J&K Contractors demand release of pending bills before March 31 deadline

Srinagar, Mar 14: With the financial year drawing to a close in just over two weeks, hundreds of contractors across Jammu and Kashmir are intensifying their demands for the release of pending payments totalling hundreds of crores of rupees, warning of severe financial consequences if these funds are not disbursed before March 31.

The J&K Contractors Coordination Committee has raised alarm bells about the imminent risk of these unpaid bills lapsing once the new fiscal year begins, potentially creating a devastating ripple effect throughout the region’s construction and development sectors.

“Bills worth hundreds of crores were dishonoured on March 31 last financial year as there were no funds in government treasuries,” said Ghulam Jeelani Purza, Chairman of the J&K Contractors Coordination Committee. “Contractors who took loans and owe money were left in a lurch as they could not get their pending payments released.”

The situation has become increasingly dire for many contractors who have fulfilled their contractual obligations but remain unpaid, some for exceptionally long periods. “Some payment clearances have been pending since 2014, with no payment being released post-January 17.”

Farooq Dar, General Secretary of the Central Contractors Coordination Committee, revealed the staggering scale of the issue. “Around Rs 2,000 crore in bills are currently pending. Though the government has been disposing of liabilities till a few months back, unfortunately at the end of the fiscal year, payments are not being cleared, which has created resentment among contractors,” he explained.

Farooq Dar said, “Contractors involved in the ambitious Jal Jeevan Mission (JJM) scheme appear to be particularly affected, with numerous work bills still awaiting clearance despite the completion of projects that are critical to improving water access across the region.”

He said that the financial strain has become unbearable for many small and medium contractors who have invested personal savings or secured high-interest loans to complete government projects on the expectation of timely payment. This continuing cycle of delayed payments has not only threatened their financial stability but has also severely limited their capacity to bid on or undertake new projects.

Responding to the growing concerns, a senior official from the Finance Department has assured that steps are being taken to address the issue. “We are aware of the pending bills and are working on expediting the payment process. The government is committed to clearing all verified bills before the end of the financial year,” said the official, who requested anonymity as they were not authorised to speak to the media. “We have already initiated the process of fund allocation and expect the disbursement to begin in the coming days.”

The contractors’ associations are now appealing directly to Chief Minister Omar Abdullah, urging immediate intervention to ensure that all pending bills are cleared before the end of the financial year to prevent further financial distress among the contracting community and maintain the momentum of development projects across J&K.