Shimla: Contractors working with the Public Works Department (PWD) in Himachal Pradesh have been waiting for over a month for their payments, as nearly ₹1,000 crore worth of bills remain stuck in the treasury. The delay has disrupted multiple development projects, sparking harsh criticism from the opposition while the state government promises swift action.
Previously, contractors would receive payments processed through the treasury within a few days after bills were approved by the PWD Chief Engineer. However, since November 21, payments have been stalled, causing financial strain for contractors. Many are now facing difficulties repaying bank loans and are at risk of defaulting on payments.
One contractor shared their frustration, stating, “We have completed our work, but with payments delayed for so long, we’re edging towards bankruptcy. How can we continue with new projects under these circumstances?”
The payment backlog has severely affected ongoing projects funded by NABARD loans, which rely on timely payments for project completion. Contractors complete the work, submit their bills, and wait for treasury approval to release payments. The halt in payments has endangered the progress of these important projects.
This crisis is also being felt in other departments, such as the Jal Shakti and Forest departments, but PWD contractors account for the majority of the delays.
The opposition BJP has sharply criticized the Congress-led state government, accusing it of financial mismanagement and failing to uphold its commitments. BJP leaders have demanded immediate action to clear the overdue payments and ensure the continuation of critical infrastructure projects.
PWD Minister Vikramaditya Singh acknowledged the issue, attributing the delays to financial constraints caused by disaster recovery works that were carried out during the BJP’s tenure. “The previous government initiated several works without proper tenders, causing complications. However, we are committed to resolving these payment issues as soon as possible,” he said.
Minister Singh dismissed the opposition’s claims of mismanagement, emphasizing that the delays stem from legitimate financial reasons. “There is no scam. We are working hard to ensure contractors are paid at the earliest,” he assured.
PWD Chief Engineer NP Singh also responded to the allegations, confirming that the department is diligently processing bills. “There are no delays on our end. All bills are forwarded to the treasury after careful scrutiny,” he stated.
As financial pressures mount, some contractors are considering halting ongoing work, which could lead to further delays in infrastructure development in the state. This situation presents a growing challenge for the government as it seeks to address the payment backlog and avoid more disruptions.
Contractors remain hopeful that the state government will act quickly to resolve their concerns and restore the flow of payments. However, the crisis highlights the urgent need for financial reforms and improved management to prevent future delays in project execution.
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