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Assam Government Contractors Face Routine Humiliation Over Pending Payments

 

GUWAHATI: The plight of government contractors in Assam continues to worsen, as they are subjected to relentless humiliation while chasing their rightful payments at the end of the financial year. These contractors, who execute government projects by investing their own money—often through massive loans—are forced to beg officials for what is rightfully theirs.

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Despite the government’s tall claims of fostering a business-friendly environment with initiatives like Advantage Assam and “ease of doing business” policies, the reality for contractors is starkly different. For them, working with the government is a grueling ordeal riddled with delays, endless bureaucratic hurdles, and outright disrespect.

A contractor engaged in multiple construction projects in Guwahati, speaking to GPlus on condition of anonymity, expressed his frustration. “The humiliation we endure is unbearable. We have to go from one official to another, pleading for our payments. There is no ‘ease of doing business’ here—only exploitation.” He further added that this year has been especially terrible, as the government has insufficient funds, leading to partial payments only after relentless groveling before officials at multiple levels.

The process is both degrading and exhausting. Once a contractor completes a project, the bill must be submitted for approval. However, this approval is not merely procedural—it requires contractors to keep every official “happy” at every stage. Even after impeccable execution of work, contractors must meet officials with folded hands, enduring dismissive attitudes, delays, and unspoken demands. The file then moves painstakingly through various desks, with each stage adding to the humiliation.

To make matters worse, even after departmental approval, the bill must pass through the Finance Department, which has cleared only a fraction of the pending dues this year. As if that weren’t enough, the Treasury Department conducts another round of verification before payments are issued—another opportunity for officials to exert their dominance and demand favors. According to contractors, these officials must also be “wooed,” with many resorting to desperate measures just to have their bills processed. “The past few days, the treasury office has been swarming with contractors trying every possible tactic to get their payments cleared. It’s disgraceful,” lamented one contractor.

Another contractor voiced his frustration, stating that government officials treat them as inferiors, with only those enjoying political backing receiving any semblance of respect. “If you don’t have a political godfather, you are nothing. You will be insulted, ignored, and left to fend for yourself,” he stated bitterly.

As the financial year closed on March 31 deadline, many are on the verge of financial collapse due to the government’s inefficiency in clearing payments. Despite their dedication and investment, they are forced to suffer in silence, watching as well-connected individuals receive priority treatment.
A contractor from Silchar revealed that despite taking loans to complete a road construction project under the PWD, he has yet to receive his due payment. Similar grievances emerge from the Directorate of Information and Public Relations (DIPR), where a contractor awaiting Rs. 10 crore has received only Rs. 2 crore so far. Those working with the Housing and Urban Affairs Department share similar woes, left hanging in uncertainty with no financial security.

A senior PWD (Roads) official, speaking anonymously, acknowledged that only 50% of the bills have been cleared by the Finance Department. While he assured that some payments would be made within a month, he admitted that the remaining bills would be pushed into the next financial year. This bureaucratic indifference only adds to the contractors’ suffering, as pending bills become a cycle of financial distress year after year.

A source in the Finance Department candidly admitted that bill clearances are based on project priority and available funds. If a department runs out of funds, contractors’ payments are postponed indefinitely, forcing them to suffer further humiliation and financial instability.

Adding to the grim financial landscape, Assam’s debt burden has skyrocketed in recent years, rising from Rs. 2,115 crore in 2011-12 to a staggering Rs. 24,118 crore in 2023-24. While the government insists that its debt-to-GSDP ratio is still within acceptable limits, the growing financial instability and failure to clear contractor payments paint a very different picture.

Despite grand declarations of development and progress, the humiliation and distress endured by government contractors expose the harsh reality of Assam’s financial mismanagement. With unpaid dues piling up and a bureaucratic system that thrives on exploitation, contractors are left disillusioned, demoralised, and drowning in debt. Unless urgent reforms are implemented, Assam risks alienating its contractors entirely, ultimately stalling the state’s infrastructure growth and economic development.

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