MUMBAI, Nov. 30 -- The cash-strapped state government plans to raise money to make outstanding payments of around Rs.19,500 crore to road contractors, through supplementary demands and interest-free loans from the central government. Bills amounting to Rs.19,502 crore are part of road construction contracts worth Rs.46,000 crore awarded before the Lok Sabha and assembly elections last year. According to figures with the state public works department (PWD), the state paid Rs.20,799 crore to contractors between January and October, towards outstanding bills. In FY2025-26, the outstanding sum was Rs.29,049 crore, against which a budgetary provision for Rs.12,785 crore was made. Of this, the government has paid Rs.12,345 crore, while the release of Rs.5,585 crore is in the pipeline. The government is still falling short of Rs.11,119 crore, owed to contractors. "The PWD plans to raise Rs.11,119 crore by way of supplementary demands, which it will table during the winter session of the state legislature. Alternatively, it could raise a soft loan from the central government. The state, with its financial constraints, cannot earmark over Rs.2,000 crore in supplementary demands, and there are limitations also on borrowing from the central government," said an official from the PWD. An official with the state finance department said the financial crisis has also prevented the government from awarding new road contracts. "While the annual budget for road contracts is Rs.18,000 crore, contracts worth Rs.46,000 crore were allotted prior to the elections last year," he said. The annual budgetary outlay includes a provision for construction of state highways, district roads and bridges; repayment of Nabard-ADB-central government loans; the state's contribution to hybrid annuity; and construction of buildings. Of the annual budgetary allocation, nearly half is meant for construction of state- and district-level roads, but no new construction has been undertaken in FY25-26 as the allocation has been utilised to repay outstanding bills, said PWD officials. Milind Bhosale, president, Maharashtra State Contractors' Federation, said that apart from dues from the PWD, other government departments too owe a substantial sum to the same contractors. "There are no new projects undertaken by the government in FY2025-26, which has resulted in the industry coming to standstill. We have over 3 lakh contractors with over 2 crore workers under them. In the absence of new contracts, the labourers are unemployed," Bhosale said....