Construction projects have come to a standstill across Karnataka today as the Karnataka State Contractors’ Association stages a large protest. Rescheduled from March 5 to March 6 on police advice, the strike sees thousands of contractors halt all ongoing public works to seek immediate payment clearance for outstanding accounts.
The gist: ₹37,000 Crore in arrears. The state government owes contractors approximately ₹37,370 crore across various departments, according to Association President R. Manjunath. These have allegedly been on hold for the fiscal years 2022–23, 2023–24, 2024–25, and the present 2025–26 cycle.
The department-wise categorization of the debts illustrates the magnitude of the crisis:
- Water Resources Department: ₹13,000 crore
- Public Works Department (PWD): ₹8,370 crore
- Rural Development (RDPR): ₹3,800 crore
- Minor Irrigation: ₹3,000 crore
- Urban Development & BBMP: Over ₹3,500 crore
Key Demands of the Contractors
The Association has set out a number of non-negotiable demands that it says it is not prepared to negotiate over the agitators:
- Single-Tranche Payment: Immediate release of all pending dues in a single payment rather than phased payments.
- Seniority Maintenance: Ensuring disbursements are made based on the date of work completion to avoid “arbitrary” disbursements to preferred firms.
- End of the "Package System": Putting an end to the bundling of small works into large packages, which contractors argue favors big firms from outside the state.
- Official Meeting with CM: A formal, documented meeting with Chief Minister Siddaramaiah to address systemic barriers in the Finance Department.
Government Response and Allegations of “Blackmail”
A stern reaction has been issued by the government in response to the strike. Deputy CM D.K. Shivakumar called on the contractors to press on with the strike, saying the government only releases funds according to “budgetary provisions.” He accused the previous government of awarding contracts without financial backing. In response, the KSCA said it is not "blackmailing" the state but is fighting for the very existence of small-scale contractors, some of whom have mortgaged jewelry and property to fund public works.
What’s Next?
The association said the indefinite work stoppage, which would start April 1, 2026, will be an abrupt cessation of work on several important irrigation and road projects across the state if the government doesn’t resolve these grievances after the protest at Freedom Park today.
