Kashmir biz circle rebuffs Rs 80K cr package from Centre

The business fraternity in Kashmir today rejected a Rs 80,000 crore package announced by Prime Minister Narendra Modi for the development of the state, saying it was "merely an eyewash".

"This package is merely an eyewash. We reject it. Most of the allocations for various sectors under this package had already been made by this government before and by the previous UPA government," president Kashmir Chamber of Commerce and Industry (KCCI), Mushtaq Wani told reporters here.

Wani said a major chunk of the package, about Rs 42,000 crore, has been earmarked for national highway project which would go to the central agency.

"The larger chunk i.e. Rs 42,611 crore of the package is exclusively for Roads and National Highway Projects. The money will go to National Highways Authority of India (NHAI) and not to the state government.

"Similarly Rs 5,263 crore have been earmarked for rehabilitation of Kashmiri migrant families, families from Chhamb and PoK and for creation of India Reserve Battalions," he said.

The KCCI president said the Centre had ignored the relief and rehabilitation of the flood-affected people in the package.

"The details of the...package funds suggest that the Central Government has ignored the requirement of funds essential for relief and rehabilitation of the people who suffered enormous losses in September 2014", Wani said.

Immediately after the deluge, the KCCI put in all efforts to make spot assessment of losses which came out to be over Rs 100,000 crore, he said.

"The same was submitted to the State and Central Governments for consideration and to be dispensed to the people (affected by flood)for rehabilitation and revival of their normal day-to-day activity", Wani said.

The state government however downplayed the assessment made by the Chamber and instead made their own estimates and sought Rs 44,000 crore relief package from the Centre, the KCCI president said.

Wani said contrary to the expected immediate response from the Centre, the Prime Minister in his "inordinately belated announcement has come out with a baffling allocation of funds" in the name of package.

"The Chamber has noted with concern that the amount of money earmarked for flood relief and reconstruction including flood management is mere Rs 7,854 crore as against the requirement of Rs 37,000 crore demanded by the State Government exclusively for losses suffered.
"The flood management is estimated to involve a separate huge expense of over Rs 30,000 crore for enhancing the carrying capacity of the existing flood channels, digging alternate flood channels and dredging of river Jhelum and its tributaries," the KCCI president said.

Wani said out of the earmarked amount of Rs 7,854 crore, the flood-affected people would get "nothing".

"It will only be used for dredging. We want the Centre to grant the package submitted by the previous state government," he said, threatening to "explore other options" for seeking compensation as done in Uttarakhand.

Wani said KCCI has been advocating for transfer of power projects under NHPC in the state to the State control for a cogent reason that these projects could prove to be a great help to the state economy and its people.

"Nothing is contained in the package on that score either despite the fact that the return of power projects has been agreed upon in the common minimum programme (of the PDP-BJP coalition).

"Thus the package appears to be shallow way below the expectation containing nothing special to benefit the people as badly needed short-term relief package," he said.