Union Finance Minister Nirmala Sitharaman, on Monday, presented a Rs 1.42 lakh crore budget for the Union territory of Jammu and Kashmir for the year 2022-23 in the Lok Sabha amid demand by the opposition leaders, including Hasnain Masoodi, the NC MP from Anantnag in south Kashmir, that they be given time to study the proposals.
Sitharaman also presented the supplementary demands for the year 2021-22 totaling Rs 18,860.32 crore for the UT, and moved a motion seeking suspension of certain rules to allow the house to take up the discussion on the same day. Congress MP Manish Tewari objected to the motion, saying that the opposition needs adequate time for studying the proposals.
The allocation for Ladakh remained unchanged at Rs 5,958 crore for 2022-23.
The J&K budget is presented by the Centre in the Parliament after the abrogation of Article 370 and reorganisation of Jammu and Kashmir into two UTs of J&K and Ladakh in August 2019.
Most of the allocation — Rs 33,923 crore — in the budget for J&K is Central assistance. The budget has reserved Rs 273 crore as grants for rehabilitation of Dal-Nageen lake and Rs 279 crore has been given as grants towards contribution to UT Disaster Response Fund.
The budget has also allocated Rs 500 crore as support for capital expenditure of the UT and Rs 476.44 have been earmarked as grants for Ratle 800 MW hydroelectric project, and Rs 130 crore for 624 MW Kiru hydroelectric project.
Apart from announcing massive grants to power projects in J&K, the finance minister also announced the special scholarship scheme, industrial development scheme, institute of high-altitude medicinal plants at Bhaderwah, and a package under special category of states.
The budget for Ladakh has reserved Rs 135 crore for the power sector and Rs 73 .74 crore for civil aviation and tourism.
Jammu and Kashmir’s economy suffered a double jolt after the removal of Article 370 and Covid-19 pandemic. According to Kashmir Chamber of Commerce and Industries (KCCI), J&K suffered a loss of Rs 40,000 core due the situation arising out of lockdown and communication blockade. The snapping of high speed internet resulted in the closure of scores of start-ups especially in the IT sector.
To attract investment to J&K, the Centre has announced an attractive industrial policy for the creation of five lakh jobs. Several leading companies have shown interest in setting up business units in the UT. Around 400 companies, including 50 from Jammu and Kashmir, have responded to the Union territory's new industrial policy. Among the firms that have expressed interest are JSW Steel, Varun Beverages Limited, HP Kapital, Atmiya Fieldcon and Rashmi Group.
According to sources in the department of Industries and Commerce, JSW Steel has been allowed 50 kanals (6.25 acres) of land at Lassipore in Srinagar for setting up a steel plant. The J&K government is hoping to attract investment in the UT from abroad as well. Recently, the UT signed several memorandum of understanding (MoU) with several UAE companies for investment in J&K.
