Sparks debate on deepening financial crisis in state
Munish Sood
MANDI, November 4
A dramatic scene unfolded in Sundernagar sub-division of Mandi district of Himachal Pradesh on Monday when contractor Shiv Ram, citing nearly a year of non-payment, locked the newly constructed ₹3.73-crore Rest House of the Public Works Department (PWD).
The incident has not only embarrassed the department but also exposed the deepening financial strain on the Himachal Pradesh government.
The modern, double-storey Rest House, equipped with VVIP and VIP suites, a 200-seat conference hall, and four deluxe rooms, has been lying unused for months. Despite completion last year, the department has reportedly failed to release about ₹1 crore owed to the contractor.
Eyewitnesses said the contractor arrived with his team in the morning and locked the main gate, stating that the department’s repeated delays had left him with no choice. The protest drew a crowd of onlookers and triggered a fresh debate over the government’s deteriorating financial credibility.
When contacted, contractor Shiv Ram told The Newz Radar that it had been over a year since the building’s completion, yet no payment had been made.
“We’ve been pleading with the department for months, but nothing moves. It’s painful and demoralising to keep working under such conditions. We’ve put in our resources, taken bank loans, and still haven’t been paid. This lock was not out of anger but out of helplessness,” he said.
He added that the building, which could have been a valuable asset for visiting officials and tourists, now stands locked because of the government’s own inaction.
PWD confirms financial constraints
Roshan Thakur, Executive Engineer (XEN), PWD, Sundernagar, confirmed that the building had been completed and only furniture installation remained.
“Yes, the structure is ready, but final payments could not be processed due to financial constraints. Around ₹50 lakh is required for furniture as well, for which budget allocation is awaited. Once funds are received, the matter will be resolved,” he stated.
He said the department had already informed higher authorities about the issue and hoped for an early release of funds.
The Sundernagar episode has turned into a symbol of the larger financial turmoil engulfing the Himachal Pradesh government. Contractors across the state allege that payments running into hundreds of crores have been pending for months, with no clear timeline for disbursal.
Treasury sources admit that a severe liquidity crunch has paralysed payments. With nearly 70 per cent of the state’s budget consumed by salaries, pensions and interest on loans, departments have been instructed to defer most non-essential bills. The cumulative dues of contractors across PWD, IPH, and Rural Development are believed to exceed ₹1,500 crore.
Political and economic fallout
The incident has created ripples in political circles, with the opposition accusing the government of “fiscal mismanagement” and failure to maintain even basic financial discipline. The ruling dispensation, already struggling with mounting debt and shrinking revenue, now faces growing discontent from the contractor community, one of the state’s biggest employment engines.
Economists warn that continued delays could cripple infrastructure work, push small contractors into insolvency, and dent the state’s reputation among investors and central agencies.
For now, the padlocked rest house in Sundernagar stands as a stark metaphor — a gleaming government asset rendered unusable because the builder hasn’t been paid. It tells a story not just of one contractor’s frustration but of a state caught between promises and payables.
