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Bettesworth Construction
air pollution

Delhi Construction Workers Face Debt as Winter Pollution Curbs Halt Work

Winter GRAP restrictions can stop specified construction activities in Delhi, interrupting workers’ daily earnings. The CAG documents past relief and delivery gaps, while a 2025 report describes informal borrowing by some affected workers.

By Bettesworth Construction Team 4 min read

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Delhi’s winter pollution controls can stop specified construction and demolition activities, cutting off daily earnings for workers who depend on site work. A 2025 report describes some workers turning to informal borrowing during these interruptions, while a Comptroller and Auditor General of India (CAG) audit found weaknesses in the delivery of worker relief. The audit documents past payments, not a guaranteed benefit today.

How pollution controls can stop construction work

The Graded Response Action Plan (GRAP) is a staged response to worsening air pollution. Restrictions depend on the stage invoked and the activities covered by the order; a pollution-related stoppage is not automatically a blanket ban on every construction site. The applicable order and its exceptions determine what can continue.

What the January 2025 order restricted

On 15 January 2025, the Commission for Air Quality Management (CAQM) invoked revised Stage III and Stage IV actions across the National Capital Region. Under Stage III, the notice barred specified dust-generating construction and demolition activities, including excavation, piling, demolition, masonry, some material handling, road work and transport of demolition waste. It also allowed certain less-polluting work and named project categories to continue subject to conditions, including dust-control and waste rules. Stage IV extended the construction ban to linear public projects. The restrictions are set out in that dated CAQM/PIB notice; the January 2025 order is an example of the framework, not evidence that those stages remain active now.

Why a site stoppage can become an income shock

When an order prevents a worker’s task, the immediate consequence can be lost work and daily earnings. If work cannot be shifted to a permitted activity or another site, an interruption in construction becomes an interruption in household income. This is the link between pollution controls and debt risk: the order addresses pollution, while the worker may still need money during the period without earnings.

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What the CAG found about worker relief

The CAG’s Report No. 2 of 2025 examined Delhi’s construction-worker welfare system for 2019–20 through 2022–23. Its findings concern that audited period; they should not be read as a current statement of scheme rules or payments.

Historical payments did not guarantee timely help

During the audited period, ₹528.42 crore in ex-gratia payments went to 9.48 lakh beneficiaries, including payments made when construction activities were prohibited. The CAG also found that transfers were spread over long periods and that some eligible workers did not receive payment. It reported that pollution-related construction stoppages recurred each winter, but subsistence allowance was not sanctioned after 2021. These findings establish historical relief and gaps in delivery—not an automatic payment for every worker affected by a future stoppage.

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Registration and administration affected access

The audit identified weaknesses in establishment identification, worker registration and records, cess accounting, and welfare delivery. Delhi’s worker-registration renewal rate was 7.3% in July 2020, compared with 74% nationally, according to the CAG. That dated comparison is not the current renewal rate, but it illustrates why the existence of a welfare scheme does not by itself establish that a particular worker is registered, up to date or able to receive assistance.

The audit also reported incomplete records, delayed education assistance and processing delays in some claims. Across three of the four audited years, welfare-scheme expenditure generally ranged from 9.53% to 11.33% of total receipts; 2021–22 was an exception because of ex-gratia payments during the Covid period. As of March 2023, the Board had accumulated ₹3,579.05 crore. Five of 17 schemes had no expenditure during the audit period, including loans and grants for work-related tools. These are historical findings, not a description of the Board’s present finances or current scheme use.

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What is known about borrowing—and what is not

A 2025 Migrant Resilience report describes informal debt among workers affected by work interruptions and reports monthly interest rates of 5–10%. That figure belongs to the report’s account; it is not established as a representative rate for all Delhi construction workers. The available findings do not establish how many workers are currently in debt, their typical borrowing amount or the total debt incurred.

The risk is clearest when a stoppage removes earnings but does not remove a worker’s immediate need for money. Borrowing can bridge that gap, but the reported interest terms show how costly such a bridge may be for workers who cannot quickly resume paid work. The evidence supports a documented debt risk, not a claim that every worker borrows or faces the same terms.

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What workers and contractors need to distinguish

A stoppage order, eligibility for welfare and receipt of money are separate questions. For a particular interruption, the relevant distinctions are:

  • Which GRAP stage was invoked? The stage and order determine which activities are restricted and which exceptions apply.
  • Was the worker registered and current on renewal? The CAG found past registration and renewal weaknesses; registration should not be assumed for every construction worker.
  • Was relief authorized, and was it actually paid? The CAG recorded historic ex-gratia assistance alongside delays and cases where eligible workers did not receive payment. An announced or past payment is not proof of an automatic current entitlement.
  • Can a migrant worker’s registration and benefits travel across state lines? The CAG recommended portability of registered migrant-worker data, but its audit does not establish that this recommendation has been implemented.

New dust rules do not establish an income-support scheme

On 20 February 2026, CAQM issued Statutory Direction No. 97 on dust mitigation and demolition-waste management across Delhi-NCR. The announcement said the direction would take effect on 1 April 2026 and described duties for municipal bodies, development authorities and project proponents. It is a regulatory development on dust and waste management; it does not itself describe a worker-income support programme.

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The CAG recommended a regular scheme to mitigate hardship when construction stops, as well as interstate portability of registered migrant-worker data. Its 2025 report does not establish whether either recommendation has since been implemented. The audit’s own conclusion was: “Pollution caused work stoppages are an annual feature now and a more robust system needs to be implemented so that the needy get their dues.”

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