Karnataka's Infrastructure on the Brink: Contractors Issue Fiery Ultimatum Over Rs 33,000 Crore Unpaid Dues
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- October 18, 2025
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A monumental clash is brewing in Karnataka, threatening to bring the state's ambitious infrastructure development to a grinding halt. The Karnataka State Contractors' Association has delivered a blistering ultimatum to the Siddaramaiah-led Congress government, demanding the immediate clearance of an astonishing Rs 33,000 crore in pending bills.
If their demands are not met by September 1, the association warns of a comprehensive cessation of all civil works across the state, followed by a widespread protest.
This isn't merely a financial dispute; it's a deep-seated grievance laden with explosive allegations of corruption. The contractors claim that for the past two years, their dues have been deliberately withheld, often coupled with demands for exorbitant commissions ranging from 15% to 20% to facilitate payments.
This culture of alleged kickbacks, they argue, has pushed many contractors to the brink of financial ruin, jeopardizing ongoing projects and the livelihoods of thousands of workers.
The association's President, D Kempanna, articulated the profound frustration felt by his members. "Despite repeated appeals and raising these issues publicly, the government has failed to act decisively," he stated.
"We have been left with no choice but to escalate our efforts. We intend to meet with both Chief Minister Siddaramaiah and Deputy Chief Minister D K Shivakumar to present our case directly and seek an immediate resolution."
This latest development echoes similar accusations made by the same association against the previous BJP government, highlighting a persistent problem within the state's procurement and payment systems.
Upon assuming power, the current Congress government had acknowledged the severity of these allegations by constituting a cabinet sub-committee, led by D K Shivakumar, to thoroughly investigate the claims and address the contractors' concerns.
However, the contractors' patience has worn thin. They contend that while the sub-committee was a welcome step, the tangible action of clearing the long-overdue bills remains elusive.
The looming deadline of September 1 is not just a threat; it's a desperate cry for accountability and transparency. Should the government fail to respond effectively, Karnataka could witness a complete paralysis of construction activities, impacting everything from roads and bridges to public buildings and critical infrastructure projects.
The standoff promises to be a significant test for the state government, balancing financial prudence with the urgent demands of a crucial industry.
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