Odisha Contractors Stage Massive Protest Demanding Urgent Government Action

By Our Correspondent

BHUBANESWAR,MAY 5 : On 21st March 2025, more than 500 contractors gathered at the Watco and PHEO offices in Bhubaneswar to stage a peaceful protest against the Odisha government for its persistent neglect of contractors’ demands, especially under the AMRUT scheme.

The contractors of Odisha are now at a breaking point, suffering financially, mentally, and operationally, as the government continues to ignore their repeated appeals. For years, the All Odisha Contractors Welfare Association (AOCWA) has been placing genuine, practical demands before the government — yet no meaningful action has been taken.

 What deepens the contractors’ frustration is that all key ministers — Hon’ble Minister of Works Shri Prithiviraj Harichandan, Hon’ble Minister of Housing & Urban Development Dr. Krushna Chandra Mahapatra, and Hon’ble Minister of Rural Development Shri Rabi Narayan Naik — had publicly promised on stage at the Odisha Infrastructure Conclave (OIC) 2024 to abolish the 14.99% tender rebate condition, to prioritize Odia contractors in local tenders, and to fulfill the long-pending demands of the contractor community. Yet, six months have passed, and despite our continuous follow-up, no action has been taken. The key demands raised today are:

1.           Abolition of the 14.99% Tender Rebate Condition: This tender condition has placed enormous hardship on local contractors, making projects financially unviable. If this condition is not abolished within one month, AOCWA will call for a statewide agitation.

2.           Stop Clubbing of Multiple Projects into Mega Tenders: Bundling multiple works into single large tenders has made local Odia contractors ineligible to participate, handing over state resources to outside players. A recent example is the Sambalpur tender, and we demand this practice be stopped, including in upcoming Watco-TPCT Bhubaneswar tenders.

3.           Availability and Pricing of Minor Minerals (Sand, Stone Aggregates): Due to the non-operation of approved quarries and the overcharging of royalties by operational ones, contractors are facing a severe shortage of materials and escalated costs. The government must ensure that approved quarries are operational and royalty rates are regulated as per the schedule.

4.           On the 2022 Schedule Rate: “Another significant issue is the continued application of the 2022 schedule rate, which is outdated and no longer reflects the true cost of construction. This has caused further financial strain on contractors. We demand that the government revise the schedule rates in line with current market conditions, so that contractors are not forced to work at a loss.”

5.           Action Against Corrupt Officials in Divisional Accounts Offices:

We demand immediate action on the documented complaints we have submitted against Divisional Accounts Officers Sri Manoj Kumar Sharma and Sri Sunil Tiwari, posted at the Engineer-in-Chief R&B and Engineer-in-Chief Rural Works offices in Bhubaneswar. Despite four months having passed, no action has been taken, raising serious concerns about the suppression of corruption allegations. We warn that if no action is initiated soon, we will be forced to stage a protest in front of the Principal Accountant General’s office to expose this issue to the public.

6.           Adoption of Standard Construction Contracts: Poorly drafted and vague contract documents are causing a flood of cases in the Hon’ble High Court of Odisha. We demand: Clear definition of scope, specifications, and plans. Transparent procedures for variations and price adjustments, especially for wage-related impacts. Time-bound approval of extensions, deviations, and final payments to maintain contractor cash flow. Review and resolution of old disputes to reduce litigation. Other issues for contractor welfare include: Timely payments without harassment, Quick settlement of security deposits and final bills, Priority to Odia contractors in government tenders.

 AOCWA’s final warning: Today, we are humbly putting forth our demands to the government. But if the government fails to act within one month, we will be forced to launch a full-scale statewide agitation. The contractors of Odisha are not asking for favours — we are demanding fairness, survival, and respect. The government must now listen and act, or face a historic uprising from the very builders of Odisha’s development.