~I attended two-days Inter-State Council meeting on 27^th and 28^th August, 2003 at Srinagar. It was attended by Chief Ministers and Union Ministers. During this Conference important issues relating to Inter State relations were discussed. During my visit to Jammu, I also met eminent citizens.

2. During my last two visits to Jammu & Kashmir in May, 2002 and April, 2003, I had announced various projects and programmes for economic development of the State. These are under various stages of implementation and the Government of India is closely monitoring these projects/programmes, (Latest status is circulated). These schemes are for development of road and rail communication, power sector and creation of employment opportunities in the State.

3. During my interaction with people here I found that there are additional requirements of new schemes and programmes which Government of India will help in implementation. These are as follows :-

1. A one-time special grant of Rs. 30 crore will be given for development of University of Jammu and its affiliated colleges.

2. A scheme has been prepared at a cost of Rs. 175 crore to provide drinking water to 2284 habitations and 1400 schools in Kandi area. In the current year Rs.54.16 crore has been released in the normal course to the State of J&K for implementation of water supply schemes, a part of which will flow to Kandi area. Additional amount of Rs.20 crore will be released for the Kandi area for implementation of water supply schemes.

3. I appreciate the difficulties experienced in supplying power to Leh-Ladakh area. Ministry of Power has considered various options and has recommended that a 220 KV Single Circuit Transmission Line from Srinagar to Leh via Kargil will be the best option which will provide a reliable and cheaper power for this area on a long term basis. The cost of transmission line will be about Rs.300 crore funds for which will be provided by the Government of India. The transmission line will be implemented by Powergrid Corporation of India.

4. The present scale of relief for valley migrant family is Rs.600 per person per month. This will be increased to Rs.750 per person per month immediately subject to a maximum of Rs.3000 per family, per month. This will involve additional expenditure of Rs.10 crore per annum.

5. 504 one room leaking tenements for the Kashmiri migrant families in Muthi Phase II-Jammu will be replaced with 500 new tenements at Purkoo Phase IV costing Rs.10 crore. In addition, Rs.5 crore will be provided for other facilities in 14 Kashmiri migrant camps in Jammu region.

6. There has been a persistent demand for partial shifting of border villages (involving 541 families of Balakote area of Poonch) which face difficulties frequently because of border shelling. Rs.7 crore has been estimated for the partial shifting to safe locations in 9 colonies in consultation with Army authorities. The fund will be provided by Government of India.

7. 10 Kendriya Vidhyalayas have been sanctioned for the State. A one time grant of Rs.45 crore will be given for construction of the buildings of these ten Kendriya Vidyalayas in a period of three years.

8. Chief Minister of J&K had requested me during my last visit to Srinagar that Government of India should assist in funding Baglihar Power Project (450 MW). Out of the project cost of Rs.3800 crore, about Rs.1600 crore has been spent by the State and Rs.2200 crore has to be tied up with financial institutions. At that time I had assured him that if the project is viable, the Government of India will assist in providing funds. Subsequent to my visit, meetings have been held in the Government of India at various levels as well as State Government officials and with the financial institutions. State Government has also agreed to certain concessions such as foregoing 12 per cent free power and deferring/reducing return on equity. I am now told that the cost of power generation has been reduced to between Rs.2.50 and Rs.2.70 per unit, which is reasonable. Ministry of Power and Ministry of Finance will assist in getting the financial closure of the project within a period of one month.

9. Sewa-II Hydroelectric Power Project (120 MW) of National Hydro Power Corporation costing Rs.665 crore has been sanctioned on 21^st August, 2003.~