As Prime Minister Narendra Modi is scheduled to visit Jammu and Kashmir (JK) on November 5, the region looks forward to announcement of a long-awaited rehabilitation package to make a full comeback from the devastation of the last year’s flood.
The Prime Minister is expected to visit the state to inaugurate the Baglihar-II hydropower project. The visit was confirmed on Thursday after Chief Minister Mufti Mohammad Sayeed met Modi in Delhi.
When Modi will visit the region, all ears will be focused on hearing about the flood rehabilitation package.
Below is a five-point list that people hope from Modi’s visit.
Flood rehab package
It is one announcement which everyone in the state is waiting to hear. The state needs an immediate long-term rehabilitation package to overcome the widespread destruction caused by the last year’s flood. The state suffered monumental losses and initial estimates made by the J-K Government suggested losses up to Rs 1 lakh crore.
A proposal was submitted by the former National Conference-Congress government for funding a rehabilitation plan of Rs 44,000 crore. However, the Central government has so far provided Rs 5,039 crore in instalments for short-term relief and reconstruction measures in the state.
The delay in the announcement of an elaborate rehabilitation package has caused anger among people as the state government, with its coffers empty, has been slow to provide interim relief, which has been criticised as the flood’s victims as paltry.
“I am expecting announcement of a rehabilitation package. Even if Rs 44,000 crore is not provided, some amount should be announced,” said Zeeshan Ahmad, a Srinagar resident.
Bailoutpackage
The state government will be hoping for some sort of relief from the Prime Minister to salvage J-K from its worst financial crisis. The state’s treasury is short of money with the liabilities having grown to a staggering figure.
Jammu and Kashmir has been sinking in debt over the past decade and its total liabilities have grown from Rs 16,790 crore in 2005-06 to Rs 44,646 crore in 2013-14. The state’s internal debt has mounted from Rs 7,502 crore in 2005-06 to Rs 24,715 crore in 2013-14 while as loans and advances from the Central government have witnessed a decrease from Rs 3,508 crore in 2005-06 to Rs 1,775 crore in 2013-14.
In such a cash-deficit scenario, the state government will be hoping for some bailout plan from the Prime Minister.
Return of hydel projects
The return of hydropower projects has been a part of the ‘agenda of alliance’ between the Peoples Democratic Party and the BJP. The issue also came up at Thursday’s meeting between the Chief Minister and the Prime Minister. Mufti raised the demand for transfer of the Dulhasti and Uri hydropower projects to the state.
The business chambers of Kashmir and Jammu divisions earlier this week issued a joint statement, asking the Centre to return the hydropower projects to the state. “He needs to start the process of returning the power projects. It is not only the demand from the Kashmir Chamber, but also from the Jammu Chamber and it is pending for long,” said Mubeen Shah, former president of the Kashmir Chamber of Commerce and Industries.
“The Prime Minister has to take bold steps not only politically but also economically. There are so many issues pending like making J-K a free economic zone and capital investment to sick units. These are important issues,” said Shah.
The state has an estimated hydel potential of 20,000 MW. Of this, projects of about 16,200-MW capacity have been identified but the state’s current installed capacity is 969.96 MW. The state purchases more than 80 per cent of its power requirement.
The Uri-I project has an installed capacity of 480 MW and Dulhasti has an installed capacity of 390 MW. Their return will boost the state’s power generation capacity.
Employment schemes
Redefined employment schemes are needed to provide work to a large number of the state’s unemployed youth. As per the official figures, the unemployment rate in J&K is 4.9 per cent, higher than the national average of 2.7 per cent. Even though the state’s unemployment rate came down from 5.3 per cent in July 2009 to 4.9 per cent in June 2012, it had remained the highest in comparison to all its neighbouring states.
An expert group, constituted in 2010 to formulate a job plan to enhance employment opportunity in the state, had recommended a two-pronged strategy. The first was to identify sectors with a large employment generation potential and the second to initiate developing human resource with improved skills.
Strengthening CBMs
The confidence-building measures (CBMs) such as the cross-LoC trade and travel have suffered regular hiccups, adversly impacting their effectiveness. A more robust system needs to be put in place to strengthen the two CBMs and also a fresh round of CBMs is required to decrease the trust deficit.
“It is important to restart and strengthen the process of confidence-building measures and resume the dialogue. We are hopeful that the Prime Minister will address this issue,” said a PDP leader.
