Public Works Department Initiates Major Debt Clearance: ₹22,000 Crore Settlement for Small Contractors

The Public Works Department (PWD) has announced a decisive financial intervention to address mounting liabilities, targeting the clearance of approximately ₹22,000 crore in outstanding dues owed to small-scale contractors. This move comes amid broader governmental concerns over contractor liquidity and project continuity. As of November 2025, aggregate pending payments across various government schemes and public works had escalated to a staggering ₹77,770 crore, with PWD obligations constituting a significant portion of this total. The initiative signals a strategic effort to stabilize the construction and infrastructure sector, which has been strained by protracted payment delays. Analysts note that timely settlement is critical not only for contractor solvency but also for maintaining operational momentum on vital public projects. This clearance operation is expected to enhance fiscal transparency and restore confidence among private entities engaged in public partnerships. The PWD's action reflects an administrative prioritization of financial accountability and supply chain integrity within the national infrastructure framework.