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| In wait of reforms J&K over loosing Rs 2500 Crs annually | | | Early Times Report
Jammu, May 20: As Finance Minister Abdul Rahim Rather gets down with his budget making exercise, key reforms shoring up state’s economy are obviously at the back of his mind but there are certain area where Jammu and Kashmir chronically loosing out to the Center against interests of the state.
A modest estimate suggests that Jammu and Kashmir is annually loosing over Rs 2500 Crores to the Center and the neighbouring Punjab state purely overlooking some key reform areas. Power tariff is one such area where non-traditional losses are perpetual and could have been plugged in by policy reforms.
Supply of power to the Central Government departments and organizations operating in Jammu and Kashmir is one case in point. The Bharat Sanchar Nigam Ltd, for example, purchases power in Jammu and Kashmir at Rs 2.59 per unit against the market rate of Rs 7. A revision of this rate can add few hundred crore rupees in state’s kitty. While BSNL remains the major consumer, there over two dozen departments and other organizations consuming huge quantum of energy at subsidized rates.
Another area where Jammu and Kashmir has been loosing out revenues constantly is the flawed Thein Dam agreement with the Punjab government. Punjab was expected to either share part of electricity generated to Jammu and Kashmir or pay Rs 373 Crores annual to the state. Things have not worked out either side for last 30 years and the government has lacked will to pursue the case.
The Finance Minister, sources said, is working on key reform areas in his budget to improve economic profile of Jammu and Kashmir but experts believe that leaving areas of recurring losses unattended will not help in a long term.
The Finance Minister kicked off the pre-budget consultations with various stakeholders earlier this week. Reforms in recruitment rules, tackling burgeoning unemployment and tapping power generation potential are some of the issues which may find a place in Jammu and Kashmir's upcoming budget.
Rahim held a meeting with academicians, transport associations and representatives of the Kashmir Chamber of Commerce and Industry here. During the meeting, certain issues concerning the power situation of the state, agricultural productivity, implementation of e-governance among others were discussed.
The minister said everything possible would be done to boost the economy and restore confidence of major stakeholders in the state. He said even though the government has many problems at hand on the economic front, everything would be done to fulfil the aspiration of the people.
The government is committed to help vulnerable sections in coming out of the economic morass, while formulating budget "I would take every stakeholder on board and work out a strategy to accommodate genuine suggestions put up by them," Rather said.
The state government had deferred budget session earlier this year in view of the general elections and the subsequent enforcement of model code of conduct.
While interacting with delegations, the Minister said the government would take every stakeholder on board and workout a strategy to accommodate genuine suggestions put up by them in Budget formulation. He reiterated the commitment of the government to help vulnerable sections in coming out of the economic morass and assured all possible relief to them.
During the pre-budget consultations, the major areas which have been coming came under discussion are reforms in recruitment rules, tackling burgeoning unemployment problem and tapping power generation potential of the State. The delegation also raised the issue of increasing royalty over State Hydel Projects from 12 per cent to 35 per cent and sought transfer of at least two hydel projects of Uri and Salal to the State government, in lieu of the losses incurred through Indus Water Treaty.
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