Pending government payments of around ₹50,000 crore have stalled infrastructure and public utility projects across Bengal, representatives of the Builders’ Association of India (BAI) said at a news conference on Saturday. The dues relate to roads, embankments, houses, water pipelines and other works commissioned by state departments and civic bodies.
Raja Mukherjee, secretary of the eastern centre of the BAI, said the amount was outstanding as of May and that contractors were receiving payments only on a case-by-case basis after projects were reviewed. He said the lack of funds had stopped several works and left contractors under financial pressure.
The eastern centre of the BAI, which was established in 1941, said the payment freeze followed the new Bengal government’s decision to review pending contractor payments across 128 civic bodies and municipal corporations. The review was announced as a check on alleged irregularities in tenders awarded under the previous administration, including allegations of kickbacks, substandard construction and illegal tendering.
“Many of the issues were linked to irregularities in tenders awarded under the previous government,” Mukherjee said. He added that contractors should not be held responsible for irregularities in the tendering process and urged the government to expedite the review and release payments for cleared projects.
The BAI said projects affected by the funding delays included works under the Jal Jeevan Mission, which aims to provide safe drinking water to rural households, as well as Pathasree, a road infrastructure programme. Projects under Paray Samadhan, covering drainage, water supply, street lighting and public toilets, were also identified as being affected.
According to the association, some payments have remained pending for more than 10 years. It also said the schedule of rates used to estimate construction costs had not been revised since 2017. The state PWD has since revised its rates in line with those of the Central Public Works Department, and the BAI said it expected other government agencies to adopt the updated rates.
A schedule of rates sets out standard unit costs, labour wages and material specifications for construction and repair work. Government departments and engineers use it to prepare estimates and assess payments. The BAI said outdated rates had increased pressure on contractors as material and labour costs changed.
The association also alleged that eligibility conditions for government contractors had been diluted under the previous government, allowing bidders to quote substantially below estimated project costs. Rajib Manna, chairman of the eastern centre of the BAI, said such bidding made it difficult for established contractors to compete without incurring losses. The allegations were made at the association’s news conference and were not accompanied in the report by a public tender review or audit document.
The BAI wrote to chief minister Suvendu Adhikari in late July seeking the clearance of pending payments, revision of construction rates, a reduction in the defect liability period, removal of government royalties on materials such as sand and stone, and changes to the contractor selection process. Mukherjee said the association had not received a formal response but was in contact with chief engineers in different departments.
A senior state government official said the administration was concentrating on a strict review of projects whose tenders had been awarded in the six months before May 2026. The official did not provide a timeline for completing the review or specify the amount of funds released so far.
The condition of roads in Calcutta also featured in the BAI’s discussion. S.K. Basu, a veteran association member and former national president, said road repairs carried out before the festival season often failed because bitumen and water were incompatible during the monsoon period. The BAI is scheduled to mark Engineers’ Day on September 15, when several ministers are expected to attend.
