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| Azad floats pioneer concept of new north economic conversion | | 'Single northern market to provide ample room for economic growth' | |
SRINAGAR, SEPTEMBER 28 - Floating a pioneer concept of "new north" trade and economic conversion, Chief Minister Mr. Ghulam Nabi Azad has said that Jammu and Kashmir is working on a forward looking trade strategy to capture the fast changing economic scenario. He said the formation of single northern market will lead to substantial restructuring of industry to exploit economics of scale, scope and specialization.
Addressing the conclave of Chief Ministers of northern India at Chandigarh on Thursday, Mr. Azad said that "new north" has to be thought of in terms of a trend towards economic integration. He said by removing trade policy barriers new north would lead to a high graded and vast intra-regional trade in the region.
He said northern region has potential to become Prima-Donna of India, adding that he highlighted this point fervently and his belief has grown stronger after studying the European Union market system where from he returned recently.
Explaining steps Jammu and Kashmir has taken in connection with providing fiscal incentives to investors for establishing ventures in the state, Chief Minister said basic infrastructure like power and road connectivity is being focused alongside providing liberal environment for investment to fructify.
"The prerequisite of collaboration is consensus. We need to work out win-win models in taxation through a process of competition that is ethical and collaborative", Mr. Azad said.
We have made Zero, I repeat Zero, deviations from the Uniform Floor Rates (UFR). We are under considerable pressure form our trade and industry to adopt the rates as resorted to by the neighboring State, or at least to shift items from higher to lower VAT slabs. The corner stone of VAT in uniformity in tax rate structure and, if it is tampered with, the whole edifice is bound to crumble", he maintained.
Steel mills of our state disadvantageously placed because of denial of importing scrap through inland containers. Mr. Azad said an ideal Vat scenario definitely envisages a barrier-free trade. Check posts are impediments to free flow of trades. "We in J&K have abolished octroi and this has led to hassle-free movement of goods and vehicles in intra-state trade. The rates of road tax and token tax are at much lower levels as compared to other states. Multi-axle vehicles are being encouraged and necessary tax concessions are being extending to these vehicles", he said.
Chief Minister said that the incidence of passenger tax in J&K is one of the lowest in the country. With a view to giving a fillip to the tourism industry and encourage tourism, the government is not contemplating any change in the passenger tax rate structure is so far as it applies to the vehicles which are bringing in tourists into the state.
Mr. Azad said that Jammu and Kashmir has become a hub of tourism activity. Annually, 4 lakh pilgrims also visit Shri Amaranthji. More than 19,000 foreign tourists have visited Kashmir valley last year. Similarly, 22,000 foreign tourists have visited Ladakh. Major tourism-related national institutions are being upgraded at an investment of Rs. 130 million. The entire northern region can be connected by way of smaller air services to facilitate and enhance tourism activity. New airlines - both in public and private sector - can be invited to unlock the vast potential that such circuits offer, he asserted.
"For attracting tourists to the state requires good infrastructural facilities in the shape of hotels and this has to be matched with a corresponding tax relief to the hotel industry. Jammu and Kashmir has already taken a pragmatic step in this direction and given the benefit of exemption from payment of service tax to hotels up to March 31, 2007", he added.
He said that Jammu and Kashmir also covers agriculture business and fruit processing ventures. Of the 1.1 million metric tonnes of fresh fruit and 0.1 million metric tonnes of dry fruit, only about 70,000 tonnes of processing takes place in the state, leaving enormous scope. State also produces one of the best varieties of Basmati rice in the country. Our effort is to remove all tax and non-tax barriers for promotion of free trade in agriculture commodities. Levy of toll tax on export of horticulture produce outside the state stands abolished. In order to ensure proper marketing of agriculture produce within and outside the state, a network of primary and satellite markets has been established. We have already promulgated Agriculture Produce Marketing (APM) Regulation Act. Our hope and expectation is that the amendments will, apart from ensuring direct marketing of agriculture produce and also channelize private sector investment in the marketing as well as creation of marketing infrastructure in agriculture", he said.
"My government proposes to promote e-governance in all departments. The state headquarters and all the district headquarters in Jammu and Kashmir are well equipped with a state-of-the-art hardware, connectivity and software tools. We have a 650-Node LAN at civil secretariat, Jammu and a 600-Node LAN at civil Secretariat, Srinagar. Video conferencing links have been established between 6 district headquarters with the state capitals. We also have a project for setting up of a state-of-the-art Computer Communications Infrastructure (Internet Cafes) at each of the 135 blocks in the state". He said that 121 out of 135 Community Information Centers (CIC) are already operational.
Chief Minister said that the current demand for power in Jammu and Kashmir is assessed at about 1900 MW. Mr. Azad added that Jammu and Kashmir has huge power potential of 20,000 MW, out of which 1,500 MW only has been harnessed till date. Projects worth 4,800 MW stand already proposed under various State and central schemes. By the end of 11th plan, the state aims to generate 5,000 MW of power. The need for power is uniform and critical across the States. Enhanced generation at cheaper cost is in our collective interest. There is tremendous potential for cooperation by way of joint ventures in the power sector-both for generation and distribution. And, of course, we need to evolve common position on power issues; cutting across individual interests of States. "Unlike the rest of the States in the northern region, Jammu and Kashmir has a highly subsidized tariff structure including that for the industry. We feel that it is much better to provide reliable power to the industry rather than at subsidized rates at which the industry does not receive reliable power. As per this treaty, the J&K Government can make use of water to irrigate 10.15 lac acres with storage facility and also the condition to release 0.3 million acre-feet to Pakistan out of the stored water, annually. Since no storage facility has been created, the state is deprived of this benefit. "As per agreement of 1979, the Punjab Government has to construct Shahpur Kandi Dam on River Ravi out of which they have to release 0.69 million-acre feet to J&K State from the Ravi Canal Network. The State Government constructed the Ravi canal long back to irrigate 1.33 lac acres of land in Jammu province against which the State Government is utilizing only 20% of the potential created due to non-construction of Shahpur Kandi Dam by Punjab Government", he said.
Mr. Azad said that in order to regulate and conserve surface as well as ground water resources, the state adopted the Water Policy during 2004, with its main features of shift to volumetric pricing from present pricing on flat rates on area basis which promotes inefficient use and wastage; review and revise water rates periodically to recover O&M charges over a period of time; and focus on Participatory Irrigation Management and hand over operation of Irrigation Systems to Water User Associations for operation and maintenance. |
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