Raw material shortage, payment delays crippling development works in J&K: JKCCC

Ziraat Times News Desk

Srinagar, June 12: The Jammu & Kashmir Contractors Coordination Committee (JKCCC) has raised serious concerns over what it described as a worsening crisis facing the contractor fraternity across Jammu & Kashmir, warning that shortages of legally accessible construction material, mounting payment delays and frequent policy changes are severely affecting developmental works and infrastructure projects across the Union Territory.

In a statement issued on Thursday, JKCCC Chairman Ghulam Jeelani Purza said many of the concerns repeatedly flagged by the Committee over the past several years have now become a harsh reality, creating uncertainty and forcing contractors to either suspend or significantly slow down project execution.

Purza said that despite the government’s announcement of development projects worth hundreds of crores of rupees, the absence of a clear and lawful mechanism for procuring construction raw material has made implementation increasingly difficult.

“Development cannot be achieved through announcements alone. Contractors require uninterrupted access to legally sourced raw material, timely release of payments and a conducive administrative framework. Without these fundamental requirements, developmental targets cannot be translated into tangible results on the ground,” he said.

The JKCCC chairman noted that for several months the Committee has been urging the government to identify and officially notify authorised sources of construction material in every district to enable contractors to procure material legally, obtain royalty receipts and comply with treasury and financial requirements while processing bills.

According to Purza, contractors are being asked to furnish royalty challans and related documentation during payment processing, but no practical mechanism has been established to facilitate lawful procurement of raw material.

“We have repeatedly requested the authorities to identify designated material sources and streamline the royalty collection process. Contractors are willing to comply with every legal and financial requirement, but they must first be provided a transparent and workable system,” he added.

Purza said the situation has generated widespread resentment among contractors across North Kashmir, South Kashmir, Central Kashmir and the Jammu region, leading to protests and demonstrations in several districts. He referred to ongoing agitations in different parts of Kashmir and said that even Hot Mix Plant Owners Associations have resorted to boycotting tenders due to unresolved issues relating to raw material availability, revised rates and pending payments.

He cautioned contractors against procuring material from unauthorised sources, warning that such material could create complications during payment verification and audit processes.

The JKCCC chairman also expressed concern over what he termed frequent policy changes by the Finance Department. He criticised the issuance of new orders and procedural modifications without adequately addressing practical challenges faced by contractors.

Referring specifically to recent changes involving Call Deposit Receipts (CDRs), Purza said the shift towards mandatory online cash deposits has deprived contractors of banking facilities that were previously available through bank guarantees, fixed deposits and other financial instruments.

“Contractors traditionally relied on banking support mechanisms to participate in tenders and execute projects. The sudden transition to cash-based online deposits has increased financial pressure on contractors, particularly small and medium contractors who form the backbone of the development sector,” he said.

Purza also highlighted prolonged delays in the release of contractors’ deposits and security amounts. He said reports indicate that changes are being considered regarding treasury heads under which such deposits are maintained, but meanwhile contractors continue to suffer as their deposits and bills remain blocked.

“If administrative changes are required, they should be completed without delay. Contractors should not be made to suffer indefinitely because of procedural transitions. The present uncertainty is creating serious financial distress throughout the sector,” he said.

According to the JKCCC chairman, developmental works across Jammu & Kashmir are being severely impacted because contractors neither have adequate access to raw material nor timely release of legitimate payments for completed works. As a result, he said, the pace of development has slowed considerably despite the availability of numerous sanctioned projects.

Purza urged both the Lieutenant Governor’s administration and the elected government led by Chief Minister Omar Abdullah to work in close coordination and address contractors’ concerns within a defined timeframe.

He said developmental works can progress only when there is clarity in decision-making, timely availability of funds and effective coordination among all stakeholders involved in governance and project implementation.

Referring to delays in execution and funding of major projects, Purza said prolonged administrative bottlenecks are adversely affecting critical infrastructure and public welfare initiatives, impacting both contractors and the general public.

The JKCCC chairman also questioned newly introduced procedural requirements, including obtaining character verification-related certifications for renewal of contractor registrations. He argued that contractors have already been submitting such verifications periodically and making them a recurring requirement only leads to unnecessary delays and wastage of time.

Purza said such measures impose an additional administrative burden on contractors and divert attention from more pressing developmental priorities.

“Every hour spent on avoidable paperwork is time taken away from development on the ground,” he said, adding that a development-oriented and time-bound approach is necessary to ensure projects are completed well before stipulated deadlines and public infrastructure works progress without unnecessary hindrances.

He said the Committee has repeatedly brought these issues to the attention of concerned ministers, administrative secretaries, district authorities and other senior officials, but tangible relief is yet to be witnessed on the ground.

“We appreciate assurances given by the authorities, but what the contractor fraternity needs now is concrete action. Development cannot wait indefinitely and neither can thousands of contractors, workers, technical and non-technical personnel, transporters and families whose livelihoods depend on this sector,” Purza said.

Calling for immediate intervention, the JKCCC chairman urged the government to identify and notify authorised sources of construction material across all districts, establish a transparent and legally compliant royalty collection mechanism, ensure timely release of pending bills and deposits, review recent financial and treasury-related procedural changes, resolve issues related to CDRs, bank guarantees and other financial instruments, address concerns raised by Hot Mix Plant Owners and other stakeholders, and simplify administrative procedures that hinder project execution.

Purza reiterated that the contractor fraternity remains fully committed to supporting infrastructure development and public welfare initiatives throughout Jammu & Kashmir but stressed that contractors must be facilitated rather than burdened if the government genuinely intends to accelerate developmental works.

“Every government prioritises development. Contractors are always ready to work for the people. What we need is timely support and facilitation,” he said.

Describing contractors as partners in development, Purza said that if their genuine concerns are addressed in a timely manner, developmental activities can regain momentum and public projects can be completed efficiently for the benefit of the people of Jammu & Kashmir.

He expressed hope that the government would take immediate cognisance of the issues raised by the Committee and initiate concrete measures to restore confidence among contractors and revive the pace of development across Jammu & Kashmir.