Shimla: Contractors working on Public Works Department (PWD) projects in Himachal Pradesh have been waiting for over a month for their payments, with bills worth nearly ₹1,000 crore stuck in the treasury. The delay, which has severely impacted contractors and stalled development work, has sparked criticism from the opposition, while the state government promises resolution.
Payments to contractors, processed through the treasury based on bills approved by the PWD Chief Engineer, were earlier disbursed every three to four days. However, payments have been halted since November 21, leaving contractors in dire financial straits. Many are now struggling to repay bank loans and are on the brink of default.
One contractor highlighted the gravity of the situation, saying, “We’ve completed the work, but the payment delays are pushing us towards bankruptcy. How can we continue projects under such conditions?”
The payment backlog has disrupted several NABARD-funded projects, which are financed through loans. Contractors complete the work, submit bills to the PWD for scrutiny, and then rely on the treasury for payments. This process has stalled, jeopardizing ongoing and future projects.
The crisis has also impacted other departments, including Jal Shakti and Forest, though PWD contractors account for the majority of delayed payments.
The opposition BJP has criticized the Congress-led state government, accusing it of financial mismanagement and neglect. BJP leaders have demanded immediate action to clear the dues and prevent further delays in crucial infrastructure projects.
PWD Minister Vikramaditya Singh acknowledged the issue, attributing the delays to financial constraints caused by disaster-related works completed during the BJP’s tenure. “Many works were undertaken without tenders during the previous government, leading to complications. However, the state government is committed to resolving this issue soon,” he stated.
The minister dismissed allegations of mismanagement, emphasizing that the payments are delayed due to genuine reasons. “There is no scam, as the opposition claims. We are taking steps to ensure the payments are made at the earliest,” he added.
PWD Chief Engineer NP Singh assured that the department is processing bills promptly. “There is no delay from our side. All bills are being forwarded to the treasury after due diligence,” he clarified.
As the financial strain grows, contractors are contemplating halting ongoing projects. This would further delay infrastructure development in the state, adding to the government’s challenges.
For now, contractors remain hopeful that the government will act swiftly to address their concerns and ensure timely payments. However, the crisis underscores the pressing need for financial reforms and efficient project management to prevent such delays in the future.
