Contractors in Himachal Pradesh Threaten Strike Over Pending Dues, Demand Immediate Payment.
Shimla:
Contractors engaged in government projects across Himachal Pradesh have issued a stern warning to the state government, signaling the possibility of a strike if their long-overdue payments are not cleared at the earliest. The contractors, grappling with severe financial distress, have called for immediate action, demanding the release of their dues and the reopening of the state treasury, which they claim has been shut down, disrupting the operations of key government departments.
A meeting convened on Friday in Sundernagar, Mandi district, brought together contractors from various parts of the state, including Mandi, Kullu, and Lahaul-Spiti districts. The primary grievance raised by the contractors was the non-payment of their bills for several months, which has placed them under significant financial pressure. With mounting bank loans and outstanding dues to vendors, some contractors are even contemplating selling their properties to meet financial obligations.
This situation is unprecedented in the state’s history, as the contractors pointed out that the treasury has been closed for the first time, severely impacting the execution of vital government projects. Contractors have demanded a clear explanation from the government regarding the shutdown of the treasury and are calling for urgent measures to resolve the issue.
Keshav Nayak, a contractor and leader of the group, highlighted the critical role contractors play in the state’s development. He noted that contractors invest billions of rupees in infrastructure projects that are essential for public welfare and the state’s economic growth. Furthermore, Nayak emphasized that contractors directly or indirectly provide employment to more than 5 lakh workers, including local and migrant laborers, as well as thousands of educated professionals in fields such as engineering, accounting, and management.
“The financial strain on contractors is intensifying due to a directive issued by the state bureaucracy, which has resulted in a freeze on payments for the last three months. This freeze is exacerbating unemployment and is also impacting businesses linked to construction materials such as steel, cement, bricks, and hardware, leading to significant revenue loss for the state,” Nayak said during the meeting.
Currently, the state treasury holds pending payments amounting to around Rs. 600 crore, while government departments have an additional Rs. 2100 crore in unpaid bills. Contractors also face an additional burden of Rs. 200 crore in Goods and Services Tax (GST) dues. Nayak warned that if these payments are not cleared before the upcoming budget session, the contractors’ financial reputation could suffer irreparable damage, and the state could lose over Rs. 1000 crore in GST revenue. This, he argued, would severely hinder the state’s development progress and economic stability.
The meeting concluded with a firm resolution calling for the immediate clearance of pending payments before the start of the budget session. Contractors have warned that failure to act will leave them with no choice but to resort to drastic measures, including a full-scale strike.
Prominent contractors such as Vijay Kapoor, K.D. Nirash, Bhupender Mahajan, Rajesh Complex, Narayan Singh, Prem, Vikas, Manish Sharma, Rishi, Sandeep, Navneet, and Naklu were also present and voiced their concerns over the financial turmoil caused by the non-payment of dues.
As the deadline for the budget session approaches, the state government faces increasing pressure to resolve the issue and avert a potential crisis that could disrupt vital infrastructure projects across Himachal Pradesh.