JKCCC calls for clear mining policy & timely release of payments

• Questions 40–50% below-rate bidding
• Jeelani Purza welcomes J&K Bank’s Rahat Scheme, seeks inclusion of contractors

SRINAGAR: The Jammu & Kashmir Contractors Coordination Committee, Chairman Ghulam Jeelani Purza, has expressed serious concern over the mounting difficulties faced by the contractor fraternity in Jammu and Kashmir, stating that prolonged delays in payments, restrictions on the availability of construction materials, inadequate budgetary allocations and complicated administrative procedures are severely affecting the pace of developmental works across the Kashmir division.

In a statement issued to the press, Jeelani Purza welcomed the J&K Bank's recently launched Rahat Scheme, describing it as a positive initiative, while urging the Jammu & Kashmir bank's Chairman / Managing Director and management to extend its benefits to the contractor fraternity as well. He said that contractors have been facing severe financial distress due to payments pending with the government since 2014, resulting in several contractors' bank accounts turning into Non-Performing Assets (NPAs).

"We welcome the Rahat Scheme launched by J&K Bank. However, I appeal to the Managing Director and the management to bring the contractor fraternity within its ambit. Our payments have remained pending with the government since 2014 and many contractors are struggling with financial liabilities, with their bank accounts having turned into NPAs. The contractor community also needs financial relief and institutional support," Purza said.

Explaining the reasons behind the recurring lapse of development funds, Jeelani Purza identified three major issues, including restrictions imposed on mining activities and the availability of construction materials, non-release of contractors' pending liabilities and unrealistic bidding practices that undermine the execution of development projects.

He said that restrictions on mining activities have created serious difficulties for contractors in procuring essential construction materials, particularly sand and bajri. He alleged that even vehicles transporting materials are being intercepted and subjected to heavy penalties, sometimes amounting to Rs 50,000 and even Rs 1 lakh.

"Development cannot progress without the availability of essential raw materials. If the government wants development to continue, it must clearly establish where contractors are supposed to procure sand, bajri and other construction materials. There is an urgent need for a concrete and transparent mining policy so that contractors can execute government works without unnecessary uncertainty and harassment," he said.

Jeelani Purza said that despite repeatedly raising the matter with the J&K Government, no concrete resolution had been achieved. He said the absence of a clear mining framework was directly affecting the execution of works and contributing to the lapse of allocated development funds.

On the issue of pending payments, the JKCCC Chairman said that substantial liabilities dating back to 2014, 2018 and subsequent years remained unsettled of previous governments. He stated that the matter had earlier been taken up with the Lieutenant Governor-led administration, following which the liabilities were examined and the payment process was proposed to be undertaken in phased wise.

He said that the matter had also been taken up with J&K Chief Minister Omar Abdullah and Deputy Chief Minister Surinder Choudhary; however, contractors were still awaiting concrete relief from the present government.

"Contractors have already executed the work on the ground and the Anti-Corruption Bureau (ACB) has also submitted its report confirming the execution of the work done by contractors. The decision to release the pending payments in installments had already been taken and the first few installments were released in the LG Rule. However, no further installments has been released during this govt last two years. This has pushed many contractors into an extremely difficult financial position," he said.

Jeealani Purza appealed to the J&K Chief Minister Omar Abdullah and the Lieutenant Governor Manoj Sinha to intervene personally and ensure the immediate release of genuine pending liabilities, saying that timely payments would help financially distressed contractors recover and resume developmental activities.

Raising concerns over the bidding process, he questioned the practice of contractors quoting exceptionally high discounts, sometimes ranging between 40 and 50 per cent, against government-approved Schedule of Rates.  He said such unrealistic bidding practices were difficult to understand, particularly when the prices of essential construction materials, diesel, petrol and transportation had witnessed substantial increases.

"How can a contractor execute quality work after quoting discounts of 40 or 50 per cent when the prices of construction materials and other essential inputs have increased considerably? Such practices raise serious questions about the sustainability and quality of developmental works. The government must examine this issue and ensure that projects are awarded on realistic and workable financial terms," Purza said.

He further pointed out that inadequate budgetary allocations against the value of tendered works were creating another major obstacle. Citing examples, he said that works worth Rs 1 crore were being tendered in certain cases against allocations of only Rs 10 lakh or Rs 20 lakh, leaving contractors uncertain about when the remaining funds would become available.

He said such a practice placed an unreasonable financial burden on contractors, who were expected to complete projects despite insufficient allocations and uncertainty over the release of payments.

"The tender value must correspond with the actual budget allocation. If only Rs 20 lakh is available for a project, the tendering process should be planned accordingly. How can a contractor execute a work worth Rs 1 crore when the available allocation is only Rs 10 lakh or Rs 20 lakh and the remaining amount may take years to arrive? This creates unnecessary financial pressure and discourages contractors from undertaking developmental works," he observed.

Purza said that during the previous administrative arrangement, tenders were generally issued in accordance with the funds available for the particular financial year, enabling contractors to plan and execute works with greater financial certainty. He urged the Chief Secretary, Finance Department and concerned authorities to ensure that tendering is strictly aligned with realistic budget allocations.

The JKCCC Chairman also expressed concern over the non-renewal of contractor cards, stating that even experienced contractors with 30 to 50 years of professional experience were facing difficulties due to additional verification requirements.

He questioned the requirement of verification by the ADG CID for the renewal of contractor cards, arguing that such procedures were causing unnecessary delays and administrative hardships for the contractor fraternity. He said the matter had been taken up with the top government authorities, Chief Minister and Deputy Chief Minister, but the difficulties continued.

"Contractors who have been serving the system for decades should not be subjected to unnecessary procedural hurdles. There must be a reasonable and transparent mechanism for the renewal of contractor cards. Repeated orders and additional requirements are creating uncertainty instead of facilitating the functioning of the contractor fraternity," he said.

Making a strong appeal to the Lieutenant Governor Manoj Sinha and Chief Minister Omar Abdullah, Jeealani Purza urged the government to address the issues concerning mining regulations, pending payments, contractor card renewals, tendering procedures and adequate budget allocations on top priorities.

He said the contractor fraternity was an essential partner in the development process and that its financial and operational difficulties had a direct impact on the implementation of public infrastructure projects and their livelihood.

"If the government genuinely wants Jammu and Kashmir to progress and developmental activities to continue at the desired pace, the genuine concerns of contractors must be addressed without further delay. Payments should be released immediately, a clear mining policy should be formulated, contractor card renewal issues should be resolved and the tendering process should be made realistic and transparent," Purza said. He maintained that resolving these long-standing issues would not only provide much-needed relief to the contractor community but also improve