolute. They have decided to halt all ongoing projects until all outstanding payments are cleared and compensation for incurred losses is provided. The association has warned that if their demands are not met promptly, they will organise protests, including sit-ins with labourers, and may picket government representatives and officials.
The ongoing financial constraints have not only disrupted the livelihoods of contractors and labourers but have also stalled development projects, affecting the region’s overall progress. The Rajgarh Contractor Welfare Association’s firm stance reflects the growing frustration among stakeholders, emphasising the urgent need for the government to address these financial issues to prevent further economic instability in the state.
