J&K Govt directs Royalty Clearance Certificate Mandatory for Contractor Payments

March 5, 2026

Srinagar: The Directorate of Geology and Mining (DGMC) of Jammu and Kashmir has directed all treasury offices in the Union Territory not to release payments to any contractor or implementing agency involved in development works unless they submit a valid Royalty Clearance Certificate (RCC).

Instructions issued to all treasuries

According to an official communication issued by Director of Geology and Mining, S.P. Rukwal, this directive has been sent to the Director (Accounts & Treasuries) of the Finance Department.

This step follows instructions given in a review meeting held on February 27, 2026.

Instructions have already been issued to several departments

The communication states that several departments and agencies—such as the National Highway Authority of India (NHAI), Pradhan Mantri Gram Sadak Yojana (PMGSY), Public Works Department (PWD – Roads and Buildings), Irrigation and Flood Control Department, Border Roads Organisation (BRO), Jal Shakti Department, National Highways and Infrastructure Development Corporation Limited (NHIDCL), Airport Authority of India (AAI), and Konkan Railway Corporation Limited (KRCL)—have already been directed not to release payments to companies or contractors that use minor minerals in development works unless they obtain RCC from the Department of Geology and Mining.

Initiatives to ensure compliance with mining regulations

The Directorate has now requested the Finance Department to issue necessary instructions to all treasuries in Jammu and Kashmir to ensure that payments are not processed in favor of any contractor or agency without the mandatory certificate.

According to officials, the move is aimed at regulating the use of minor minerals in development projects and ensuring compliance with royalty rules.