J&K’s NCS Scheme Spurs Industrial Growth with Rs. 18,185 Crore Investment, 46,857 Jobs: LG Sinha
Says J&K settles ₹28,000 Cr power debt;
People enjoy lowest electricity rates with no hike in 3 yrs
Srinagar, Aug 12: Lieutenant Governor Manoj Sinha expressed gratitude to the Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for their instrumental roles in fostering accelerated and inclusive growth in Jammu and Kashmir (J&K).
Speaking at a press conference at the Sher-i-Kashmir International Conference Centre, Sinha outlined the transformative impact of the new fiscal year’s budget and ongoing development projects on the Union Territory’s (UT) economy and infrastructure.
The J&K Budget for 2024-25, which was passed by Parliament on August 8, 2024, stands at a record ₹1,18,390 crore, reflecting a substantial increase of ₹30,889 crore over the previous year.
This budget includes a revenue receipt estimate of ₹98,719 crore and a capital receipt estimate of ₹19,671 crore. It allocates ₹9,881.68 crore for administration, ₹24,870.50 crore for social services, ₹15,719.40 crore for infrastructure, and ₹5,555.48 crore for economic activities. The capital expenditures include ₹36,904 crore for developmental projects, with significant investments earmarked for health and public works.
LG Sinha also announced that the union territory administration has successfully settled its substantial power debt, which stood at ₹28,000 crore. “We have successfully cleared this debt,” Sinha stated.
“I want to emphasize that people in J&K are receiving the most affordable electricity, with no rate increases over the past three years. It is important for residents to pay for the government services they use. Cooperation is needed to cover the cost of the power consumed so we can provide continuous 24/7 electricity. Our metering efforts have been effective in curbing power theft.”
“The government has been saying that electric power is cheapest in J&K when compared to places outside. The people rue that its supply is barely restricted to five or six hours a day which puts the consumers to inconvenience. Ironically, the UT has huge electric power generation potential because of rivers, but lack of funds makes the construction of hydroelectric power generation projects difficult,” the LG added.
Meanwhile, the LG said the UT government has made significant strides in revenue generation and fiscal management, with a 12% increase in GST collections and a 39% rise in excise revenue. The installation of 5.74 lakh smart meters has resulted in a 25% reduction in transmission and distribution losses and a 10% increase in tariff collection. Additionally, the central government has provided a special assistance package of ₹17,000 crore for 2024-25, including ₹12,000 crore for internal security and policing and ₹5,000 crore in additional central support. This assistance is expected to reduce the fiscal deficit to 3.0% of GDP.
Infrastructure development remains a priority, with ₹3,983 crore earmarked for the construction of roads and bridges under various schemes, including PMGSY and NABARD loans. Education also received a notable boost, with ₹1,875 crore allocated for improving school infrastructure and services through the Samagra Shiksha Abhiyan (SSA) and other programs. “Investing in education is investing in the future of our youth,” Sinha noted.
Local governance is set to be strengthened with ₹1,808 crore designated for development works in Panchayati Raj Institutions (PRIs), Urban Local Bodies (ULBs), Block Development Councils (BDCs), and District Development Councils (DDCs). “Empowering local governance is key to holistic development,” he added. The budget also prioritizes water supply, allocating ₹1,714 crore for providing tap water connectivity in rural areas under the Jal Jeevan Mission. “Water security remains a critical focus,” Sinha emphasized.
The Smart City projects in Srinagar and Jammu, along with infrastructure development under the Jhelum Tawi Flood Recovery Project (JTFRP) and the construction of new townships, have been allocated ₹1,484 crore.
“Urban development is essential for modernizing our cities,” Sinha said. Social security schemes have been provisioned with ₹1,430 crore, focusing on assistance for the elderly, widows, and the disabled, as well as women empowerment through schemes like Ladli Beti and Marriage Assistance. “We are committed to the welfare of all sections of society,” Sinha stated.
The health sector will also see a significant allocation, with ₹1,317 crore earmarked for infrastructure and services under the National Health Mission (NHM). “Health infrastructure is a priority to ensure better care for our people,” Sinha mentioned.
Sinha announced a major project to improve the competitiveness of agriculture and allied sectors in J&K, supported by a $100 million loan from the International Fund for Agricultural Development (IFAD). This initiative is expected to generate employment for 2.8 lakh farmers. The Holistic Agriculture Development Programme (HADP) will implement 29 projects with a total outlay of ₹5,013 crore over five years, aiming to double the agricultural sector’s contribution to the state’s GSDP and create livelihood opportunities for 13 lakh farmer families. “The agricultural sector is the backbone of our economy, and these investments will secure the future of our farmers,” Sinha asserted.
Tourism, another key focus, will see ₹518 crore allocated for developing new tourist destinations, constructing ropeways, and supporting major events like the Amarnath Yatra and a film festival. “Tourism is a key driver of our economy, and these projects will enhance J&K’s appeal as a prime destination,” Sinha said. Environmental protection has also been given importance, with ₹401 crore allocated for the development of Dal Lake, afforestation, wildlife management, and the preservation of protected areas. “Protecting our natural heritage is vital for sustainable development,” Sinha stressed.
The budget further includes ₹335 crore for creating sports infrastructure, preserving heritage, and supporting tribal communities through initiatives like the development of tribal hostels and nomad shelters. “We are committed to inclusive development that benefits all communities,” Sinha added.
As part of efforts to support farmers, the government will establish 2,000 Kisan Khidmat Ghars (KKGs) to provide essential services to farmers at their doorsteps. The budget also includes provisions for strengthening seed systems, increasing production, and creating agri-business ecosystems under the HADP. “Under the HADP, all 29 approved projects will be implemented, and 20 agriculture and allied sector products have been identified for geographical indication (GI) registration, with five products already registered,” Sinha highlighted.
The budget also aims to generate 400 lakh mandays under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The HIMAYAT program will complete the training of around 7,000 candidates, and 12,000 new Self Help Groups (SHGs) will be formed in 2024-25. Additionally, 80,000 houses will be constructed under the Pradhan Mantri Awas Yojana Gramin (PMAY-G), and six villages will receive solid and liquid waste management facilities to become litter and plastic-free. “Our focus on housing will provide safe and dignified living conditions for all,” Sinha said.
Tourism in J&K will see significant investment, with the development of infrastructure in 12 off-beat tourist destinations—six in Jammu and six in Kashmir. The government will also develop Keran as a border tourist village and promote Tosamaidan and Sitharan circuits. “Our cultural heritage and tourism potential are assets that will drive future growth,” Sinha concluded.
J&K’s Budget Highlights -2024-25
9,400 cr allocation for power purchases
3,983 Cr earmarked for road, bridge construction across J&K
Rs. 1,808 Cr for strengthening decentralized governance
Centre to support J&K Power Generation Expansion to 6,500 MW by 2027
$100 Million IFAD Loan to Boost Competitiveness of J&K Agriculture and Allied Sectors
Rs. 518 Cr allocated for new tourist destinations, ropeway projects
Rs. 3,500 crore for hydro electric projects in J&K
Rs. 335 Cr set aside for sports infrastructure, heritage preservation
Rs 2,000 Cr for establishing 2,000 KKGS
Construction of 80,000 houses, 600 new panchayat ghars
