J&K set for 6.1% growth: Mufti

Exuding confidence over an upbeat investment climate and a resurgent tourism industry, Jammu and Kashmir Government on Monday sought fiscal incentives to speed up economic growth and greater central assistance to boost agriculture, irrigation and small- scale units.

"A favourable climate for investment in industrial sector has been created in J&K probably for the first time at the present scale... J&K is poised to achieve a growth rate of over 6.1 per cent in the 10th Plan," Chief Minister Mufti Mohammad Sayeed said at National Development Council meeting in New Delhi.

The state approved investment proposals of Rs 2500 crore (Rs 25 billion) in the last two years and was expecting proposals worth Rs 5,000 crore (Rs 5 billion) this year, he said, adding the number of tourists to the valley would also cross the one-million mark this year.

Demanding continuation of central incentives to sustain the interest of investors, Sayeed sought support for the creation of infrastructure for industrial development and special funds to set up new industrial areas.

There was need for Central assistance in irrigation and the state government has submitted its proposals to the Centre, he said. Small-scale units, which bore the brunt of disturbed conditions, also needed support in the form of rescheduling of loans and writing off interest, he added.

Arguing for granting fiscal incentives, Sayeed said, "The Centre should either borrow the money from the financial institutions and provide it to the special category states on 90:10 basis or repay 90 per cent of the loan obtained by such states with interest."