Archive · 13 Sep 2026
₹50,000-crore Dues Stall Bengal Projects, Builders Seek Faster Funds
Many builders in Bengal say the government still owes them a lot of money.
They said the unpaid amount was about ₹50,000 crore in May.
The government paused many payments while checking whether older projects were awarded properly.
Because money is arriving slowly, some roads, water projects and other public works have stopped.
The builders say they should not be punished for wrongdoing by an earlier government.
They want the checks completed faster and the money released.
The government says it is concentrating on reviewing recently awarded contracts.
Builders also want clearer rules and fairer ways to choose contractors.
The Builders’ Association of India said around ₹50,000 crore owed to contractors was pending as of May.
A government review of projects awarded under the previous administration has slowed payments across 128 civic bodies and municipal corporations.
The payment freeze has stalled projects involving roads, embankments, housing, water pipelines, drainage and street lighting.
The association urged the government to speed up reviews, clear dues and revise construction-related policies.
The state government said its current focus was reviewing tenders awarded during the six months before May 2026.
- Who
- The Builders’ Association of India and government contractors, along with the Bengal government.
- What
- A review of government contracts has delayed about ₹50,000 crore in contractor payments and stalled infrastructure projects.
- When
- The dues were reported as of May; the association held its news conference on Saturday and wrote to the chief minister in late July.
- Where
- Across Bengal, including projects managed by 128 civic bodies and municipal corporations.
- Why
- The government froze or slowed payments to investigate alleged irregularities, kickbacks, substandard construction and illegal tenders under the previous administration.
Builders’ Association of India
State Government
Payment delays
Builders’ Association of India
The association says contractors are facing severe financial pressure and that many projects have stopped because approved payments are being released only case by case.
State Government
The government has paused or slowed payments while it conducts a comprehensive review of projects and tenders.
Responsibility for irregularities
Builders’ Association of India
The association says contractors should not be punished for alleged wrongdoing by the previous administration and that genuine contractors need protection from unfair bidding.
State Government
The government is investigating alleged kickbacks, substandard construction and illegal tenders before releasing funds.
Construction standards and costs
Builders’ Association of India
The association wants revised rates, a shorter defect liability period, removal of material royalties and a more credible contractor-selection process.
State Government
The state has revised the Public Works Department’s schedule of rates to match the Central Public Works Department’s rates, while officials continue reviewing projects.
- Reported pending dues
- Around ₹50,000 crore as of May
- Affected authorities
- 128 civic bodies and municipal corporations
- Projects affected
- Roads, embankments, houses, water pipelines, drainage, street lighting and public toilets
- Named programmes
- Jal Jeevan Mission, Pathasree and Paray Samadhan
- Contractor demands
- Faster payment reviews, revised rates, a shorter defect liability period and removal of royalties on sand and stone
- State response
- The government said it was strictly reviewing tenders awarded in the six months leading to May 2026
- Rates revision
- The state Public Works Department revised its schedule of rates in line with the Central Public Works Department