Thousands of Contractors in Karnataka Threaten Protests Over Unpaid Dues

The Karnataka State Contractors’ Association (KSCA) has warned of fresh protests over large amounts of unpaid bills for government works. The association has previously claimed that contractors are owed around ₹37,000 crore, with the issue continuing despite meetings and assurances from government officials.

The contractors say payments for completed development works have been delayed for several years. They have raised concerns that repeated discussions with government departments have not resulted in a satisfactory resolution.

The association has previously threatened statewide protests and a boycott of government works if the pending bills are not cleared. In March 2026, Deputy Chief Minister D.K. Shivakumar met protesting contractors and said he and the Public Works Department minister would arrange discussions with Chief Minister Siddaramaiah to address their concerns.

The issue remains significant as Karnataka’s Finance Department has also recently highlighted pending bills across major departments. A September 2026 Finance Department note put the figure for pending bills in four key departments at ₹36,136 crore.

Contractors argue that prolonged delays in receiving payments are putting financial pressure on businesses, particularly smaller contractors who depend on timely payments to manage loans, salaries and other project-related expenses.

The association is now seeking faster clearance of the outstanding bills and a clear payment schedule from the government. It has indicated that further protests could be organised if its demands are not addressed.

The dispute continues as the Karnataka government faces broader pressure over its finances and pending liabilities.