Kashmir Contractors Flag Rs 1,500 Crore Payment Backlog, Warn of Impact on Development  | Kashmir Life

SRINAGAR: The Jammu and Kashmir Contractors Coordination Committee (JKCCC) on Tuesday raised alarm over a mounting payment backlog of nearly Rs 1,500 crore and delays in the release of final quarter funds, warning that the situation could disrupt development works across Jammu and Kashmir as the financial year approaches its end.

In a statement issued to the press, JKCCC Chairman Ghulam Jeelani Purza said contractors who have already completed various development projects are facing severe financial stress as their payments remain pending in several government departments.

According to Purza, a large amount of dues is awaiting clearance in departments including Roads and Buildings (R and B/PWD), Public Health Engineering (PHE) and the Jal Jeevan Mission (JJM). He said liabilities in these sectors alone are estimated to be around Rs 1,500 crore.

“The financial year is about to end in March, but the last quarter’s 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 expressed concern over recent orders issued by the JK Finance Department and the Geology and Mining Department, stating that these directives have created hurdles in clearing contractors’ bills at treasuries.

Purza said several bills are being returned from treasuries with queries that, according to him, do not directly concern contractors. He pointed out that contractors are being asked to produce documents related to mining royalty for construction material.

“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 said.

The JKCCC chairman warned that such administrative complications could slow down development activities 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,” he said.

Purza urged the Jammu and Kashmir government, 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 concerns of contractors at the earliest.

“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,” he said.

He 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 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 smooth execution of development works,” he said.

The 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 financial situation for contractors.

It appealed to the government to ensure the timely release of dues, stating that thousands of contractors, suppliers, labourers and their families depend on these payments for their livelihood.