Mandi (Munish Sood)
Himachal Pradesh is witnessing a deepening financial crisis that has now shifted its focus from state employees to contractors involved in critical infrastructure projects.
Payments from the state treasury have been allegedly stalled since November 21, severely affecting contractors working with the Public Works Department (PWD). Reports reveal that approximately Rs 800 crore worth of PWD bills remain pending across the state, jeopardising key development projects.
Unpaid bills and ripple effect
Contractors who previously received payments within 4–6 days via RTGS are now left waiting indefinitely as the treasury has stopped processing bills submitted after November 21. The delays are most severe for projects funded by NABARD and other institutions, with road construction projects taking a significant hit.
The financial impasse has trickled down to labourers and engineers employed under these contractors, leaving them without wages. Contractors have raised the issue with PWD Minister Vikramaditya Singh and the Director of Treasury, but a resolution remains elusive. If the payment blockade continues, critical construction activities could come to a grinding halt.
Contractors risk bankruptcy as banks tighten noose
The situation is dire for contractors who took loans at high interest rates to execute these projects. With no payments forthcoming, many are on the verge of bankruptcy. “We cannot pay wages to engineers, drivers and labourers,” said a contractor. Complaints about delayed payments have surged since November, highlighting the escalating financial strain.
Adding to the contractors’ woes, banks have begun pressuring them to maintain transaction activity or risk closure of their credit lines. Ajay Mohan, a contractor, shared his ordeal: “Bank officials are demanding to keep transactions worth Rs 70 to Rs 80 lakh active or they will shut down my credit line.”
Pankaj Gupta, another contractor, said his Rs 2.5 lakh payment, cleared by the PWD over a month ago, is still stuck at the treasury. “The treasury office in Kullu told me they are only processing payments of up to Rs 10,000,” he added, expressing frustration over the lack of government action.
Conflicting claims by treasury department
When approached, Mandi District Treasury Officer Parikshit Minhans denied allegations of stopped payments. “The treasury is functional and we process payments worth Rs 3 crore to Rs 5 crore daily. However, the clearance of payments lies with the government,” he stated, emphasising that the delay was beyond their control.
The prolonged payment crisis has thrown ongoing development projects into disarray. Contractors are struggling to meet financial obligations, leading to concerns about the long-term impact on infrastructure development in the state.
“If this continues, many of us will be forced to shut down operations,” warned one contractor. The stalemate poses a serious threat to Himachal Pradesh’s infrastructure projects, with contractors calling for immediate government intervention to resolve the crisis.
