Importance of agriculture in Jammu kashmir Economy

Underlining the importance of agriculture and allied activities within the economic development and job creation for youth within the State, Chief Minister Omar Abdullah on weekday aforesaid that the Brobdingnagian potential of Jammu and geographical area during this sector must be controlled to the utmost to comprehend the self reliance in agriculture production and comprehensive economic process.

Omar Abdullah aforesaid that agro-based little industries promise substantial and viable avenues for budding entrepreneurs of the State to venture upon and earn handsome howeverter|sustenance|resource} not just for themselves but more. He aforesaid Government has introduced varied schemes during this relevancy encourage investment during this sector. He asked the youth to require best advantage of those schemes and make a healthy and growing MSME temperament in agriculture and allied sectors.

The Chief Minister asked the involved departments to make awareness concerning the viability and profitableness of investment during this sector within the State encouraging the native youth by providing all of them technical, monetary and alternative facilities envisaged in varied programmes initiated by the govt..

The Chief Minister aforesaid that so as to offer goodish positive stimulus to the husbandry and agriculture activities, his Government has created this sector free from taxes, adding that varied schemes of providing concessions and subsidies to push husbandry and agriculture also are being enforced within the State.

Omar Abdullah was reviewing the event of agriculture and husbandry sectors in Ganderbal Assembly body at a gathering of officers here this afternoon.

Taking appraisal of varied agriculture schemes below implementation within the body, the Chief Minister was knowing that over 4900 hectors of land has been brought below the cultivation of paddy in Ganderbal body throughout current Kharief seasons to attain the assembly target of 23000 tonnes of rice.

The Chief Minister was told that as several as 367 quintals of quality paddy seed, 360 quintals of potatoes, a hundred and seventy quintals of fodder and forty seven quintals of hybrid maize seed are distributed amongst the farmers within the body this year. associate quantity of over Rs. one large integer has been provided to the farmers within the form of incentives and grant on major agriculture activities during this year.

It was expressed that agriculture activities area unit being inspired within the body below varied Centrally and State sponsored schemes together with technology mission, ISOPOM, RKVY, micromanagement, seed village programme, poly-green homes development programme, vermin culture, water gather, irrigation pumps and power tillers providing schemes.

Taking temporary on husbandry activities the Chief Minister was told that the assembly of apple within the body throughout last year was over 51000 tonnes, production of pear over 3000 tonnes, cherry concerning 1800 tonnes, plum over a thousand tonnes, apricot over 480 tonnes, peach 430 tonnes, grapes 277 tonnes, quince apple 641 tonnes, strawberry two tonnes and pomegranate thirty six tonnes. the assembly of walnut was concerning 5000 tonnes whereas the assembly of almond has been registered at twenty two tonnes.

Omar Abdullah was told that Rs.73 large integer are provided by manner of grant to the horticulturists for promotion and growth of husbandry activities within the body below varied schemes.

Agriculture mainstay of States economy

Describing agriculture and allied activities mainstay of State's economy, Chief Minister, Omar Abdullah on Thursday called for a holistic approach to ensure integrated development of agriculture and welfare of the large population associated with it.

Chairing the 2nd meeting of Kissan Advisory Board here, the Chief Minister said that the very reason for establishment of Kissan Board in the State was to ensure placement of an effective and meaningful agriculture policy in the State involving the farmers in its formulation.

The Chief Minister said that the suggestions and expert opinion of the Members of the Board based on practical experience in the field in different climatic zones and areas need to be factored in the policy planning of the growth and development of agriculture and allied sectors in the State.

Omar Abdullah said that during the last three years his Government has focused on this sector and different initiatives were taken to give considerable boost to farm production. He said the impact of these initiatives is visible on ground and State has shown gradual increase in the production of food grains, milk, mutton and poultry.

Emphasizing the need for checking the agriculture land for non-agricultural purposes, the Chief Minister stressed on increasing per hectare production and productivity. "We have already limited agriculture land available and there is tremendous pressure on it due to constructions. The expansion in population has further added the stress", he said and underlined the need for focused attention in reducing this pressure and increasing the farm production by raising the productivity of the agriculture land.

The Chief Minister directed the Agriculture Department for construction of Kissan Bhawan in Srinagar on the same pattern as is being built in Jammu. The demand for the same was voiced by Members repeatedly during meetings and on other occasions.

Omar Abdullah asked for developing required infrastructure like controlled atmospheric storages at various places in the State to preserve the horticulture and agriculture produce besides milk products for better marketing. He also asked for working out plans for establishing milk collection centres and chilling units to help the cattle breeders to sell their produce smoothly. He also underlined the need for encouraging cultivation of vegetables, cash crops and flowers in green houses to ensure their production throughout the year.

The meeting was attended by Minister for Rural Development, Ali Mohammad Sagar, Minister for Horticulture, Sham Lal Sharma, Minister for Revenue, Raman Bhalla, Minister for Animal Husbandry, Aga Syed Ruhulla, Advisors to the Chief Minsiter, Mubarak Gul and Devender Singh Rana, Vice Chairman, Kissan Advisory Board, Rachpal Singh, Legislators, Mohammad Sharief Niaz and Jahangir Mir, Chief Secretary, Madhav Lal, Principal Secretaries, Mohammad Iqbal Khandey and B. B. Vyas, Divisional Commissioners from Kashmir and Jammu, Administrative Secretaries and Heads of the Departments besides Members of the Board.

Vice Chairman of the Board, Rachpal Singh presented brief about the functioning of the Kissan Board and highlighted its various achievements registered since its inception.

In a PowerPoint presentation, Secretary of Kissan Board, G. N. Mir explained agenda points and reported the action taken on the decisions made in last meeting of the Board.

Farmers awareness camp organized

Tourist rush in Kashmir

Kashmir bat industry

While IPL 5 is adding fresh charm to the cricket in India, the occupation of the industrial estates by the security forces is threatening the future of once-flourishing cricket bat manufacturing industry in Kashmir.

 Around 100 bat manufacturing units along the Srinagar-Anantnag highway to be displaced for much needed road widening have no space for relocation as the sports complex meant for the purpose is occupied by the security forces. The trouble over relocation means unemployment to around 3000 men working in the units and a major dent to the industry that produces an estimated 5, 00,000 bats of international standard annually.

 “The unit holders on the highway need to be relocated for road widening, but the sports complex they could be shifted to is occupied by the security forces. Consequently, their future is under threat,” the president federation chamber of industries Kashmir (FCIK), Zahoor Ahmad, told Jk News.

 The cricket bat sector in Kashmir Valley has more than 200 units, both registered and unregistered, with a collective turnover of over Rs 10 crore per year. However, it has struggling due to, what observers believe, official apathy. Despite the introduction of IPL, the losses borne by the industry have been phenomenal.  The industry registered a turnover of just rupees 20 crores (from April 2011 to March 2012) as compared to rupees 98 crore (from April 2010 to March 2011) during the last season.  

 Perhaps realising the scope for the industry, the sports complex at Bijbehara was conceived for its organisation and the structures were raised inside it by the entrepreneurs. However, due to the start of militancy the complex was occupied by the security forces and occupied it stays till date.

 “If the units are not relocated, around 3000 people may be rendered jobless, and the industry will be under a major loss,” Zahoor said.

 The FCIK has so far succeeded in delaying the outcome by reaching out to the chief minister, Omar Abdullah.

 “We had several meetings with the CM as a result of which the demolition of the units has not taken place so far. He had ordered the district administration to stop the demolition until the relocation problem was solved,” the president FCIK said, adding, “But the problem is not over yet.”

 The Federation has now appealed the union home minister, P Chidambaram, for repositioning of the security forces deployed in the sports complex. The appeal came unanimously in a meeting of the unit holders and the FCIK office bearers.

 “The FCIK hopes that the Home Minister shall consider our genuine demand and pass necessary orders for vacation of forces from these estates,” the president said.

Charri yatra for Sukrala Mata 2012

Free RCH camp organised

12 Rashtriya Rifles distributes study material

Jammu Kashmir Economic Survey 2011

Agri slump hastens growth rate decline

Despite holding a crucial place in the economy of J&K state and regardless of its importance to growth, income, food and nutritional security, the agriculture sector is witnessing a gradual slump in its contribution to the Gross State Domestic Product (GSDP).

As per Economic Survey 2011-12, the estimated percentage contribution of Agriculture & Allied Sector is likely to be 19.41 percent in 2010-11 against the corresponding share of 28.06 percent registered in 2004-05 at constant price.

Growth in this sector, particularly in the crop sub sector is on decline.

As per GSDP estimates at constant prices (2004-05), the growth rate of the crop sub sector is pegged at 10.87 percent as per the estimates of 2009-10 against the growth of 13.31 percent registered in 2004-05.
The decline in growth rate is attributed to low productivity, low seed replacement rate, yield stagnation, lack of irrigation facility as 58 percent of the net area sown is rained and small size of holdings as 94 percent of the holdings fall in the size class of less than 2 hectares and 81 percent in less than 1 hectare.     

Survey revealed that the production of food grains in the State does not keep pace with the requirement, as the agriculture sector faces challenges on various fronts. Yield of principal crops i.e, rice, maize and wheat, are not significantly improving over the years. The scope for increasing net area sown is very limited mainly due to Indus Water Treaty and the farm size is shrinking due to continuous breakdown of joint family system, growing urbanization & population explosion over the years. The gap in production is met by import of food grains which has increased by 76% from 503 thousand metric tonnes in 2002-03 to 887.6 thousand metric tonnes during 2009-10

To sustain, continuous growth in productivity, seed management plays a vital role. Looking at the present situation in the state, the figures are highly unsatisfactory. The national average of seed replacement rate has been above 25 percent while the state of J&K is yet to surpass 15 percent of Seed Replacement Rate (SRR) in case of High Yielding Varieties of major crops. Consistent efforts need to be made to diversify the agriculture by bringing in credit, technology and extension to step up present growth rate to address the gap between requirement and production of food grains in the state.

Horticulture has been growing in importance and contributing to the nutritional security and on-farm employment. However, the State continues to face major challenges on account of poor post-harvest technology and inadequate storage and processing capacity. Interventions are required to be made to facilitate access to the market through a better cold chain management, investment to develop the horticulture infrastructure, rejuvenation of orchids and use of new skills and technologies for packaging and branding of horticulture produce.

Eco Survey of Jammu Kashmir

Eco-Survey paints gloomy picture J&K figures at bottom for growth, domestic product

 Jammu and Kashmir is not placed at desired level having 27th place in the inter-state comparison at all India level in terms of economic growth measured on net state domestic product at current prices for the year 2007-08.

If ranked in terms of per capita GDP at constant prices in comparison with neighboring states and Union Territory Chandigarh, J&K is placed at rank 6th out of seven states and more surprisingly far below the national level per capita as well as growth rate of GSDP as per quick estimates 2009-10.

This gloomy scenario about the state’s economy had glimpses in the Economic Survey 2011, which was tabled in the Legislative Assembly here today by the Minister for Finance Abdul Rahim Rather.The Survey pointed out that the fiscal deficit of around 4.96 percent of GSDP (in 2010-11) requires immediate corrective action. Mufti-pronged strategy in terms of mobilization of additional resources, greater tax and non-tax collection, cost of recovery of use charges, full funding of Plan and expenditure compression, particularly establishment related, is required to be put in place.

It also stated that the revenue from own resources to the state is very low (around 21 percent), of the total revenue receipts. Comparing the revenue situation of the state via-a-vis its expenditures for last 6 years, there always remains a deficit. This deficit has increased from Rs 2244.00 Cr in 2005-06 to Rs 2367.00 Cr in 2010-11.

As per the Survey, the growth in primary sector which includes Agriculture and allied activities is not encouraging ranging between 3.83 percent (2008-09) and 2.28 percent as per advance estimates for 2011-12, the growth rate figures for this sector at national level are much higher (6.6 percent) as per revised estimates for 2010-11.        

In the overview of J&K’s economy, decade growth during 2001-2011 declined to 23.71% from 29.43% during 1991-2001. The average annual exponential growth declined to 2.15% per annul during 2001-2011 from 2.61% per annul during 1991-2001.

The child sex ratio [0 to 6 years] has shown a sharp decline from 941 in 2001 to 859 as per census 2011. The overall sex ratio of the state has also declined from 892 in 2001 to 883 in 2011. It showed a continuing preference for male children over females in the last decade.

Amid economic slowdown witnessed at the national level due to high inflationary conditions and gloomy global economic scenario, the State has continued to steer through the path of development and maintained the growth momentum. The advanced estimates of the growth rate of the State measured by Gross State Domestic Product (GSDP) at constant 2004-05 prices for the year 2011-12 is 6.78% as compared to 6.63% during the year 2010-11. During first three years of the Eleventh FYP, the economy is estimated to have grown by 6.40% in 2007-08, 6.46% in 2008-09 and only 4.80% in 2009-10 (Quick Estimates). The average annual growth rate of GSDP (at constant 2004-05 prices) for the 11th FYP period is estimated at 6.21% which though short of the stiff target growth rate of 8%, yet it is reasonable keeping in view the growth rate of only 5.45% recorded during the 10th FYP period. The growth rate of Net State Domestic Product (NSDP) at constant prices during 11th FYP period is estimated at 5.78 percent which is comparably better than the past performance of growth rate of 4.21% per year in the 9th Plan period (1997-2002) and 5.52% in the 10* FYP period (2002-07).

Finance Minister meets Governor ahead of budget session

Ahead of the budget session, Minister for Finance and Ladakh Affairs Abdul Rahim Rather today met Governor N N Vohra and discussed important issues relating to revenue and financial management.

Rather called on the Governor at Raj Bhavan here today and during a more than one hour wide-ranging meeting, they discussed important issues relating to taxation, revenue and financial management.

Rapid socio-economic development of the state and various aspects of Registration and Stamp Duty regulations were also discussed.

State Chief Information Commissioner (CIC) G R Sufi also called on the Governor at Raj Bhavan and briefed him about the progress of implementation of the J and K Right to Information Act for furthering the interests of good governance.

Sufi also briefed the Governor about the measures being taken by the Commission for enlarging awareness among the people about their rights under the Right to Information Act, 2009.

3 CNG stations in J&K soon
Rail services suspended in valley
President on 2 day visit to Jammu

Jammu and kashmir budget 2012 13 on Mar 5

Minister for Finance Abdul Rahim Rather will present state’s annual budget for the year 2012-13 on March 5.According to the provisional calendar issued by the Assembly Secretariat today for the ensuing budget session commencing from February 23 in the winter capital, there will be total 26 business days.

The session will begin with the Governor’s Address on February 23 at 10.30 AM and it will be followed by discussion on Motion of Thanks on the Address. The Government Business will be taken on February 24,25,27,28, March 1 and 30.The Annual Financial Statements of Expenditure for the year 2012-13 will be presented on March 5. The discussion on the budget will be held on March 6 and 8. The Demands for Grants will be taken on March 10, 12, 13, 14, 15, 17, 19, 20, 22, and 24.The Private Members’ Resolution will be taken on February 29 and March 28. The Private Members Bills will be considered on March 27 and 29. Similarly the Appropriation Bills will be taken on March 26.Meanwhile in view of the ensuing budget session, the Council Secretariat has requested the members to furnish not more than 15 starred and 10 un-starred questions and 5 Bills on or before January 30, 2012.Similarly, the members have been asked to send 4 resolutions by or before February 6, 2012.

Economic crisis in India

There is more bad news for the Indian economy. The deepening banking sector crisis is the latest pointer to economic mismanagement. The global rating agency Moody's has downgraded the outlook for 15 Indian banks from stable to negative. It further states that the asset quality of various lenders could worsen in the next 18 months owing to high inflationary pressure, monetary tightening and interest rates.

This is a clear warning to the managers of the economy to initiate steps for managing it better so that inflationary pressure could be brought down and more money could flow into the legal instruments.

However, a day later, the S&P came out with a rating that says that the banking sector remains "stable". At the same time, it stated that India has a "high risk" in "credit risk in the economy" - a statement that is not different from Moody's. The S&P's statements though diplomatically worded are not very different from Moody's assessment. The 15 commercial banks account for about 66 per cent of the system's total assets as of March 2011.

The basic question the two global rating agencies are raising is that of the Indian banking sector's viability. This apart there is an indirect reflection on its ethics. So far, the banking sector in the country has withstood some of the worst economic crisis, including the Harshad Mehta stock scam and the UTI scam.  However, during those days nobody raised the question of the banks' viability as is being raised now. 

Clearly, a viable banking sector reflects the quality and safety of assets that people entrust with it. Its erosion has grave consequences. The estimated banking penetration in India is about 45 per cent among middle and high income groups and less than 5 per cent among the low income segment.

Expanding the reach of banking services is critical for tapping the country's savings and investments. Microfinance institutions have been partly effective in tapping rural savings, 41 per cent of which are held as cash according to the National Council of Applied Economic Research (NCAER) estimates. All this   indicates that either the people do not have access to banking or they do not trust the system.

Importantly, there are a few aspects that have been affecting the banking sector. Locking of bank's money -- about Rs 300,000 crore -- in infrastructure, particularly power, projects has dwindled its asset strength. Additionally, the small savings is not attracting money. In the first three months of this fiscal alone, it came down by a whopping Rs 22,000 crore. Worse is the linking of bank deposits with the Government's tax system - a measure to check so-called tax evasion or creation of black money. Sadly, this is one of the most ill-advised moves.

Not only has the Government failed to bring in reforms and structural changes in the tax system, it has forgotten that tax had evolved as a voluntary contribution for the development of society. Regrettably, the bureaucracy has made it oppressive and criminalised it too. This, notwithstanding that a default in tax payment does not amount to a criminal offence, leave aside perhaps even an offence!

However, this is how it was conceived and the bank deposits were brought under the ambit of income-tax net. Some considered it a prudent move. But what the Government did not realise was that it was doubly taxing the same income. Undeniably, it is an imprudent move as many of the small depositors and even the business class prefer to keep their money in other instruments or say lockers to prevent erosion of their assets.

This has caused a massive flight of capital from the banking sector. And, the Government has been repeatedly failing to achieve what it desires i.e. bringing out all the money in the legally transacted system. Recall that in the late 90s, following a few voluntary disclosures and some easing of rules, the banks had witnessed an increase in their deposits.

But as bank depositors were being chased by the tax system, many with so-called black money preferred to withdraw their cash. Mores so, as there was a lingering fear that the taxation department would seize their accounts and put their hard-earned money out of reach. Despite several pleas by the people and even bankers, the Government has yet to amend its rules and allow the banking sector a free path for growth.

The nationalised bankers committed yet another blunder. They hiked the cost of their services exorbitantly and introduced imprudent practices. Take the case of a bank draft. It is issued at a charge that has almost trebled in the last ten years. This apart, earlier there was no charge on cancellation, but now say a Rs 100 worth of draft would invoke a cancellation penalty of Rs 80. Who would like to use such usurious system?

The latest rule for reducing the term of validity of cheques to three months instead of six is another blunder. If the Government wants the banks to survive, it must remove all such clauses that impact their functioning. Let the people put money in banks and help the system grow, rather than flee from them A few dimes of tax are preferred as forgone instead of losing thousands of crores of deposits.

The tax deduction at source (TDS) on bank deposits, which is a double penalty on the depositors, must also be done away. This would open up channels for flow of deposits and as a result, the Government would not have to recapitalise the ailing banks to the extent of Rs 450,000 crore. This apart, the large corporates, would be encouraged to leave their deposits in the bank and not seek credit as they now do because of the TDS. Worse, they default on the payments and thus force the Government to bail out the banks, by utilising the tax payers' money. 

   

A question which also arises is: What is the harm if black money resuscitates the system? The so-called bad money, much of it with the farming class and corporate, can be used for a good cause. Why can't the Government rethink its economic strategies?

It also needs to reopen discussion on Direct Tax Code (DTC) to bring down the tax rates and ease rules. It should realise that its fiscal deficit has not and cannot be met by high tax rates. Instead, a lower tax rate with bigger contribution from a larger number of people could do wonders.

Clearly, banks should not become victim of odd policies. At the same time, they need to rethink their strategy and reduce the high user charges. Parallel systems develop as charges rise and if they do not act prudently, it would only strengthen the latter. At the end, Moody's may have the last laugh.  

Traders meet in Poonch

For the first time after suspension of trade for four months, traders of both sides of divided Jammu and Kashmir today settled their accounts and urged governments of the two countries to increase the trading days as well as the number of goods, during the traders meet organised by the authorities here at Rahe Milan, Chakkan-Da-Bagh.

The traders from Pakistan administered Kashmir, however, initially decided to suspend the meet as the three most prominent defaulting traders were not present there but later with mutual understanding the meeting was carried out peacefully. PAK traders have submitted a list of 31 defaulter traders to Indian authorities while Indian traders submitted a list of 17 defaulter traders to PAK authorities and it was unanimously decided to bring all of them in this traders meet so that their accounts were settled and they get their due payment from the defaulter traders.

105 traders of J&K and PAK today converged on Chakkan-Da-Bagh and debated various issues connected with growth and strengthening of LoC trade in the backdrop of Indo-Pak foreign ministerial level talks.

The traders on the two sides also exchanged the list of the defaulting traders who had failed to clear their dues, they said.

Indian traders demanded enhancement in the number of trucks, giving list of disputed parties, trader to trader trade and five days permits for the traders to survey the markets of other country. Traders also demanded Indo-PAK governments intervention in boosting cross LoC trade as according to them there is no profitable item being imported or exported.

Traders Pawan Anand, Krishan Singh, Amin Magrey, Rajinder Vaid welcomed the decision of both the governments for enhancing the number of days from two to four. They, however, regretted that their was no benefit for enhancing number of days as there was a list of 21 items for cross LoC trade which was decided to be enhanced but instead of enhancing these, authorities have banned some profitable items on the excuse of their packing. They urged upon both the governments to solve the problems of traders of both sides as they are running this trade just to improve relations with each other and not to earn profits. They also demanded traders list of PAK traders from PAK as the authorities did not provide the same to them.

The traders of both the sides expressed their satisfaction over the outcome of the talks and urged governments of India and Pakistan to increase the number of trading days and also increase the number of the trade items of the LoC trade.

The meeting was organised under the supervision of Abdul Hamid Custodian Cross LoC Trade and Kuldeep Raj TFO Poonch while  Mirza Arshad Jaral ADC Tetrinote  supervised traders meet from PAK side in the traders meet.

A total of 105 traders including 49 from Indian side and 56 traders from PAK side participated in the traders meet.

Official reports said that more than three traders settled their accounts which were pending from last more than one year.

Pak trader Choudary Mufti Basarat, Mohammad Hafiz, Mohammad Akbar, Zardar Abbassi, Mohammad Raza told KTNS  there was need of trader to trader trade so that the middle man are shunt out from this Cross LoC trade. They alleged that some Indian traders have blocked their payments and they requested Indian authorities to provide their money to them so that they will further carry on this trade.

“We have brought a ten point formula for smooth functioning of this trade which must be supported by Indian counterparts,” they said, extending support to their Indian counterparts on the issue of providing traders permits by the authorities of both sides.

After the meeting Abdul Hamid Custodian Cross LoC Trade told KTNS that today he have got a list of 8 defaulter traders from PAK and he will ask them to attend the next traders meet. To a question of three main defaulters, he said that legal action will be taken against them.

The meeting started at 12.55 PM and culminated at 4.45 PM.

J&K Bank Bengal Tools ink pact

Committed to boost agriculture in the J&K state by making organized finance facility with superior features available to the famers, J&K Bank signed a Memorandum of Understanding (MoU) with Bengal Tools Ltd. (BTL), a Shrachi Group company engaged in manufacturing of power tillers, reapers and power weeders, here at Bank’s Corporate Headquarters  today.

R K Shah, BanK’s Vice-President for Strategy & Business Development signed the agreement on behalf of the J&K Bank while A K Tomer, Chief Operating Officer (Marketing) put in his signatures on behalf of the BTL, in presence of Tafazal Hussain, Bank’s President.

In his address, Tafazal Hussain described the pact as a step towards modernizing the farming in the state of Jammu and Kashmir. “J&K Bank, sticking to its tradition and commitment, has entered into this tie-up to boost farm mechanisation and provide hasle-free and viable financial assistance to the people directly associated with the agriculture sector”, he said.

Emphasizing on the need to apprise the farmers about the advantages of using these state-of-the-art machines, Tafazal said, “The purpose of the tie-up will be served only when you have an informed farming community eager to adopt technology and well aware about its efficiency and potential to enhance productivity”. He stated that awareness camps shall be jointly organized at major rural centres in this regard.

R.K Shah hoped that the pact would help the Bank reach aspiring farmers across the state. “J&K Bank would be extending finance to these agriculture equipments under JK Bank Kisan Dost Finance, a highly customized and hasle-free product”, Shah said.

A K Tomer expressed hope that the vast network and wide reach of J&K Bank will ensure these farmer-friendly products reach farming community across the state and help them enhance productivity. “The tie-up with J&K Bank was preceded by a thorough reasearch on J&K state, its financial landscape and its agrarian potential with special reference to viability factor”, he said.

4th Tawi Bridge

Cabinet approves 4th Tawi bridge

The state cabinet today accorded administrative approval to the construction of 4-lane pre-stressed concrete bridge (4th Tawi Bridge) downstream of the existing bridge over river Tawi at Jammu at an estimated cost of Rs 147 crore.

The cabinet also gave nod to the enhancement of lifelong pension from Rs 1000 to Rs 2000 per month in favour of electric shock victims Ravi Kumar and Rinku Jee Bhat. It was desired that any pending cases of electric shock victims be also brought for consideration of the cabinet by the revenue department.

The cabinet approved creation of a special court for trial and disposal of the cases investigated by CBI in the state and creation of 13 posts of different categories.

It also sanctioned re-employment of Sobha Ram, ex-joint director, hospitality and protocol department on contract basis for a further period of six months from July 1, 2011.

22,000 candidates to appear in JKCET

As many as 22,000 candidates are appearing in Jammu and Kashmir Common Entrance Test (JKCET-2011) scheduled to be held from Saturday for which the Board of Professional Entrance Examination (BOPEE) has set up 35 centres across the state.

 The test would be held for 2-days in four phases with two papers in one day for selecting candidates for MBBS, BE, BDS, BVSC and other allied professional courses run by the government and private institutes in the state.

 Officials said that about 12,000 candidates from Kashmir division and 10000 from Jammu are expected to appear in the test. About 19 centers have been established in Jammu, while 16 have been set up in Kashmir.

 On June 25, candidates will appear for Chemistry and Physics papers while on June 26, test would be held for Biology and Mathematics. 

 Sources said that Crime Branch and General Administration Department (GAD) have deputed special observers to keep impersonators at bay.

 Giving details about the arrangements made for keeping a check on any type of unfair means, the Controller examination, Gopal Gupta said that fool proof measures have been put in place. “So far everything is running smoothly”, Gupta said.

 He said that as an added security measure, the BOPEE, for the past few years, had made it mandatory that each candidate who appears in the test has his photograph attached with the answer sheet. “We are in constant touch with the police department and have sought their help to keep a watch on the undesirable elements”, he said.

 Pertinently, during last years a few impersonation cases were detected in the entrance test conducted by Batra Medical College, which holds separate test for the MBBS course run by the trust. Officials said that to help students to know about their performance, they would be provided with the carbon copies of the answer sheets after the completion of the test. “Answer key will be uploaded on the website on June 26,” officials added.

Patwari in net

Revenue official falls in vigilance net

State Vigilance Organiza¬tion (SVO) has caught red handed Mehraj-ud- Din Ganai son of Mohammad Akram Ganai of Tahab Pulwama, Patwari Halqa Gangoo, while demanding and accepting bribe of Rupees 30,000 from a complainant.

According to official handout, Nazir Ahmad Wani, had lodged a written complaint with Police Station Vigilance Organization Kashmir Srinagar, stating therein that his father had one kanal of land situated at Gangoo Pulwama, who wanted to dispose it off.

Subsequently, the complainant on behalf of his father was planning sell out the land to Abid Ahmad Reshi son of Ab Aziz Reshi of Letpora Pulwama.

The complainant further added that he on behalf of his old father had moved an application for the issuance of revenue extract (Fard Intikhab) to Tehsildar concerned and had deposited the due amount of fee of Rs 200 in the Government Treasury.

“The concerned Patwari namely Mehraj-ud-Din Ganai on receiving the application duly endorsed by Tehsildar Pulwama demanded an amount of Rs 1 lakh but after great persuasion, the deal was struck for Rs 70,000,” Wani wrote in his complaint.

Subsequent to this the complainant alongwith said Abid Ahmad Reshi went to concerned Patwari with the request to deliver them the revenue extract. However, Patwari instructed them that he will deliver the revenue extract, (Frad-intikhab) to Abid Ahmad Reshi only once he pays the money. However in pursuance to the struck deal, an amount of Rupees 30,000 is to be paid to him today.

On the basis of the complaint Case FIR No. 11/2011 u/s 5(2) P.C Act r/w Section 161 RPC P/S Vok was registered and investigation taken up.

During investigation the officials of State Vigilance Organization organized a trap and accused Mehraj-ud-Din Ganai was caught red handed while demanded and accepting bribe of Rs 30,000 at his home from the complainant in the presence of independent witness. The tainted bribe money was recovered and the accused was taken into custody for further investigation.

Hike in Prices

Steep hike in diesel, kerosene, LPG prices

In a steep hike, the Government today increased diesel price by Rs 3 per litre, domestic LPG by Rs 50 per cylinder and kerosene by Rs 2 per litre and slashed customs and excise duties on crude oil and products, sacrificing Rs 49,000 crores in revenues.

The increase, decided at a meeting of the Empowered Group of Ministers (EGoM) headed by Finance Minister Pranab Mukherjee, is exclusive of local sales tax, Oil Minister S Jaipal Reddy told reporters here.

Diesel price in Delhi will be hiked by Rs 3.40 per litre to Rs 41.15 a litre with effect from midnight. Rates will vary at cities due to differential rates of VAT/sales tax.

Besides the price hike, the EGoM decided to abolish the 5 per cent customs or import duty on crude oil, and slashed the same on diesel and petrol by 2.5 per cent from 7.5 per cent. Also, excise duty on diesel was cut from Rs 4.60 per litre to Rs 2 a litre.

Reddy described the hikes, which had become necessary in view of a rally in international crude oil price, as "very modest and minimal".

The decision to cut customs duty on petrol also meant that the Rs 1.98 per litre hike needed to level retail prices with their cost would no longer be required, he said.

The reduction in excise duty on diesel would lead to a revenue loss of Rs 23,000 crore this fiscal, while in the customs duty cut the government will forego Rs 26,000 crore. The price hike would help the oil companies limit their revenue loss by Rs 21,000 crore, but they still would end the fiscal with about Rs 1,20,000 crore of revenue loss.

Oil Secretary G C Chaturvedi said the hike in price of diesel would add 0.3-0.4 per cent increase in inflation which is already hovering around 9 per cent, more than twice the rate in the US and almost four times of Germany's.

Asked about the political fallout of the hike, Reddy said, "Political problem will always be there. Economic problem will not wait for solution to political crisis."

Despite a steep hike of Rs 50 per cylinder in LPG rates, which equals Rs 50.55 increase by the then NDA Government led by Atal Bihari Vajpayee Government in March, 2000, domestic cooking gas will still be cheaper compared to that in the neighbouring countries.

LPG in Pakistan costs Rs 611.40 per cylinder, Rs 484 in Bangladesh, Rs 878.90 in Sri Lanka and Rs 821 in Nepal.

Similarly, the Rs 2 per litre hike in kerosene price, which comes on the back of last year's Rs 3 per litre raise, would raise rates in Delhi to Rs 14.32 per litre, still cheaper than Rs 43.95 in Pakistan, Rs 27.81 in Bangladesh, Rs 25.12 in Sri Lanka and Rs 42.61 of Nepal.

"I am sandwiched between economist on the one hand and populist on the other. Economist will say why only Rs 2 per litre increase in kerosene, while the populist will say why did you increase by even Rs 2 per litre," Reddy said. "Consumers can easily absorb the hikes announced today."

Asked how he managed to convince the Finance Ministry to forego revenues in a difficult year, he said, "I will not give you a glimpse into my kitchen. I will only serve the dishes."

"The only inflationary item is diesel. The hike is minimal," Reddy said, adding the basket of crude oil India buys has averaged USD 113 per barrel this quarter as against USD 75 per barrel at the time of last increase almost a year ago.

Today's hike in diesel and LPG rates, the first in almost a year, comes on back of last month's steep Rs 5 per litre increase in petrol price to Rs 63.37 per litre in Delhi.

The same EGoM had a year ago freed petrol price from government control and since then they have risen 23 per cent.

The current price of Rs 63.37 a litre in Delhi was short of its cost by Rs 1.98 per litre but the cut in customs duty has negated the required price increase, he said.

The increase in price of diesel, the most used fuel in the country, will stoke inflation. Diesel is the preferred fuel for transportation in the country and an increase in tis price will lead to increase in transportation cost of almost all commodities. It has a 4.7 per cent weight in the benchmark wholesale-price index and petrol 1.1 per cent.

State-owned fuel retailers were losing Rs 456 crore per day on selling diesel, domestic LPG and kerosene at Government controlled rates before today's decision.

Chaturvedi said oil firms were losing Rs 13.72 per litre on diesel and the price hike together with customs duty and excise duty cut would lower the revenue loss to Rs 6.22 per litre. Similarly, they were losing Rs 26.66 per litre on kerosene and Rs 381.14 on every 14.2-kg domestic LPG cylinder.

"There still will be under-recoveries (losses) even after the price hike and duty cuts," he said. 

survey on employment

Sample survey on employment, unemployment to begin on July 1

Secretary, Planning and Development Department G R Bhagat today inaugurated 4-day training programme in the conference hall of Directorate of Economics and Statistics.

The Jammu Regional Office of NSSO (FOD) in collaboration with Directorate of Economics and Statistics is organizing the programme from June 21 to 24 on 68th Round of NSS, which has been earmarked for surveys on ‘Household Consumer Expenditure’ and ‘Employment, Unemployment’ in Jammu and Kashmir.

The sample survey will start from July 1, 2011 and will continue up to June 30, 2012.

The workshop was attended by Sher Singh, DDG, NSSO (FOD) Jammu, B R. Lachotra, Director E&S, J&K and Kishore Kumar, Director, National Sample Survey.

Regional Joint Director, Kashmir M. Ismail Teli welcomed the Central/State dignitaries and other participants. F. A. Yasvi, Joint Director (E&S), Altaf Hussain Haji, Deputy Director, NSSO and DSEO’s of Kashmir Province also participated in the training programme. G. A. Qureshi, Ex. DG E&S also participated in the workshop.

The basic objective of the employment unemployment survey is to get estimates of the employment and unemployment characteristics at State/National level. The statistical indicators on labour market are required for planning, policy and decision making at various levels both within State and outside. Another main objective of consumer expenditure is to find out Monthly Per Capita Expenditure (MPCE) which acts as an indicator of living.

While speaking on the occasion, the Director DES appealed the public of Sample villages/Urban areas to come forward and provide the actual data. He advised the field investigators/Statistical Officers to take the training programme seriously and build an authentic data base which is very important for economic well being of the State.

The dignitaries of NSSO discussed the technicalities involved in filling up of schedules devised for the purpose. They advised the participants to carry out the survey with dedication and devotion.

NHPC to invest Rs 2400 cr in J&K

NHPC to invest Rs 2400 cr on 3 JV projects in J&K

Power utility NHPC today said it will invest Rs 2,400 crore on setting up three projects in J&K under a joint venture with Jammu & Kashmir State Power Development Corporation and PTC India.

The joint venture entity—Chenab Valley Power Projects Pvt Ltd—will implement three projects having a total capacity of over 2,100 MW. These are: Pakal Dul (1,000 MW), Kiru (600 MW) and Kwar (520 MW).

"The total investment to be made by the joint venture firm will be around Rs 15,000 crore. NHPC’s equity contribution toward the entity will be around Rs 2,400 crore," NHPC Chairman and Managing Director A B L Srivastava said in an interview.

He said the joint venture company’s first project—Pakal Dul—is expected to be complete in six to seven years.

The three projects will be funded in a debt-equity ratio of 70:30.

Chenab Valley Power Projects was incorporated earlier this month.

In December 2010, Jammu & Kashmir State Power Development Corporation, NHPC and PTC India had inked a promoter’s agreement for setting up the new entity.

Jammu & Kashmir State Power Development Corporation and NHPC would have 49 per cent stake each in the joint venture firm, while the remaining shareholding would be with PTC India.

Out of NHPC’s installed capacity of about 5,300 MW, over 1,600 MW comes from J&K.

The company is presently operating four projects in J&K, having a total capacity of 1,680 MW. These are: Salal (690 MW), Uri-I (480 MW), Dulhasti (390 MW) and Sewa-II (120 MW).

The State-run firm plans to add another 690 MW of capacity by commissioning five projects—Chutak (44 MW), Uri-II (240 MW), Chamera-III (231 MW), the first unit of Parbati-III (130 MW) and Nimmo-Bazgo (45 MW) -- by March, 2012.

Currently, NHPC—the country’s largest hydro electric power producer—is engaged in the construction of 10 projects at various locations in the country, having a total installed capacity of 4,502 MW.

Govt mulls rope connectivity for agriculture areas

Minister for Agriculture Ghulam Hassan Mir on Monday said that the Agriculture Department has taken up ropeway project for connecting the highly productive but inaccessible areas of Kishtwar to facilitate better and timely marketing of the vegetables especially the Kharif season peas, other agriculture crops and fruits.

Interacting with the farmers and officers of the department, Mir said that the project envisages connectivity of the highly productive but inaccessible areas of Kishtwar including Padder, Ligrie, Chitto, Ungai, Kabban so that the produces, especially the Kharif season peas, other agriculture crops and fruits reach the market in shortest possible time in fresh condition and without any bruises, blemishes or spoilage.

He disclosed that an amount of Rs.155 lakh is being utilised for construction of ropeway carriage system between Sohal to Kabban under RKVY Scheme and added that the project will soon be implemented.

The Agriculture Minister, who is on a tour to the district, visited saffron growing areas including the Saffron Development Farm of Department of Agriculture at Berwar, Poochal and other adjoining areas.

The minister highlighted various initiatives taken by the department to improve the farming practices and the living standard of the farmers of this resourceful but under developed part of the State.

He said that whereas the town and surrounding villages of Kishtwar were famous for quality saffron production, the higher hills had a great potential for organic production of vegetables and other crops particularly during the season when there is a scarcity of such items in the hot plains. He said the farmers of the area can get premium returns of their produce provided efficient connectivity is ensured.

Referring to the National Mission of Saffron, Mir said that an amount of Rs. 322.90 lakh has been earmarked for economic revival of the saffron sector in the district during current financial year.

“An area of 20 hectares is envisaged for rejuvenation through provision of quality planting material”, he added. He asserted the Saffron Development Farm at Berwar is proposed to be covered to the extent of 8 hectares.

Besides, all possible steps shall be taken to meet the critical requirement of water to the saffron crop at its critical growth stages to facilitate productivity enhancement to more than 5 Kgs per hectare as against the existing less than 3 Kgs per hectare.

The minister directed the agriculture officers to prevent any encroachment/ construction on the saffron land and bring every such instance to the notice of concerned district authorities and follow up the same vigorously to ensure that the saffron land is not converted to non-agricultural purposes.

He impressed upon the Agriculture Officers and extension functionaries of the Department in Kishtwar District to remain agile and work with dedication to take the improved technology to farmers’ door steps for their betterment.

Earlier, while talking to the farmers at Thathri, the minister directed the agriculture officers to hold awareness camps at Panchayat level and also appoint dealers for sale of seeds and fertilisers in each Panchayat.

The Director of Agriculture Jammu Ajay Khajuria who was accompanying the minister gave a detailed account of developmental activities implemented by the department under various schemes.

The Chief Agriculture Officer Kishtwar, Saffron Development Officer and other officers and functionaries of the department were also present during the visit. 

Omar to Investors

Omar woos investors; asks CII to shun mindset

Calling for a substantial change in the mindset of investors regarding Jammu and Kashmir, Chief Minister, Omar Abdullah on Saturday said that there are places more uncertain than Jammu and Kashmir where investors do invest but are reluctant to come here.

Addressing a joint meeting of the Confederation of Indian Industry (CII) and top ranking officers of the State Government here, he asked CII to take concrete steps in this regard and break the ice on ground.

“I am keen to see CII members starting ventures in the State and playing their important role in generating wide-ranging economic activities for the youth. For last two and half years we have had so much meetings and deliberations with regard to absorption of J and K youth in private job market by enhancing their skills and employability. Now is the time that ground breaking takes place in this regard”, he said and stressed on CII to be instrumental to help PPP mode projects in the State.

“We are ready to provide you package of incentives and satisfy your queries and apprehensions regarding investments in the State, especially in the Kashmir division”, he told CII adding that there are more uncertain places in the country than Kashmir where investors are investing. He asked CII to help change the mindset of investors regarding venturing upon in the State.

Omar welcomed the survey, analysis and reports prepared by CII and its associate companies for enhancing employability of youth and giving fillip to the skills development. “Your efforts are a welcome step and the suggestions you have made would be given due weightage by the government. We are keenly eager to make necessary dent in this sector to address large scale unemployment problem in the State”, he said adding that something concrete needs to be done by CII by participating with the State Government and local players to do the practical job on ground.

“I would like you to regularly organise talent hunt camps in the Universities and select the boys and girls for trainings and courses suit to your companies”, he said underlining the urgency for providing opportunity to educated youth to prove their talent. “At the end of the day my aim is to ensure maximum jobs to youth in the private sector as government is not in a position to absorb everyone”, he said adding that in this stupendous task the private investors have to be positively involved.

The Chief Minister asked CII to send their special teams to the State for placements in the universities, the government would provide you every facility to reach out them in every areas of the State.

“Our youth are more talented, capable and delivering which you have yourselves observed during the interaction sessions with boys and girls of Jammu and Kashmir in various higher educational institutions”, he told them calling for a comprehensive and result-oriented strategy by the CII and other such organisations to give exposure to these young persons.

Chairman CII Northern Region, Vijay Thadani, Chief Executive Officer, NIIT, Raju Choudhary, CII Head Jammu and Kashmir State, explained the salient features of the two reports prepared by CII regarding the skills development in Jammu and Kashmir State and enhancement of employability of educated youth.

A report regarding the potential for investment in the cold chain sector was also presented to the Chief Minister. The local investors who are the members of CII also presented their view point on the subject and shared their experiences in the field.

The meeting was attended by Minister for Industries, S.S Salathia, Minister of State for Cooperatives, Manohar Lal, Chief Secretary, Madhav Lal, Principal Secretary to the Chief Minister, B.B Vyas, Commissioner Secretary Industries, Umang Narula, Commissioner Secretary Tourism, Atul Dullo, Commissioner Secretary, Youth Services and Sports, B.A Runiyal and other senior officers.

International team arrives to inspect Kishanganga

A 10 member team of International court of Arbitration, accompanied by Indo Pakistan delegation, arrived here today on a four-day tour to inspect the under-construction Kishanganga Hydropower and storage project near the Line of Control (LoC) in Gurez sector.

The international team alongwith 10 member delegation of India and nine-member team of Pakistan headed by their respective Indus Water Commissioners is scheduled to inspect the 330-MW project in Bandipora district tomorrow, official sources told here.

They said the high-level delegation arrived through the ‘Aman Sethu’ (peace bridge) in Uri sector along the Srinagar-Muzaffarabad road which was thrown open for weekly bus service to enable divided families to meet each other in April, 2005 as part of confidence building measure in the wake of composite dialogue between India and Pakistan.

Kishanganga hydropower project is being build on Kishanganga river, a tributary of river Jhelum which flows into Pakistan, and was objected by Islamabad claiming that the project violates Indus water Treaty reached between the two countries.

India has maintained that the project was being built in accordance with the 1960 Treaty which allows New Delhi to undertake construction of power projects on the three major rivers flowing into Pakistan from Kashmir.

The work on the power project started in 1994 but could not be completed till date due to the objections raised by Pakistan. All attempts to reach out a bilaterial settlement failed.

New Delhi is determined to complete the project in February, 2014. 

J&K gets Rs 6600 cr plan

In a significant achievement for Chief Minister Omar Abdullah headed Government, the Planning Commission (PC) today approved the State’s annual plan at Rs 6600 crore and Prime Minister’s Re-construction Plan (PMRP) at Rs 1200 crore for current financial year of 2011-12. The amount was exactly the same, which had been asked for by the Government from the Commission.

"Had an excellent meeting at the Planning Commission. The State’s plan has been fixed at Rs 6600 crore and the PMRP at Rs 1200 crore’’, Mr Abdullah announced after a two hour long meeting with Deputy Chairman, Planning Commission, Montek Singh Ahluwalia, all Commission Members and its Secretary in New Delhi this evening.

"Very heartening to hear the all round praise and appreciation for the people of Jammu and Kashmir from the Planning Commission for their participation in the Panchayat elections’’, Omar said.

Finance Minister Abdul Rahim Rather, who had projected the State’s annual plan for 2011-12 in current financial year’s budget at Rs 6600 crore and PMRP at Rs 1200 crore, was present in the meeting along with top bureaucrats of the State including Chief Secretary Madhav Lal, Economic Advisor Jaleel Ahmed Khan, Principal Secretary to Chief Minister BB Vyas, who also holds the charge of Planning Department, Principal Secretary, Housing and Urban Development Department, Suresh Kumar and Commissioner/Secretary, Finance, Sudanshu Pandey among others. Union Minister of State for Planning Ashwani Kumar was also present in the meeting.

On the funds under Centrally Sponsored Schemes (CSS), the Planning Commission said it would be "more than Rs 500 crore’’ as asked by the State Government. However, a decision on formal approval of the funds under the CSS would be taken in the next few days.

In addition to CSS, the State this year would also become eligible for over Rs 400 crore, which had been blocked for past several years in the absence of Panchayats. The Planning Commission while strongly appreciating the State Government for holding Panchayat elections in the State after a long gap and a huge turnout by the electorates promised to get the blocked funds for the Panchayats released. The Commission hoped that the State would also set the process of Urban Local Bodies into motion after completion of Panchayat elections this month to get more funds.

In two hour long meeting with the Planning Commission in the Union capital that started at 3.30 pm, Omar Abdullah gave over half an hour long presentation on requirements of the State for current financial year. He said despite disturbed conditions in the Kashmir valley for some months last year, the State was able to spent 93 per cent of the highest ever plan amount of Rs 6000 crore during 2010-11.

This made a strong case for a 10 per cent step-up in current financial year’s annual plan, as projected by the State Government.

The Planning Commission agreed to 10 per cent hike in the plan and sanctioned Rs 6600 crore for the State for the current year. Similarly, it approved Rs 1200 crore for the State under the PMRP. The PMRP amount was same to the one granted to the State last year.

The State would have Rs 7800 crore under annual plan and PMRP for development works in the State this financial year besides the CSS amount and other funds available to the States from the Central Government including the funds directly available to Panchayats and Local Bodies.

Omar said the increase in plan allocation would help the State in its efforts to decentralize the financial powers to the local bodies.

"This, for us, is the year during which we hope to devolve the maximum amount of power to the grassroot. We conclude the Panchayat elections this month. We expect to have elections to the urban local bodies in the autumn of this year.

"So that by the end of this year, we have the third tier of the Government, not only in place but made fully functional as well," the CM said.

He said the railway link work was going on in the State.

"We hope that sometimes next year, the tunnel under Banihal Pass would be completed and therefore, Jammu will be joined to Kashmir...I think by joining tracks to Katra from Jammu will take a little longer time," Mr Abdullah said.

He said that the two-mega infrastructure projects on Jammu-Srinagar rail link and four-laning of Jammu-Srinagar national highways were in progress.

"The completion of this project would add enormously to the quality of connectivity between Kashmir valley and the rest of the country," Mr Abdullah said.

Mr Ahluwalia appreciated the efforts of the State Government towards improving the infrastructure and basic services. He said appreciable improvement has been noticed in health, education and drinking water sectors.

The Plan panel chief said that policy initiatives aimed at further improving public private partnership in the development of both physical and social infrastructure were needed. He pointed out that the infrastructure gaps could be bridged much faster with investor friendly approach.

"The successful elections to the Panchayats has been quiet outstanding...The Jammu and Kashmir Cabinet has approved the appointment of the State Finance Commission, which will carry through the next stage of actually devolving financial powers to the newly elected bodies.

"That’s an act of historic importance," Ahluwalia said after the meeting.

Abdullah asked the Centre to raise the issue of negative travel advisories issued by Western countries to boost tourism in the State.

He also sought introduction of an upper ceiling in airfares for flights to the State during the tourist season and demanded operationalisation of international flights from Srinagar airport.

According to a statement by the State Government on Abdullah's meeting with Planning Commission Deputy Chairman Montek Singh Ahluwalia today, the CM said tourism was a major economic activity which could become the vehicle of change.

"He pointed out that a number of difficulties are faced by the State Government and suggested withdrawal of negative advisories issued by Europe and America... Operationalisation of international flights from the Srinagar airport and commencement of morning-evening flights from Srinagar," it quoted Abdullah as saying during the meet held to finalise the plan allocation for Jammu and Kashmir for 2011-12.

Besides, the Chief Minister favoured opening of the Leh-Damchuk route for the Kailash Mansarovar Yatra and need for upper ceiling in airfares to the State to boost tourism.

He also hoped for larger tourists arrivals in the State on account of improved security situation during the peak tourist season.

"Year on year, unfortunately as a result of last year's trouble, we have seen about one lakh less tourists arrival this year than we did last year... Now that the season has stabilised, we hope that to continue," he told reporters after the meeting.

Asked about the security scenario in the State, Omar said "it's not something we talk about very much for obvious reasons because the mistake is often made of correlating tourism with normalcy."

"Tourism is actually one of those areas of the economy which puts money into the people's pockets and we are hoping that this season goes off well," the CM added.

According to official data, the State had received about 1.29 crore visitors in 2010.

Speaking about the matter, Union Minister of State for Parliamentary Affairs and Planning Ashwani Kumar said "this summer, as far as the flow of tourists is concerned and normalcy is concerned, it has been excellent (for J-K)".

During today's meeting with Ahluwalia, Omar suggested a series of initiatives to increase tourist inflow into the State.

A whopping amount of Rs. 900 crores has been earmarked to access the Central share of Rs 3400 crores also, Omar said.

The Chief Minister while thanking the Planning Commission for its continued support to development process in J&K stressed on timely release of funds ensuring time-bound implementation of schemes.

The Chief Minister raised a number of pressing concerns particularly release of funds for meeting the rehabilitation cost of the Dal dwellers amounting to Rs 356 crore and also requested for financing the Management Action Plan for the Wular lake. He also stressed on de-linking the release of withheld funds under JNNURM to achieve the specific benchmarks relating to urban reforms; as the State Government has already worked out a comprehensive roadmap for urban reforms and initiated a number of measures for its implementation.

Explaining that revitalization of the credit institutions was central to the development process, the Chief Minister sought financial assistance of Rs150 crore for rejuvenation of J&K State Financial Corporation in terms of recommendations of the Task Force and Committee headed by Dr. C. Rangarajan. He also requested release of Rs 100 crores Corpus Fund for Micro, Medium and Small Enterprises.

The Chief Minister strongly pleaded for the relaxation of norm of population of 100 per hamlet and distance 0.5 km for LT extension under RGGVY. He also sought full financing support under Rashtriya Krishi Vikas Yojna to give impetus to the agriculture sector.

Finance Minister Abdul Rahim Rather said the Planning Commission was apprised that the State Government has hired the services of an independent company—NABCONS for third party monitoring of development works in the State. Services of the Company have been hired in consultations with the Planning Commission, he said, adding the Company has a credible system of monitoring all development works to ensure that funds meant for the development are properly utilized.

The NABCONS has added more credibility to development works being carried out in the State, he said.

Mr Rather told the Planning Commission that tax revenue of the State has increased from Rs 2534 crore during 2009-10 to Rs 3371 crore in 2010-11 and was set to touch Rs 4200 crore during 2011-12. The Planning Commission appreciated expanding tax structure base of the State.

"We are fully satisfied with Rs 6600 crore worth plan and Rs 1200 crore worth PMRP sanctioned by the Planning Commission for the State for 2011-12. We have got what we had asked for. So there was no reason of not getting satisfied’’, the Finance Minister said, adding that the Planning Commission has assured the State that they would get "over Rs 500 crore’’ under the CSS but a formal announcement would be made in the next few days. The State had asked for Rs 500 crore under the CSS for current financial year.

While presenting annual budget for 2011-12 in the Legislative Assembly during budget session of the Legislature on March 7 had projected the State’s annual plan at Rs 6600 crore and PMRP at Rs 1200 crore.

Mr Rather said the State Government has already released 50 per cent of plan amount from its internal resources to the District Development Commissioners (DDCs) and asked them to go ahead with ongoing development works. However, the DDCs have been asked not to take up any new development work till the District Development Board (DDB) meetings are held and district plan is approved.

Out of Rs 6600 crore worth plan, the State would spent Rs 2320 crore on Social Services, Rs 946 crore on General Economic Services, Rs 931 crore on Transport sector, Rs 647 crore on General Services, Rs 472 crore on Energy, Rs 324 crore on Agriculture and Allied Activities, Rs 138 crore on Rural Development Department (RDD), Rs 364 crore on Special Area Programmes, Rs 300 crore on Irrigation and Flood Control, Rs 139 crore on Industry and Minerals, Rs 10 crore on Communications and Rs 4.5 crore on Science, Technology and Environment.

Of Rs 6600 crore worth plan, Rs 5422.25 crore would be for capital expenditure and Rs 1177.75 crore on revenue expenditure.

Out of Rs 1200 crore PMRP, Rs 358.51 crore would be utilized for strengthening Transmission and Distribution (T&D) network, Rs 191.29 crore on Mughal Road, Rs 120 crore for releasing second installment of Counter Part Fund to Asian Development Bank, Rs 14.70 crore for 10 more degree colleges, Rs 8.38 crore for five more ITIs, Rs 94.41 crore on construction of two room tenements for Kashmiri migrants, Rs 127 crore for acquisition of land under Prime Minister’s Grameen Sadak Yojana (PMGSY) roads and Rs 285.71 crore on rehabilitation of the oustees of Dal and Nigeen lakes.

Last year due to disturbances in the Valley, the State hadn’t been able to fully utilize Rs 1200 crore under the PMRP. The unspent amount has been adjusted in current year’s PMRP.

A series of rounds of inter-actions between the State Government officials with the Planning Commission have been held since January this year to give a detailed presentation of the State’s requirements for current financial year of 2011-12. Chief Secretary Madhav Lal and Economic Advisor to the Government, Jaleel Ahmed Khan, Principal Secretary to Chief Minister BB Vyas, who has been holding the charge of Planning, Commissioner/Secretary, Finance Sudanshu Pandey and other senior officers attended the meetings from the Government.

Administrative Secretaries of different departments have also given their detailed presentation to the Planning Commission. The meetings were held with Working Groups set up by the Planning Commission.

Sources said the State officials had been able to successfully project their case for a 10 per cent increase in this financial year’s annual plan over last fiscal year besides Rs 1200 crore under PMRP.

The State officials meetings with the Planning Commission were going on since January this year.

Prior to the meeting with the Planning Commission, the Chief Minister also had a detailed inter-action with Union Finance Minister Pranab Mukherjee during which economic scenario of the State was discussed.