Contractors Threaten to Halt Work in Odisha Over Delays and Alleged Corruption in Public Works Department.

Contractors across Odisha have issued a stern warning to the state government, announcing a statewide halt to public works from February 20 over alleged payment delays and corruption within the Public Works Department (PWD). The Odisha Contractors Association has declared that the strike will continue indefinitely if their demands are not addressed.

Contractors Threaten Indefinite Work Stoppage

The Odisha Contractors Association alleged that prolonged non-payment of dues and administrative hurdles have pushed them to the brink. According to the association, officers and engineers within the PWD have created a monopoly that is obstructing smooth project execution and delaying infrastructure development across the state.

Contractors claim that several projects have been stalled due to pending bills stretching back years. They further alleged that unnecessary procedural delays are being deliberately engineered, affecting not only contractors but also the pace of Odisha’s development.

Allegations of Corruption and System Manipulation

The association has accused certain officials of exploiting digital platforms and new technologies for personal gain. Despite the introduction of online systems aimed at increasing transparency, contractors allege that loopholes are being misused to manipulate tendering and payment processes.

In 2014, the state government introduced reforms to streamline registration, tendering, and financial transactions through online platforms such as CDMS, WAMIS, and JPNIC. However, contractors argue that inefficiencies and mismanagement persist, particularly following administrative changes in recent years.

They pointed out that a platform initially managed by CSMS was later taken over by IBM, after which cases of fraudulent activities reportedly increased. Around 23,000 accounts were flagged as fake due to the alleged creation of fraudulent contractor profiles using mobile numbers. Legitimate contractors claim they were adversely affected by the crackdown.

Demand for Rate Revision and Tender Reforms

A key demand of the contractors is a 15% increase in government-approved rates to offset rising costs of labor and construction materials. They are also pressing the government to fulfill its earlier commitment to raise the tender value limit from ₹5 lakh to ₹10 lakh.

The association insists that immediate implementation of these measures is essential for sustaining the construction sector and ensuring timely project completion.

Call for Transparency and Fair Opportunities

Contractors have urged the government to introduce a standardized and transparent system for all public works projects. They allege that arbitrary changes in contract conditions by officials often benefit select individuals and compromise quality standards.

The association also expressed concern over what it described as preferential treatment given to non-Odia contractors, claiming that local contractors are being sidelined in government projects.

Impact on Livelihoods and Development

Beyond financial grievances, the contractors emphasized that the issue directly affects the livelihoods of nearly 74 lakh family members dependent on the construction sector. They warned that continued delays and alleged corruption could cripple small and medium contractors, impacting employment and slowing infrastructure growth in the state.

With the strike set to begin on February 20, all eyes are now on the state government’s response. The outcome of this standoff could significantly influence the pace of public infrastructure projects and the broader economic landscape of Odisha.