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| JKCCC urges Govt to Release 75% Capex Payments Before Dec 31 | | Treasury Delays And Long-Pending Liabilities Affect Timely Project Execution; Says JKCCC Chairman Jeelani Purza |
Srinagar, December 23 (Scoop News)- Jammu & Kashmir Contractors Coordination Committee (JKCCC), Chairman Ghulam Jeelani Purza, has expressed deep concern over the continued financial hardships being faced by the contractor fraternity due to delayed payments, Capex Caps, treasury bottlenecks and long-pending liabilities. He has urged the Government of Jammu and Kashmir to take urgent and good steps to resolve these long-standing issues in the larger interest of development works and public welfare.
Speaking on the issue, JKCCC Chairman Jeelani Purza said, “The Finance Department had issued an order Several years ago stating that under the UT Capex Budget, a Cap is imposed every year on 31st December. As per this mechanism, contractors are entitled to receive 75 percent payment of the work done up to 31st December, while the remaining 25 percent is released by the end of the financial year March.”
He said the problem arises when contractors are unable to receive the mandatory 75 percent payment before 31st December, due to which they are left with only 25 percent payment eligibility later on.
“If a contractor does not receive 75 percent payment before 31st December, it becomes extremely difficult for him to sustain operations. This creates severe financial stress and pushes contractors into hardships,” he added.
The JKCCC Chairman made a strong appeal to Jammu & Kashmir Chief Minister Omar Abdullah, who also holds the Finance Ministry portfolio, Lieutenant Governor Manoj Sinha, Chief Secretary, Financial Commissioner and all Heads of Institutions (HoIs), Drawing and Disbursing Officers (DDOs) and the Finance Department, to ensure that 75 percent payments under UT Capex are released well before 31st December every year.
Purza emphasized,“Timely release of payments will ensure that contractors do not suffer financially and that all development projects are completed on time,”
He further demanded that all pending payments under the UT Capex Budget be released immediately, particularly the 75 percent payments before 31st December, to avoid further complications.
“Once the Cap is imposed after 31st December, it not only creates a financial burden on the government but also results in huge liabilities, making timely payments even more difficult. Ultimately, the entire contractor fraternity suffers,” he said
Raising the second major issue, Jeelani Purza highlighted serious delays in treasuries. “All contractor bills submitted up to 10th November 2025, but bills submitted from 11th November onwards are still pending in various treasuries till date. This is a major problem for contractors,” he said.
He appealed to the Finance Department, Chief Minister Omar Abdullah, Lieutenant Governor Manoj Sinha and the Chief Secretary to intervene and resolve this issue at the earliest.
“We humbly request the government to resolve this treasury bottleneck so that contractors are not pushed into further financial distress,” he added.
Purza siad that delays in payments directly affect project execution and livelihoods. “If payments are not released on time, not only do contractors suffer, but all those who are directly or indirectly associated with these projects also face serious hardships,”.
He also reminded the government of an earlier order which stated that contractor bills should be released and transferred to accounts within 24 hours. “For several years, bills were cleared within 5 to 7 days. Unfortunately, now it takes several months for a single bill to get cleared. Due to the Cap imposed by the Finance Department, contractors are repeatedly to suffer. We seek a permanent and humane solution to this problem,”.
The third issue raised by the JKCCC Chairman pertains to long-pending liabilities of completed works since the 2014 floods. “Payments for work done and completed projects post-2014 floods are still pending. Although the LG Administration has released payments to some extent in phases, a good amount remains unpaid,” Purza said.
He pointed out that almost all pending payments in Jammu have been cleared, while Kashmir still has outstanding liabilities of approximately 100–200 crore. “We strongly urge the government to release these long-pending payments at the earliest so that contractors can finally get relief,” he added.
Highlighting the fourth major concern, Purza spoke about delays in Jal Jeevan Mission (JJM) payments, which have severely affected contractors. “We sincerely appreciate the positive step taken by the J&K Government under the leadership of Chief Minister Omar Abdullah and the efforts of Jal Jeevan Mission Minister Javaid Rana, who has taken up the issue of contractor payments with the Union Government,”.
He further appealed to Financial Commissioner (Additional Chief Secretary) Jal Shakti Department, Shaleen Kabra, to actively pursue the matter with the Union Government. “We request that this issue be taken up vigorously so that all pending JJM payments are released without further delay,”
Concluding, the JKCCC Chairman said “Contractors are the backbone of any state's development. If payments are delayed, development works suffer, projects get delayed and public services are affected. We hope the government will take immediate and serious steps to resolve these genuine issues and provide long-awaited relief to the contractor fraternity of Jammu and Kashmir.”
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