J&K needs Rs 4,000 cr to put economy back on rails

A whopping Rs 4,000 crore of investment is required to bring the Jammu & Kashmir economy to the position where it was in the year 1989-90, before the eruption of militancy in J&K state.

While referring to the expert opinion of a consultant from Asian Development Bank (ADB), engaged as economic advisor by the J&K government to study the impact of militancy in the state in last 17 years, minister of state for Finance, Prem Sagar Aziz has said according to the assessment of consultant, the economy of the state has badly derailed and in order to bring it back on rails, an investment of nearly Rs 4000 cr is needed in the violence -hit Jammu and Kashmir.

Aziz said a special package of Rs 24,000 crore to reconstruct damaged structures in priority sector besides huge investment in the power sector was announced by the Prime Minister Manmohan Singh during his visit to the state in 2004.

Now the funding of various projects, including over Rs 17,000 crore in the power sector is based on the project formulation and implementation.

Out of the total package, the funds are being provided by the Centre to J&K on yearly basis and its term has been extended up to 2008-09.

As several projects in the Central power sector being undertaken by the NHPC can not be completed by 2008-09 as it normally takes to a hydro-electric project more than five years for commissioning after financial closure, some extension in the term has been requested from the PMO in this this regard, Aziz maintained.

The priority sectors taken up by the J&K under the PM's Reconstruction Plan include construction of 1,000 micro hydel power projects, electrification of all villages under Rajiv Gandhi Grameen Vidyutikaran Yojana , generation projects under State and Central sectors, laying of 220 Kv Srinagar-Leh transmission line and improvement of power transmission and distribution system.

With this special package, 14 degree colleges and nine women Industrial Training Institutes (ITIs) are also being constructed.

Other priority sectors include construction of two-room accommodation for Kashmiri migrants languishing in various Jammu camps with the cost of Rs 187 crore and rehabilitation and clusters development of nearly 6,072 families of border migrants from Akhnoor sector in Jammu district, Aziz added.