SRINAGAR, September 30, 2026 – Laying bare a severe financial crisis stalling critical rural infrastructure projects, the Jammu and Kashmir Government has acknowledged that staggering liabilities amounting to nearly Rs 1,346.60 crore remain unpaid to contractors for work executed under the flagship Jal Jeevan Mission (JJM). The startling revelation came during the current Legislative Assembly session, where the government further admitted that no central funds had been released under the JJM scheme during the 2025-26 financial year, pushing local contractors and suppliers to the brink of financial ruin.
Responding to queries, the administration detailed that despite the lack of recent central funding, numerous developmental works under the scheme—which aims to provide functional household tap connections to every rural home—were completed on the ground by local agencies and contractors. However, the non-clearance of these legitimate bills has severely impacted the executing class. Contractor associations across the Union Territory have been protesting the mounting dues, claiming that the protracted payment delays are forcing many into severe debt traps, with fears of mounting bank interest, penal actions, and accounts slipping into the Non-Performing Asset (NPA) category. The government stated it did not possess specific information regarding whether the delayed payments had already resulted in bank recovery or auction notices against the contractors.
Addressing related issues regarding the operation of the water supply schemes, the government informed the House that operational and security requirements at various installations were currently being managed through the rationalization and strategic deployment of existing manpower. However, the core issue of the pending Rs 1,346.60 crore remains unresolved, drawing sharp criticism from the opposition and the contractor community. The contractors have consistently warned that if the pending payments are not cleared swiftly, they will be forced to halt all ongoing infrastructure development activities in the region. Local stakeholders are now urgently appealing to the Union Government and the UT Administration to intervene and release the stalled JJM funds to prevent a complete collapse of rural developmental works in Jammu and Kashmir.
Published by True Roots Media Network