Himachal Contractors Demand Payment Transparency Amid Financial Crisis

Contractors in Himachal Pradesh are facing severe financial distress due to unpaid dues exceeding ₹1,500 crore. The Mandi-Kullu Contractors Welfare Association has issued an ultimatum to the state government, demanding transparency regarding the status of payments. They are calling for an urgent meeting with Chief Minister Sukhvinder Singh Sukhu to address the issue, warning that continued delays could lead to drastic measures. The situation is affecting ongoing infrastructure projects, raising concerns about the long-term impact on the state's development. Read on to discover the key demands and the potential consequences of this financial crisis.
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Himachal Contractors Demand Payment Transparency Amid Financial Crisis

Contractors Issue Ultimatum to Himachal Government

Munish Sood
MANDI: In light of escalating financial challenges within the infrastructure sector in Himachal Pradesh, the Mandi-Kullu Contractors Welfare Association has presented a firm ultimatum to the state government. During a press conference at the PWD Rest House in Sundernagar, association president Keshav Nayak urged the government and the Public Works Department (PWD) Minister to release a white paper outlining the status of outstanding contractor payments.


Significant Unpaid Dues

The association reported that over ₹1,500 crore in dues related to civil, electrical, and mechanical projects remains unpaid. Notably, contractor bills exceeding ₹900 crore are still outstanding, despite numerous requests and official notices sent to the department.


Call for Financial Transparency

Emphasizing the need for transparency, the association challenged the government to publicly disclose its financial status if it cannot fulfill its payment obligations. Nayak stated, “If the government lacks the funds to make payments, it should issue a white paper. Remaining silent is not an option.”


Contractors Facing Bankruptcy

The association expressed alarm over the ongoing delays in payments, warning that many contractors are nearing bankruptcy. The pressure is mounting on hundreds of individuals and small businesses that depend on timely payments from government contracts. A visibly distressed member of the association remarked, “We have families to support, loans to pay off, and teams to sustain. If this situation persists, we may have no choice but to resort to drastic measures.”


Urgent Meeting Requested with Chief Minister

The association has requested an urgent meeting with Chief Minister Sukhvinder Singh Sukhu to address the issue. They stressed the importance of finding a resolution before the situation deteriorates further.


Impact on Infrastructure Projects

Delays in payments are already impacting ongoing construction projects throughout the state. Several initiatives under various development schemes have reportedly slowed or halted due to insufficient funds. If the payment crisis continues, it could have long-term repercussions on the state’s infrastructure development.


Demands from the Association

Key demands include:
• Immediate release of over ₹900 crore in pending contractor bills.
• Publication of a government white paper detailing the reasons for the delay.
• A clear timeline and process for future payments.
• Urgent discussions with the Chief Minister to find a constructive solution.


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