Jaipur : Rajasthan’s infrastructure sector may soon face a major disruption as contractors across the state have warned of a large-scale agitation against the government over massive pending payments allegedly running into thousands of crores.
Contractors associated with major government departments including Public Works Department Rajasthan, Public Health Engineering Department Rajasthan, irrigation departments, Jaipur Development Authority, municipal corporations, and the Rajasthan Housing Board have accused the state government of prolonged financial negligence and failure to clear dues for completed projects.
The All Rajasthan Contractor Association has now announced a statewide protest movement, warning the government that if pending payments are not released immediately, contractors may collectively stop work across all departments.
One-Day Protest and Rally Announced for June 8 in Jaipur
Association president Narendra Solanki issued a strongly worded public appeal accusing the government of ignoring repeated representations made by contractors regarding delayed payments and policy issues.
According to the association, a massive one-day sit-in protest and rally will be organized in Jaipur on June 8 to draw the government’s attention toward the financial crisis faced by contractors.
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The organization warned that if the government still fails to respond, contractors across Rajasthan would launch a coordinated boycott of government works.
“Development Projects Celebrated, Contractors Ignored”
The association alleged that while governments often publicize infrastructure achievements and development projects, contractors responsible for executing those projects are being financially strangled due to non-payment of bills.
Contractors claimed that although online systems and digital compliance mechanisms have been made mandatory, departments have failed to establish any fixed timelines or budgetary guarantees for clearing bills. As a result, payment files reportedly remain pending for months at various administrative levels.
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The association further accused the government of making repeated promises during meetings with ministers and senior officials without taking any concrete action to release funds.
Contractors Facing Bankruptcy and Property Auctions
The appeal letter released by the contractors’ body paints a grim picture of the sector’s financial condition.
According to the association, many contractors mortgaged personal properties and borrowed heavily from banks and private markets at high interest rates in order to complete government projects on time.
However, continued delays in payment have allegedly pushed many firms toward financial collapse.
The association claimed:
- Several contractors’ bank accounts have already turned into NPAs (Non-Performing Assets).
- Many contractors are facing auction proceedings against their homes and personal properties.
- In some cases, assets have already been auctioned due to mounting liabilities.
- Despite delayed payments from government departments, contractors continue to face penalties and punitive actions for project delays.
Five Major Issues Raised by Contractors
The association highlighted several structural and financial issues affecting the construction sector:
1. Rising Material Costs and Outdated BSR Rates
Contractors alleged that global events such as the Russia-Ukraine conflict have sharply increased prices of diesel, bitumen, cement, steel, and construction machinery.
However, the government’s current BSR (Basic Schedule of Rates) has not been revised in line with market realities. According to the association, the difference between actual market prices and approved BSR rates is as high as 20–30 percent, causing severe losses to contractors.
2. Pending GST Differential Payments
The contractors also alleged that although GST on construction work was increased from 12 percent to 18 percent, the additional 6 percent GST differential amount has still not been reimbursed by departments.
3. Delay in Escalation and Price Variation Approvals
The association pointed out that Clause 45 of standard agreements clearly provides for escalation and price variation adjustments due to inflation. However, officials are allegedly delaying approvals for revised payments.
4. Extra Item Bills Pending
Files related to additional and excess work carried out during project execution are reportedly pending for long periods in secretariat and departmental offices.
5. Demand for Security Deposit Relief
Contractors demanded restoration of COVID-era relief measures, including reduction in Security Deposit (SD) deductions by 3 percent and immediate refund of 75 percent of previously deposited SD amounts to ease liquidity pressure.
“This Is a Fight for Survival”
Calling for unity among contractors, Narendra Solanki urged all district-level, divisional, and state-level contractor bodies to set aside internal differences and come together.
“This is not the time for politics or personal rivalry. It is a fight for survival. If the situation worsens, neither small contractors nor big contractors will survive,” he said.
The association has given a clear warning to the government: “No payment, no work.”
Contractors stated that if infrastructure projects slow down or come to a halt in the coming weeks, responsibility would lie entirely with the government’s financial management and delayed payment policies.
The June 8 protest in Jaipur is expected to witness participation from contractors across Rajasthan and could emerge as one of the largest mobilizations by the state’s construction sector in recent years.