Jaipur: In a significant breakthrough for contractors associated with Rajasthan’s Public Health Engineering Department (PHED), the prolonged dispute over pending dues and other demands appears to have moved towards resolution after a high-level meeting between the department and representatives of the contractors’ association.
The negotiations, held between the struggle committee of the All Rajasthan PHED Contractor Association and senior department officials including the Additional Chief Secretary and Mission Director, concluded on a positive note with both sides reaching consensus on several key financial and administrative issues.
According to sources present during the discussions, the department has agreed to begin releasing pending payments worth nearly ₹558 crore related to OTMP works and major quality-based infrastructure projects from the 25th of this month. The decision is being viewed as a major relief for contractors who have been facing severe financial stress due to delayed payments over the past several months.
The meeting also focused on the settlement of final bills pending under thousands of completed water supply schemes across the state. Officials informed the contractors’ committee that details of nearly 1,100 schemes out of a total 3,300 schemes have already been compiled and submitted to the department. The remaining details related to approximately 2,200 schemes are expected to be collected within the next seven days.
Department officials and contractor representatives are scheduled to hold another round of discussions on the 25th after the completion of data compilation. The upcoming meeting is expected to address the release of remaining dues and other pending demands raised by the contractors under their eight-point charter.
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The dispute had intensified in recent weeks as contractors alleged that payments had remained pending for nearly 33 months, severely affecting ongoing operations, labour payments, and maintenance works linked to rural and urban water supply projects. In protest against the delay, the contractor association had earlier announced a decision to withdraw four-wheel vehicles and logistical support from the department starting May 15.
The latest agreement has, however, eased tensions within the department and raised hopes of restoring normal functioning of several water supply and infrastructure-related activities across Rajasthan. Industry observers believe timely implementation of the agreed payment schedule will be crucial in rebuilding trust between the government and contractors involved in key Jal Jeevan Mission and PHED projects.
