June 3, 2026 –
In a significant overhaul of its public procurement mechanism, the Jammu and Kashmir government has made online cash deposits the only acceptable form of Earnest Money Deposit (EMD) and tender fees across all works departments in the Union Territory. Bank Guarantees, Fixed Deposit Receipts (FDRs), and Certificate of Deposit Receipts (CDRs) — instruments that have long been part of the tendering landscape — have been formally discontinued.
The reform is aimed at streamlining the procurement process, reducing the scope for manipulation, and aligning J&K’s contracting ecosystem with broader digital governance initiatives being rolled out by the central and territorial administrations. By mandating fully cashless, online EMD submissions, the government is signalling a decisive pivot away from paper-based instruments that have historically been susceptible to fraud, delay, and misuse.
For J&K’s contracting community — which has already been grappling with a shifting regulatory environment — the change will require adaptation, particularly among smaller contractors who may have depended on bank guarantees as instruments of financial flexibility. The timing is notable given that it comes just hours after the Valley mourned the passing of veteran contractors’ leader Nazir Ahmad Zargar, whose legacy was deeply tied to advocating for the community’s interests within precisely the kind of policy frameworks the government is now reforming. Industry observers are urging the administration to ensure a smooth transition period and adequate guidance for smaller operators.
