J&K Govt Mandates Royalty Clearance Certificate for All Treasury Payments to Contractors

SRINAGAR, March 5, 2026 — The Jammu and Kashmir Directorate of Geology and Mining has issued a stringent directive to all treasuries across the Union Territory, prohibiting the release of payments to contractors and executing agencies without a valid Royalty Clearance Certificate (RCC).

In an official communication directed to the Finance Department’s Director of Accounts and Treasuries, Director S.P. Rukwal (JKAS) emphasized that this measure is essential to regulate the extraction of minor minerals and ensure full royalty compliance.

The move follows a high-level review meeting held on February 27, 2026, aimed at tightening the fiscal oversight of developmental projects throughout the region.This regulatory crackdown affects a wide range of major departments and national agencies, including the NHAI, PMGSY, PWD (R&B), Jal Shakti, and the Airports Authority of India, among others.

These entities have been instructed to withhold payments for any works involving the consumption of minor minerals—such as sand, gravel, and boulders—until the Geology and Mining Department verifies the legal sourcing of materials through the RCC.

By integrating this requirement directly into the treasury workflow, the government aims to plug revenue leakages and ensure that all firms and contractors participating in the UT’s infrastructure boom adhere strictly to environmental and mining laws.