Pune: State govt-appointed contractors still wait for the clearance of long-pending dues, which is estimated by the Maharashtra State Contractors Association at Rs 70,000 crore, as the budget is scheduled next month. Even the trade receivables electronic discounting system (TReDS) approved by the cabinet last month for payments to contractors has not been implemented, the Builders Association of India (BAI) said.“We recently met chief minister Devendra Fadnavis to seek an early rollout of the platform, which was approved in the last week of Jan. It is essential they launched it at the earliest,” Anand Gupta, immediate past vice-president of the Builders Association of India (BAI), told TOI on Thursday.Gupta said after contractor associations moved court over non-payment of dues, only 20% of the outstanding amount was released, without a commitment on clearing the remaining money. “The balance and the burden of interest continue on our members,” he said.Contractors engaged by departments such as public works, water supply, sanitation and rural development have been protesting for nearly two years over the delay in bill payments. They have now demanded that all departments soon operationalise the TReDS mechanism meant to ease liquidity constraints and warned further delays in clearance of pending dues could force them to halt ongoing infrastructure works. They have also sought a waiver of GST.Under TReDS, contractors will be able to raise invoices on an electronic platform, after which participating financial institutions will make payments. The state govt will repay the financier within one year. While the system ensures partial and timely liquidity for contractors, it also allows the cash-strapped govt to defer immediate outflow from its own coffers. “This system will bring transparency to the billing process, helping contractors expand operations and upgrade technology. Following its successful implementation, the platform will be integrated with e-tendering and e-procurement portals for seamless invoice submission and discounting,” said a public works department official.Contractor associations said while the system is beneficial, its delayed rollout dilutes its immediate impact. “We raised this demand in Feb 2025 and submitted a proposal. After that, several meetings at the govt level were held and finally the state cabinet gave its approval. We hope small contractors will be able to get some money out of it,” member of an association said.TReDS is a joint initiative of the Central govt and the Reserve Bank of India aimed at promoting financial inclusion, Make in India and Skill India. The electronic platform facilitates financing and discounting of trade receivables of micro, small and medium enterprises through multiple financiers. These receivables may be due from corporates, govt departments or public sector undertakings.
