J&K Lieutenant Governor Approves Mandatory Online Payments for Works Tenders

Jammu: The Lieutenant Governor of Jammu and Kashmir has approved a major administrative reform making online payments mandatory for all works tenders floated on the official e-procurement portal, jktenders.gov.in.

The Finance Department issued a notification directing all Works Departments to shift entirely to an online system for collecting, accounting, adjusting, and refunding Bid Security (Earnest Money Deposit), Tender Fees, and IT Service Charges.

The notification was issued under Section 67 of the Jammu and Kashmir Reorganization Act, 2019.

Under the new directive, contractors must deposit these charges exclusively through the integrated online payment gateway.

The previous practice of furnishing physical instruments including Call Deposit Receipts (CDR), Fixed Deposit Receipts (FDR), Term Deposit Receipts (TDR), and Bank Guarantees has been discontinued.

The notification was signed by Shailendra Kumar, IAS, Financial Commissioner (ACS), Finance Department.

The government stated that online tendering through the JK Tenders portal had already been implemented across departments, but delays were frequently reported in the refund or release of EMDs, particularly for unsuccessful bidders.

To address these issues, every works department has been directed to create a centralised designated pooling bank account at the Head of Department (HoD) level.

All EMDs and tender fees associated with works tenders across Jammu and Kashmir will be routed through these accounts.

A key feature of the new system is automatic refund of EMDs during bid evaluation.

The portal will automatically process refunds for bidders declared non-responsive or those who do not emerge as the lowest bidder (L1), except in cases where forfeiture provisions apply.

For successful bidders, the EMD amount will be retained and adjusted as a Performance Security Deposit for the duration of the contract, including the defect liability period.

The amount will be transferred from the centralised pooling account to the concerned division’s Performance Security Deposit Head after approval from the HoD.

Tender fees collected in the pooling accounts will be treated as revenue receipts and deposited under the relevant departmental heads after due authorisation.

The government has directed all works departments to revise their Standard Bidding Documents (SBDs) for tenders to be floated during the 2026-27 financial year.

The updated documents will include provisions for online cash payment of EMDs, tender fees, and IT service charges, along with detailed guidelines for refund and adjustment procedures.

Officials stated that the necessary digital infrastructure for online cash deposits and performance security transactions through the JK Tenders platform is already in place.

The new instructions have been enforced with immediate effect.

Lieutenant Governor Manoj Sinha has previously stated that key reforms including e-tendering and digital payments have contributed to efficiency and transparency in Jammu and Kashmir’s financial system.