Srinagar, Mar 10: The Jammu and Kashmir Contractors Coordination Committee (JKCCC) has raised serious concerns about delays in contractor payments and the difficulties arising from recent government orders, warning that the situation could adversely affect development works across the Union Territory.
In a statement issued here, JKCCC Chairman Ghulam Jeelani Purza said that, despite the financial year nearing its end, the final-quarter funds have not yet been released, leaving contractors under severe financial stress.
Purza said a substantial number of payments remain pending across several departments, including the R&B (PWD), PHE, and the Jal Jeevan Mission (JJM), with liabilities alone estimated at around ₹1,500 crore.
“The financial year is about to conclude, but the last quarter’s funds have still not been released. Contractors across Jammu and Kashmir are facing immense pressure as their payments have been pending for a long time despite completion of works,” he said.
The JKCCC Chairman also expressed concern about recent orders issued by the Finance and Geology and Mining Departments, stating that these directives are creating hurdles to clearing contractors’ bills in the treasuries.
“Recent orders issued by these departments have resulted in unnecessary complications. Our bills are being returned from treasuries with queries that are not even related to contractors,” Purza said.
He said contractors are being asked to submit documents related to mining royalty for construction materials, even though such payments are typically the responsibility of miners, crusher owners and suppliers.
“Contractors purchase construction material from the open market. The responsibility for paying mining royalty lies with miners, crusher owners, suppliers and transporters. However, these orders appear to shift the burden onto contractors,” he added.
Purza warned that the current situation could slow down development works across Jammu and Kashmir if immediate steps are not taken.
“If payments are delayed and bills continue to be rejected at treasuries, funds may lapse by the end of the financial year and development projects will suffer,” he said.
The JKCCC urged the Jammu and Kashmir government, led by Chief Minister Omar Abdullah, Lieutenant Governor Manoj Sinha and Deputy Chief Minister Surinder Choudhary, along with senior administrative officials, to intervene and address the issue at the earliest.
Purza also called on the government to consult stakeholders before introducing new rules that affect contractors and the construction sector.
“If the government intends to introduce new regulations, it should first take stakeholders into confidence. Orders issued at the end of the financial year only create confusion and delay payments,” he said.
He further emphasised the need to legalise and identify proper sources of construction material across districts in J&K. According to him, establishing authorised mining sources would not only help contractors procure materials legally but also generate additional revenue for the government.
“The government should form a committee to identify and notify legal sources of construction material in every district. Once these sources are notified, contractors will follow the guidelines and pay royalty accordingly,” he said.
The JKCCC warned that if the issues are not resolved urgently, many pending payments could lapse by the end of the financial year, worsening the financial situation for contractors.
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