He was 64.
Sharma, who was elected MLA from Nowshera Assembly constituency of Rajouri district, served as a Minister of State in the PDP-Congress government in 2002.
He is survived by his wife and two daughters.
The cremation is expected to be held at his native place in Nowshera this evening.
Several senior Congress leaders, including Chief Spokesman of JKPCC Ravinder Sharma, have condoled the demise of Romesh Chander Sharma.
Leader of Opposition in Rajya Sabha Ghulam Nabi Azad, in a condolence message, said Sharma was devoted to the welfare of the people and lived an exemplary public life.