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Basharat Peer in Srinagar
The ruling National Conference is not entirely happy with the Rs 61.25 billion economic package for Jammu and Kashmir announced by Prime Minister Atal Bihari Vajpayee on May 23.
While Chief Minister Farooq Abdullah had expressed satisfaction with the package, some party member feel that the package does not address the problems faced by the government.
"We are not satisfied with the prime minister's economic package. It was a 'no package' and had nothing for the state government," State Finance Minister Abdul Rahim Rather, who is considered close to the chief minister, told rediff.com
Out of the total amount, Rs 36 billion has been allocated for the construction of the 287-km-long Udhampur-Srinagar-Baramulla rail link.
Another Rs 13 billion would go towards the construction of an all-weather 474-km-long Manali-Leh road.
Rs 3.86 billion has been allotted to make the single line Jammu Tawi-Jallandhar rail link double.
Rs 2.5 billion would go to the Special Operations Group of the J&K police and another Rs 50 million to the J&K volunteer force.
The package also earmarks Rs 2.6 billion towards raising two India Reserve Police battalions and Rs 80 million for the police welfare fund.
Border migrants would receive Rs one billion and migrant Kashmiri Pandits would get a raise in their monthly allowance.
"After what goes to the railways and the police, there is hardly anything left for the state government. The railway projects take more than half of the package. There is nothing new even in railway projects, which were already going on," Rather said.
The prime minister, while announcing the package, had earmarked Rs 7 billion for reviving the handicrafts and sericulture industry in Kashmir.
He also said that Rs 10 billion each would be provided to agri-export zones and eco-restoration of degraded catchments of Chenab, Jhelum and Shivaliks.
"We are getting some money for the development of handicrafts and horticulture, which will come over the span of five years. How will that help the immediate problems we are facing the valley?" Rather asked.
The minister, who met Vajpayee before the package was announced, said: "We were expecting there would be help for rebuilding our basic infrastructure like schools, roads, bridges destroyed by years of militancy."
"Or that our badly hit industrial units, tourism and horticulture will get priority. But our priorities were completely ignored. Tourism did not even find a mention," he lamented.
"We also do not get the full amount earmarked by the annual plan. Last year Rs 20.5 billion were allocated to J&K, but we got only Rs 18 billion. This story has been repeating every year," the finance minister said.
Jammu and Kashmir is included in 'special category' states, which get concessions in returning the money allocated under the five-year plans.
The special category states get 90 per cent of the allocation as grant and 10 per cent as loan, which they have to repay (known as 90-10 formula).
"But the Centre has turned a blind eye to J&K. The 90-10 formula was applied to J&K only during the governor's rule in 1991. It has cost us a lot. Just the accumulated interest we have to pay to the Centre is Rs 12.5 billion, while the debt is around Rs 50 billion," Rather added.
He said the Centre having agreed in principle to the 'special category' status of the state should give retrospective effect to the status.
Rather said the Centre is increasing the loan component of the annual plan outlay drastically. Out of the annual plan outlay of Rs 22.5 billion for J&K this year, resources for only Rs 18 billion have been identified, which means the state will receive only that amount.
"From that amount too, we have been asked to take a loan of Rs 5 billion from NABARD at full interest rate. So the 90-10 formula applies to only Rs 13 billion of the annual outlay for us, which negates the special category status of J&K," Rather said.
"It is not a healthy sign. There is no healing touch in the prime minister's package and the expectations of Kashmiris have not been fulfilled," Rather asserted.
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