J&K clears Rs 1,250 cr loan for power project

The Jammu and Kashmir government has approved a term loan of Rs 1,250 crore from financial institutions and banks to execute the Baglihar hydroelectric project of 450 MW.

Chief Secretary Sudhir S Bloeria said the financial closure of the Rs 4,000-crore project had been finalised, with the central government providing Rs 630 crore as additional assistance.

A Rs 40-crore International Trade Centre is also coming up at Pampore in Srinagar for holding exhibitions and trade fairs, and providing a meeting ground for buyers and sellers.

This was approved in a meeting of the Jammu and Kashmir government in Srinagar yesterday.

The government approved the transfer of over 371 kanals (one kanal is 500 square yards) of land, now with a plyboard factory in Pampore, to the Directorate of Handicrafts, to establish the centre.

Bloeria said the centre would have a modern computerised data bank to disseminate information on international business and market intelligence. A detailed project report was being finalised and the cost would not be less than Rs 40 crore, he said.

"The trade centre will have backward linkages with production processes to meet the international quality requirements and keeping the trading community posted on global trade requirements under the WTO regime," he said.

An international business centre (IBC), proposed to be set up as part of the trade centre, would function as a main interface between exporters of Jammu and Kashmir and overseas markets.

"It would promote exports to the Middle East, South-East Asia, South America, South Africa, Australia, etc.""the markets that have not been tapped for J&K handicrafts," Bloeria said.

The international business centre in Srinagar will be managed autonomously by a company. The Indian Trade Promotion Organisation, New Delhi, wants to provide support for it.

Financial institutions""Power Finance Corporation, J&K Bank, Rural Electrification Corporation, United Bank of India, UCO Bank, Canara Bank, and HUDCO""will be approached for Rs 1,800 crore, the remaining amount is to be provided by the state government as equity.

Bloeria said the Power Development Corporation had been given permission to borrow Rs 400 crore from the Rural Electrification Corporation, Rs 300 crore from the Housing and Urban Development Corporation, and Rs 550 crore from banks including J&K Bank.

Power plans

• The loan was approved for the 450 MW Baglihar hydroelectric project
• The central government is providing Rs 630 crore as additional assistance
• A Rs 40-crore international trade centre is also coming up at Pampore in Srinagar for holding exhibitions and trade fairs