J&K Contractors raises concern over pending payments in treasuries

• Expresses concern over new orders issued by the Finance, Geology & Mining Departments
• JKCCC Chairman Jeelani Purza urges Chief Minister Omar Abdullah & LG Manoj Sinha to resolve issues and release pending payments

SRINAGAR: The Jammu and Kashmir Contractors Coordination Committee (JKCCC) expressed serious concern over the delay in the release of payments to contractors and the difficulties being faced due to recent J&K government orders, saying the situation is affecting development works across Jammu and Kashmir.

In a statement issued to the press, JKCCC Chairman Ghulam Jeelani Purza said that despite the financial year nearing its end, the final quarter funds have not yet been released, creating severe problems for contractors who have already completed various development projects.

Jeelani Purza said that a huge amount of payments is pending in different departments, including the R&B (PWD), PHE & Jal Jeevan Mission (JJM),where liabilities alone are around Rs 1500 crore. He said contractors are facing immense financial stress as their dues remain unpaid despite completing projects under various government schemes.

“The financial year is about to end in March, but the last quarter funds have still not been released. Contractors across Jammu and Kashmir are under severe pressure because their payments have been pending for a long time,” Purza said. He also raised concern over recent orders issued by the J&K Finance Department, Geology and Mining Department and other departments, says these directives are creating hurdles in clearing contractors’ bills at treasuries.

“Recent orders issued by the Finance Department and the Geology and Mining Department are creating unnecessary complications. As a result, our bills are being returned from treasuries with various queries that do not even relate to contractors,” he said.

Purza said that contractors are being asked to produce documents related to mining royalty for construction material, even though such royalty is normally applicable to miners, crusher owners and suppliers, not to contractors who purchase the material from the open market. “Contractors purchase material from the market. The responsibility of paying royalty lies with miners, crusher owners, suppliers and transporters. Yet every order seems to put the burden on contractors,” he added.

The Contractors Coordination Committee Chairman expressed concern that such policies could slow down development works in the region.“These orders give the impression that the government is not serious about development. If payments are delayed and bills are not accepted in treasuries, the funds may lapse and development works will suffer,” Purza said.

He urged the Government of Jammu and Kashmir, led by Chief Minister Omar Abdullah, Lieutenant Governor Manoj Sinha and Deputy Chief Minister Surinder Choudhary, along with Administrative Secretaries and the Financial Commissioner, to intervene and address the genuine concerns of contractors at the earliest so that they do not face further hardships.

“I request the Jammu and Kashmir Government to look into these problems immediately. If the authorities wanted to introduce new rules, they should first consult and take all stakeholders on board. The government should also legalise mining sources across Jammu and Kashmir at every district level, which would help generate a good source of revenue for the government,” he said.

He further said, “We have repeatedly urged the authorities to legalise the mining sector and collect royalty from miners in a proper manner. Such orders should ideally be issued after the completion of the financial year, when the new financial year begins. Issuing such orders at the end of the financial year only creates confusion and delays in payments.”

Purza also called for the legalisation and identification of proper sources of construction material across all districts of Jammu and Kashmir so that contractors can procure material legally without facing administrative hurdles.

“The government should form a committee and identify legal sources of material in every district. Once proper sources are notified, contractors will follow those guidelines and pay royalty accordingly. This will also increase government revenue and ensure the smooth execution of development works,” he said.

The Jammu and Kashmir Contractors Coordination Committee said that if the issues are not addressed urgently, many pending payments may lapse by the end of the financial year, further worsening the situation for contractors across Jammu and Kashmir.

The Committee made a heartfelt appeal to the J&K government to take immediate steps to resolve the matter, stating that thousands of contractors, suppliers, workers and their families depend on these payments for their livelihood. It urged the authorities to ensure the timely release of dues so that development works continue smoothly and those associated with the sector do not face further financial hardship.