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Sinha announces several measures to boost J&K economy

Union Finance Minister Yashwant Sinha on Monday announced an increase of about Rs 12 billion in credit flow from national banks and financial institutions to Jammu and Kashmir for the revival and rehabilitation of various sectors of economy.

Announcing the decisions of his meeting with the state government and heads of financial institutions at a press conference in Srinagar, Sinha said the credit disbursement in the state would increase from Rs 38.74 billion in March this year to Rs 50 billion by March, 2002.

He said a Rs 2.50-billion credit facility would be provided by NABARD under Re-finance Infrastructure Development Fund.

Sinha said the central government, keeping in view the fiscal problems of the state, has decided to set up three task forces on a permanent basis to ensure greater and faster credit flow to major sectors of economy.

One task force to be headed by the Financial Commissioner Agriculture will focus on credit flow to agriculture sector while the second task force to be headed by the chairman and managing director, Small Scale Development Corporation, Government of India, will deal with the credit requirements for small-scale industrial sector including handicrafts, handlooms and khadi village industry.

The third task force would focus on large and medium industrial sector and industrial infrastructure.

These task forces shall have the representatives of the state government, banks and other financial institutions.

Sinha also announced that all the licensed branches of public sector banks closed due to militancy in the state would be re-opened by December 31.

Chief Minister Farooq Abdullah assured all help in this regard and also invited national financial institutions to open their branches in Srinagar.

The finance minister said that the number of Kisan Credit Card holders would be increased from 13,567 to 100,000 by March next. The LIC would release Rs 1.89 billion allotted by the Planning Commission for the last financial year and current financial year within 45 days of completing formalities.

The state government would also clear its dues of about Rs 30 million immediately, he said adding the LIC would consider viable projects from the state in the area of urban renewal.

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