Omar meets Sitharaman, seeks Centre’s support for J&K

The financial burden and restructuring will only depend on the funds provided under different heads by the Centre

J&K Chief Minister Omar Abdullah on Friday (November 15, 2024) held a meeting with Union Finance Minister Nirmala Sitharaman in New Delhi and discussed governance and development issues faced by the Union Territory (UT).

“Our discussion centered around crucial economic matters concerning Jammu and Kashmir. I passionately advocated for much-needed support from the Union Finance Ministry for the region,” Mr. Abdullah said.

Also read | J&K CM Omar Abdullah starts spadework on development agenda with Centre

Mr. Abdullah’s National Conference (NC) won a massive mandate in the Assembly elections earlier this year where it won 42 out of 90 seats. The party, besides promising to fight for the restoration of Article 370, also pledged to reach out to the unemployed and underemployed section of J&K. Over 60,000 employees, working as daily wagers, await regularisation in the UT. The NC is also planning a massive employment drive in the first three months of its rule.

The financial burden and restructuring will only depend on the funds provided under different heads by the Centre.  The NC has promised to increase the ration quota from five kg to 10 kg, provide 12 gas cylinders and 200 units of electricity free to the economically poor section of the society. Sources said the NC intends to push on these demands in the upcoming Budget session of J&K Assembly in Jammu next year. 

Mr. Abdullah sought multi-lateral funding for development of new tourism destinations in J&K, “aimed to decongest the existing locations and to create well-planned and world-class infrastructure at these new identified locations,” an official spokesman said.

He said Mr. Abdullah requested the Finance Minister to consider J&K for funding through the “Special Assistance to States for Capital Investment” scheme under which 50-year interest free loan would be provided to States for capital expenditure.

CM also informed the Finance Minister about the difficult fiscal situation being faced by J&K and requested the Ministry to provide additional Central assistance of ₹6,000 crore to bridge the resource gap in the UT Budget for FY 2024-25.

The spokesman said Mr. Abdullah expressed optimism that “collaborative efforts with the Central government would enhance financial stability and promote sustainable development in Jammu and Kashmir”.

Meanwhile, Mr. Abdullah thanked Ministry of Finance for approving the Competitiveness Improvement of Agriculture & Allied Sectors Project (JKCIP) for J&K to rejuvenate agriculture sector, which entails financing of 100 million USD through International Fund for Agriculture Development (IFAD) over the next seven years.

CM urged the Ministry of Finance “to treat J&K on a par with north eastern States for availing incentives in respect of Externally Aided Project (EAP) loans and making J&K eligible for special lending arrangement under the EAP loans”.

Published - November 15, 2024 10:40 pm IST