The Prime Minister Dr. Manmohan Singh reviewed the progress of implementation of the Reconstruction Plan for Jammu and Kashmir, which had been announced by him during his visits to the State in November 2004 and June 2005, and the long-term rehabilitation and reconstruction in the State for ameliorating the impact of the earthquake that had affected the State in October 2005. The Chief Minister of Jammu and Kashmir Ghulam Nabi Azad led a delegation comprising of Finance and Planning Minister Tariq Hamid Qarra, the Chief Secretary C. Phunsog and other senior officials.

2. In respect of earthquake relief, it was noted that assistance of Rs. 543 crore has already been provided for immediate relief and temporary shelters. In addition, in response to the memorandum received from the State, very substantial assistance for construction of permanent shelters for the victims of the earthquake as well as for reconstruction of infrastructure including roads, schools, health institutions, etc. will be released very shortly. As an immediate measure, it was decided to release Rs. 157 crore ad hoc grant.

3. In respect of the power sector, it was decided that the request of the State Government for taking up the Pakal Dul Hydro-electric Project under the State Sector rather than through the NHPC would be considered so that the State may draw more power from the Project. While apprising that 70 MW additional power was being made available to the State this winter compared to the previous year, the Prime Minister asked the Central Electricity Authority and the Ministry of Power to quickly tie up adequate provision of power for this winter in the Kashmir Valley.

4. Education was identified as an area deserving more attention and resources. In view of the positive response and demand generated following the establishment of 14 new degree colleges and nine new Industrial Training Institutes, it was decided to include establishment of 10 new degree colleges and five new ITIs in the Reconstruction Plan. It was agreed that the State will be given special dispensation for Sarva Shiksha Abhiyan and provided Central share funds to the extent of 90% instead of 75% currently.

5. In response to request made by the Chief Minister, the Prime Minister directed the Planning Commission to look into ways of addressing the requirement of funds for strengthening district hospitals, improving road connectivity and meeting rehabilitation costs associated with the Dal Lake Conservation Project. It was also decided that the Plan side support to the State under the Reconstruction Plan would continue for one additional year, till 2008-09. The Chief Minister expressed his thanks for the liberal assistance provided by the Prime Minister, the Finance Ministry, the Planning Commission and the Home Ministry, and the support provided by the team in the Prime Minister's Office in facilitating the implementation of the Reconstruction Plan, and assured that the State Government will continue to give the highest priority to implementing the Plan.

6. The meeting was attended by the Principal Secretary to PM T. K. A. Nair, Member-Secretary, Planning Commission R. R. Shah, Home Secretary V. K. Duggal, Road Transport and Highways Secretary Vijay Singh, Expenditure Secretary Dr. Sanjeev Mishra and Chairman of the Central Electricity Authority Rakesh Nath.