The Centre on Thursday approved the establishment of an integrated multi-purpose infrastructure development corporation for the Union Territory of Ladakh.
The decision has been taken at a meeting of the Union Cabinet, chaired by Prime Minister Narendra Modi.
The establishment of the corporation will result in inclusive and integrated development of the Union Territory of Ladakh, according to an official statement.
This will, in turn, ensure socio-economic development of the entire region and the population of the UT.
The impact of development will be multi-dimensional and it will help in further development of human resources and better utilisation thereof.
It increases domestic production of goods and services and will facilitate their smooth supply.
Thus, the approval will help in realising the goal of 'Atmanirbhar Bharat', the statement said.
The authorised share capital of the corporation will be Rs 25 crore and recurring expenditure will be around Rs 2.42 crore per year. It is a new establishment.
Presently, there is no such similar organisation within the newly-formed UT of Ladakh.
The approval has an inherent potential for employment generation as the corporation will be undertaking various kinds of developmental activities.
The corporation will work for industry, tourism, transport and marketing of local products and handicraft.
It will also work as the main construction agency for infrastructure development in Ladakh, the statement said.
The cabinet also approved the creation of one post of managing director for the corporation.
Consequent upon reorganisation of the erstwhile state of Jammu and Kashmir as per the Jammu and Kashmir Reorganisation Act, 2019, the UT of Ladakh (without Legislature) came into existence on October 31, 2019.
An advisory committee was constituted under section 85 of the Jammu and Kashmir Reorganisation Act, 2019 for making recommendations regarding the apportionment of the assets and liabilities of the erstwhile state of Jammu and Kashmir between the Union Territory of Jammu and Kashmir, and the Union Territory of Ladakh.
The said committee recommended for the establishment of an Integrated Infrastructure Development Corporation Limited on the lines of the Andaman and Nicobar Islands Integrated Development Corporation Limited (ANIIDCO), with an appropriate mandate to take up various developmental activities as per the specific needs of Ladakh.
Accordingly, the UT of Ladakh sent a proposal to the home ministry for the establishment of the corporation in the UT of Ladakh, which was recommended by the Committee on Establishment Expenditure (CEE), Ministry of Finance in April, 2021.