3L contractors seek loan waiver, GST relief over pending govt dues

Pune: Small contractors and developers executing govt works worth up to Rs25 crore in the state have sought the Centre’s urgent intervention, claiming that prolonged non-payment of dues over the last several years has pushed nearly three lakh contractors into a severe financial crisis.In a representation to Union finance minister Nirmala Sitharaman on May 25, contractors’ representatives sought three key relief measures from the Centre. This included waiver of outstanding loans, exemption from payment of the prevailing goods and services tax and immediate access to long-term loans at low interest rates to help the sector survive the ongoing crisis.The representation said small contractors and developers undertaking projects for various state govt departments have allegedly not received payments for completed works for several years, resulting in mounting financial stress and disruption of business operations. One of the signatories, Milind Bhosale, told TOI that the issue has continued for several years.The non payment of pending dues has halted sanction of new work in the last one and half to two years worsening the economic condition of contractors dependent on public infrastructure projects, the letter said. Nearly three lakh small contractors and developers across the state are facing extreme economic hardship as a result.The representation said both the central and state govts are responsible for supporting contractors who contribute to the development works in Maharashtra. It urged the finance ministry to take an “appropriate decision at the earliest.”The letter’s copies were also marked to RBI governor Sanjay Malhotra and CM and finance minister Devendra Fadnavis.