New Delhi, May 24, 2012 : The report of Jammu and Kashmir
interlocutors has recommended greater financial autonomy and
cooperation across the Line of Control (LoC) to improve the
financial condition of the state.
Besides, it suggested establishment of Special Economic
and Industrial Zones and Public Private Partnership (PPP)
projects to make the state economically and financially
self-dependent.
"The topography of the state is such that it hardly
allows for raising resources, physical and financial, for
adequate investment in infrastructure and other socio-economic
activities...
"All in all, the state is not only heavily dependent on
the Centre for financial and other material resources but is
also unable to fully utilise the available funds," the report
said.
The report said the overall investments are much below
the volume needed for improving infrastructure and quality of
human resources.
"The entire gamut of fiscal management, including
mobilisation of internal resources, should, therefore, be
urgently examined with a view to reconciling the concepts of
political and economic components of the new compact," it said
adding to "promote cross-LOC cooperation in areas of common
interest and concern."
The report quoted former Prime Minister and senior BJP
leader Atal Bihari Vajpayee's remark that 'Jammu aur Kashmir
ko insaniyat ke daire mein dekhna hai' (look Jammu and Kashmir
under the ambit of humanity) and suggested adoption of the
best practices of other states for promotion of socio-economic
activities under public-private partnership mode.
It recommended creation of SEZs for promotion of the
industry, which should be extended financial and fiscal
incentives on the pattern of the North Eastern States and to
provide attractive export incentives for promotion of Kashmiri
handicrafts, explore exploitation of minerals and other
natural resources.
For better utilisation of funds, it has supported
creation of three regional councils, one each for Jammu,
Kashmir and Ladakh and devolve certain legislative, executive
and financial powers to them.
"A further devolution of executive and financial powers
to panchayati raj institutions at the level of a district, a
village panchayat, a municipality or a corporation would be
part of the overall package," the report said.
It also asked for operationalisation of an international
airport in Srinagar to attract tourists and expedite
completion of all infrastructure projects including rail links
and roads connecting different regions of the state and across
the borders and need for an overall educational policy and
effective implementation of health schemes and flagship
programmes.
Explaining how financial constraints were hurting
development, the report cited the example of Leh region where
"the immediate grievance is financial, that the principle of
state budgetary allocations on population basis is by its
nature biased in a region which is territorially large but
sparsely populated".
"The development of infrastructure suffers severely as a
result and there is little doubt that for infrastructure
development, allocations need to be made on territorial
requirements rather than on the basis of the population," it
said.
The interlocutors have charged various state and national
political parties with not being able to take forward the
reforms to improve financial conditions in J&K which were
pointed out in many reports including the Regional Autonomy
Committee (RAC) formed by it.
"This report, however, was not the one drafted by the
original RAC....It represents the most comprehensive document
by far on all aspects–-political, cultural and financial–-of
regional autonomy. Its detailed recommendations were never
considered by the state government," the interlocutors said.
It suggested all resources generated in the state
be equitably apportioned to regions bearing in mind their
population size and topography and grants made by the central
government should be on condition that specified amounts are
devolved to regions without delay.
"The state Finance Commission’s ambit of powers and
responsibilities should be expanded accordingly," it added.
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