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August 29, 2003

Prime Minister's departure statement at Srinagar

~During my two-day visit to the Valley, I held discussions with the Chief Minister, his Council of Ministers and representatives of a cross section of the society. I also attended the Inter-State Council meeting at Srinagar.

I had announced a series of programmes and projects for economic development of the State during my last two visits to Jammu & Kashmir in May 2002 and April 2003. Package I announced in May 2002 will involve expenditure of Rs. 8,519 crore and Package II involves Rs.6,425 crore. Total cost of the two packages is Rs.14,944 crore out of which Rs.9,184 crore has already been sanctioned. The Centre is closely monitoring the implementation of these two packages. Before I left Delhi, I had reviewed the progress of these schemes. I am happy to note that all the Ministries and Departments are taking full interest in the implementation of this scheme.

The Package-I announced in May 2002 has 26 schemes for development of rail and road communication, increased employment potential, enhanced relief to migrants and strengthening security in the State. Out of these 26 schemes, 10 have been implemented and remaining 16 are at various stages of implementation. The total cost of these schemes is Rs.8519.82 crore, out of which Rs.1533.34 crore has already been released. The work on all the schemes is going on satisfactorily. The railway line upto Udampur will be completed by 31st March 2004 and upto Katra by 31st March 2005. As promised, the first train will reach valley by 15th August 2007. Work on Railway project in Kashmir Valley is going on satisfactorily. Rs.100 crore are being provided for development of border areas annually. Technology Mission for Horticulture has been approved. Work on Rohtang tunnel, which will link Manali with Darcha-Nimu-Leh in Jammu & Kashmir, has been started. Enhanced relief to migrants has been provided and the J&K police force has been given additional funds for upgrading hospitals, establishment of schools and training centres for rehabilitation of widows of police personnel.

The Package II, which was announced in April 2003, is also under implementation and contains 10 schemes, of which one has been implemented and other 9 are at various stages of implementation. The total cost of the package is Rs.6,425 crore out of which Sewa II Project of Rs.665 crore has been sanctioned on 21.8.2003. It will cost Rs.3000 crore. The Task Force for generating employment opportunities has submitted its report. The Centre is ready to implement the Report. Baglihar hydro power project (Rs.3,800 crore) is under implementation by the State Government. About Rs.1600 crore has been spent by State Government. Additional Rs.2,200 crore bank funds will be tied within one month. With the concessions given by the State Government, the Project is now viable. Specific attention is being paid to promotion of tourism and upgradation of tourism infrastructure and assistance to the State Government for development of the power sector.

A status report on the implementation of various schemes of these two packages is being circulated separately~.