Epilogue April 2010 Issue by Epilogue Press

RAKESH ANKIT

M SHAMSUR RABB KHAN

COLUMN Manisha Sobhrajani : Terror vs. Terror

Pandit Ramchandra Kak : The Forgotten Premier of Kashmir P36

Tragic Tales of Terror Hunt P40

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Jammu, April 1 ,2010 / Vol 4 / Issue 4 | Price Rs. 30 | Postal Regd. No. JK-350/2009 | www.epilogue.in

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ISSN : 0974-5653

40th f o issue e sens

As an independent news monthly, Epilogue is moreover both an unbiased source of information and a meeting ground for diverse perspectives, serving scholars and analysts in J&K, in the broader subcontinent, and abroad. MATTHEW A. ROSENSTEIN, Associate Director, Program in Arms Control, Disarmament, and International Security (ACDIS), University of Illinois, USA

Who Writes the Complex Stories of J&K Budget in Simplest Possible Form?

Epilogue, Of Course

---images ---FEB 2007. Jan 2008. Feb 2008. June 2009. Sept 2009.

Our Budget Reports and Analysis Are Written By Top of the Line Experts In A Manner That Even A Layman Enjoys Reading Them

Epilogue because there is more to know

CONTENT

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Editor Zafar Iqbal Choudhary

Letters

Column Terror vs. Terror

Publisher Yogesh Pandoh

Manisha Sobhrajani

Consulting Editor D. Suba Chandran

Ladakh Affairs HCHF in Service of Himalayan Heritage Dr. Sonam Wangchok

Associate Editors Irm Amin Baig Tsewang Rigzin General Manager Kartavya Pandoh

Volume 4, Issue 4, April 2010

Art Editor Keshav Sharma Research Officer Raman Sharma Phones & email Office : +91 191 2493136 Editorial: +91 94191 80762 Administration: +91 94191 82518 subscriptions : +91 90188 87136 editor@epilogue.in subscription@epilogue.in Printed and Published by Yogesh Pandoh for Epilogue NewsCraft from Ibadat House, Madrasa Lane, Near Graveyard, Bathindi Top, Jammu, J&K - 180012 and Printed at : DEE DEE Reprographix, 3 Aikta Ashram, New Rehari Jammu (J&K)

I N FOCUS Budget 2010 10

Budget 2010-11 The Road to Recovery

90 Youths Trained for Enhancing Cultural Skills Legendary Scholar Kachen Lobzang Zotpa remembered Samphel Reviews Tribal Development Academy Discusses Cultural Issues with Councilors, Scholars Exclusive Series Pandit Ramchandra Kak : The Forgotten Premier of Kashmir

Epilogue Report

Rakesh Ankit

Excerpts from Finance Minister's Budget Speech

Fighting Terror Tragic Tales of Terror Hunt

8 8 9 9

M Shamsur Rabb Khan

Opposition Reactions Budget is not About Reciting Couplets Muzaffar Hussain Beigh, Former Finance Minister

Building Peace Building Peace, Countering Radicalisation

Discussion and Survey Report

Opposition Reactions Not Budget, It was Constitutional Filler Tariq Hameed Karra Former Finance Minister

Disputes, if any, subject to jurisdiction of courts and competitive tribunals in Jammu only. RNI : JKENG/2007/26070 ISN : 00974-5653 Price : Rs 30 www.epilogue.in

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Epilogue, April 2010

Letters

Readers Write Think Before Criticising Others Dear Editor, Please refer to the Article Titled "Paying price for justice' written by Mr. M Shamsur Rabb Khan (Epilogue March 2010 issue) where has painted a gory picture of Hindu discriminating (read atrocities) Muslims in general and with Muslims who are accused of crimes etc. Although it is glamorous to talk about M F Hussain but the same standard of empathy should also be applied to Ms. Taslima Nasreen, Salman Rushdie and one who painted to comic pictures of the last Prophet of Muslims. Sacrilegious words, pictures do not hurt Muslims only. They hurt Hindus also. Painting nude pictures of Mother Sita with naked pictures of Hanuman who is like her son, also naked pictures of Mother Saraswati can be considered to be the creation of a pervert mind. At least Hussain was not physically attached like Taslima. Also, Muslims lawyers of Kashmir too are equally guilty of misdemeanor when they categorically refused to defend Rajneesh Sharma husband of Amina Yousuf. So, please think before criticism criticizing another for smoking cigarettes when you yourself smoke marijuana is hilarious. ANADHI KRISHAN DAS, Jammu

Cultural Academy Clarifies Dear Editor This is in response to the article 'Academy Urged to Preserve Ladakhi Culture, Heritage' (Epilogue, March 2010 issue). In this connection certain points are required to be clarified and are elucidated below: 1.

The Academy ipso facto has no role in formation of Central Committee. The Academy, however, recommends a panel for consideration by the authorities which always includes a nominee from the Ladakh region also in Central Committee or General Counci8l.

The Academy had taken up the issue of providing funds for opening of Institute of Music and Fine Arts at Leh with the Finance Department. The Finance Department had asked to take up the issue with the Ladakh Hill Development Council, Leh for providing Funds. The LAHDC had conveyed regrets to the Academy in this regard. This has again been brought to the notice of the Finance Department. It is further added that the Institutes of Fine Arts working hitherto under the auspices of the Academy are under the process of transfer to the respective Universities of Kashmir and Jammu.

As for creation of post of Additional Secy., it is cleared that the divisional offices of the Academy at Srinagar and Jammu are headed by the officers of the rank of Additional Secretary while as the sub office at district level like the one at Leh are headed by the cultural officer of the rank of Deputy Secretary which is a natural corollary of administrative hierarchy.

There is a well laid down rule that the qualification for Research Assistants is MA in respective language and where there is no MA in the respective language, the qualification of MA will do like in respect of Pahari nd Gojri. For Ladakhi the qualification continues to be MA in Ladakhi.

The film festival/competition is a newly launched scheme introduced in 2009 only. The scheme is open to all filmkaers/films made in J&K in any of the languages including Ladakhi8. The procedure for competition is that the entries are invited by the Acadmy and any filmkaer can apply including Ladakhi. Last time no entry was received from the Ladakh region.

The post of Editor, Ladakhi held by Sh. Nawang Tsering (Retired Now) was also upgraded to the level of Chief Editor.

The post of Drama Instructor for Leh is being advertised for direct recruitment. PUBLIC RELATIONS OFFICER J&K Academy of Art, Culture and Languages Jammu

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Epilogue, April 2010

Letters Readers Write

Epilogue Represents Jefferson's Statement on Press

homas Jefferson, one of America's founding fathers and early presidents, once wrote, “The only security of all is in a free press. The force of public opinion cannot MATTHEW A. ROSENSTEIN be resisted when permitted freely to be expressed.” Now celebrating three years (and counting) of publication, Epilogue represents in the context of Jammu and Kashmir the spirit of those concepts embodied in Jefferson's statement. The magazine offers an important venue to give voice to the citizens of J&K—certainly the challenges and problems they face, but also their aspirations and earnest efforts to bring security and prosperity to the region. It is the citizens who should have, as the magazine's name reflects, the “last word” on matters meaningful to J&K. As an independent news monthly, Epilogue is moreover both an unbiased source of information and a meeting ground for diverse perspectives, serving scholars and analysts in J&K, in the broader subcontinent, and abroad. I offer my congratulations to Mr. Choudhary and his staff for their vision and labor to make Epilogue possible, and encouragement to continue bringing the force of public opinion to a growing readership. MATTHEW A. ROSENSTEIN, Associate Director, Program in Arms Control, Disarmament, and International Security (ACDIS), University of Illinois, USA

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Epilogue, April 2010

column

Indo-Pak Dialogue

Terror vs. Terror MANISHA SOBHRAJANI

India and Pakistan held Foreign Secretary level talks on February 25, 2010, in New Delhi. The two countries started off by haggling over whether this was the resumption of the composite dialogue or whether these talks need to be given a new 'name'.

hile looking at the Kashmir c o n f l i c t a n d I n d o - Pa k relations, one must not ignore the several issues related to Kashmir on which early agreements would not just bring interim peace, but ease the highly volatile conditions under which Kashmir is talked about at the policy level. Some of these issues are: Siachen, Sir Creek, Wullar Barrage, and Baghlihar. India, as the larger party, should take the lead in 'finding solutions'. Once these issues are settled, there is a lot that can be done towards the so-called 'final solution' to the Kashmir dispute.

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In negotiations, as Henry Kissinger advises, one must never force the other side into a corner. One must always give it an honorable way out. Kashmir is a highly inflammatory issue not just in India, but in Pakistan's domestic politics as well, and no leader -- military or civilian -- can afford to be seen as being half-hearted about it. India, as the so-called status quo power, should not give the impression that it is sitting pretty in Kashmir and need not oblige anyone. In fact, a solution of the problem would benefit India as much as anyone.

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In Siachen, also known as the world's highest battleground, the Indian army controls all of the 70 km long Siachen Glacier as well as all of its tributary glaciers as well as the three main passes of the Saltoro Ridge immediately west of the glacier, Sia La, Bilafond La, and Gyong La, thus holding onto the tactical advantage of high ground. The Pakistani Army controls the glacial valley just five kilometers southwest of Gyong La. The line where Indian and Pakistani troops are presently holding onto their respective

Epilogue, April 2010

column Indo-Pak Dialogue

Kashmir is a highly inflammatory issue not just in India, but in Pakistan's domestic politics as well, and no leader -- military or civilian -- can afford to be seen as being half-hearted about it. India, as the so-called status quo power, should not give the impression that it is sitting pretty in Kashmir and need not oblige anyone. In fact, a solution of the problem would benefit India as much as anyone. posts is being increasingly referred to as the Actual Ground Position Line (AGPL). Demilitarization of the Siachen glacier has been over-discussed, and long pending. The long-standing dispute over Sir Creek hinges in the actual demarcation from the mouth of Sir Creek to the top of Sir Creek, a 96 km strip of water disputed between India and Pakistan in the Rann of Kutch marshlands. Since neither India nor Pakistan has conceded ground, India has proposed that the maritime boundary could be demarcated first. However, Pakistan has refused the proposal on the grounds that the dispute should be resolved first. The Wullar Barrage dispute started in the year 1985 with the construction of a dam on River Jehlum by India. The construction was stopped in 1987 due to protests by Pakistan as it maintains it is in violation of the Indus Water Treaty of 1960. India, in turn, reiterates its position that the construction is necessary for fulfilling the energy needs of the Kashmiri people. The Baghlihar river power project on the Chenab River was conceived in 1992, approved in 1996 and

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construction began in 1999. Soon after, Pakistan claimed some design parameters of Baghlihar project violated the Indus Water Treaty of 1 9 6 0 . Wo r l d B a n k m e d i a t i o n acknowledged India's right to construct 'gated spillways' under the Indus Water Treaty of 1960. Though both parties (India and Pakistan) have already agreed that they will abide by the final verdict of the World Bank report, Pakistan continues to be disturbed about it. Coming back to Kashmir, the voice of the Kashmiri people is not unanimous: it does not even approach a consensus. There is a perceptible groundswell in favour of independence, but Kashmiris are aware of the difficulties in the way. Most Kashmiri leaders now concede that the interests of neither India nor Pakistan can be ignored and these interests do not allow for an independent state, which could become a hotbed of international rivalry and intrigue. At the same time, there are certain matters on which a broad consensus is discernible. All Kashmiris place primary emphasis on personal security and want an end to bloodshed. All Kashmiris want to be free to travel anywhere in the erstwhile state of Jammu & Kashmir without hindrance. All Kashmiris want more autonomy so that they can run their own affairs. All Kashmiris would like to see cooperation between the two parts of the state in fields like tourism, forest management, water and power, and the environment. Most Kashmiris welcome improvement in I n d o - Pa k r e l a t i o n s . T h e e a r l y resolution of Siachen, Sir Creek, Wullar Barrage and Baghlihar is likely to ensure all of this.

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However, all the three parties 窶的ndia, Pakistan and Kashmir -- will have to show flexibility. India, without conceding territory and without compromising its secular credentials can show the way by diluting its military presence in Kashmir. Pakistan can gain much by the disappearance on the ground of a dividing line without insisting that the legal status of that line be changed. The people of Kashmir should welcome any move that relieves their sufferings even without any change in the de jure situation.

The voice of the Kashmiri people is not unanimous: it does not even approach a consensus. There is a perceptible groundswell in favour of independence, but Kashmiris are aware of the difficulties in the way. Most Kashmiri leaders now concede that the interests of neither India nor Pakistan can be ignored and these interests do not allow for an independent state, which could become a hotbed of international rivalry and intrigue. At the same time, there are certain matters on which a broad consensus is discernible. All Kashmiris place primary emphasis on personal security and want an end to bloodshed. All Kashmiris want to be free to travel anywhere in the erstwhile state of Jammu & Kashmir without hindrance. All Kashmiris want more autonomy so that they can run their own affairs. All Kashmiris would like to see cooperation between the two parts of the state in fields like tourism, forest management, water and power, and the environment. Most Kashmiris welcome improvement in Indo-Pak relations

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LADAKH affairs

HCHF in Service of Himalayan Heritage DR. SONAM WANGCHOK

eople from different parts of the globe have been overwhelmed with the greatest historical monuments or architectural masterpieces, unique culture, magnificent and eyecatching landscapes of the Himalayas. The region has sustained over the centuries a vivacious and rich cultural heritage which is evident in almost all aspects of Ladakhi life. The villages across the Himalaya are adorned with larger heritage like monasteries, mosques, forts, palaces, lhatos, mane walls, historic houses as well as other heritage such as sacred trees, water bodies, mountains etc. In addition the region is full of mystic traditions and beliefs. Since ancient time wise men and women shared their knowledge with the people who seek for healings and advices. This institution includes Lha-pa and Lha-mo (oracles), Lha-rje (local physicians), and dbon-po (Astrologers). These wise men and women are always consulted for health, sicknesses, healing, offering rituals and foretelling. These helpful institutions are an important part of the Himalayan culture for centuries. â&#x20AC;&#x153;The land of rich cultural heritageâ&#x20AC;? was a graceful epithet conferred to the region by the outsiders. All of a sudden, contemplation in retrospection started to happen in our society in fear of losing this graceful epithet. The knowledge based on myths, beliefs, rituals and legends associated with built and natural heritages are fast

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disappearing in the region. Over the past several decades even, many monastic arts and crafts which have served as the critical focus for rituals and prayers have almost completely died out from within the monasteries. It is obvious that many of built heritages are being destroyed in several villages in name of development and modernization. Even the remaining ones are seen in advance state of decay due to lack of maintenance and time factors. Today, it has become essential to draw attention of the local people to the need to generate awareness on the importance of preserving all aspects of our culture before they were lost forever. We need to find as many resource persons as possible from the villages of

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Ladakh and make reuse of their knowledge. More publications on art and culture would be pivotal in disseminating this information to a wider audience and help in generating awareness, especially among the younger generation on the need to safeguard our rich heritage. There are several Government organizations working in this direction. The Central Institute of Buddhist Studies is one of the best examples of formal training in art and crafts skills in the region. Himalayan Cultural Heritage Foundation (HCHF) is a communitybased, non-government organization, devoted to promote and conserve Himalayan indigenous, natural and historic heritage by working directly with

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the different mountainous communities and strengthening and supporting community based institutions. HCHF was formed by a group of local scholars and social workers, headed by venerable Geshe Konchok Wangdu to promote and preserve the Himalayan living history. HCHF places great stress on trainings and workshops that ensure more practical and beneficial outcomes both in terms of learning and preserving the cultural heritage. The foundation will support the village communities to source funding, provide technical expertise and identify resource persons for the conservation works. Local people are showing increasing interest in their rich cultural legacy and are committed to protect and preserve it. Recognizing their paramount role in safeguarding the common cultural legacy of Himalayan region, HCHF organizes training workshops to assist the village communities in this direction to revive and promote endangered tangible and intangible cultural heritage. It also organizes public and youth education, awareness-building, participatory workshops, seminars and training courses. One such example was the training workshop initiated by HCHF in collaboration with Safeguarding Cultural Resources (SACRE) and Yarma Gonbo Society to revive and record traditional music and songs in the Nubra valley was organized during last summer. Musical instruments are still preserved in most of the villages but there is no one to play them during ceremonial occasions. There are several folk songs associated with Nubra valley, describing the significance of sacred landscapes, monasteries, castles, kings and important personalities in the history of the valley. The folk songs confer information on history, culture, religious services, trade and society. Unfortunately these beautiful songs are slowly dying out as

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LADAKH affairs

the present generation disregards them. The workshop provided stage for singers, dancers, musicians and people who are interested in preserving and promoting traditional songs and music. More than 30 historical songs were recorded and 12 trainees from different villages were trained in playing traditional musical instruments (Daman and Surna). Another very important training workshop to revive monastic art and crafts was conducted last year by HCHF in collaboration with SACRE and Chemdey Gonpa. During this two experts from Bhutan and Darjeeling trained about 20 young monks to make butter sculptures and to draw more than 25 different types of sand mandalas which have almost completely diet out from within the monastery over the past several decades. HCHF is planning such more training workshops this year in collaboration with village communities. The foundation is also coming up with series of publications which includes heritage map of

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Nubra valley, a book written by a local astrologer on sacred landscape of Nubra valley and the news letter of the foundation in which students and local villagers will be predominantly encouraged to write on different aspect of rich cultural heritage of Himalayas. In order to share this rich culture with the foreign guests and Ladakhi students studying outside Ladakh, HCHF will be conducting weekly talk on cultural heritage from 18th April to end of September this year. The lectures will be conducted in the precinct of the historical building of Lonpo house in the heart of Leh town where scholars both from Ladakh and outside Ladakh will give presentations. We believe this will not only benefit the tourists but also help Ladakhi students and young scholars to learn more about the cultural legacy of Himalayas. The author is the secretary of Himalayan Cultural Heritage Foundation (HCHF) and the Ladakh Liaison Officer for International Association for Ladakh Studies (IALS). He can be reached at sonam_sakya@yahoo.com

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LADAKH affairs

90 Youths Trained for Enhancing Cultural Skills

Week long training program in skill development of singing folk songs, playing traditional music, dancing, acting, anchoring and Interviewing ended March 10 at SECMOL Complex Phey. As many as 90 trainees from all over Ladakh including few from Kargil district participated in the training program. The training program was organized by the Ladakh Young Buddhist Association in collaboration with Ladakh Autonomous Hill Development Council, Leh. On the occasion of valedictory function, the Executive Councilor, Art and Culture Mr. Tsering Wangchuk was the chief guest while as the President of Ladakh Buddhist Association, Mr. Lobzang Rinchen was the guest of honor. Speaking at the function, Mr. Wangchuk said that Ladakh is known for richness in its traditions and culture, and as such, it is the high time to take such measures to preserve and promote our heritages. He said that Ladakh has vast potential for promotion of tourism industry and maintenance of cultural principles and its values becoming much and much important to protect our deep rooted culture as well for the economic benefits to the people of Ladakh through tourism. He appreciated the commit-

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m e n t s o f Yo u n g B u d d h i s t Association for selflessly working for promotion of Ladakhi culture and making lot of un-employed youth skilled for self employment through knowledge and culture. Mr. Wangchuk assured that LAHDC will further extend all possible cooperation and assistance for holding such training program in future also. The President, LBA, Mr. Lobzang Rinchen underlined that Ladakh Young Buddhist Association has been contributing a lot for the over all welfare of the Ladakhi society with special emphasis on preservation and promotion of Ladakh's culture heritage. He appreciated the devotion of the workers of Young Buddhist Association for working sincerely for a common cause of the society. Earlier, the Vice President, Young Buddhist Association Mr. Otsal Wangdus in his welcome address threw a light on the activities of the Association and sought cooperation from LAHDC and all walks of the society to carry forward such programs. He said that the main aim of holding this week long cultural training program was to prepare and train un-employed youth in various fields of skill so as to ensure their livelihood through acting, singing, music and anchoring.

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Legendary Scholar Kachen Lobzang Zotpa remembered

he J&K Cultural Academy Leh in collaboration with Thiksay Monastery celebrated 88th birth anniversary of late Kachen Lobzang Zotpa, one of Ladakh's legendary scholars, on March 12 at Thiksay monastery. The President, Ladakh Gonpa Association, Ven Tokdan Rinpochey was the chief guest on the occasion. Ven. Tokdan Rinpochey in his address said that celebration of such occasion and highlighting the contributions of eminent teachers and scholars in preservation and promotion of cultural values is a true tribute to them. He urged that the religious poems and literary works of Kachen Lobzang Zotpa should be brought into publication and disseminate among the society in order to know their contribution. Rinpochey has announced to provide Rs: 25,000 from the Gonpa Association as a bit of assistance to publish Kachen Zotpa's works. The Executive Councilor, Agriculture, LAHDC, Leh, Mr. Tsewang Tondup extended appreciation to the Cultural Academy Leh headed by Cultural Officer, Mr. Tsewang Paljor for celebrating this day in honor of a great scholar. Referring to an important resolution which was passed in the recent general council of LAHDC regarding preservation and promotion of culture and heritages of this region, Mr. Tsewang Tondup said that LAHDC would extend all possible assistance at every level to promote the cultural identity of this region by strengthening the Cultural Academy Leh. He strongly urged that the LBA, Ladakh Gonpa Association, LAHDC, scholars, intellectuals, monks and monasteries of Ladakh should

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jointly struggle for recognition of Bhoti language in the Constitution of India so that the identity of the people of Ladakh is well protected. The President, LBA, Mr. Lobzang Rinchen, Councilor Thiksay, Mr. Tondup Spalzang, Gay Thupstan Paldan Saboo, Dr. Jamyang Gyalson, Dr. Lobzang Tsewang also spoke on the occasion and highlighted the life and contributions of Kachen Zotpa. Welcoming the guests and the audience, the Cultural Officer Leh Mr. Tsewang Pa l jor sa i d th a t th e Academy has been celebrating the birth anniversaries of three eminent scholars of Ladakh i.e. Kachen Lobzang Zotpa, Kachen Ishey Tondup and Tashi Phuntsog Zomde under the approval of the government for the last three years. He said that Academy is making all effort to bring out publications and literatures on the life and achievements of great scholars of Ladakh besides highlighting other important matters of art, culture and language of this region. On this occasion a Novel in Ladakhi language titled â&#x20AC;&#x153; Ye-Phes â&#x20AC;&#x153; written by renowned Novelist Tsewang Tondan Alchi Lonpo was released by the President of Ladakh Gonpa Association, Ven Tokdan Rinpochey.

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LADAKH affairs

Samphel Reviews Tribal Development

ember of the National Commission for STs and SCs Mr. Tsering Samphel on March 10 in a meeting in Leh with Sectoral officers discussed and reviewed the implementation and progress under Tribal Sub Plan and other issues relating to Tribal Affairs. Mr. Samphel in view of making a systematic procedure to ensure scholarship to all deserving students of Ladakh who studying our side Ladakh, sought a proposal that would facilitate the students in getting direct scholarship through the LAHDC in Leh itself. He urged for having on-line information and application facility for scholarship so that all needy and deserving students would get scholarship without difficulty. He said that more than 200 cases of scholarship of Ladakhi students have been found rejected from Kashmir last year. Mr. Samphel further said that ST and SC Commission will do their best to get good flow of funding for Ladakh under tribal schemes and as such he sought good proposals and projects covering genuine demands of the region. Briefing the scenario of Tribal Sub Plan, the Deputy Commissioner, Leh Mr. AK Sahu said that Rs: 15.00 lacs have been received to Leh during 2007-08 and thereafter no any fund has received. Mr. Sahu said that land for construction of hostel building for the ST students of Ladakh at Delhi and Jammu are available. He sought Commission's help to ensure funding for construction of these hostels at Delhi and Jammu. The Deputy Commissioner further apprised him that a Career Counseling center is being set up at Degree College Leh to aware the students about their future strategies. Besides an Employment Mela is also proposed to hold very soon in Leh to educate the students about the potential of jobs.

Academy Discusses Cultural Issues with Councilors, Scholars

he Cultural Academy Leh organized an interactive meeting between the Councilors of LAHDC, Leh and the Scholars and intellectuals of Ladakh on March 13 at Academy Complex. The main aim of this meet was to have open deliberations on various aspects of present scenario of the culture and to find out ways and means to keep the distinct cultural identity of Ladakh well intact. The Cultural Officer Leh Mr. Tsewang Paljor has given a power point presentation highlighting each and every important features of art, culture and language of this region and how much important to preserve these values for the coming generation. Through the presentation, it was also highlighted that how the cultural part of Ladakh remained unattended through the years which resulted great threat of extinction for some important components like folk songs and arts. The power point presentation also suggests various promotional measures of cultural values of Ladakh. The scholars of Ladakh welcomed for passing of a resolution in the recent General Council Meeting which was aimed to give special attention for the preservation and promotion of cultural heritage of Ladakh. At the same time, they demanded the Hill Council to materialize the resolution into a regular policy of LAHDC so that the cultural aspiration of the people of Ladakh is fulfilled. The Councilors assured that LAHDC would extend every possible assistance in this matter and they urged that the scholars, intellectuals, artists and poets of Ladakh should contribute their best to promote the cultural values.

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Epilogue, April 2010

in focus

Budget 2010 BUDGET 2010-11

The Road to Recovery Epilogue Report

n an election year the lack of sops in budgetary proposals sounds typically un-populist for any ruling regime but the National Conference-Congress coalition seems to have taken that risk as Finance Minister Abdul Rahim Rather's budget speech on March 12 reflected an approach at skirting the short term concessions to focus at long term overhauls in state's economy. In view of upcoming elections to urban civic bodies and panchayats in the state, the Budget 2010-11 was expected to be a slew of sops but the government, instead, came up with a focused approach to do some structural overhaul in key areas like primary sector and power production. While hike in the toll tax has come in for severe criticism as it is bound to escalate prices of essentials, the humane side of the budget –a corpus fund for cancer patients –has been widely hailed. Even has the Capital Expenditure has been pegged up higher much to the surprise of economists, the stupendous rise in revenue expenditure remains a cause of worry. In Rs 25984 Crore Budget, a whooping sum of Rs 17698 Crore goes to the revenue expenditure, including security related expenses, leaving only Rs 8286 Crore as capital expenditure. Digging into the capital expenditure it comes out that Rs 3000 Crore is proposed to be mobilized from the tax revenue and around Rs 800 Crore

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from the non-tax revenue thus leaving nearly Rs 4500 Crore hope on the central grants. Leader of opposition Bhartiya Janta Party Prof Chaman Lal Gupta pointed out that Budget reflects huge dependence in the central grants and there are no proposals at generating own resources. In trademark observation of his party, Gupta said, “over 75 percent receipts of collections are from Jammu region but on expenditure side share of Jammu is awfully little”. His allegation is, however, least substantiated by the budget documents. The trade and industry sector seemed quite happy over the budget proposals as measures have been suggested for creating an enhanced industrial atmosphere. “This year's budget is hugely encouraging for the industry”, says Annil Suri, representing Bari Brahmna Industrial Estate, one of the largest industrial growth centers in the state. He said, the continuation of VAT remission and few concessions in some new areas will largely help the industries grow even as major demand of rationalization of VAT regime has been left unaddressed. The reasons not touching the VAT regime, as Finance Minister also indicated this morning, is apparently to wait for a countrywide new taxation regime which is coming up next fiscal. “A look at the figures makes it an unexpectedly great budget but it will

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have to be seen how this mechanism has been arrived at”, says Dipankar Sengupta, a professor of Economics at the University of Jammu. What makes Sengupta to doubt figures is certain positive aspects in Budget like significant hike in capital expenditure which was not expected in the present economic scenario. The key focus area of the budget 2010-11 is seen as organized attention to the primary sectors of economy (agriculture, horticulture and allied sectors) and power generation. This focus is driven from the fact that contribution of the primary sector to the Gross State Domestic Product is drastically declining with this year's figures reaching as low as 24.60 per cent. Nearly two and half decades back the primary sector contributed to 47 per cent of the GSDP and this alarming decline is a worrying factor. In the strict terms of economic management, normally sector which is least contributing to the GSDP is not taken up for support at the cost of well performing sectors but this year's budget has made agriculture and allied areas a priority sector. To boost growth VAT has been completely waived off on the agriculture inputs like seeds, fertilizers, tools and tractors etc even as incentives have been proposed intensive cropping. Irrigation department has also got an increased allocation with a view to boost primary sector.

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in focus

Budget 2010

Former Finance Minister Tariq Hameed Karra says he is not impressed with measures proposed for agricultural growth. “Put together all concessions do not go beyond Rs 10 Crore which is nothing but peanuts for agriculture sector in a state like Jammu and Kashmir”, Karra told Rising Kashmir while reacting to the budget proposals. He described the overall budget as “uninspiring, figurative to create confusion and constitutional filler”. They are presenting budget in March and still there is no idea of what was coming from Delhi, said Karra and recalled “I had presented my last budget in January and there were details of every penny”. Shakil Qalandar, representative of the Kashmir Federation of Industries, says Budget 2010-11 is a brilliant roadmap towards enhanced economic growth and fiscal discipline. He said, “this is one Budget in many years which has completely refused to speak in the language of politics…instead, the budget aims to address key issues of economic growth”. Qalandar sees as the Budget as a foundation for long term growth trajectory and suggests that continuation of such approach for next four years can put Jammu and Kashmir on a sound economic model. “Hike in toll by Rs 10 per quintal is going to increase prices of essentials but apparently there was no other way out in mobilizing resources”, says YV Sharma, President of Jammu Chamber of Commerce and Industries. Impressed by the Budget proposals, Sharma said, “Finance Minister has left very little for the trade and industry sector to complain about”. The budget lays thrust on improving agriculture and allied sectors with toll tax and VAT exemption extended to agriculture appliances, fertilizers, fodder etc. The aim is to increase the Gross State Domestic Product (GSDP) share of agriculture from 25% to its erstwhile level of 47% in eighties. A step forward for Women empowerment in the State, the special feature of the budget is a rebate of 25% in stamp duty in matters of sale and transfer of landed property when in the name of a female member of any family. Rather also said that from the next financial year a uniform tax regime, Goods & Services Tax, would be introduced throughout the country and for the 2010 year he proposed exemption of VAT and Toll tax on Industry and Tourism. He said a new trade policy is on the anvil favouring more investment and trade activity. The Minister said the Centre has agreed to restore five telephone links across LoC for making the trade transactions smoother and simpler. He said the State Government is requesting the Centre for making the trade easier and basic infrastructure in this regard is being developed. He said the quantum of trade across LoC is also increasing.

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Excerpts from Finance Minister's Budget Speech

ECONOMIC SCENARIO: The preliminary estimates given in the Economic Survey place the State GSDP for the current financial year at Rs.38,298 crore in comparison to last year's figure of Rs.34,805 crore indicating a growth rate of 10.03%. At constant prices, the GSDP works out to Rs.26,153 crore. This indicates a growth rate of 6.87% which is higher than the growth rate registered last year. The per capita gross income works out to Rs.33,285 at current prices and Rs.22,730 at constant prices. The last year's per capita income figure at current prices was Rs.30,665. Thus the per capita income has registered a growth of 8.54%. A notable feature of these figures is that while the national GDP growth rate is being estimated at around 7.5% for the current fiscal – down from the last 5 years average of 8%, there is considerable improvement in current year's

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GSDP growth rate in our case. This is despite the fact that our exports have suffered for the second year in succession due to global economic meltdown and also that the agricultural production has been hit by inadequate rainfall during the last kharief and by delayed rains during the current rabi season. As per preliminary estimates, the primary sector has contributed 24.60% to our GSDP. Secondary sector has contributed 29.60% and the share of the tertiary sector has been 45.80%. As will be seen, the contribution of the primary sector comprising of agricultural and allied activities has slipped down from 25.82% registered last year. The secondary sector comprising of industry and manufacturing activities has improved from the last year's figure of 28.29%. There is a marginal lowering of contribution from the tertiary sector comprising of services from its last year's share of 45.89%. I may point out here that during the last 20 years counted from 1980-81, the share of primary sector has come down from the level of 47.40%. The secondary sector has substantially gained from 12.90% and the tertiary sector improved from 39.70%. While the shares of the secondary and tertiary sectors have improved because of growing number of manufacturing and service units, there is stagnancy in primary sector. This stagnancy calls for our fullest attention for possible interventions and corrections. THIRTEENTH FINANCE COMMISSION AWARD: The Finance Commission appreciated our memorandum as one of the most comprehensive documents touching upon all the relevant issues and its Terms of Reference. During its visit to our State, the Commission held

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very detailed discussions with the Council of Ministers and various other stake-holders. The Members of the Commission visited all the three regions of the State to have first hand account of development issues and further interacted with various stake-holders locally. For the first time, we had arranged special meetings of the Commission with the representatives of all the political parties and some honorable members of this House. As per our information, all parties, individuals and groups made very effective and strong presentations before the Commission. I am really very happy to say that our joint efforts have yielded adequate dividends. The Award of the Thirteenth Finance Commission has been laid by the Union government before the Parliament on 25th February, 2010. The Report reveals that the Commission has been particularly considerate in appreciating the needs of our State and, therefore, there are enough reasons to thank the Commission for their Award. Firstly, as against our share of 1.297% in the central taxes recommended by the previous Commission, the present Commission has enhanced our share to 1.551%. As a result of this enhancement, our share during the next financial year is estimated to increase to Rs.2,911 crore as against Rs.1,880 crore available during the current financial year. For the full period of the Award, we are likely to receive Rs.20,183 crore on this account, as compared to the amount of only Rs.7,442 crore available under the previous Award. This indicates a jump of 171%. The actual devolution shall be related to the actual realizations of taxes by the Union government. Secondly, the non-plan revenue deficit grant for the next five years has been increased to Rs.15,936 crore as against Rs.12,353 crore

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available under the previous Award indicating an increase of 29%. Thirdly, in addition to the enhancement of the provision for Natural Calamities Relief by 155%, the Commission has also recommended specific needs grants of Rs.135 crore for Kashmir and Rs.120 crore for Jammu. For the first time, Rs.90 crore has been specifically allocated for Ladakh region as strongly advocated by the government. Fourthly, the Commission has also recommended a grant of Rs.1,000 crore for settling the state government's over draft with the J&K Bank. In totality, the Award of the Thirteenth Finance Commission works out to Rs.40,439 crore which is almost double of Rs.20,880 crore made available to us by the previous Commission. We have noticed that the specific needs grants and some other sector specific components of the last Award were not utilized fully. This has resulted into great financial loss to the State as the un-utilized portion lapses at the end of the Award period. There are various stipulations attached to the release of such grants such as preparation of detailed plans of action, project reports, proper sanction by the prescribed committees at the Centre and periodical submission of progress reports and utilization certificates in a time bound manner. In order to ensure 100% utilization of the grants awarded by the Thirteenth Finance Commission, the government shall constitute a High Level Empowered Committee headed by the Chief Secretary to monitor the progress of expenditure on all the relevant items. A Finance Commission Cell in the Department of Finance shall keep regular tab on the periodical progress registered by the concerned departments. Each department shall also make comprehensive quarterly review of the physical and financial

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progress and apprise hon'ble Chief Minister about such progress. MAJOR ECONOMIC INFRASTRUCTURE INITIATIVES: The entire earth work for single lane of Rs.640 crore Mughal Road has been completed. We are hopeful that the consolidation and metalling of the road surface will be completed in the next financial year so that the road is thrown open for motorable traffic for the general public. This road will fulfill one of the many dreams of Sher-eKashmir Janab Sheikh Mohammad Abdullah Saheb and provide an alternative road connection between Kashmir and Jammu as well as to visitors from outside. The road shall boost trade and commerce and further strengthen the emotional & cultural bonds between the two regions of the State. This road was being earlier funded by the State and the Central government on 50:50 basis. I am happy to state that on the personal intervention of Hon'ble Chief Minister, the Hon'ble Prime Minister of India, Dr Manmohan Singh Ji, during his visit to the State in October, 2009 has agreed to provide 100% funding for this road under PMRP. The government has recently decided to explore PPP possibilities for

Capital Expenditure

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execution of Rs.400 crore tunnel between Vailoo & Singhpora to provide all weather connectivity between the district of Kishtwar in Jammu Region with the Kashmir valley. The project report for its implementation in PPP mode has been prepared. It will be the earnest desire of the government to see this work getting started as early as possible. The Qazigund- Khanabal segment of the railway line in Kashmir valley was formally dedicated to the people of the State in October 2009 by the Prime Minister Dr Manmohan Singh Ji in presence of the Chairperson of UPA Shrimati Sonia Gandhi ji. The entire Qazigund Baramulla railway line now stands completed. The work on the railway line from Udhampur-Katra to Qazigund which remained suspended beyond Katra for about two years, has been resumed due to personal efforts made by our Chief Minister. It is now going on in full swing and is targeted for completion by the year 2017. Four laning and upgradation of the National Highway from Lakhanpur to Srinagar is also progressing with good pace. The entire length has been divided into six segments. All these segments of the highway between Nagrota and Qazigund have been approved by the Central government for

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H I G H L I G H T S

Women Empowerment: A rebate of 25% in stamp duty in matters of sale and transfer of landed property when in the name of a female member of any family. Special revolving corpus of Rs. 10 crore for soft loan for setting up selfemployment enterprises by the girls and women. Monthly honorarium of Anganwari Workers and Anganwari Helpers enhanced by Rs. 300/- and Rs. 200/- respectively w.e.f. 01.04.2010 benefitting about 57,000 women folk. Employment provided to over 20,200 youth since January 2009 and so far 6500 new posts created particularly in Health and Education Sectors. Cancer Treatment and Management Fund set up with initial contribution of Rs. 1 crore for the corpus of this Fund.

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execution under PPP mode at a cost of Rs.9,700 crore. Completion of Toll Plaza Complex at Lakhanpur is in its final stages and shall get commissioned early in next fiscal. Adequate funding for the same is being arranged. Two Central universities have been approved by the Union government â&#x20AC;&#x201C; one each for Kashmir Valley and Jammu region. Suitable sites have been selected by the central team which visited the State for looking into the suitability of various sites suggested by the State Government each covering about 500 acres of land. It is hoped that these universities shall become functional very soon and they will take care of the growing needs of higher education and research, particularly in the non conventional and sunrise areas as well as in educational fields of modern relevance. Urban Transport System for Srinagar and Jammu cities requires special focus. Apart from the regular interventions being made by the government to tackle the ever growing traffic needs for these cities such as construction of a fly over from Jahangir Chowk to Rambagh in Srinagar and construction of another bridge over river Tawi for Jammu city, a long term solution to this problem is also called for. The government accordingly intends to engage M/S RITES to prepare reports for creating Metro systems for both these cities on the pattern of Delhi. BROAD BUDGETARY FEATURES: revised estimates for the current fiscal (2009-10) As per revised estimates, the current year's receipts total to Rs.22,885 crore in comparison to Rs.22,739 crore adopted in the budget estimates, up by Rs.146 crore. The tax

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receipts are estimated at Rs.3,075 crore in comparison to BE of Rs.3,011 crore showing a further improvement of Rs.64 crore. I may mention here that in comparison to last year's tax revenue of Rs.2,683 crore, the current year's tax revenue is up by Rs.392 crore, registering an increase of over 14%. The non-tax revenue figures proposed in the RE are Rs.1,294 crore in comparison to budget estimates of Rs.1,219 crore indicating an improvement of Rs.75 crore. The fiscal deficit has been reworked at Rs.2,090 crore in comparison to the figure of Rs.2,081 crore in budget estimates indicating a very small variation of Rs.9 crore. EXPENSES ON SALARIES AND ESTABLISHMENT: As is well known to the Hon'ble Members of this August House, there is a spiralling effect on the cost of establishment because of its big size, implementation of the Sixth Central Pay Commission Award and release of two new installments of DA every year. The total salary expenditure is estimated at Rs.6,629 crore as per revised estimates. The expenditure on pension payment is now estimated at Rs.1,495 crore in the revised estimates. NEW PENSION SCHEME: I had announced introduction of the New Pension Scheme for the employees who would be recruited after 01.01.2010. A Bill incorporating this scheme was passed by this House during the last session. The scheme has come into operation with effect from the first January 2010. The introduction of this scheme and gradual building of a massive Fund outside the annual state budget shall be insulating the employees recruited in future from the regular budgetary pressures of the government on year to year basis. On

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the other hand, the ever mounting demand of funds for the old pensioners and the existing employees retiring in near future shall be gradually contained in a long-term perspective, indirectly ensuring that the existing employees also continue to get their pensionery benefits and regular monthly pension when they retire. BUDGET ESTIMATES 2010-11: I now take up broad budgetary features of the budget for the next financial year. The total budgetary receipts have been kept at Rs.25,984 crore. Out of this, an amount of Rs.22,849 crore is expected as revenue receipts and Rs.3,135 crore as capital receipt. Out of the total expenditure, also estimated at Rs.25,984 crore, the revenue expenditure will be Rs.17,698 crore both on account of plan and nonplan. The total capital expenditure is estimated at Rs.8,286 crore both on account of plan and non-plan. The State's own revenue comprising of tax revenue, non-tax revenue and share of central taxes totals to Rs.7,873 crore and represents over 30% of the total receipts. Exclusive of our share of central taxes, the state's own tax & non-tax revenue comes to Rs.4,962 crore which is about 19% of the total budgetary receipts. I have accounted for the non plan revenue deficit grant of Rs.3,940 available under the TFC Award. The inter se breakup of the remaining receipt figures shall be finalized by the Planning Commission at the time of determining the scheme of financing of the next year's plan. The scheme of financing shall also determine the level of our next year's loans and market borrowings. For the time being, I have based my assessment of these figures on the pattern of financing of our current year's plan.

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TAX REVENUE: The next year's estimates of tax revenue are Rs.3,655 crore indicating an increase of about 19%. The next year's estimates of VAT receipts are being placed at Rs.2,611 crore indicating increase of Rs.545 crore over the current year's BE of Rs.2,066 crore. I am targeting a growth rate of over 26%. Excise revenue target for the next year is Rs.280 crore. The target of collection of taxes on goods & passengers has been kept at Rs.384 crore. Duties on electricity are likely to yield Rs.206 crore. Taxes on vehicles and stamps duties are expected to yield Rs.101 crore and Rs.67 crore respectively. NON â&#x20AC;&#x201C;TAX REVENUE: The next year's budget estimates for non-tax revenue have been kept at Rs.1,307 crore indicating a negligible growth. The main item is power receipt for which next year's target has been kept at Rs.1,055 crore. Receipts from mining, forestry, water supply and health sectors have been kept at Rs.30 crore, Rs.38 crore, Rs.27 crore and Rs.15 crore respectively.

EXPENDITURE: The total expenditure of Rs.25,984 crore is divided between plan Rs.6,000 crore, PMRP Rs.1,206 crore, centrally sponsored schemes Rs.850 crore and non plan expenditure of Rs.17,928 crore. In revenue & capital terms, the break up is Rs.17,698 crore on revenue account and Rs.8,286 crore on capital account. Out of the total revenue expenditure, about Rs.8,200 crore is estimated to be spent on pay and allowances of the government employees including Rs.725 crore on two new installments of DA and Rs.129 crore on migrant salaries. A provision of Rs.482 crore has been kept as grant-inaid, mostly for government aided institutions which use it mainly for salary payments. Rs.1,800 crore have been kept for pensions and retirement benefits. Rs.2,251 crore is earmarked for payment of interest. Expenditure on power purchase is another major item and the next year's provision on this account is Rs.2,051 crore. As far as capital expenditure is concerned, Rs.959 crore are estimated to be spent on repayment of loans and Rs.7,327 crore on various capital formation schemes including capital component of the plan.

H I G H L I G H T S

Exemption from sales tax on income from room rent of hotels, lodges and guest houses continued upto 31.03.2011. For popularizing mechanization of Agriculture and Horticulture farms, agriculture tools and implements exempted from VAT and Toll. Fodder, Fertilizer, Pesticides, Weedicides and Insecticides exempted from Toll. Solar appliances exempted from VAT and Toll to encourage use of renewable source of energy. Feni, Agarbatti, Dhoop exempted from VAT. Anardhana, Guchchi, Paneer exempted from VAT. Bee hives and bee colonies exempted from VAT and Toll.

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ANNUAL PLAN 2010-11: Despite the delay in sanctioning of the current year's plan outlay by the Planning Commission, we hope to meet the physical and financial targets assigned to us under the plan. As such, the government has decided to ask for about 10% step up in the next year over the current year's plan. We feel that our request shall surely meet acceptance of the Planning Commission. As such, the plan out lay for the next financial year has been kept at Rs.6,000 crore. The working group meetings of all our concerned officers with their counterparts in the Planning Commission have already taken place yesterday and day before yesterday. We hope that the Plan outlay shall be settled very soon in the meeting of our Chief Minister with the Deputy Chairman of the Planning Commission as per past practice. Out of the total plan outlay, the capital expenditure is estimated at Rs.5,073 crore forming 84.55% of the total plan outlay. The revenue expenditure is estimated at Rs.927 crore forming 15.45% of the out lay. The increase in the revenue expenditures is mainly on account of creation of a large number of plan posts for the new districts and establishments including upgradation of the existing establishments such as those in health and education sector. Over and above the plan out lay of Rs.6,000 crore, a sum of Rs.1,206 crore has been proposed to complete the schemes taken-up under PMRP. A provision of Rs.721 crore has been kept under the next year's state plan as the State share for the centrally sponsored schemes. This provision is expected to provide access to about Rs.2,377 crore as central share from various ministries. A component of Rs.118 crore out of PMRP is being kept as state counter part

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share to enable the Economic Reconstruction Agency (ERA) to raise matching loans from the World Bank. Some of the salient features pertaining to various sectors are summerised here. AGRICULTURE: Primary sector consisting of agricultural and allied services sustains 75% of our population and engages 50% of our total work force. The natural factors have not been favourable for agricultural operations in the current financial year. Scarcity of rain during the last kharief and delayed rains during the current rabi have caused substantial loss of production. The government has decided to give thrust to paddy-wheat rotation techniques which will be now carried into the next year. The agricultural department has gone ahead with the acquisition of three units of paddy transplanters for mass demonstration during the next kharief 2010. Likewise, the department has also procured fourteen wheat thrashers for popularizing paddy wheat rotation and farm mechanization. About nine thousand kanals of land has been covered under this scheme during the current rabi season. The government is providing subsidy on purchase of agricultural machinery and farm equipments such as sprayers, irrigation pump sets, tillers, thrashers, shellers, reapers, potato planters, seed cum fertilizer drills etc in order to encourage farm mechanization. In respect of tractors, the amount of subsidy is as high as Rs. 45,000. For horticulture farm management equipment and power tillers the subsidy amount is Rs.15000. For seed cum fertilizer drills, the amount of subsidy is Rs.20,000 and on potato planters, potato diggers, strip till drill, Dal mill etc the amount of subsidy is Rs.15000.

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HORTICULTURE: I had stated last time that the productivity of our orchards can be improved by providing root stock for high density plantation from our departmental nurseries as also by encouraging the private nurseries to join in this effort. The initiative taken by the government is showing encouraging signs. The availability of root stocks and planting material in the next year is expected to increase by more than 60%. The Horticulture Department is going to install micro irrigation system at its Zainpora farm with a view to popularizing drip irrigation amongst the horticulturists. The Department is going to extend its activities in difficult terrains such as Gurez and Uri. While Apricot has been introduced in Gurez, additional area is being brought under olive plantation in Uri. Kiwi is also being popularized amongst private orchardists. Stone fruits, pears, peaches and olive are being promoted in the hilly regions of Jammu. New varieties of apricots are being introduced in Ladakh region. Cluster approach is being followed so that technical know-how to the farmers can be effectively imparted. A MoU has been signed by the Department with APEDA for arranging consultancy for setting up cold atmospheric stores and cold chain in the State. SERICULTURE INDUSTRY: As stated by me before this House in last August, the government is giving lot of importance to this traditional industry of Jammu and Kashmir. A Multi Task Force has been constituted to work out strategies for holistic development of mulberry, cocoon production, silk reeling, weaving of silk fabric and other down stream products. Four clusters of 100 sheds each are being established in the State for intensification of cocoon

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rearing. The next year's target for production of cocoons has been kept at 9 lakh kilograms. FLORICULTURE: After signing a Memorandum of Understanding with Airport Authority at Srinagar, land measuring 150 square metre has been leased out to the Department of Floriculture. APEDA has been approached to provide financial assistance and set-up a walk in type cooling chamber on this piece of land for stocking perishable commodities like flowers, fresh fruits and trout fish. The cooling chamber shall be managed by the Floriculturists Association on no profit, no loss basis. POULTRY: Poultry farming has lot of potential for generation of employment opportunities for our youth. The government's policy of encouraging this industry has started showing results. Several initiatives by the private sector are in the offing. In the meanwhile the government initiative of using taxation as an economic tool by abolishing toll tax on import of day old chicks and

enhancing toll tax on import of poultry birds has started showing positive results. After my announcements to this effect in the month of August 2009, Lakhanpur check post has recorded a decline of 23% in the import of poultry birds and an increase of 22.5% in the import of day old chicks upto the end of February 2010. In terms of number, the increase in import of chicks is 24.69 lakh and the decline in the number of poultry birds is 15.85 lakh. Simultaneously, the government is also encouraging establishment of backyard poultry units for which the department is gearing-up its production for supply of low tech poultry birds from the departmental hatcheries to the BPL families. The Department is working on a PPP initiative for developing hi-tech parent stock. The Central Government has offered to extend financial assistance for setting up of poultry estates. However, as availability of chunks of land around the growth centers is limited, the State Government is trying to persuade the Central Government not to insist on providing chunks of land for establishment of poultry estates and to extend financial assistance for units

H I G H L I G H T S

Period of VAT exemption on replacement of defective parts by new parts raised from existing 90 days to 180 days. Traders with a turnover exceeding Rs. 60 lakhs will now be required to file an audited report under J&K VAT Act as against Rs. 40 lakhs earlier. Slight enhancement in tax rates viz. VAT rate of 4% to go up to 5%. VAT rate of 12.5% to go up to 13.5%. Rate of Service Tax to go up from 8% to 10% and increase in Toll from Rs. 40 per quintal to Rs. 50 per quintal. For Media, revision of advertisement rates done after 2006. Rates enhanced by 40%. Budgetary provisions also increased by Rs. 150 lakhs under REs 2009-10 and further by Rs. 245 lakhs in 2010-11.

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set up on private lands by the entrepreneurs in clusters around identified growth centers. IRRIGATION SCHEMES : Under the Indus Waters Treaty, the State can irrigate 13.96 lakh acres of agricultural land. We have covered an area of 12.65 lakh acres so far. In the current year, we hope to add another 34000 acres to our irrigation potential. In Kashmir, Jammu and Ladakh region,12 major/medium irrigation schemes are under execution at a cost of Rs.614 crore. Further more, five new schemes are in the process of approval. About 507 minor irrigation schemes are under execution at an estimated cost of nearly Rs.900 crore. Out of them, 100 schemes are expected to be completed in the current financial year. While more schemes are being formulated and regularly sanctioned to bring more area under irrigation, efforts shall be made to compress the period of execution of the on going schemes and all the requisite funds as may be needed for the purpose shall be made available by the government on priority basis. For kandi areas of Jammu region, 9 check dams are proposed to be constructed at a cost of Rs.80 crores under BADP and AIBP. Additionally 18 more check dams on rivers Basantar, Ujh, Devak, Tarna and Yak are under examination of the Central Groundwater Board for artificial recharge of ground water. FORESTRY: Forestry alongwith conservation of environment and ecology, wild life, forest protection and research shall be provided due attention under plan development. A sum of Rs.23.25 crore is proposed to be allocated in the next year's plan for this sector. The forest sector has also been allocated a sum of

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Rs.133 crore by TFC for the five year's period of the Award. POWER SECTOR: Wide gap between demand and supply has been in existence in power sector. The present restricted peak demand is estimated at 1450 MW whereas the total availability from state's sources comes to about 945.70 MW. The balance of the demand is met on payment against state's allocation in projects outside the State and by special adhoc allocations from the Centre. The total availability of power comprises of State's own installed capacity of 758.70 MW and 12% free power available from the central projects located within the State equivalent to 187 MW. The gap between demand and supply becomes precarious during winter months when the generation from the local hydel stations, owned by State as well as the Centre, is reduced to almost one third of the installed capacity and the power demand goes up primarily because of heating needs. The long term answer lies in the expeditious exploitation of our own hydel resources. The 450 MW Baghlihar HEP-II is estimated to cost Rs. 2800 cr and the work on execution of this project is already going on. We also hope to start work on execution of 1200 MW Sawalkot HEP in near future for which the work on Rs.119 crore access road is going on in full swing. Bidding process for 690 MW Ratle HEP in IPP mode is in its final stage. Three projects with an aggregate capacity of 2120 MW at Kiru, Kawar and Pakaldul shall be taken-up by the JK SPDC with participation of NHPC. Preparatory works on 93 MW new Ganderbal HEP, 240 MW Kirthai HEP, 50 MW Lower Kalnai HEP and 37.50 MW Parnai HEP to be executed by our JKSPDC are in full swing. The installed capacity of all the

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HEP's to be executed by JKSPDC totals to 2070 MW involving capital investment of over Rs.15000 crore. Installed capacity of joint sector and IPP project adds to an additional figure of 2810 MW. Many other smaller HEP's are under execution by JKSPDC as also by the private sector under IPP mode. A plan provision of Rs.519 crore has been kept under power generation in the current year and the same is proposed at Rs.567 crore in the next year. In the transmission and d i s t r i b u t i o n s e c t o r, t h e s t a t e government has engaged M/s TERI as consultants to prepare a comprehensive turn around plan. Simultaneously, 30 towns are being covered under restructured APDRP at a cost of Rs.144 crore as part B of this scheme. The state intends to install high voltage distribution system and aerial bunched cables to avoid thefts and control the mounting T&D losses. Under PMRP, 77 schemes of T&D stand approved at a cost of Rs.707 crore. The cost has been revised to Rs.1350 crore. Ten grid stations are targeted for completion on turnkey basis in current year and the remaining six grid stations shall be completed next year. Thirteen grid stations are being completed departmentally. Fifteen Transmission Lines are being completed in the current & next financial year on turnkey basis and twenty one transmission lines are under execution departmentally. An allocation of Rs.504.13 crore has been proposed for next year for strengthening of T&D System, under PMRP. POWER SECTOR REFORMS AND RECOVERIES OF DUES: Power sector is in need of major and basic reforms, particularly because of ever growing and unmanageable gap between the amounts annually spent on

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power purchases and the total recoveries made by the department. The position can be better understood from the facts that six years ago the expenditure on power purchase was Rs.882 crore and the revenue realized by the department was Rs.607 crore leaving a gap of only Rs.275 crore which

amounted to 31.12 % of the expenditure on power purchases. As compared to these figures, the expenditure on power purchases in the year 2008-09 was Rs.2034 crore and the recovery was only Rs. 630 crore leaving a gap of Rs. 1404 crore which amounts to 69.30% of the expenditure on power purchase.

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Rs. 8 crore for migrants' group mediclaim insurance. Estimates of Total Receipts (TR) â&#x20AC;&#x201C; Rs. 25984 crore as against Rs. 22885 crore in 2009-10. Estimates of Total Expenditure (TE) also at Rs. 25984 crore as against Rs. 22885 crore in 200910. Highest ever Share in Central Taxes â&#x20AC;&#x201C; Rs. 2911 crore under 13th Finance Commission Award as against Rs. 1880 crore in 2009-10. Central Grants also at a high of Rs. 3940 crore as against Rs. 2385 crore in 2009-10. However, the flow will be tapering with terminal year (2014-15) flow of Rs. 2096 crore. Revenue Receipts (RR) contribute Rs. 22849 crore, Capital Receipts Rs. 3135 crore.

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Under the Constituency Development Fund Hon'ble Legislators have been authorised to utilize upto Rs.8.50 lakh for improvement of HT/LT net work in their areas against which power development department will provide Rs.25.50 lakh. An amount of Rs.30 crore has been proposed in the transmission and distribution sector for improving HT/LT net work through constituency development route. Rs.20 crore allocation has been proposed for creation of a transformer bank to take care of replacement, augmentation of capacities and longer shut downs for repairs so that the inconvenience caused to the consumers on this account is minimized. I have earlier mentioned that the next year's power purchase budget has been kept at Rs.2050 crore. Against this figure, the revenue realization target is only Rs.1055 crore. This means a loss of Rs.1000 crore. I am excluding the energy available free of cost as well as operation and maintenance expenses from my calculations. It is clear that such heavy recurring losses in power sector are not sustainable. To grapple with this alarming situation, some fundamental changes have become inevitable. Hon'ble Chief Minister has already announced in this House that the government shall be bringing a new Electricity Bill and an Electricity Conservation Bill before this House for consideration during the current session. Un-bundling of Transmission and Distribution functions shall be carried out and responsibilities of the individuals and the organizations shall be pinpointed. Greater thrust shall be given to the recovery of outstanding arrears. A system of incentives for prompt payments and recoveries coupled with an effective system of penalties for delays and non recovery shall be put into place. Billing and

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collection of dues and settlement of disputes shall be made transparent and user friendly. In the meanwhile, the State Hydel Policy is being revised to make it s i m p l e r, m o r e a t t r a c t i v e a n d practicable for private investors in micro and mini hydel area. TOURISM: Tourism is one of the most crucial economic sectors for the State. Apart from sight seeing and adventure sports, the pilgrim tourism has become the biggest component of visitors to the State. The government is encouraging and supporting the private sector with financial incentives and development of infrastructure. Massive government effort is also involved in providing regulatory and security cover to the tourists. The government has also been undertaking promotional activities and organizing publicity to attract tourists to our beautiful state. The government has almost completed the project of widening and upgradation of Khanabal-Pahalgam road at a cost of Rs.110 crore. The work on Narbal-Tangmarg road is in full swing and is expected to be completed by June 2010 at an estimated cost of Rs.116 crore. The work on widening and upgradation of Domel-Katra road is under execution through Border Roads Organization. These three roads are being funded under PMRP. Completion of Rs.640 crore Mughal road between Bafliaz in Poonch District of Jammu Division with Shopian town in Kashmir Valley will open-up new vistas for tourism promotion in the State. The government has sanctioned 22 local development authorities at important tourist spots so that the tourists are attracted to various other beautiful corners of the State apart from the traditional tourists sites. The

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plan allocation in tourism sector is proposed to be enhanced to Rs.161 crore in the next year. Additionally, the Thirteenth Finance Commission has provided Rs.50 crore for Mubarak Mandi Complex and Rs.25 crore for development and conservation of Tawi front. Rs.15 crore allocation has been proposed under the Plan for the Cable Car Corporation to take up new projects including one for Makhdoom Sahib in Srinagar and Mubarak Mandi at Jammu. Apart from developing facilities and places of attraction at various places, the government is presently engaged in preparation of a vision document and master plan for sustainable tourism for all the three regions of the State. Eleven experienced and professional consultants have been shortlisted by the Department. Technical and Financial bids have been received from them. Action has also been initiated for collecting the necessary data for undertaking break even analysis of various tourism related activities so as to formulate an appropriate insurance mechanism for various groups of investors in tourism sector. INDUSTRY SECTOR: Hon'ble Members may kindly recall that the Central Government had extended a special package of incentives for new industrial units to be set up in J&K. Part of the package pertaining to excise duty exemption was withdrawn without completing the prescribed period. The State government had been vigorously pursuing the case with the central Government for restoration of the original package of incentives and its extension by a further period of 10 years. Our Hon'ble Chief Minister, Janab Omar Abdullah Saheb had personally taken up the matter with the Central

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government. I am happy to report that the excise duty exemption for value addition within J&K has been restored and the benefit has been extended by a further period of 10 years. The government has constituted two Rehabilitation Task Forces for Kashmir and Jammu Divisions respectively with a view to revive the closed and sick units. The Task Force constituted by the Prime Minister has recommended soft loans for revival of sick units for which creation of a corpus of Rs.100 crore has also been recommended. A Standing Forum for simplification of procedures and removal of bottlenecks is also being created. An Industrial Advisory Board stands constituted where policy matters and macro level issues can be projected and promptly decided. The government is conscious of the fact that speedy industrialization will help in employment generation consistent with the policy frame work outlined in SKEWPY. The Common Effluent Treatment Plant under execution at Lassipora through the Central Leather Institute at a cost of Rs.6.42 crore is expected to be completed by June, 2010. The construction of Inland Container Depot

at Rangreth is making steady progress. The government has approved construction of a Rs.24 crore Udyog Bhavan for Kashmir. This was a long pending demand of entrepreneurs. Food processing industry which is one of our thrust area shall receive a boost after the new promotional policy recommended by the Task Force appointed by the Prime Minister for J&K is formally approved. The government intends to maintain the focus on promotion of handicrafts and handloom Sector. Six handloom clusters are being operationalised. There is a plan to modernize 40,000 carpet looms at a cost of Rs.120 crore for which a prototype is being developed in the Institute of Carpet Technology at Srinagar. The government has decided to provide 50% to 75% subsidy on premium for health insurance cover to the handicrafts artisans which will provide much needed relief to this segment of the population. Crafts of Kanishawl, Pashmina and Sozni have been brought under the purview of Geographical Indicators or GI. A pashmina testing lab is being established at a cost of Rs.4.62 crore. The government intends to facilitate a

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Revenue Expenditure (RE) including Security Related Expenditure (SRE) â&#x20AC;&#x201C; Rs. 17698 crore, Capital Expenditure (CAPEX) â&#x20AC;&#x201C; Rs. 8286 crore. Non Plan Revenue Expenditure (NPRE) consumes Rs. 16717 crore of which Rs. 2251 crore for interest payment. Non Plan Capital Expenditure (NPCE) of the order of Rs. 1211 crore of which Rs. 959 crore comprise loans repayment. Non-Plan salaries burden at Rs. 8179 crore including Rs. 725 crore for DA installments. Pension bill soars to Rs. 1800 crore as against Rs. 1495 crore in 2009-10. Rs. 15 crore set apart for 10% Employer's share under New Pension System introduced from January, 2010.

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mega marketing campaign during common wealth games and other festive occasions to enable the craftsmen and small traders of handicrafts to clear their stocks. The current year's plan allocation for industrial sector is Rs.93.12 crore. During the next year's plan, outlay of Rs.111 crore has been proposed for this sector. The J&K State Finance Corporation has gone out of way to help out the industrial units which suffered due to law and order problems and other reasons during the last 20 years. Various exit schemes were sanctioned and implemented. I had announced a one time settlement scheme during the last budget session which is presently under implementation. In the process of helping out the assisted units, the Corporation got drained out of its resources, particularly because Small Industries Development Bank of India (SIDBI) which is its co-owner stopped further funding and refinancing of the Corporation. We are seriously pursuing the case of revival of the Corporation with SIDBI and hope for a positive outcome in near future. In the meanwhile, the Board of Directors of the Corporation approved a comprehensive revival plan for the Corporation. As the first step in that direction, the government proposes to contribute Rs.35 crore towards its additional share capital for which an initial provision of Rs.5 crore has been proposed in the next year's plan. Revitalization of the public sector units remains in our focus. Rejuvenation of economically viable units, disposal of unused assets particularly the real estate for mobilization of resources, disposal of the closed units unfit for revival and policy of golden handshake and voluntary retirement schemes are the hallmarks of the government

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approach in this direction. A sum of Rs.60 crore has been proposed in the next year's budget for this purpose. Disinvestment in the public sector is an area which has not been attended to so far. The government intends to make a beginning in this direction in near future. The government is providing financial support to the local industry in the shape of exemption from taxes on raw materials and finished products in order to make them competitive. CST and VAT exemption for industry now costs Rs.375 crore. The toll exemption alone accounted for Rs.90 crore during last year. For market promotion, the government has maintained a policy of price preference and purchase preference to the local SSI units in all government purchases. Adoption of quality standards has been encouraged with financial support. The government has initiated steps for setting up of two Tool Rooms in the State for the benefit of industry. However, in a global scenario of competition, the industry will have to come forward in a big way for brand promotion, as a very sizeable non-government market lies ahead for them both within and outside the state. The financial requirements for this purpose shall be fully met by the government. TRADE POLICY: A new trade policy is under formulation for which a Committee stands constituted involving all concerned officers and representatives of trade & commerce. In the meanwhile proposals have been sent to Government of India for approval and allocation of funds, for creation of infrastructure for promoting trade across LOC. Special phone lines have been authorised for reliable communication for trade.

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RESTORING INDUSTRIAL CLIMATE: A very encouraging and promising industrial climate was created by the strenuous efforts of the government in the seventies and eighties. Unfortunately, eruption of militancy wrecked that climate. With the large scale closure of industrial activities, premises of many industrial units and industrial estates as well as other public and private properties have been used for accommodating security forces. The government has decided to gradually restore the original activities in the interest of industrial development of the State as well as for restoration of normalcy. Hon'ble Chief Minister has himself taken the initiative in his hand and has constituted three Standing Committees at the State and Divisional levels for regularly monitoring the progress of vacation of the industrial estates, industrial units and other properties in a gradual manner by providing alternative accommodation to the security forces. Significant progress has already been made in this direction and more is expected to follow shortly. ROAD SECTOR: Road sector, particularly the rural roads are the life line of the community. They also make very valuable indirect contribution to the growth of the economy. We have 9,933 habitations in the State out of which 4,163 habitations were unconnected as on 1.4.2000. The R&B department aims to cover 1,426 habitations under phases I to VI of PMGSY at a cost of Rs.4,772 crore. Out of this target, 776 habitations have been connected ending January, 2010, taking total connected habitations to 6,546. Under PMGSY, the current year's expenditure ending January, 2010 is Rs.700 crore and 743 more habitations are expected to be taken up under

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phases VII and VIII. The next year's plan provision for R&B has been proposed at Rs.687.93 crore. The Thirteenth Finance Commission has awarded Rs.140 crore for maintenance of roads & bridges. PHE, HEALTH AND EDUCATION: Drinking water, health cover and primary education are the socio economic activities on which lot of emphasis is being given by the government. The number of rural water supply schemes completed so far is 2,283. Accelerated Rural Water Supply Scheme has been renamed as National Rural Drinking Water Programme and made a part of Bharat Nirman Programme. The current year's estimated expenditure on this scheme is Rs.447.74 crore and 400 schemes are expected to be completed this year. Additionally, urban water supply schemes are being executed under the state plan and ERA. Upto the current year, 17.70 Million Gallons per day capacity has been added to the system in Jammu City and 12.25 MGD added for Srinagar City. Rupees 46 crore are being spent in current year for other towns in Jammu

Division on 6 projects estimated to cost Rs.116.43 crore. Similar projects are on the anvil for Kashmir under UID SS MT. A scheme for Sopore town has been cleared for Rs.33.53 crore. Schemes for Anantnag and Dooru costing Rs.72.69 crore are expected to be cleared soon. Projects for Baramulla, Bijbehara, Awantipora, Pulwama, Shopian, Khansahib and Chrar-i-sherief have been sent to the Centre for clearance. URBAN DEVELOPMENT: The Housing & Urban Development Department is charged with the responsibility of housing, execution of schemes under various components of JNNURM, Urban Local Bodies and environmental engineering works. It has taken up a scheme for conservation of Tawi waters by diverting nallahs and drains. Protection of water bodies is likely to receive momentum with the initiatives taken by the central government as also the funding expected to be provided under the Award of the Thirteenth Finance Commission. Two abattoirs are being constructed at Srinagar and Jammu. Provision has been made in the Master Plans for developing warehousing facilities in the capital cities. Many

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Starting with fiscal 200708, an amount of Rs. 4 crore is being provided every year for settling outstanding of JAKFED towards JCCB crystallized at Rs. 80 crore. Besides Rs. 128 crore for maintenance under nonplan, Rs. 20 crore under Plan also for Flood Protection and R&B Sector. Annual Plan 2010-11 for Rs. 6000 crore submitted excluding Rs. 1206 crore under Prime Minister's Reconstruction Plan (PMRP). Plan Revenue Expenditure (PRE) estimates at Rs. 927 crore. Plan Capital Expenditure (PCE) Rs. 6279 crore and Rs. 850 crore under CSS. Rs. 7.62 crore for strengthening of Regional Rural Banks.

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parking sites have been already developed in both the cities and more sites have been planned for execution in government sector as well as in PPP mode. SCIENCE AND TECHNOLOGY: Remote villages and hamlets numbering 27 in Gurez tehsil have been provided 3,726 solar home lighting systems. Additionally, 68 remote villages have been identified under this scheme. The Ministry of New and Renewable Energy has agreed to provide 41,000 additional solar home lighting systems to 191 remote villages and hamlets at a cost of Rs.54 crores under this scheme. The beneficiary is required to meet a small component of about Rs.750 where as assistance of more than Rs.11,000 is available from the central government. Solar power plants are being provided to Dargah Sharif Hazratbal, Shri Mata Vaishno Devi ji Shrine and Ziarat Chrarisharief. The Rajbhawans at Srinagar and Jammu and the Legislature Complexes at Srinagar and Jammu, together with 22 health institutions are also being provided solar power plants. The Union Ministry for New and Renewable Energy has also agreed to provide assistance of Rs.45 crore for implementation of 56 micro Hydel projects. It has further indicated a target of upgrading 2000 water mills and installation of 3000 biogas plants during the next two years. RURAL DEVELOPMENT: During the last year, 79.25 lacs mandays were generated, 13,122 works were taken up and funds to the tune of Rs.86.90 crore were utilized under National Rural Employment Guarantee Scheme. This year, we increased the daily wage rate from Rs.70 to Rs.110 per day. This has expectedly resulted into

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improved performance. During the current year, till date 101.03 lacs mandays have been generated and 6,48,196 Households have been provided Job Cards. Number of works taken up for execution is 24,459 out of which 10,029 works have been completed and funds to the tune of Rs.132.16 crore have been absorbed in the Scheme. This is a very significant improvement over the last year. Under Indira Awas Yojana (IAY) 26,804 houses were taken up for construction out of which 19,010 were completed last year. During the current financial year 38,968 houses were taken up for construction out of which 15,005 have been already completed. Similar achievements and improvements have been made in implementation of Swaranjayanti Gram Swarozgar Jojana (SGSY), and Total Sanitation Campaign (TSC). WELFARE SECTOR: Welfare of weaker sections of the society like scheduled castes, scheduled tribes, backward classes etc and attending to the special needs of women and children is amongst the top most priorities of the government. Talking of all these segments together in my budget speech does not in any way reduce the importance which the government attaches to each individual constituent of this group. The government is, in fact, attending to the needs of each and every constituent separately. A sum of Rs.253.73 crore is proposed to be kept in the next year's plan for ameliorating the conditions of the weaker sections of the society and for welfare of women and children. The State Women Commission organized two workshops for the senior officers of the government for highlighting the principles of gender budgeting and incorporating the same

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in budget formulation. In view of the importance of this concept, I have included a separate report in the budget documents for information of the Members. The government has sanctioned 3,094 new Anganwari Centres in the current financial year, taking the total number to 28,577. The government has further decided to enhance the remuneration of Anganwari Workers and Anganwari Helpers. I accordingly announce increase of Rs.300 PM in the remuneration of Anganwari Workers and Rs.200 PM in respect of Anganwari Helpers. The total financial implications on this account are Rs.15.30 crore per annum. INCLUSIVE DEVELOPMENT: The government is committed to balanced regional development for all regions and sub regions of the State. The government would like to do it in a systematic and structured manner The State Finance Commission constituted to study the issue and suggest solutions to the problem alongwith the related issues of financial restructuring, economic development, decentralization, good governance, empowerment, employment issues etc has concluded its field visits, meetings with all strata of the society, studies and debates. They are in the process of analyzing the collected data and preparing the final report. Accordingly, the government would now be keenly awaiting their recommendations after which this important task shall be attended to in right earnestness in a systematic manner. In the meanwhile, the State Government has provided Rs.10 crore under BADP for development of areas adjoining international border, line of control and line of actual control. A similar amount is expected to be

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available under this programme during the next financial year as well. EMPLOYMENT ISSUES: During my last budget speech, I had drawn the kind attention of the hon'ble members of this august House towards the growing unemployment in the State, particularly amongst our educated youth. In this connection I had also enumerated various steps which the government intended to take to tackle this problem in a systematic and holistic manner. I am glad to announce that all those measures have been placed on the ground for fulfillment of their declared objectives. The government's announcement about the policy evoked a very positive response from the unemployed youth who came forward in large numbers to get themselves registered in the District Employment and Counseling Centres. As

per the latest figures available with us, the number of youth registered in these centres is 5.84 lakh, comprising of 3.08 lakh in Kashmir and 2.76 Lakh in Jammu division. These figures have given us a fair idea of the size and nature of the problem now. This information input shall be utilized to work out feasible solutions suiting to various segments of unemployed youth. As promised, the government has announced the â&#x20AC;&#x153;Sher-e-Kashmir Employment and Welfare Programme for the Youthâ&#x20AC;? on 5th December, 2009. It is for the first time the government has documented a well thought out plan of action to specifically deal with all aspects of un-employment and laid for itself not only a number of preidentified tasks to be performed in the coming years but also fixed the numerical targets for generation of employment in various fields and

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Rs. 114 crore for implementation of Sher-eKashmir Employment & Welfare Programme for Youths. For bringing greater transparency and accountability in implementation of development programme, 150 projects worth Rs. 744 crore assigned to NABCONS and M/S Mckenzy. Rs. 60 crore for meeting cost of VRS/GHS in PSUs. Provision of Rs. 2051 crore for purchase of power from CPSUs and J&K SPDC. Completion of all ongoing Health and Educational institutions and making these fully operational by end 2010-11 a major thrust area under Plan. Rs. 30 crore for improving HT/LT network through CD route. Another Rs. 20 crore for creation of transformer bank.

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sectors. An innervated self employment programme and a massive skill upgradation programme for improving employability of our educated youth are in the offing. Five Rural Self Employment & Training Institutes (RSETIs) are being established by the J&K Bank and the State Bank of India in collaboration with the Ministry of Rural Development, Government of India in the current year. In the coming years, all the remaining districts shall be covered by such institutes. The government has started a process of creating mass awareness amongst the youth about the bright prospects in self-employment programme to be undertaken under the seed capital scheme of the J&K Entrepreneurship Development Institute. A sum of Rs. 50 crores has been provided as Entrepreneurship Development Fund to be operationalised through J&K Entrepreneurship Development Institute. (JK EDI) for this purpose. The JKEDI has already finalized the procedural aspects in consultation with the concerned state government departments and J&K Bank for implementation of the programme and the same is expected to be on the ground very shortly. The employment department has been organizing District Level Employment fairs as part of its efforts to create mass awareness amongst the youth about various aspects of SKEWPY and to set up their own enterprises with the help of government's active support and financial help. An Overseas Employment Corporation has been approved by the government and the same shall come into existence very soon after completion of legal formalities. The procedural formalities for its registration under the Company's Act

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are also under finalization. The process for setting up of an Empowered Employment Facilitating Agency is also on. A sum of Rs.10 crore has been sanctioned by the government in favour o f J & K Wo m e n D e v e l o p m e n t Corporation for setting up self employment enterprises by the girls and women. The Women Development Corporation is presently engaged in the process of identifying entrepreneurs and selecting appropriate schemes for them for setting up women specific entrepreneurial ventures. The government has already instituted 5 awards in the field of innovations with a prize of Rs. 1 lakh each as announced by me during the last budget session. A committee has also been constituted for selecting the best innovations every year. As per the declared policy of the government, the selections by the PSC, SSSB and the Police Recruitment Board have been fast tracked. As per the figures available for the year 2009, 1300 candidates have been selected by the PSC, 10,045 candidates have been selected by SSSB and 7499 candidates selected by the Police Recruitment Board after first January, 2009. The government has simultaneously settled 2912 cases of compassionate appointments under SRO-43. Out of this number, employment has been provided in 1,362 cases and cash assistance in the remaining cases. This takes the total figure of employment to 20,206, the highest ever in a single year. The government has created around 6,500 new posts since January 2009. Currently, 20,665 vacancies have been identified and accordingly over 20,000 youth are likely to get government jobs in the year 2010. The government has additionally created 3000 posts exclusively for the migrants

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which are to be filled up shortly through a special recruitment drive. The government has taken a bold and historical initiative of introducing Voluntary Service Allowance for the unemployed youth hailing from financially weaker families from the next financial year. The details of the VSA form part of the policy document on SKEWPY copies of which had been sent by the government to the hon'ble members. The government considers that this support extended to the most deserving boys and girls among the educated unemployed youth shall prove to be an important hand holding measure in the interim, till they get absorbed in their self employment ventures or get a government or private sector job during their eligibility period. This measure is also in consonance with the popular demand made by many members of this august House during the last session. The policy document released by the government was mostly welcomed, though criticized by some. We have tried to pick up all constructive suggestions for further improvements in our plan of action reflected in SKEWPY. In fact, I will be very keen to listen to more suggestions from the Hon'ble members on making further improvements in the scheme shaped up by the government and gratefully acknowledge well meaning practical and concrete suggestions forthcoming from any quarter on this engaging issue which is our common problem regardless of the positions of the chairs we occupy in this House. A provision of Rs.113.80 crore has been kept under plan and non-plan for implementation of various schemes falling under SKEWPY. The government shall not hesitate in supplementing these allocations to any extent as per actual need.

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WELFARE OF CANCER PATIENTS: Apart from providing infrastructure for long-term benefits to the society, it also becomes necessary for the government to give lead in such philanthropic measures as are generally initiated and carried out by conscientious members of the society. Cancer is a malady which cannot be handled merely by making available infrastructure and diagnostic facilities in government institutes or private sector mainly because the treatment and management of cancer is expensive and beyond the financial means of poor and even middle class families. Accordingly, the government has decided to create a Cancer Treatment and Management Fund designed to run on voluntary donations qualifying for income tax rebate. The Fund shall be managed under the advice of experts and philanthropists with the active

involvement of the government. Assistance from the Fund shall be targeted toward poor and lower middle class families. I announce an initial contribution of Rs100 lakh for corpus of this Fund. There are a large number of employees in the government and autonomous bodies who are drawing a substantial amount in the name of monthly medical allowance. I appeal to them to get a small amount ranging between Rs.10 per month to Rs.50 per month deducted at source from this allowance as contribution towards the Cancer Treatment & Management Fund to help their less fortunate brothers and sisters. I will be issuing instructions to the DDOs on these lines. As the proposed donations shall be purely voluntary, any employee may ask his DDO in writing not to make such deductions. However, I am sure that all

our government employees have a human heart full of compassion and such exceptions would be rare. The Fund shall seek voluntary donations from individuals and philanthropic institutions as well. THE FOURTH ESTATE: The Press is recognized as the Fourth estate in our democratic set up. Apart from serving as a potent medium for expressing public opinion, it also provides an effective medium of communication between the government and the people in respect of government policies and

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Rs. 35 crore envisaged for enhancing share capital of State Financial Corporation for its revival. Initial Rs. 5 crore provisioned in 2010-11. Rs. 20 crore for reactivation of worn out and procurement of new water supply pumps. Rs. 2 crore for strengthening the Planning mechanism. Plan outlay for Rural Development raised by 82%. Roads Sector gets 51% hike. Social Services receive 45% enhancement. Agriculture Sector outlay hiked by 28%.

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programmes. Often this objective is achieved through government advertisements. With the ever increasing costs of printing, the need for making an increase in the advertisement rates was felt and the same has been already notified by the government. With a view to ensuring that no shortage of funds is faced in making timely payments to the newspapers and magazines, I have already enhanced the budgetary allocation of Information Department from the existing level of Rs.530 lakh to Rs. 680 lakh in the revised estimates of the current financial year. For the next year, a provision of Rs.925 lakh has been proposed. These allocations are in addition to the funds drawn for meeting department specific needs from the allocations under individual schemes and projects. I intend to create a mechanism for ensuring that no liabilities are carried forward by any department on account of costs of advertisements and all bills are paid off in a timely manner from the budgetary allocations of the same financial year. GOOD GOVERNANCE: The government is committed to bring in good governance at the door steps of the people. Transparency in the functioning of the government, Right to Information Act, effective monitoring of all government schemes and programmes are hallmark of realizing goals of good governance. Hon'ble members will be happy to know that for the first time a sizeable chunk of our plan projects numbering 150 and costing Rs.744 crore have been assigned for monitoring to independent professional agencies in consultation with the Planning Commission. The Unique Identification scheme for all citizens has been launched by the

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central government. A Unique Identification Authority of India (UIDAI) has been already created. The State Government is in close touch with this Authority and would like to take a lead in getting the first set of UID numbers in our State. This scheme shall provide an effective platform for financial inclusion and targeted subsidy payments. The Voluntary Service Allowance announced as part of SKEWPY shall be brought into the ambit of this scheme. The Public Distribution System shall be our another major initiative for electronically controlling the movement and stocking of food grains, issuance to the dealers and monitoring of distribution of food grains to the targeted population which shall be linked to UID scheme. Matters of Permanent Resident Certificates are being linked to this scheme, resulting into lot of convenience to the people. The government is also examining the possibility of introducing etendering with a view to make t e n d e r i n g o f w o r k s s p e e d i e r, transparent and more efficient. ENTRY TAX: The State Government is heavily investing in infrastructure developmental programmes to change the economic landscape. The Government granted exemption from payment of Entry Tax, (subject to the fulfillment of certain conditions) on 'earthmoving machines' required by registered contractors for execution of works contract in respect of Centrally Sponsored Schemes, Mega Flagship and other Central Schemes. It has been experienced that the procedure in vogue, for grant of such exemption is time consuming. I, accordingly propose to simplify the procedure by a suitable regulation. This shall ensure speedy completion of development projects in

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the State for the benefit of its economic development and prosperity. SIMPLIFICATION OF TAX ADMINISTRATION: During my pre-budget discussions, the need to bring about several amendments, in various taxation laws and rules pertaining to Excise and Commercial Taxes Departments was emphasized by representatives of trade and industry. Many of these suggestions are seemingly logical and need mutual understanding. Dynamism lies at the core of every taxation law. As a consequence, the law keeps on evolving. With the twin objective of a better tax administration and a hassle free compliance, I propose to constitute a Committee, comprising of senior officers of the Commercial Taxes, Excise and Finance Departments to revisit various provisions and to propose changes, wherever required. VALUE ADDED TAX AND PROPOSED GOODS & SERVICES TAX ACT. Successful transition from the State General Sales Tax Act to the Value Added Tax regime has been experienced in our state. Now transformation of Value Added Tax into a much more comprehensive Goods and Services Tax is under consideration of the Empowered Committee of State finance ministers of which I am also a member. A lot of debate has already taken place on this subject. The Union Finance Minister has announced that GST Act may be considered for adoption with effect from 01.04.2011. The SSI units operating in the state were enjoying Sales Tax exemption on raw material and finished goods for the periods prescribed in the package of incentives sanctioned by the government from time to time. With the transition from the State GST Act to VAT

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regime, exemption from general sales tax was automatically withdrawn. In order to protect the industry from the additional burden falling on account of imposition of VAT, I continued exemption favouring industry even under the VAT regime. Now that the proposal for application of the new Goods and Services Tax Act has been deferred by one year and VAT Act shall continue to be in force, I propose to extend the benefit of this exemption to the eligible industry by one more year. TAXES ON ROOM RENT CHARGED BY HOTELS, LODGES AND GUEST HOUSES: Income arising out of room rent by hotels, lodges and guesthouses is liable to tax. With a view to support the tourism industry, I had agreed to exempt such income from any tax leviable under the General Sales Tax Act. We are hoping for better tourist arrivals during the next financial year. However, in order to continue support to this sector and the hotel industry, I announce continuation of such exemption from General Sales Tax Act for another period of one year commencing from 01.04.2010. ADDITIONAL RESOURCE MOBILIZATION (ARM): It is part of my inescapable duty to periodically initiate measures which would improve the internal resources of the government. The state's income comes from two categories classified as tax revenue and non-tax revenue. The structure of non tax revenue requires a systematic revamping. However, I refrain from touching the rates, fees, tariff applicable in various sector of non-tax revenue for the time being. I have already stated that I am targeting a 23% increase in the tax revenue collection during the next financial year. Part of this growth shall be

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achieved by better management and expected growth in economy. However, a portion will have to be contributed by introducing changes in the existing taxation rates. I propose to touch only two items for meeting my instant objective. The Value Added Tax or VAT is being administered under the policy frame work designed by the Empowered Committee of the State Finance Ministers constituted at the national level so as to maintain uniformity in taxation rates for important commodities all over the country and avoid tax war between neighboring states. The rates are enforced by all the states on a system of Uniform Floor

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Rates for various categories. The individual states are free to go above the Uniform Floor Rates. We have maintained a large number of items at the Uniform Floor Rate of 4%. Now the Empowered Committee has decided to increase the UFR for this category to 5%. I propose the enhancement of the existing rate of 4% to 5% accordingly. On a proportionate basis, the rate of service tax chargeable under GST act is proposed to be increased from 8% to 10%. I did not intend to change the existing VAT rate of 12.5%. However, our neighboring states have gone for a 10% surcharge on this rate which means an increase of 1.25%. I have no option but to fall in line keeping in view the understanding in the Empowered

4106

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Committee and, therefore, propose an increase of only 1%. The rate of toll tax chargeable by weight and fixed at Rs.40 per quintal more than seven years ago has not been revised for a considerably long time though the cost of goods has increased by now several times. I propose to increase it to Rs.50 per quintal. RELIEF TO FARMERS: I mentioned in the beginning that the agriculture and horticulture sector needs stimulation. I intend to start the p r o c e s s b y a b o l i s h i n g VAT o n Agricultural tools & implements because these items are already being subsidized by the government for popularizing mechanization of agricultural and horticultural farms. The proposed measure shall make them still cheaper and their use will, hopefully, become more popular. The toll tax on these items shall also be abolished. Pesticides, weedicides and insecticides are essential for disease control in agriculture, horticulture and allied sectors. As a support to the farmers in crop protection, I propose to abolish toll tax on these items as well. During the last budget session, I had experimented with using toll tax as a tool for stimulating economic activity by abolishing toll tax on day old chicks and increasing the rate of toll tax on poultry birds. Encouraged by the success of that experiment, I propose to abolish toll tax on all types of fertilizers w.e.f. 01.04.2010. I hope that this measure shall provide a much-needed major stimulus to the agriculture sector as the cost of all fertilizers including urea shall be now lower by Rs.500 per MT. The state is supporting a large animal population, almost equal in number to the human population.

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However, the land available for feeding them is far from being adequate. It is estimated that about 60% of our requirement of green and dry fodder is met by purchases from outside the state. I accordingly announce abolition of toll tax on fodder as well. Bee hives and bee colonies are often required to be transported across the state border. The movement of these items is currently subjected to toll tax. The bee colonies and bee hives are also subjected to VAT. In order to encourage beekeeping, I announce abolition of both toll tax as well as VAT on bee hives as well as bee colonies. Solar energy equipment including solar cookers, solar heaters, solar dryers, solar lantern, solar street lighting etc need to be encouraged in the interest of keeping our planet green and to help a large number of our people living in remote villages. Even in urban areas such equipments need to be encouraged. Accordingly, I propose to abolish VAT as well as toll tax on these items. Fresh cheese or paneer is a very important source of protein and particularly important in a vegetarian diet. I propose abolition of VAT on this item. Incidentally, this should also help in promotion of D-Industry in the state. SOME OTHER RELIEF: Feni or Femian is an item consumed particularly on some special occasions by our mothers and sisters when they take to fasting to celebrate some very pious occasions. The item presently attracts VAT rate of 12.5%. I propose to abolish VAT on this item all together. Similarly dhoop and agarbatti are popularly used for cleaning up the air and environment. Accordingly, it has come to be associated with worship and important social occasions in all regions of the State and all religions. I propose

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to do away with the VAT on this item as well. Guchchi or Gushian, Gul Banafsha or Banaksa and Anardana are items from forests and barren lands which are collected by a large number of people living in villages for their livelihood. The VAT rate on these items is 12.5%. In view of labour intensive process of collection of these items, I propose to include this item in 0% category of VAT schedule. Wheat, flour, suji, besan, paddy and rice are presently in 0% VAT category. I propose to continue them in the exempted category for another year. GENDER BUDGETING: I have mentioned about creation of additional Anganwari Centres and increase in honorarium of Anganwari Workers and Helpers. Mention has been made by me about employment programme for women under SKEWPY. In our society, most of the landed property is held in the names of men folk. Transfer of ownership rights to women in the family will result into positive socio economic changes and qualitative shift in the attitude of the male dominated society toward the female members of the families. In order to encourage adopting of such a practice by the society, I propose to provide concession of 25% in the amount of chargeable stamp duty if the land is purchased in the name of a female member of any family. This will empower our women folk in real sense. RELIEF TO TRADERS: Every trader with a turnover exceeding Rs.40 lakh is required to file an audited report under section 60 of J&K VAT Act, 2005. With the passage of time, this limit needs to be increased. I propose to increase this limit to Rs.60 lakh.

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As per rule 9A of J&K VAT Rules, 2005, the practice of replacement of defective parts is recognized and no VAT is chargeable on the new parts if the defective part is returned within 90 days of purchase. It has been observed that in some cases this time period may not be sufficient. I propose to extend the time limit to 180 days. ARREARS OF PAY REVISION: As the Hon'ble Members are already aware, the government sanctioned the revised pay scales recommended by the Sixth Central Pay Commission to the state government employees, retrospectively from 1.1.2006 and released cash benefits from the first of July, 2009. I had stated in this house during the last budget session that the requirement of funds to clear the arrears comes to over Rs.4000 crore. I had also stated that the demand for allocation of this amount had been projected to the Thirteenth Finance Commission adding further that if this amount is made available to the government in one go, I would be the happiest person to release 100% arrears in cash. I had accordingly appealed to the government employees to wait till the picture becomes clear with the Thirteenth Finance Commission's Award. The Commission has been fairly appreciative of our financial needs and has accommodated us to a great extent in respect of many other demands made through our Memorandum, as I have already stated. In respect of the arrears of pay revision, the Commission has considered our demand alongwith similar demands made by other states. It has made very categorical observations on this demand and I quote, â&#x20AC;&#x153;In our discussions with State Governments, a significant portion of

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the memoranda presented and the discussions on the future fiscal roadmap centered around the impact of this award on state finances. For the Centre, arrears alone amounted to Rs.28,160 crore on a salary base of Rs.44,360 crore. While many reforms can and should be, contemplated to end this self-inflicted distortion, one action that could be taken immediately is that of making the pay award commence from the date on which the recommendations of future Pay Commissions are accepted by the government. In effect, this would do away with the need for arrears. Since state governments' awards typically follow those of the central government, this would allow states to time their awards such that the need for arrears does not arise. In our view, if Finance Commissions are able to present their inter-governmental recommendations without any need for retrospective fiscal transactions, then the same should be possible in the case of Pay Commission as wellâ&#x20AC;?.

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I may also share with the Hon'ble members that all Finance Commissions give Awards keeping in view a basic common objective to put the states under pressure to improve their own resources and fiscal performance during the next five years of Award. Accordingly, they normally provide higher non plan revenue deficit grants in the first year and gradually reduce the same to a lower level in each successive year. The state governments are consequently bound to improve their own resources and to cut their non plan expenditure. Any increases in expenditure such as incremental growth in salary e xpen diture, additional DA installments, office expenses and other establishment costs etc have to be fully matched by improvements in their own tax and non tax revenues. The Thirteenth Finance Commission has chosen to give this message rather more loudly and strongly. Speaking of my own state, I may point out that our non plan revenue deficit grant in the year 2010-11 has

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been fixed at Rs.3940 crore which sharply declines to Rs.2096 crore in the last and the final year of the Award. It is a dip of Rs.1856 crore. Not only this, the Commission has also stipulated that the fiscal deficit in respect of our state should be reduced to 3% in the final year of the Award. Therefore, our borrowing capacity shall also get reduced gradually. Intermediate targets for reduction of fiscal deficit from its current level of 5.5% to 3% have also been prescribed by the Commission. I am sure that the Hon'ble members of this August House understand the position clearly. I appeal to the government employees who have been resorting to frequent strikes on this issue to understand the position with the same clarity. The government earlier committed to pay the arrears as soon as the resources for the same would be found. The government would like to reiterate its commitment with the same degree of conviction. After we found that the issue has been closed by

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the Thirteenth Finance Commission, our Hon'ble Chief Minister has raised this demand at the highest level asking for additional funds specifically for liquidation of these arrears. We have not lost our hope nor I would like the fraternity of the government employees to think differently. Without arranging the requisite additional funds, issuing a government sanction shall be meaningless. Similarly no amount of strikes or agitations can generate resources. Either we get the requisite additional funds in near future or we sit across together and mutually look into any practicable alternatives. I accordingly appeal to the employees to cooperate with the government on this issue. All of us sitting in this House and the government employees who are on the streets today, are accountable to the people and also duty bound to work for their welfare. Even if a single individual member of the public suffers because of abstention of employees from work, it w o u l d b e a n unpardonable sin. I would appeal to the striking employees to return to work forthwith on this single consideration alone.

sessions with the representatives of farming community representing diverse interests like agriculture, horticulture, sericulture, vegetable growers, floriculturists, sheep and cattle breeders, poultry, milk processing, cooperation and credit, bee keeping etc. I would be failing in my duty if I do not express my appreciation for the knowledge they exhibited about the government functioning and programmes and the awareness of the national and in some cases global environment in which they are operating. Some of the Hon'ble Members of the House chose to address communications to me through print media. They were also joined by economists, intellectuals and activists from various fields. I have studied their communications with interest and reverence. The valuable information collected through all these interactions has been preserved by us and shall continue to guide us in future.

The first year of functioning of the coalition government has been m om e n tou s i n m a n y re sp e c ts, inclusive of fiscal corrections and consolidation of financial management. Apart from what I have been able to do within one year, I am fully conscious that a lot more remains to be done quickly. All that remains will have to be done with patience, understanding and dispassion to enable the people of the state to become equal and effective partners in the national economy in the global context. The solutions to all our socioeconomic problems will continue to be searched in progressive, scientific, transparent and pragmatic manner by utilizing the latest skills, tools and technology available across the globe. This vision of the coalition government headed by our dynamic and young Chief Minister Janab Omar Abdullah Sahib will continue to guide all our policies and programmes.

CONCLUSION: During my pre budget discussions with representatives of the t r a d e a n d i n d u s t r y, tourism, economists, intellectuals and academicians etc, very valuable suggestions were made by the participants. For the first time in the history of budget preparation, I also held detailed interactive

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in focus Budget 2010

OPPOSITION REACTIONS

Budget is not About Reciting Couplets MUZAFFAR HUSSAIN BEIGH Former Finance Minister

he budget presented by Finance Minister Abdul Rahim Rather was more or less a balance sheet of a company secretary as this document lacks concrete road maps to solve the burning economic issues confronting the State. By writing couplets you are not going to change the economic landscape of the State. I understand limitation of a Finance Minister but nothing concrete has been proposed in the this year's budget to address the burning issues like unemployment, price rise, power, fiscial deficit, problems of employees and public sector units. The provisions made in the budget for creating job avenues are all cosmetics and unrealistic. People of Kashmir consume mutton, chicken and milk products worth Rs 2000 crore per year but in your budget proposal no provision has been made to involve unemployed youth of the State in this sector. More than two lakh youth could be provided employment in dairy, poultry and sheep breeding sectors. It is unfortunate that in the budget Finance Minister has not make proposal to tap this sector. I am equally surprised over Finance Minister's non serious attitude on herbs and floriculture sectors in creating employment opportunities. During the tenure of

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Mufti Mohammad Sayeed some serious efforts were made in both the sectors. The proposal of Rs 118 crore corpus tax for employment is not going to solve any purpose because last year 85 crores were kept for same purpose. The government has failed to take suggestions from the poultry and sheep breeding experts in this regard.

The government has to bring down the debt ratio by 25 percent by the end of the year 2014 but there is no road map for this in the budget proposal. Finance Minister also appears to have failed in taking some concrete measures to improve power situation in the State. No provision has been made in the budget for the augmentation of transmission lines especially in the Kashmir Valley to improve power situation Opposing proposal of the Finance Minister to increase VAT by one percent, I warn that this step would have cascading effect as it will further increase prices of essential commodities and poor people would be worst suffer of the this unnecessary step. This is no compulsion on the State to increase VAT by one percent. Despite decline in the agriculture production this sector has not given thrust in the budget proposals.

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As far as fiscal deficit is concerned, the government has to bring down the debt ratio by 25 percent by the end of the year 2014 but there is no road map for this in the budget proposal. Finance Minister also appears to have failed in taking some concrete measures to improve power situation in the State. No provision has been made in the budget for the augmentation of transmission lines especially in the Kashmir Valley to improve power situation. In its award the Finance Commission has mentioned that conservation of electricity and efforts to control power thefts be given priority. It is height that Chief Minister who himself holds power as well as Home portfolios has shown his inability to control power thefts despite powerful state apparatus in his hand. The excuses being offered by the government in resolving issues of employees particularly on sixth pay commission recommendations are questionable. In my opinion you have not properly read Award of the 13th Finance Commission as according to my opinion the Commission has accept in principal. The Finance Commission in its Award has asked the State Government to dis-invest or privatize all non profitable public sector units by the end of March 2011. No roadmap has been proposed in the budget in this regard. (Excerpted from Beigh's speech in Legislative Assembly)

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OPPOSITION REACTIONS

Not Budget, It Was Constitutional Filler TARIQ HAMEED KARRA Former Finance Minister

his year's budget appears more like constitutional filler than a concrete document. What Finance Minister Abdul Rahim Rather read out in Assembly sounded quite uninspiring and a crude fraud of figures. It reflected a collective incompetence of the National Conference-Congress coalition government. People had lot of expectations from the budget presented by finance minister, Abdul Rahim R a t h e r. B u t w h a t R a t h e r h a s presented is very uninspiring and figurative. The intention seems to confuse the members. In some sectors, the minister has even blamed nature to hide his

It was for the first time in the history of Kashmir that a tentative budget has been presented in the assembly. The presentation of tentative budget has exposed the government's performance

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incompetence. During our term, Rather sahib used to say that the budget figures were fudged. Today he has given me an opportunity to say that today's budget is fraud of figures. It was for the first time in the history of Kashmir that a tentative budget has been presented in the assembly. The presentation of tentative budget has exposed the government's performance. The government has presented the budget without having figures. Last year the government said the plan allocation was Rs 5500 crores but they conveniently created fraud. Out of Rs 5500 crore budget, 3000 crores were advanced additional assistance, recoverable within next five years. In actuality, last year's plan was just 2500 crores. As far as the State annual plan is concerned, maximum the state government will be able to achieve will be 80 per cent with the parked money of Rs 600 crores. The coalition government is out to create a messy situation in the power sector by losing Rs 1300 crores which State used to get from the New Delhi as power reforms. In our rule, the power transmission and distribution losses were just 45 per cent. However, in just one year, it has reached 72 per cent. Interestingly, the department is run by the chief minister himself. This speaks volumes about the performance of the

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The coalition government is out to create a messy situation in the power sector by losing Rs 1300 crores which State used to get from the New Delhi as power reforms. In our rule, the power transmission and distribution losses were just 45 per cent. However, in just one year, it has reached 72 per cent. Interestingly, the department is run by the chief minister himself. This speaks volumes about the performance of the State government State government. During our rule, every year we would get Rs 1300 crores from New Delhi. However, since NC took over, we're suffering a deficit of Rs 1300 on power infrastructure sector. Against the projected revenue of Rs 1100 crore, the government was only able to collect Rs 670 crore revenue from the power sector. The government is not providing electricity to the people. However, the bills are rising. When Mufti sahib took over as chief minister in 2002, concrete steps were taken to improve the power scenario. Thankfully we achieved a lot. Instead of controlling the price rise of essential commodities, the government was increasing toll tax, service tax and VAT taxes. Fresh taxes are burden on the people as they had to bear the brunt. The prices of essentials are soaring. I fail to understand why meat prices rise only during NC's rule.

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exclusive series

New Research on Kashmir PANDIT RAMCHANDRA KAK

The Forgotten Premier of Kashmir RAKESH ANKIT

One of 20 century England's most brilliant biographers, Giles Lytton Strachey – in the preface of his smashing Eminent Victorians (1918) – argued that 'Human beings are too important to be treated as mere symptoms of the past. They have a value which is independent of any temporal processes – which is eternal, and must be felt for its own sake'. Among all the important 'human beings', with eternal value, associated with Jammu and Kashmir in the year 1947, Rai Bahadur Pandit Ramchandra Kak remains the least known. This is surprising because Kak was the Prime Minister of the Jammu and Kashmir State from 30 June 1945 to 11 August 1947 – the all-important prelude to the events of August-October 1947. In his retirement in Simla 9 years later, Kak wrote a note titled 'Jammu and Kashmir State in 1946-47: Dilemma of Accession – The Missing Link in the Story' which can be accessed at the Oriental and India Office Collection, British Library (London), manuscript no. MSS Eur D 862. This is an important document which allows a rare window into the views of the man who has been banished to the margins of history for a variety of personal reasons.

ak begins by setting the record straight that while the question of accession was posed to the Jammu and Kashmir Government on two different occasions under two different sets of conditions, the reaction of the Kashmir Government was the same in both cases: it did not wish to accede, but would be willing to enter into a stand still agreement. He confirms that on the question of accession, his views and those of His Highness Maharaja Hari Singh (1925-1947) 'coincided though not for identical reasons'. The subject of accession arose first in late-1946 postthe deliberations of the Cabinet Mission. At this time, the issue of partition had not arisen except as a remote contingency, and accession was envisaged only with reference to the newly to-be-created Dominion of India. It arose for a second time in 1947, after Lord Mountbatten's assumption of

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office, when decision had been taken with regard to the partition of India into two dominions and Srinagar was asked whether it would accede to India or to Pakistan. On this latter occasion, the J & K State proposed stand-still arrangements with both Dominions 'in respect of the spheres in which the State's administrative arrangements, for example the running of post office, were interconnected with different areas now to be incorporated within India or Pakistan' (underlined in original). The decisive factor which influenced Kak in 1946 to hold the abovementioned view on accession was 'the attitude of the Indian National Congress, in regard to the affairs of the State'. Kak had been worried by the growing closeness between the Congress and Sheikh Abdullah during 1938-46. In his opinion, 'the Congress

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had identified itself with Sheikh Abdullah and lent its great weight of authority to his agitation against the State Government'. For Kak, 'the climax' was the behaviour of the Congress leadership – in particular Pandit Nehru – when the Sheikh was arrested in May 1946. For the next two months, the Congress leaders sent telegrams to Hari Singh and Kak demanding Abdullah's release; 'highly coloured, inaccurate and vituperative statements' were published; Nehru courted arrest in trying to pay a visit to Abdullah at Muzaffarabad and Uri; Asaf Ali and others from the Congress stayed at Srinagar appearing for Abdullah's defence in his trial; the Congress passed a resolution condemning the Kashmir Government and appointed a Commission comprising Jairamdas Daulatram and Sri Prakasa to hold an

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enquiry with regard to the happenings in connection with Sheikh Abdullah's agitation, arrest, trial and conviction; and, pressure was brought on Kak himself – to secure Abdullah's release – in his meetings with Mahatma Gandhi and Sardar Patel in Bombay which also saw Kak agreeing to Nehru's visit to Kashmir and meeting with Abdullah which duly took place at the end of July 1946. It was against this background that Kak and Hari Singh decided not to accede in 1946. Earlier in the year, in April, Kak had, 'notwithstanding the attitude of the Congress in regard to the Kashmir Government', supported the Congress' demand – emphatically and unequivocally – for the transfer of power in India to the Congress, to Lord Pethick Lawrence when the Cabinet Mission visited Srinagar. In 1947, once Lord Mountbatten and partition both arrived on the scene, accession which had previously been merely a matter of choice now became a matter of necessity. Kashmir now had to state whether it would accede to India or to Pakistan. Mountbatten visited Srinagar in June 1947 with the specific object of getting a decision from Hari Singh on accession. He also met Kak and then met him again in Delhi the following month. On both occasion, he emphasised the 'admissibility and advantages' of accession and pointed out that he himself was 'by birth, upbringing and conviction' a believer in constitutional monarchy. Kak relates an interesting anecdote from these meetings. When asked by Kak, as to which Dominion he advised Kashmir to accede, Mountbatten said, 'That is entirely for you to decide. You must consider your geographical position, your political situation and the composition of your population and

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then decide'. Kak rejoined, 'That means that you advise us to accede to Pakistan. It is not possible for us to do that; and since that is so, we can not accede to India'. As Kak later put it, 'since Kashmir would not accede to Pakistan it could not accede to India' (underlined in original).

Kak's case falls into two parts – economic survival and politico-military survival. According to Kak, in 1947, the revenue of the State was about Rs. 5 crores 60 lakhs, out of which about a crore was expended on the army. The period of Sir B. N. Rau's primeministership (1943-45) had been difficult for Kashmir and the State had to borrow from the J & K Bank a sum of Rs. 10 Lakhs to supplement its revenue in the budget year 1945-46. Kak managed to turn the fortunes around, pay off all the liabilities and achieve a surplus of Rs. 77 lakhs in the budget year 1946-47. Writing in 1956, Kak surveys around among other comparable underdeveloped/developing Asian/African countries that were slowly emerging from their colonial periods and asks sardonically, 'whose resources…are now adequate to meet all the needs? Kashmir could also have queued up with the rest for assistance without any undue feeling of shame During this visit to Delhi from 23 to 27 July 1947, Kak also met Mahatma Gandhi, Jinnah, Sardar Patel, Pandit Nehru ('for a few minutes') and V. P. Menon. Kak's accounts of his conversations with Jinnah and Menon are particularly important – in the light of what happened later. After a 'lengthy and frank discussion', Menon – according

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to Kak – 'quickly appreciated the reasons prompting the State's decision as regards accession'. They parted on the understanding that Menon would visit Kak soon after the transfer of power on 15 August to consider the future security arrangements – a meeting which never happened as Kak was removed from his post by Hari Singh on 11 August. Jinnah, after a long talk, advised Kak 'to accede to Pakistan and stated that Kashmir, by immediate accession would get far better terms from Pakistan than she was likely to get later'. When Kak responded by assuring Jinnah that Srinagar's position on nonaccession was definite, Jinnah said that 'so far as he was concerned, he was prepared to concede that this was an option which could be exercised by the State and so long as the State did not accede to India, he would not mind if it did not accede to Pakistan'. August-September 1947 is an action-packed and dramatic period in Kashmir's modern history – perhaps the most moving and decisive in the crisis of Kashmir. Its significance stems from what Kak terms 'the decapitation of the entire administration'. Kak was eliminated from the scene on 11 August; the Revenue Minister was retired a few days later and then came the deluge. The Chief Secretary, the Chief of the Army Staff, the IG-Police, the Governor, the Director of Civil Supplies, the Chief Engineer – all were removed and in their place were appointed people 'of little or no experience; doubtful reputation; [and, most crucially] the majority belonging to one community, the Maharaja's own'. The lack of authority was best symbolised by the 82-year old Major General Janak Singh – the new Prime Minister – and his 64-days tenure. So if – as stated in the beginning – there was no difference of opinion

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between the Maharaja and his Prime Minister with regard to the policy of non-accession, particularly after the partition, then what changed? How did things start to unravel so rapidly from towards the end of August 1947? Why was Kak removed and then detained; an enquiry initiated on charges brought against him? Was Kak's persecution, as he puts it, 'initiated by Hari Singh to mask the discrepancy between his real intentions se elements inside the State which urged immediate accession to India, to believe?' Kak is at pains to clarify that 'so long as it was thought that India would be one single unit, his objection to accession was due to the identification of the Congress with Sheikh Abdullah, and their refusal to see any other point of view'. From May 1946 onwards, Congress had insisted not merely on Abdullah's immediate release but on the drafting of a new constitution for the State and transfer of power to the Sheikh under its terms. This was obviously unacceptable to Kak but this unacceptance had more to do with the 'particular set of circumstances' in 1946 and not to the principle of accession per se. However, in 1947 – when the decision to partition was taken – Kak's objection to accession, was of 'a fundamental character'. Kak explains his position brilliantly in his note. He begins by arguing that 'whatever may be said to the contrary, the decision to partition India owed its inception to the state of discord prevailing between the Hindus and the Muslims' and was to be effected 'in such a manner that not merely did the country fall into two parts, but provinces and even districts were divided' along the majoritarian principle regardless of the party in

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power, for example, the NWFP where despite a Congress ministry 91% people voted for accession to Pakistan in the referendum. He further points out that 'the only rational course for a state – if it decided to accede – [was] to assure itself first whether its population would support

During his meeting with V. P. Menon in July 1947, Kak had drawn a parallel between the circumstances of 1846 – when the state of J & K was created and 1947. It is an insightful and meaningful lesson from history. The J& K State emerged under General Gulab Singh after the first Anglo-Sikh War in which while the Sikhs had been militarily defeated, their political base and power had remained far from being vanquished. The East India Company agreed with Gulab Singh in 1846 for the creation of a semiindependent J & K State – an area ceded by the Sikh Government of Lahore to them – which would remain friendly with the British and be a lessexpensive economic and military ally from behind the backs of the stillturbulent Sikhs of the Punjab. The strategic idea was that if the Sikhs moved against the East India Company, Gulab Singh and the J & K forces would be able to harass them from the rear. the accession' (and gives the highly pertinent example of the Nawab of Junagadh and his failed attempts to accede to Pakistan); notwithstanding the rather 'disingenuous and lofty legal option to accede to either'. For Kak, 'In the case of Kashmir, with an extensive border running with Pakistan and a population of 76% Muslims, the only safe and possible

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course, short of acceding to Pakistan, was, in the circumstances then prevailing, to remain outside the arena…To achieve this, however, it was essential so to act that it was obvious to all, friends and foes alike, that the State's policy was genuine and that it really meant what it said'. As for India and Pakistan, Kak writes that 'it would have paid both to come to an understanding between themselves, at any rate, during the nine weeks that elapsed between 15 August 1947 and 22 October 1947, that no inducement be held out or pressure exercised to bring Kashmir within the orbit of either the one or the other, and that both Governments would guarantee the security of the State from outside aggression'. Of course, we know what happened. Events developed otherwise; interests in Delhi, Srinagar, Karachi and Rawalpindi pulled Kashmir in different directions and an unresolved saga began. What then is the 'Missing Link' in the story of the dilemma of accession, mentioned in the title? It is, namely, 'could Kashmir have survived if it had not acceded?' As the man most committed to the possibility of such a scenario, Kak now argues his case. With the passage of time and the benefit of hindsight, it is a useful – if an academic – exercise to take a trip down the 'Kak lane' and probe the possibility of this alternative. Kak's case falls into two parts – economic survival and politico-military survival. According to Kak, in 1947, the revenue of the State was about Rs. 5 crores 60 lakhs, out of which about a crore was expended on the army. The period of Sir B. N. Rau's primeministership (1943-45) had been difficult for Kashmir and the State had to borrow from the J & K Bank a sum of

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Rs. 10 Lakhs to supplement its revenue in the budget year 1945-46. Kak managed to turn the fortunes around, pay off all the liabilities and achieve a surplus of Rs. 77 lakhs in the budget year 1946-47. Writing in 1956, Kak surveys around among other comparable underdeveloped/developing Asian/African countries that were slowly emerging from their colonial periods and asks sardonically, 'whose resources…are now adequate to meet all the needs? Kashmir could also have queued up with the rest for assistance without any undue feeling of shame'. Turning to the security scene, Kak convincingly claims that in an internal sense, in the period 1945 to August 1947, the J & K State did better than both its neighbours – the Punjab and the NWFP – in maintaining law and order and tackling with the refugee problem arisen from the communal clashes in these two provinces while dealing with the agitations of the National Conference and the Muslim Conference. Kak goes further and claims that 'on or two occasions (eg. at Kohala), the State Forces rendered assistance to the Punjab authorities in dealing with disturbances in their area'. Externally, Kak has no illusions that Kashmir would not have withstood for any length of time, an attack from its northern, north-western and northeastern borders. That left the Indian and Pakistani borders from where danger could have arisen for Kashmir (this is what happened). Kak holds the mutual 'apprehension of danger' on behalf of the pre-dominantly Hindu State administration and the predominantly Muslim State population responsible for the events of AugustOctober 1947 with none-too-subtle participation from New Delhi (political maneuvers) and Karachi/Rawalpindi

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(military interventions). During his meeting with V. P. Menon in July 1947, Kak had drawn a parallel between the circumstances of 1846 – when the state of J & K was created and 1947. It is an insightful and meaningful lesson from history. The J& K State emerged under General Gulab Singh after the first Anglo-Sikh War in which while the Sikhs had been militarily defeated, their political base and power had remained far from being vanquished. The East India Company agreed with Gulab Singh in 1846 for the creation of a semiindependent J & K State – an area ceded by the Sikh Government of Lahore to them – which would remain friendly with the British and be a lessexpensive economic and military ally from behind the backs of the stillturbulent Sikhs of the Punjab. The strategic idea was that if the Sikhs moved against the East India Company, Gulab Singh and the J & K forces would be able to harass them from the rear. Three years late, in 1849, the second Anglo-Sikh war brought to an end the Sikh political/military dominance in Punjab and showed the shortsightedness of the hurried nature in which the Company had come to terms with Gulab Singh. With the 1947 boundary between India and Pakistan

in Punjab not very different from the 1846 boundary between the Company forces and Ranjit Singh's successors in Lahore – this obvious and powerful parallel was best summed up by Maj. Gen. W. J. Cawthorn, the founder of ISI, in a speech (ref. no. 8/1575) at the Royal Institute of International Affairs (Chatham House), London on 28 September 1948: 'Whatever the legal position might be, from the political, economic and strategic points of view, Pakistan could not afford to have a hostile India right up to the Western borders of J & K : a) It would bring Indian army within 30 miles of the military headquarters of Pakistan and right behind the vital north-south communication line; b) it would give India control over the waterworks of Chenab, Jhelum and Indus; c) it would give India direct contact with Afghanistan and Chitral and Swat in the backdrop of indications that the Indian Congress and the Young Afghan Party were jointly encouraging the Pathanistan idea; d) it would also place India in an almost direct contact with Russia'. The above reasons then meant that since Kashmir did not accede to Pakistan and could not become independent, it was not allowed to accede to India, either.

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Epilogue, April 2010

fighting terror

Persecution of Muslims

Tragic Tales of Terror Hunt M SHAMSUR RABB KHAN

The acquittal of eight innocent Muslims by the Patiala House Court in January 2010 shows how security agencies, in the name of fighting terrorism, are found to be involved in prosecuting a particular community with unbridled oppression, and without any legal justification.

hese youths were arrested by the Special Cell of Delhi Police on charges of plotting terror attacks on Indian Military Academy (IMA), Dehradun. While delivering the judgement, the court has not only criticized the Special Cell of the Delhi Police for cooking up false cases against innocent Muslims (see Tehelka Magazine, Vol. 7, Issue 8, 9 & 10, February 27-March 13, 2010), it also puts a serious question mark over the working of the Anti-Terrorist Squad (ATS) of various states. The stories of illtreatment meted out to these Muslims show how the Special Cell of Delhi Police planned, doctored and executed the whole arrest drama to frame innocent Muslims. In addition, it brings to the fore the sheer lack of transparency and accountability in the working of ATS or Special Cell that have been instrumental in the violations of legal procedures and professional ethics, which led to the prosecution of many innocent Muslims in the country. With the motto 'with you, for you always' and manning 177 police stations in India's capital, Delhi Police is considered to be a model police force in the country. Reorganized in 1946 and again in 1966, when the Government of India constituted the Delhi Police

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Commission headed by Justice G.D.Khosla, and following the recommendations of the Srivastava Committee, it has 70,000 personnel to look after the security of Delhi. The Special Cell of the Delhi Police was formed in 1986 as a counter-terrorism force, which shot into prominence in the late 1990s, when some of its 'counter-specialist' officers went on to kill many terrorists and claimed to have solved several cases. But very soon,

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shoddy and illegal investigations and extra-judicial methodology adopted by the Special Cell started casting doubt over its covert operations. The most glaring example of Special Cell's investigation is the terror attack on Parliament in December 2001, which it completed in mere 17 days! On the speed with which the investigations of such an important case were carried out, the Delhi High Court pulled up the Special Cell for the production of false

Epilogue, April 2010

fighting terror Persecution of Muslims

arrest memos, doctoring of telephone conversations and the illegal confining of people to force them to sign blank papers. Despite these observations, instead of any strictures against the officers, the Supreme Court of India, it is startling to notice, accepted the Cell's charge sheet against the accused verbatim and upheld the death sentence of Mohammad Afzal, albeit the apex court acknowledged that there was no proof that Mohammed Afzal belonged to any terrorist group, but went on to say, quite shockingly, "The collective conscience of the society will only be satisfied if capital punishment is awarded to the offender." In time, some of Special Cell officers began to figure in extortion cases and dubious encounters. In August 2005, a Delhi court ordered the Delhi Police Commissioner to hold an inquiry into the alleged high-handedness of its officers for officially registering the arrest of a couple four days after they were actually arrested and for threatening to implicate them in a false case. The victims – Nazar Ali and his wife Kusum – were picked up from their house at Loni in the wee hours of July 24 in a fake case but their arrest was officially indicated to have taken place on July 27 morning. After the arrest, the police demanded Rs 50,000 for releasing them and threatened them that if the amount was not paid, they would be implicated in a false case. The Metropolitan Magistrate observed: “Prima facie, it appears that the accused was detained by the police prior to his actual time and date of arrest shown in the their file; the report of Investigation Officer (IO) along with this order be sent to the office of Commissioner of police to conduct a separate inquiry in this case.” In November 2009, charging

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Ravinder Tyagi, one of its celebrated officers and a member of the September 2008 Jamia Nagar encounter, for framing two police informers on terror charges – Irshad Ali and Moarif Qamar – the CBI demanded action against him. In an affidavit, the CBI said that a team from Delhi's Special Cell (the same team that led the Jamia

Reorganized in 1946 and again in 1966, when the Government of India constituted the Delhi Police Commission headed by Justice G.D.Khosla, and following the recommendations of the Srivastava Committee, it has 70,000 personnel to look after the security of Delhi. The Special Cell of the Delhi Police was formed in 1986 as a counter-terrorism force, which shot into prominence in the late 1990s, when some of its 'counter-specialist' officers went on to kill many terrorists and claimed to have solved several cases. But very soon, shoddy and illegal investigations and extra-judicial methodology adopted by the Special Cell started casting doubt over its covert operations. The most glaring example of Special Cell's investigation is the terror attack on Parliament in December 2001, which it completed in mere 17 days! Nagae encounter, including Mohan Chand Sharma) had abducted two innocent men, Irshad Ali and Moarif Qamar, in December 2005, planted two kg RDX and two pistols on them, and then arrested them as "terrorists" who belonged to Al Badr. To counter it, Special Cell put up a new theory, filing an affidavit to the Delhi High Court in which it linked the duo with a Pakistanbased terrorist, Baig and attributed the

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new finding to its deceased officer MC Sharma. Interestingly, the links of Qamar and Ali with Baig were not mentioned in the charge sheet filed by the Special Cell in a lower court in May 2006, and this theory came only after the CBI filed a closure report in the case with a conclusion that the two were innocent (see Delhi Police Special Cell Red-faced, Outlook magazine, April 21, 2009). As a result, Ali and Qamar spent five years in jail. Going through the dismal record of the Special Cell of Delhi Police, there is no doubt that not it has picked up innocent Muslims and framed false cases against them, it has crossed all limits of a legal entity, and which has been ridden with communal approach to prosecute Muslims. More than that, this security agency, instead of upholding the law, has been engaged in criminal act and if the Special Cell or ATS is not checked by the government, many more innocent Muslims will be trapped in the quagmire of its extrajudicial authority. Commenting on the shoddy role of Special Cell of Delhi Police, noted lawyer Prashant Bhushan said: “Unfortunately, whenever the courts have found that they [the Special Cell] have been framing people by fabricating evidence, they have not suggested any action to be taken. Unless they are punished very severely by law, police officers will keep on framing innocents as terrorists.” Since the advent of terrorism in India, the country has faced with unprecedented loss of life and property, in addition to a constant threat of bomb blasts anywhere, anytime by invisible hands. However, more heartening has been the fact that in the aftermath of every terror strike, persecution of innocent Muslims has become a systemic pattern. In order to prove their

Epilogue, April 2010

fighting terror Persecution of Muslims

discredited credentials, what the police and investigating agencies do after every bomb blast is to go on arresting Muslim youths indiscriminately, detain and torture them before they are acquitted due to lack of any credible evidence against them. Once the blast occurs media come up with stories of police catching 'terrorists' who invariably happen to be Muslims. This trend has been very much in practice in Maharashtra, Gujarat, Madhya Pradesh, Andhra Pradesh and Rajasthan, where ATS has been engaged in indiscriminate arrests and victimization of innocent Muslims followed by illegal detention; third-degree torture, long periods in police remand without bail, and prolonged trials and finally, the traumatic impact of their persecution and repeated harassment even after acquittal. We have many innocent young Muslim youths from Hyderabad, Azamgarh, Delhi, Mumbai, Ahemedabad and Jaipur who are in jails on mere suspicion. Many Muslim youths were arrested and later released immediately after Hyderabad's Makkah Masjid blast of May 2007 underwent severe torture and were labelled as terrorist. A set of stories 'They Just Want Muslim Boys To Be Always in Jail' and 'A Doubtful Crime, And Years Of Unfair Punishment' (Tehelka, August 16, 2008) proves beyond doubt that how young Muslim students randomly arrested and tortured with electric shocks by the police during investigations in Hyderabad. One of stories go on to prove how Moutasim Billah, an engineering student of Hyderabad was arrested on March 5, 2008, after his name came up in alleged confessions of other Muslims, and who was forced to give up studies because of cases of sedition and terrorism against him.

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Since the advent of terrorism in India, the country has faced with unprecedented loss of life and property, in addition to a constant threat of bomb blasts anywhere, anytime by invisible hands. However, more heartening has been the fact that in the aftermath of every terror strike, persecution of innocent Muslims has become a systemic pattern. In order to prove their discredited credentials, what the police and investigating agencies do after every bomb blast is to go on arresting Muslim youths indiscriminately, detain and torture them before they are acquitted due to lack of any credible evidence against them. the ATS headed by K.P. Raghuvanshi, and who is in charge of the Pune blast. The suburb of Mahim was especially targeted by the ATS and more than 250 people from the area were detained and interrogated a few days only after the blasts. After the Jaipur blast in May 2008, many Muslims were picked for questioning by the police that conducted raids without proper legal documents. In many cases, Muslims are picked up off the streets with no explanation for their arrest. Numerous experiences

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testify to this process of illegal detention. One such story, 'Picked up randomly, tortured, branded terrorist, acquitted with no evidence'. (Hard News, February, 2009) is of Ahmed Mohiuddin Rashid from Bhongir district, Andhra Pradesh, who mentions in the 'Peoples Tribunal on the Atrocities Committed against Minorities in the Name of Fighting Terrorism' as to how he was picked up by task force personnel on August 20-21, 2004, when he came out of the mosque after offering evening prayer. This perverse trend has been used systematically in Gujarat and reflected during and after the Jamia Nagar encounter, when the entire community was hounded, condemned, and some youngsters picked up with little evidence to show. We have the same story after the Pune blast. For example, some of headlines like 'Indian Mujahideen is Prime Suspect' (The Hindustan Times), 'Hunt Begins for Mohsin, Missing IM Recruiter' (The Indian Express), 'Intel Suspects IM Hand' (The Asian Age), 'Pune Blast Part of Karachi Project' (The Times of India) do send the message that it was done by Pakistan-based LeT or JuD with the help of Indian Muslims albeit neither the probe is complete nor the government is sure about the possible Indian suspects. Media reports were quick in jumping to conclusion. In a news report 'Pune blast: Police to quiz IM militant Shahzad' (The Indian Express, February 15, 2010), the Pune Police Commissioner Satyapal Singh ruled out any group in connection with the attack. But on the next day, more than 30 Muslim were picked up from Pune, Aurangabad and elsewhere, many of them on pretext that they are believed to have been associated with IM leaders at any point of time. We have the media full of reports about the

Epilogue, April 2010

fighting terror Persecution of Muslims

arrest of Salman, alias Chhotu, a suspected IM terrorist and a prime accused in the September 2008 serial blasts in Delhi, and who was arrested by a team of UP ATS on March 5, 2010. Similarly, in the first week of February 2010, another youth, Shahzad, was arrested as accused in the 2008 serial blasts in Delhi and is linked to Jamia Nagar encounter. Along with Muslims of Azamgarh, a top Muslim body, Ulema Council claimed that Shahzad was falsely implicated in the terror case. Given the number of false cases that ATS of various states and Special Cell of Delhi Police have found to be involved, should we not cast doubt over the claim of any new arrest linked to terror? Once arrested, the life of such Muslim youths and their families becomes a living hell. From victimization and illegal detention to third-degree torture, long periods in police remand without bail and prolonged trials to the traumatic impact of their persecution and repeated harassment even after acquittal. Since the legal process (including defence lawyers being beaten, branded antinational and even killed) is made so complicated and full of hurdles that they have hardly any chance to get bail. Some of the accused have more than 50 cases registered against them in four states and six cities. How can a poor or middle class family afford to get justice? The Prime Minister Dr. Manmohan Singh acknowledged a few weeks after the Mumbai serial blasts that "terrorism has resulted in certain sections of our population being targeted, with the result that a wrong impression has been created of the radicalization of the entire Muslim community". The sheer violations of human rights is matter of deep concern since

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Article 21 of the Constitution guarantees the right to life, liberty, equality and dignity of every individual citizen that are also embodied in the international covenants and enforceable by the courts in India. As per the resolution adopted by the UN General Assembly on December 17, 1979, all security personnel shall respect and protect human dignity and uphold the human rights of all persons and abide by the international conventions against torture and other cruel punishments, principles of

The 11 July 2006 blasts in suburban railway trains in Mumbai, for example, killed at least 207 people and injured more than 700. Albeit no individual or group officially claimed responsibility for the attacks, a large segment of the media, the police as well as a number of politicians and groups were swift to point the finger at Muslims, and hence in the aftermath of the bombings, about 350 Muslim from Muslim majority areas of Mumbai were detained overnight by the ATS headed by K.P. Raghuvanshi international cooperation in the detention, arrest, extraditions and punishment against humanity. Given the frequency of terror attacks, the role of security forces has become crucial in upholding the rule of law, rather than alienating a community through blatant discrimination, hence weakening our fight against terror. The principle objectives of an effective counterterror measure are to safeguard human rights, uphold rule of law and strengthen democratic values. And in any circumstances, the investigating agencies can neither be selective nor repressive.

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Epilogue because there is more to know

Monthly Magazine Extensively Researched Written with Clarity and Insight Covers Four Key Issues Politics Economy Culture Strategic Affairs

Unlike the General Run of the Mill News Magazines

Epilogue Has a shelf life That Extends Far Beyond the News Period Covered

Epilogue, April 2010

building peace

IPCS Report

, Countering Radicalisation BUILDING PEACE

DISCUSSION AND SURVEY REPORT

A recent conducted by the Institute of Peace and Conflict Studies in Jammu province observes upward trends of radicalization in the society even as influence of Pakistan in the region is seen fast waning out. The report, reproduced in following pages, is the result of a yearlong project that IPCS undertook, headed by Dr. Suba Chandran. The researchers traveled to different parts of Jammu, conducted a survey and subsequently held a workshop at the University of Jammu in December 2009. The report and its recommendations are the culmination of the survey and the workshop. The report reveals a renewed trend towards radicalization in Jammu and Kashmir. The report also finds that different religious communities are getting radicalized not just by local events but by events at the national and the regional level. Finally, in the report, Pakistan is not mentioned even once and that might be indicative of Pakistan's waning influence in the region. The report was released in New Delhi on March 9 where a panel of eminent experts and participants drawn from different parts of Jammu and Kashmir suggested measures for building peace and countering radicalization. Here are experts from panel discussion. AVM KAPIL KAK Additional Director, Center for Air Power Studies, New Delhi It is imperative to recognize that in Jammu and Kashmir (J&K), the tradition and culture of Sufi Islamism has stayed strong. Despite the pressure that has been generated in the region, the shrines in J&K are flourishing. For the first two or three years after 1990, there was a fear of the gun, but that vanished after 1996. On the other hand, the community that has become radicalized is the Kashmiri Pundits and it would be interesting to analyze how the highly educated and intellectual Kashmiri Pundits got radicalized. An issue that needs to be worked upon is connectivity within the region. It needs to be widened for any progress

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to occur in the state. By connecting people and ideas, hope can be regenerated in the region. Subsequently, decentralization in the region should be strengthened. This approach should be based on the Legislative Assembly at the top and autonomous Councils at the lower level with the Panchayati Raj institutions made more effective. The report could further expand to study the significance of the Right to Information Act (RTI) as a means of empowering people at the grassroots. Few recommendations that could be considered for implementing the above mentioned steps include: one, setting up a regional group responsible for identifying moderates and urban communities that could recommend individual action on peace-building at

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the grassroots; second, setting up of nerve centers that could identify new radical political thought; third, further sensitization of the police forces; and, lastly, revival of the old city of Srinagar to prevent it from becoming a centre for radicalization.

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building peace IPCS Report

GOPAL SHARMA, Former DGP, Jammu and Kashmir Police

concerned, it does not always work. For instance in the recruitment for police service, reservation for Scheduled Castes (SC) is eight percent in J&K, but there SC population in Kashmir valley is very small. This only compounds problems by creating dissatisfaction among the public. On the other hand, problems might get solved by greater employment opportunities and economic development. There should be a better process for the selection of police and government service personnel because the government is the biggest employer in J&K.

When militancy started in the region, it was only confined to the Kashmir valley where as the major land areas of Ladakh and Jammu were hardly affected. It, however, slowly spread to the entire state. The radicalization of Ladakh can be traced back to the mid-1980s with the agitation by Ladakh Buddhists demanding central rule from 1989. There is a feeling now that more problems might emanate from Ladakh. As far as decentralization in the state is

PROF. SIDDIQ WAHID Vice Chancellor, Islamic University, Srinagar

The IPCS workshop report needs to be lauded for contributing to developing a nuanced understanding of radicalization in the region. By pointing out that radicalization is not specific to any particular region or religion in J&K, the report greatly enhances the understanding of the region. Radicalization in Ladakh

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must be avoided and decentralization can assist in reducing the threat of radicalization. The Gorkha Hill Council has not been as successful as the Panchayati Raj and hence the latter should be strengthened. A similar model, however, might be challenging to replicate in other parts of the state, for instance in Jammu, because it can heighten the communal fault lines. The report has some language that can be misinterpreted, for example, words like 'Kashmiriyat'. This is a relatively new term considering the 7000-year-old history of Kashmir, which was used 60 years ago and it means acceptance of other cultures and traditions. This creates a bit of dissonance, if it means that Kashmir is the only area that is tolerant. It fails to appreciate the fact that there is also a sense of 'Ladakhiyat', and 'Dogriyat'. Again, Sufism is not the domain of Kashmiris alone; Sufism is present in Ladakh as well. To flip it, this intolerance has cut across the state. The Buddhists in Ladakh are showing stronger tendency of radicalization. They acidly boycotted the entire Muslim community in Ladakh. Something that might be explored is the real need for truth and reconciliation processes not just for the Kashmiri Pundit community, but for the Muslim community and the Buddhist community. The row over Central University can be turned around by looking at universities as integrators of society. There is also a denial of radicalization in Kashmir and Jammu and this should be addressed.

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building peace IPCS Report

DISCUSSION The Army and the Police: Given the ongoing atmosphere of instability and intermittent violence, talks of demilitarization might be considered immature. The army is working under great pressure. On the one hand, it is reaching out to the people and civil society at large, and on the other hand, there are extremist propagandas working against the army. Human rights violations have undeniably taken place, but the Indian army has managed with the templar model of insurgency. In Kashmir, it has been confined to mortar and small arms. There have been talks about replacing the army with the police but it must be realized that the danger of the police going in there is that they have local agendas. Police reforms are urgently required. Elders have to be consulted in the law enforcement process. The Police has now become a near paramilitary force because it has the communication, equipment, the professionalism, but they are human beings and so could develop local orientation. On the other hand, it must be appreciated that policing in J&K is not an easy task. Policing in a state is based on a principle that the population is abiding with the state apparatus, but in J&K, the population is against the state apparatus. The Police become an easy victim as was witnessed in the Shopian case. If the police cannot be supported then the armed forces should not be removed because this means that the state apparatus is not being allowed to deal with the situation. There is no one to defend the police, except the media and civil society which goes by rumors; but the army has the government's backing. There should be caution against saying that police should not be there; their operations now are almost without collateral damage and they are even trying to protect buildings.

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Gen. Dipankar Banerjee (Second from Left) Chairing Panel at New Delhi Discussion Session.

Radicalization: The report deals with the issue of 'radicalization' in J&K, which can be described as a situation where one is not willing to live with other communities and a situation where violence is used to express dissent. Radicalization also represents extremism; not just harboring an extremist view, but imposing it on others. In J&K, there is religious radicalization but the responses have been secular. Religion has always been used as medium of communication because it is the only education that has been given to the society. Many leaders have done that, Gandhi too did that and it is the only education that is universal. To counter radicalization, there is a need to go back to religion because secular responses will not be adequate. In Jammu, there has been no effort to understand the issue of marginalization and radicalization. Radicalization in Kashmir leads to radicalization in Jammu among the Hindus, giving rise to feeling of marginalization among the Muslims in Jammu. The assumption that Sufism in J&K is not under attack needs to be analyzed. Ahl-e-Hadith University's philosophy is the philosophical base of Lashkare-Toiba's and they are growing in Kashmir. If the state is sponsoring this University, then it has already agreed to the marginalization of Sufism in Kashmir.

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Decentralization: A division along communal lines might not work because that will be artificial. Jammu will have to work on another plan, maybe based on governance at the grassroots level. The problem is bad politics (majoritarianism and minoritarianism), and radicalization go hand in hand. The model in Ladakh is both in Leh and in Kargil but it is not working in Kargil because of corruption and factionalism. Even in Leh, the model is not perfect. Leh is seen as predominantly Buddhist but there is a nested community of Muslims, some Shias and some Sunnis. Young Political Leaders: J&K's young political leadership must be consulted because the majority of the leaders in the assembly are not old people and they have been elected by 64 per cent of the voters and they are not hardliners and their viewpoints on the way forward, must be considered. Democracy and free media: Transparency, objectivity and free media can really transform misperceptions. As soon as Shopian happened the initial report was that no murder took place, but hardliner elements were shaping agenda to turn falsehood into truth. At the end, democracy and civil society can really make a difference in J&K.

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building peace IPCS Report

RESEARCH REPORT

Participants at Jammu Workshop Despite the recent elections for the Legislative Assembly of J&K and the Parliament during 2008-09 and the continuing cross-LOC interactions, the state of J&K has been witnessing an increasing radicalization of three distinct kinds â&#x20AC;&#x201C; regional, religious and ethnic. While there has been much focus on military and human rights issues in the state, the growing regional antagonisms, radicalization and souring relations between various local communities, are newer trends that need to be studied and addressed. It was with a view to understand these contemporary negative develop-

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ments, that the Institute of Peace and Conflict Studies (IPCS), New Delhi, undertook a project on the above theme. The primary focus of the project was to understand the nature of change that has been taking place at various levels within the state and work towards building peace. It aimed to bring together the younger generation from different regions to discuss these emerging issues and reach an understanding on how to prevent further radicalization and build peace among the various communities of J&K. The project was specifically focused on the following three forms of radicalization:

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Regional Radicalization In recent months, there has been an unmistakable rise in the radicalization of regional sentiments between Jammu, Kashmir and Ladakh. The violence that followed the Amarnath Shrine Board crisis in Jammu and Kashmir regions, and the growing demand for Union Territory Status for Ladakh are expressions of how divided these three regions are today. Administrative issues such as the establishment of educational institutions have also demonstrated their potential to exacerbate the regional divide, as was observed during the

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building peace IPCS Report

recent agitation in Jammu regarding the setting up of the Central University in the region. Religious Radicalization There has been a slow, but steady radicalization that has taken place between and within different communities in Jammu, Kashmir, and Ladakh. Kashmir Valley has been well known for its practice of Sufi Islam, which has played an important role in preserving what is defined as Kashmiriyat â&#x20AC;&#x201D; the composite cultural identity of the people in this region. Unfortunately today, both Kashmiriyat and Sufi Islam are under stress due to the radical onslaught, which has progressively crept into the state in recent years. A section of the younger generation, unlike their elders, does not believe as much in Sufi Islam. Led by certain militant groups, there has been a deliberate effort to alter the nature of Islam in the Valley. While the older generation stresses the Sufi nature of Islam, a section within the younger generation seems to be looking beyond Sufism. In Jammu region, certain fundamentalist forces have been trying to radicalize the Hindu youth. There have been deliberate attempts to use the Amarnath Yatra for instance, and places of Hindu worship such as Vaishno Devi, Ragunath Temple in Jammu, and Buddha Amarnath in Poonch district to radicalize the Hindus in the JammuRajouri-Poonch belt. There seems to be a definitive trend in the sudden spurt in these yatras, under the deliberate patronage of certain groups. Radicalization within communities has also had an adverse impact on the relations between communities, mainly Hindus and Muslims. The recent com-

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munal violence in Kishtwar, Rajouri, and Poonch bears testimony to this new trend. Despite the presence of different religious communities, these sub regions and cities have always maintained religious harmony. Though there have been tensions between communities, these have largely been contained through local dialogue. However, in the recent past, not only has J&K seen an accelerated recurrence of such tensions, but has also been witness to disturbances in one region or town spilling over to and adversely affecting the communal harmony in neighbouring regions/towns. Ethnic Radicalization Besides the religious and regional divide, one can also observe a growing divide between the Gujjar and Pahari communities in the Jammu, Rajouri and Poonch belt. Ever since the Gujjars were granted the ST status, the Pahari community has felt disadvantaged. The parallel processions and counter arguments and articulation of interests by both these comminutes against each other are indicators of a growing divide that has the potential to affect the peace and harmony between these communities which share common space in these twin districts. I I METHODOLOGY The project was divided into three phases. In the first phase, the Institute commissioned surveys to a select research team of the IPCS, which were conducted across the three regions â&#x20AC;&#x201C; Jammu, Kashmir, and Ladakh, specifically in ten towns â&#x20AC;&#x201C; Jammu, Rajouri, Doda, Kishtwar, Anantnag, Srinagar, Baramulla, Sopore, Kargil, and Leh. The surveys were conducted primarily

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among the youth, to understand their perceptions of religious, regional and ethnic differences, and the measures they deem necessary for the state and civil society to adopt to prevent an escalation of conflict and violence. The questions were open-ended, seeking the opinion of the respondents to find what they considered the causes for radicalization and their recommendations on how the growing divide between communities may be addressed. Additionally, the Institute also commissioned discussion papers on regional and religious issues to academicians, journalists, media persons, bureaucrats, researchers, and conflict resolution/transformation experts from Delhi and the regions of Jammu, Rajouri, Poonch, Doda, Kishtwar, Anantnag, Srinagar, Kargil, Leh, and Turtuk, to seek their perspectives and recommendations. These papers were subsequently discussed in interactive sessions during a workshop held in Jammu, in collaboration with the University of Jammu. Some of these papers have already been published in the December edition of Epilogue. In the second phase, the Institute organized a three-day workshop in collaboration with the University of Jammu on 'Building Peace and Countering Radicalization in Jammu, Kashmir and Ladakh', during 2-4 December 2009 in Jammu. Three-day Workshop in Jammu University The objective of the workshop was to engage people from the academic and strategic communities, media, and students from various regions of the state to reflect on the nature of radicalization and its impact on the region and people

Epilogue, April 2010

building peace IPCS Report

and also draft policy recommendations based on the deliberations of the workshop. The three regions of Jammu, Kashmir, and Ladakh were discussed through background papers and survey reports. The workshop primarily aimed to get the younger generation from different regions of the state to discuss and debate the issues outlined above. It brought together youth from varied backgrounds â&#x20AC;&#x201C; students, scholars, and media persons, representing various communities of Jammu, Kashmir and Ladakh, to deliberate on these issues in smaller, sub-groups and make specific recommendations on how to prevent further radicalization. The workshop also witnessed the participation of senior scholars who acted as Resource Persons to help the younger participants understand the current issues in a larger perspective. Additionally, the surveyors briefly presented the findings of the surveys conducted by them across J&K to give the participants a sense of ground level perceptions and in turn, make the workshop proceedings more meaningful. During the workshop, the participants were divided into two groups to discuss religious and regional issues respectively, make policy recommendations and suggest measures to counter the growing radicalization. On the third day of the workshop, both groups made their recommendations on how to address the regional and religious differences in the state. The final phase of the project which the Institute is currently engaged in is focused on the summation of the proceedings of the entire workshop as also the findings of the surveys conducted, through separate workshop and survey

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reports that will be made available on the IPCS website and circulated widely as news briefs among leading newspapers and magazines in Jammu and Kashmir. Further, the Institute will also bring out a set of recommendations to be submitted to the governments of India and J&K, and circulated among the civil society at large. FOCUS OF THE WORKSHOP: MAJOR ISSUES OF DEBATE The discussion which spanned eight sessions, touched upon critical issues such as the regional differences within J&K, role of the Amarnath land row agitation in polarizing communities and regions and its spillover effect in other states, the gradual waning of Sufi influence in the Valley, displacement of Kashmiri Pandits, alienation of Rajouri and Poonch districts, the growing Gujjar-Pahari divide in these twin districts, and the challenges that confront Ladakh since its division into Leh and Kargil districts, among other topical issues in the context of J&K. The debates contributed to developing a nuanced understanding of regional perspectives on radicalization and underscored the fact that radicalization is not specific to a particular region or religion, but has infected all regions across J&K and the country in varying degrees. The Amarnath land agitation, being a recent controversy, was the center of attention and debate during the first day of the workshop. The differences in perceptions of various communities, especially with respect to the 'economic blockade' were also debated at length. As the discussion proceeded, the misperceptions on either side regarding how each viewed the different phases of

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the Amarnath crisis, became evident. It became clear that these misperceptions had fueled significant insecurity and triggered negative responses from either side during the entire episode. What also came to the fore during the debate on this and various other issues, was the physical isolation of different regions and lack of connectivity that have affected emotional linkages between and within the regions. Participants, especially from Leh, Kargil, Kupwara, Doda, Kishtwar, Rajouri, and Poonch, highlighted the existing situation in terms of connectivity and the urgent need to improve it. These sub regions, thanks to the lack of physical connectivity, have become inward-looking, isolated islands. Besides these, the participants also debated another crucial issueâ&#x20AC;&#x201D;the allocation of funds for regional development. It was clear from the debate that every region and sub region believes there is an imbalance and that they are specifically being neglected while the other regions and sub regions are benefiting at their cost. However, in the absence of sufficient data to prove or disprove these claims, significant misperceptions continue to exist between the regions and sub regions. These misperceptions in turn, have fueled acerbic sentiments and mobilized people to respond violently. The recent violence and apprehensions regarding the Amarnath land and Central University rows are expressions of these misperceptions. In view of the growing regional radicalization, the most interesting session was on identity politics in the districts of Doda, Kargil, Rajouri and Poonch. Speakers commented on the demand for autonomous development councils on

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grounds of distinct ethno-cultural community identities. There was also an intense and emotional debate, on the issue of the tensions between the Gujjar and Pahari ethnic identities. It was pointed out by some that while the Gujjars have benefited immensely since being granted the Scheduled Tribe (ST) status, the Paharis have lagged behind considerably. While the Gujjars maintain that they deserve the reservation status, the Paharis argue that they are just as deserving since both communities have been living together in the same space, share the same resources and have suffered the same social and economic challenges. This has led to a reinforcement of the ethnic divide between the two communities, while also bolstering demands from the non-Gujjars to be included in the ST category. Ladakh, an Autonomous Hill Development Council, divided into Kargil and Leh with majority Shia Muslim and Buddhist populations respectively, is demanding a union territory status on the grounds that it has suffered on account of the gross negligence of both, the Union government and the state of Jammu and Kashmir. It also claims autonomy on the basis of preserving its own culture and the need to develop its regions economically, a need which has been subsumed by other concerns of the Jammu and Kashmir regions. Lack of physical connectivity, neglect by Jammu/Srinagar and poor social and economic indicators drive their demand to maintain an independent identity. The workshop also witnessed intense debate on internal displacement in J&K, especially with respect to the Kashmiri Pandits. While the discussion

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highlighted the role of violence in triggering internal displacement from Doda, Ramban, Kishtwar, Rajouri and Poonch regions; it was in particular, the displacement of Kashmiri Pandits and their possible return that became an emotionally charged debate. Subsequently, the participants also debated religious radicalization in all the regions and sub regions of J&K. The growing attack on the Sufi tradition of Islam in J&K and the new and mounting pressures on the composite nature of the State's culture were also discussed,

The debates contributed to developing a nuanced understanding of regional perspectives on radicalization and underscored the fact that radicalization is not specific to a particular region or religion, but has infected all regions across J&K and the country in varying degrees.

along with what could be done to counter this new negative trend. The last session addressed the future concerns and measures that could help minimize the growth of radicalization in the state. The key areas discussed were roads, the economy, and tourism. It was suggested that the development of these would be an effective way to address the grievances of the people and build cross-regional bridges. The costs of non-cooperation between regions are significant because radicalization has not only constrained the growth of the economy, but has also impeded greater connectivity between the regions. The

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speakers emphasized the need to develop infrastructure and tourism to improve connectivity and enhance mobility across regional and religious divides. MAJOR RECOMMENDATIONS An important achievement of the workshop was organizing the young participants from different regions and sub-regions of J&K into two Working Groups to discuss these vital issues and make recommendations on regional and religious issues. The two working groups made certain recommendations, which were discussed at length during the workshop. Some of the agreements reached by the participants of the workshop include the following: There are serious regional and religious issues between the three regions, which need to be addressed in a constructive way; there is a need to understand each other's perspectives and address both, real and perceived grievances. Commissions should be set up and studies undertaken to enquire into the problems of refugees, migrants and the internally displaced. This is important given the significant mistrust regarding what has happened in the last two decades vis-Ă -vis the movement of populations. It is essential to have independent studies on these issues, with a view to publish white papers on what has actua l l y h a p p e n e d . T h e s e c o m m i ssions/studies should be impartial, comprising people from all regions and submit a white paper on the issues. Independent research organizations could commission such studies with inputs from all three regions of J&K. Governance must be taken down to the grassroots level and political decen-

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tralization should take place through Panchayati Raj Institutions (PRIs). One of the major challenges to effective governance in J&K is the question of decentralization. Projects implemented by the State and Union governments are caught up in State capitals—Jammu and Srinagar. They seldom reach the district headquarters in all the three regions. Even if they do, they never move beyond the district headquarters. Effective implementation of PRIs is the only way to ensure that the decentralization process reaches the grassroots level in the far-flung areas of J&K. Besides the effective implementation of PRIs, the working of the Hill Councils in Leh and Kargil should be studied closely to find out whether these models could address the growing alienation between regions, by empowering people at the grassroots level. There has been a growing demand for regional councils in Doda and Rajouri/Poonch regions. Despite their several problems, the Hill Councils in Leh and Kargil are important models of governance, that could become effective in the Doda and Pir Panjal regions. There exist serious grievances — real and perceived, along regional and religious lines. Irrespective of whether they are real or imagined however, there is a need to first, create awareness and an understanding of each other's sentiments as a means to promote peace and tolerance within the state. Second, besides creating awareness, there is a need to initiate a debate at two levels — between and within the communities. Such a debate should not only be aimed at seeking to understand the other's grievances, but must also attempt to find common ground and understanding. In addition to the debate between

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the communities, debates within each community are equally important. Unfortunately, in recent years, the debate has been inward-looking, as was seen during recent controversies such as the Amarnath land transfer and new Central University for J&K. There is a need for communities to strive to arrive at a consensus within themselves as also to be cognizant of the sensitivities and grievances of others. Recent years have also witnessed

There was also an intense and emotional debate, on the issue of the tensions between the Gujjar and Pahari ethnic identities. It was pointed out by some that while the Gujjars have benefited immensely since being granted the Scheduled Tribe (ST) status, the Paharis have lagged behind considerably. While the Gujjars maintain that they deserve the reservation status, the Paharis argue that they are just as deserving since both communities have been living together in the same space, share the same resources and have suffered the same social and economic challenges. an enormous and increasing strain on Sufi Islam in J&K, which until now has remained the bedrock of peace and tranquility in the state, ensuring harmony both, within and between communities. The revival of Sufism should therefore, be encouraged, to dilute radical elements. As part of the endeavor to promote communal harmony and peace, there is a need to strengthen institutions, such as shrines, across the three regions which welcome devotees from all faiths. For example, the shrine of

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Baba Ghulam Shah in Shahadra near Rajouri is a symbol of harmony; people from different regions and faiths, not only from J&K, but also from outside visit this shrine. Such institutions should be encouraged. There are numerous apprehensions regarding the safety and maintenance of places of worship, especially in Kashmir Valley. Kashmiri Pandits, living outside the Valley for instance, fear the desecration or occupation of their temples. On the other hand, the Kashmiris feel that the local civil society has taken extra care of these places of worship and that the fear of the Pandits are exaggerated. Many in the Valley would welcome an independent study on this issue, to ensure that these fears which are exaggerated or motivated may be addressed. Lack of connectivity has been the major factor in keeping the regions divided — physically and psychologically. Measures to improve infrastructure to promote connectivity and mobility between regions should be undertaken. Unless there is a physical movement of people, especially students, media, and the business community, the regions are likely to remain divided. Besides improved connectivity between the regions, there is also a need to improve connectivity within the regions. Gurez in Kashmir Valley; Doda, Rajouri and Poonch in Jammu region; and Batalik, Nyoma and Turtuk in Ladakh, remain on the peripheries. For the people, traveling within their regions, even to the capital cities of Srinagar, Jammu and Leh, is a major challenge. Even the district headquarters in many of the border districts lack basic facilities of accommodation, transport, boarding and lodging. Unless the border

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districts are physically connected with the rest of the region, and each of these regions in turn, are connected with the others in J&K, people are likely to remain disconnected not just physically, but also emotionally. Initiatives such as the revival of the tourism industry and other cultural activities will help in the growth of the economy and facilitate cross-regional movement. Tourism has a major role to play in not only developing the local economies, but also bridging gaps between the different regions and also with the rest of the country. The tourism industry in J&K needs to be revived through special packages and schemes that will help the communities to invest in addressing basic issues. The media as a platform to voice the concerns of the people within the three regions in a constructive manner, is also of vital importance. It has a responsibility to objectively communicate the ground realities in J&K to the other regions as also to the rest of the country. People must be made part of the solution and must begin to see opportunities within the several problems that confront them rather than focus their energies on the problems alone. For this to come about, the efforts of the civil society along with the government will be crucial to prevent further radicalization and build peace among various communities and regions of J&K. It is imperative to promote interregional movement for which the youth in particular, must take the lead to participate in cross-cultural and educational programmes. Both the Universities in Jammu and Srinagar could act as nodal agencies to facilitate such interactions.

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A p a r t f r o m t h e s e f o rmal/institutional exchanges, the students could initiate informal crossregional interactions. Students from each region could visit other regions and stay with the families of students from these areas. Both these initiatives, the student participants at the workshop believed would help build institutional and inter-personal networks thereby, weakening regional barriers The regional media could provide space in each other's respective papers to highlight the several instances of communal harmony within their regions which often go unreported. As a means to counter growing religious radicalizing tendencies therefore, the regional media could publish a series of progressive stories on communal harmony within each region and highlight the significance of certain shrines in Jammu and Kashmir regions such as the Shahdra Sharief and Khir Bhavani,

which could become religious centers of attraction for all faiths. Looking Ahead In the days ahead, the Institute proposes to pursue the following, depending on the availability of funding support: To research and debate specific issues such as Regional Hill Councils, the Right to Information Act, decentralization, and Panchayati Raj Institutions and how these might contribute to effective governance in J&K. Subject to the availability of funding support, this debate will be carried forward and continued among the youth on contemporary issues confronting the different regions of the state. While the first round took place in Jammu, there will be similar interactions in other centers—Srinagar and Leh, followed by regional towns, including Kargil, Doda and Rajouri.

Former US Diplomat Howard B Schaffer discussing his book ‘The Limits of Influence: America’s Role in Kashmir’ at an event hosted by IPCS in New Delhi

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