The paper presented here was actually prepared as an assignment back in 2009 for JICE…
Jammu and Kashmir is an Indian state that has its own distinct and peculiar cultural
ethos. The state has a predominant place as it shares the international boundary with
large natural lakes, forests, rivers and springs. It comprises three main natural
regions, namely, Jammu , Kashmir and Ladakh. However, for administrative purposes,
the state is divided into two main divisions, Kashmir with eight districts (including
two districts of Ladakh region) and Jammu
The trend in the development of Jammu and Kashmir
lagging behind most of the states in regard to the growth of Net State Domestic
Product (NSDP) at current prices. The average annual growth of Net State Domestic
Product at current prices during 1980-81 to 1999-2000 was 12.45 per cent for
per cent for Andhra Pradesh, Gujarat, West Bengal and Kerala respectively. In the
case of the growth of Per Capita Net State Domestic Product at current prices also,
the state of Jammu and Kashmir
annual growth of Per Capita Net State Domestic Product at current prices during
1980-2000 was estimated as 9.63 per cent for Jammu and Kashmir
cent, 11.63 per cent, 11.63 per cent, and 12.86 per cent for Andhra Pradesh, Gujarat ,
IMPEDIMENTS TO GROWTH
The slow growth of the state of Jammu and Kashmir
factors. The climate of armed militancy in Kashmir during the past decade has been
a major factor. Low productivity in agriculture and allied sectors has impeded
employment and income generation. Poor industrial infrastructure along with the
poor investment climate has left the industrial sector in its infant stage. There has
not been a suitable strategy for the potential sectors to achieve higher economic
growth. Lack of good governance and sound fiscal management has also been
responsible for the poor economic growth of the state.
DEMOGRAPHY
situation and level of socio-economic development remains far from satisfactory. The
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latest 2001 census reveals that the population of Jammu and Kashmir
sharing 0.98 per cent of India
has been consistently high and during 1981-2001 it was more than 2 per cent. Its
geographical area is 222,236 sq. km., with a share of 6.76 per cent of the country’s
size. About 54 per cent of the population in the state is literate, as against the
national literacy rate of 65.38 per cent. The age structure of the population indicates
a high dependency ratio both in the 1971 and 1981census.
AGRICULTURE SECTOR: GROWTH PROSPECTS
Agriculture, the predominant sector of the economy of Jammu and Kashmir
about 80 per cent of its population. The state is divided into three agro-climatic
zones: Jammu , Kashmir and Ladakh each has its own specific geo-climatic condition,
which determines the cropping pattern and productivity. Rice is the chief crop of
in maize and wheat production. In the Ladakh region, barley is the major cereal crop
followed by wheat. The production of three important food crops, namely, rice,
maize and wheat, contributes a major portion of the foodgrain in the state and
accounts for 84 percent of the total cropped area; the balance 16 per cent is shared
by inferior cereals and pulses. Nearly 75 per cent of the country’s temperate fruits,
mainly apples, are grown in the state.
Considering the growth prospects of this sector, the state government should plan for
higher production and productivity of each major cereal in order to achieve an
annual agricultural growth rate of 3-4 per cent. In this context the state agricultural
department should make suitable policies as lia. The state should shift its agriculture development strategy from food security
mode to the value addition mode by growing certain products like high value
fruits, vegetables and some cash crops which can give good returns to the
cultivators. There is good scope for the production of high value, low volume
crops like saffron, black zeera and other spices especially in Kashmir region.
b. Regular availability of agricultural inputs such as seeds, fertilizers, pesticides,
credit, etc. should be ensured.
c. The state government should encourage a mix of supplementary crops in each
region. Comprehensive cost of cultivation studies needs to be conducted in
each region/zone.
d. The state should pay attention to short-term soil conservation measures aimed
at stabilizing gentle slopes.
e. The gap between national and state average of the area under forest can be
filled by the development of social forestry. It should be promoted through
various steps.
f. A comprehensive review of cropping pattern and shift in the same to fruits and
vegetables is called for. Here, the example of Punjab , which has launched a
massive crop diversification plan, needs to be emulated.
FISHERIES DEVELOPMENT
The importance of the fisheries sector has been highlighted as a major food source
and also a means of attraction for tourists. As an important activity allied to
agriculture, it strengthens the productive base of agricultural economy and generates
self-employment. In 1998-99, the total fish output was estimated at 1,88,510 a
quintal, while the number of fisherman population was around 66,955. However,
there has been a big gap between demand and supply of fish. In addition to the
local population, defence personnel and tourists are the source of the increasing
demand for fish in the state. It is a fact that the length of 27,781 km of rivers and
streams can provide the facility for the farming of over 40 million tons of fish. The
available infrastructure for the production of fish in the state includes 18 state-owned
trout hatcheries and 22 fish farms. In addition to the fishermen, nearly 10,000
workers are employed in the fisheries sector and there is good scope for expanding
employment opportunities through the development of this sector
LIVESTOCK DEVELOPMENT
In Jammu and Kashmir
of gross domestic product (GDP) of the state is contributed by this sector. The state
has a precious wealth of livestock in form of cattle-buffalo, sheep, goats, poultry,
etc. The cattle and poultry amongst all the livestock are considered the most
important tool for the development of the rural economy. The production of
pashmina shawls and other animal products like carpets, shawls and blankets of
in the state has vast scope for development rendering quic
DAIRY DEVELOPMENT
With a steady growth in the production of milk, Jammu and Kashmir
a milk surplus state. The milk production increased from 3.69 lakh metric tonnes in
1995-96 to 6.66 lakhs metric tonnes in 2001-02. As the demand for milk and milkk economic returns.w: products has been increasing at a faster rate, there is scope for dairy development
in the State. As there is abundance of the local breed of cattle and the introduction
of some new breed has not yet started in Jammu and Kashmir
behind the state of Punjab . The sector has good potential for creating considerable
job opportunities. From the current stage of subsistence activity, dairy development
can grow through modernization and thereby increase income and employment
opportunities. For this purpose, the required policy decisions are summarized below:
a. As animal husbandry services being provided by the animal husbandry department
are not effective, qualified private parties should be allowed to provide some of
these services. Selective privatization of animal husbandry services would be the
preferred approach, as some services in which the public interest is greater than
individual interest would have to be provided by the government.
b. The development of the dairy sector needs the provision of specialized infrastructure
such as bulk farm coolers and refrigeration systems as well as basic infrastructure
like power and water. Providing a cost-effective and continual supply of power
and water to procurement and processing units will have to be top priority. This
will reduce costs and improve milk quality considerably. The government needs to
upgrade rural roads leading to milk collection centres to increase the frequency of
collection, reduce logistical costs, and improve the quality of the raw milk.
SERICULTURE
Sericulture is the traditional occupation for a large section of the population in
the extraction of silk fibre in 1999-2000. It is discouraging that the silk industry,
which has seen a glorious past, is on decline. Various reasons are attributed to this
declining trend in the silk industry. Inadequacy of mulberry leaves and damage
caused by insects and pests have caused problems in the development and expansion
of mulberry trees. Despite several initiatives taken by the state government, the
number of mulberry trees is still very low. During the year 1980-81, there were 601
thousand trees, which increased to 1402 thousand in 1999-2000. Due to the lower
return from the activity and lack of proper attention to the plantation at the
establishment stage, growth of mulberry plantation is slow. The inconsistency in the
production of cocoons due to the climatic limitation of the state and inadequate
rearing equipment is another matter of concern. As a result, proper growth and
development of silkworms does not take place. The production of raw silk does not
have consistency due to improper disease management. Even though the government
has taken various steps to increase production of silkworm, raw silk and mulberry
plants, the sericulture sector still needs more measures as follows:
x x x
a. Superior varieties of disease-resistant silkworm species suitable to local
conditions should be evolved to boost silk production. As the research output
of Sher-I-Kashmir University
is not very encouraging, the state government should provide the infrastructure
to the private investor.
b. As multi-crop cultivation of mulberry is not possible, the state government
should encourage the farmers to plant mulberry trees on the edges of their rice
fields and orchards on a large scale. Popularizing the scheme to encourage
every family to grow at least one mulberry plant can be considered.
c. Integrating mulberry cultivation with farm and horticulture activity can provide
more income and employment to the rural agricultural labour force.
d. Marketing of the cocoon needs proper attention. Cocoon auction markets should
be started at several towns where private parties as well as other states could
participate in the bidding, besides the government
IRRIGATION
There has been a steady increase in the net irrigated area by different sources
(canals, tanks, wells and others) during the last fifty years, reaching 2.61 lakh in
1998-99. Canal irrigation constitutes the largest single source of irrigation accounting
for 93.75 per cent. Tanks, wells and other miscellaneous sources contribute the rest.
The available data shows that rice and maize cultivation get the maximum share of
available water sources. The state offers good scope for the exploitation of ground
water, as current ground water development is a meagre 1.33 per cent. The MI
structure like STWS, dug wells, PI sets are quite feasible in the state. Lack of
information on the availability of resources at the block level on area-specific basis,
the absence of coordination between the different state agencies involved in ground
water activities and shortage of technical staff in banks for formulation of ground
water as well as surface water-based schemes are the main reasons for the difficulties
in exploiting ground water up to its potential in selected areas of Jammu
a. In order to exploit ground water potential, need assessment at the block level
is recommended.
b. Delineate area suitable for the development of ground water.
c. Recommend area-specific suitable design of MI structures and unit cost.
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INDUSTRIAL GROWTH: A PRAGMATIC APPROACH
base. However, many small and medium-scale industries have come up both in the
traditional and new areas in the state. With the government’s support in the form of
loans and incentives to set up industrial units, their number increased from 35,641
in 1995 to 42,808 in March 2001. At the same time, employment increased from
1,54,621 persons in March 1995 to 1,87,399 in March 2001. Though the number of
SSIs in the state has gone up, there are also cases of sickness of units as some of
the units are dysfunctional and missing. Due to the difficulty in recovery of loans
along with law-and-order problems, industrial financing has come down drastically in
the state. In fact, SIDBI and IDBI stopped refinance from 1992-93 till 1995-96
though SFC has marginally increased the disbursement of loans in 1998-99.
Mineral deposits available in the state are bauxite, limestone, sapphire, gypsum, coal
and marble, most being located in border areas and in difficult terrain. Roadways are
the only means of transportation since railways are not well developed in the state.
Therefore it cannot compete with other states like Rajasthan due to high
transportation cost. The fragile ecology of the state also inhibits the setting up of
large industries based on minerals.
Among the twenty PSUs, majority are running into losses with the exception of four
that are earning revenues to meet their day-to-day expenses. The state, however,
does not have any functional policy towards restructuring / revival of the lossmaking
PSUs. Though the concerned departments were asked to come up with the
proposal to restructure or revive the PSUs, the finance department has not yet
received any such proposal. Disinvestments, as another option, are also being
explored and the state has initiated the process by disinvesting in a few units owned
by Jammu and Kashmir Industries Ltd.
Industrial promotion agencies such as SIDCO, SICOP, Small Industries Service
Institute (SISI) and Directorate of Industries and Commerce perform various functions
to promote industrialization in the state. Both central and state governments
announced a package of incentives to attract industrial investments in J & K. Still,
the industrial scenario of the State has been very dismal and an action plan would
therefore consist of the following:
a. Sector-specific strategies should be adopted to promote industries in Jammu
and Kashmir keeping in mind the climate, accessibility, raw material availability,
human resources and consumption pattern.
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b. To encourage investments in the state, Government should play a lead role to
build up the confidence of the private investors
c. A comprehensive and analytical review of existing industrial estates in the state
is required so that reasons for the failure or non-performance of units located
in the industrial estates can be ascertained and corrective action taken.
d. Common Facilities Centres should be provided to the industrial units set up in
the estates.
e. Better infrastructure including uninterrupted power supply and connectivity
should be provided to the units.
f. A restructuring fund could be created by the Central Government to downsize
or restructure the financially non-viable public sector corporation in a phased
manner.
EMPLOYMENT GENERATION
The number of workers registered an increase of 39 per cent during 1981 and 2001.
The total number of workers now stands at 36.89 lakh including 11.52 lakh marginal
workers. Considering the increase in population of the state from 59.87 lakh in 1981
to 100.70 lakh in 2001, job opportunities have not kept pace with the population
growth. It is important to note here that the present study has not taken into account
the NSSO 1999-2000 data on occupational structure as the emphasis was on
educated unemployment and the Digest of Statistics published by the State
Government fulfilled the purpose. The problem of unemployment gains more
importance because of increasing educated unemployment, absence of industrial
growth and continuation of agriculture and allied sectors as subsistence sector for 70
per cent of the population is directly or indirectly dependent on it. The broad areas
of action to be followed to generate employment opportunities are as given below:
a. As a major source of income and employment for the local people, revival of
tourism needs to be ensured to increase direct and indirect employment.
b. Development of other sectors, which include horticulture, agro-based industries,
handloom and handicrafts, sericulture, can generate employment opportunities
in the state. Setting up of hydel power projects can also provide employment
opportunities to technical and non-technical people. Biotechnology and
Information Technology, the new emerging knowledge- based industries, which
have high employment potential, need to be focused upon.
The announcement of a comprehensive package of Rs. 6,165 crore by the Prime
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Minister Shri Atal Bihari Vajpayee, at the end of his three-day visit on May 2002
to Jammu & Kashmir, covering various aspects of development and security, with a
thrust on generation of new employment opportunities for the youth of Jammu
definitely enhance the employment opportunities for the youth .
INFRASTRUCTURE GROWTH
Power
The state has a huge hydel potential estimated at 20,000 MW of which less than 10
per cent has been exploited so far. The installed capacity in the state was 374.13
MW in 1998, with 190.19 MW in hydel plants and 183.94 MW in thermal plants.
The consumption of power increased from 2577.9 MKwH in 1997-98 to 3397.0
MKwH in 2000-01 recording an increase of 31.7 per cent. The domestic sector has
been the biggest consumer followed by agriculture and industry.
Transmission and Distribution (T & D) losses in the state were as high as 47.5 per
cent in 1997-98. These losses include transformation losses as well as unaccountable
consumption, of which the latter accounts for more than half of the losses. The
absence of metring of consumption due to non-installation or the non-functioning of
the metres accentuates the problem. Power theft and pilferage exert additional
pressure, forcing the state to purchase more from outside sources. The following
action steps need to be taken to improve the power situation in the State of Jammu
and Kashmir :
a. Carrying out large-scale reforms in the power sector in order to reduce losses,
induce accountability, and ensure proper account of power supply and
distribution.
b. Universal metring should be implemented with universal coverage to obviate
incidence of theft.
c. The power distribution needs to be privatized and an effective system of
recovery of dues with suitable incentive structure should be introduced.
Roads
There were 13,540 km of roads in the state on March 2000 apart from national
highways with 3,715 km of road length maintained by the state. Other departments
in the state – the Forest department, Irrigation and Flood Control and C.D & N.E.S.
department - maintain a total of 16,090 km of roads.
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Difficult terrain as well as severe law-and-order problems has contributed to poor
connectivity. There are inter-district variations in respect of connectivity of roads. In
terms of road length per 100 sq. km. of area, Budgam district has the highest road
density of 81.84 km in contrast to the districts of Leh, Kargil and Doda with 2.58,
4.82 and 5.24 km respectively. On the whole, districts in Jammu
the districts in Kashmir valley as far as road infrastructure is concerned. For the
development of roads, Central Road Fund, Additional Central Assistance and loans
raised from NABARD were utilized. Various actions required in this area are
summarized as follows:
a. A project to connect Pampore, Lassijan to Rambagh via Padshaibagh will
provide an alternative route to the south of the valley, given the growing and
burgeoning intensity of traffic in the valley. As the project has not been cleared
for funding from the Centre, the same may be given at the earliest.
b. The state government intends to build an alternative road to the existing
National Highway that remains closed for long periods of the year due to bad
weather and landslides. The proposed highway would be shorter in length by
about 80-90 km to the existing National Highway-1 and would cost Rs. 200
crore. The Centre should explore the feasibility of the new project proposed,
given the fact that the state with its limited financial resources would not be
in a position to build this road.
c. Over the years traffic on the roads in the state has increased manifold. The
stretch from Banihal to Srinagar
lanes.
d. Due to locational disadvantage, developmental works have to be suspended in
the Ladakh region for 5-6 months a year. Thus construction of road from
Tsomoriri to Spiti in Himachal Pradesh via Parangla Pass
of about 60 km, becomes important to provide connectivity to the region
almost throughout the year.
Transport
Traffic on the roads has increased by more than 2 ½ times against 1¼ times increase
in the road network during 1989-2000. In addition to the traffic growth, there are
other operational and commercial problems faced by the transport sector like
frequent landslips, narrow roads and short working season of about six-seven
months. The rail – road mix of transport in the state is very low. As Jammu
is the railhead for the state, Kashmir valley as well as Ladakh is totally dependent
on road transport. The state, with three civil airports at Jammu , Srinagar
is connected to the rest of the country through air transport also. The important
xxxv
recommendations to improve the transport scenario of the Jammu and Kashmir
a. With regard to road transport, the State Road Transport Corporation (SRTC) is
a loss-making public sector undertaking. While the government should perceive
SRTC as a social obligation its fleet should be limited only to those routes
where private operators are not forthcoming.
b. As far as rail transport is concerned, ongoing rail projects - Hampur – Katra
and Qazigund- Baramulla sections of Udhampur-Baramulla need to be given
high priority, as taking of railway line into the valley will open new avenues
and opportunities of economic development and social transformation.
c. The state, sparsely populated and scattered as it is, needs more airports and
better air connectivity. Kargil airfields are not yet operational and putting
Kargil on the air map will open up that region to tourism and lead to economic
development of the area. Air frequency to Leh also needs improvement,
particularly during the summer season that is the tourist season for Ladakh.
Remote places like Gurez, Kupwara, Poonch, Rajouri and Kishtwar need to be
connected by air.
Telecommunications
Jammu & Kashmir has a tele-density of 1.65 per hundred persons while its teledensity
in rural areas is as low as 0.12 per hundred persons. In the absence of
private operators, Bharat Sanchar Nigam Limited (BSNL) is the only basic telephone
services providing body in the state. The Jammu and Kashmir Telecom Circle
five Secondary Switching Areas (SSA), namely Jammu , Srinagar
and Leh. There were 349 exchanges of various capacities in June 2002. The state
needs more attention in the telecommunication sector especially in the following
areas:
a. The village telephone connectivity should be improved
b. Cellular and Wireless-in-Local-Loop (WLL) services should be made available
to Jammu and Kashmir
WOMEN AND CHILD DEVELOPMENT AND HEALTH
Women and children are the weaker section in the family and society in the state.
In all spheres of life including health, education, income and political participation,
women are accorded low status. In regard to school education, the low enrolment
ratio and high dropout rates among girls show poor utilization of educational
opportunities by girls.
xxxvi
Due to limited knowledge, skills and resources at their disposal, women are engaged
in informal and unorganized sectors where the wages are very low. As a result, the
income is very low, degrading their quality of life and lowering their standards of
living. Women and the girl child tend to get marginalized due to their low visibility
and due to the fact that their health issues tend to be confined within the domestic
sphere.
In order to empower women and children, several programmes such as IRDP,
TRYSEM and DWCRA have been started in the state. Jammu and Kashmir
Women’s Development Corporation for instance has also done a commendable job.
The Corporation has trained a number of women in different traditional and nontraditional
trades, besides providing soft loans to various women for setting up their
own income-cum-employment generating units. Despite the fact that some of these
programmes are successful, they have not achieved the anticipated impact on the
over-all status of women.
a. The health status of the people in Jammu and Kashmir
keep pace with the national level of achievements. Militancy during the last
few years has also worsened the condition. Consequently, the state till date has
a considerable segment of population living below poverty line, with poor
infrastructure. There have been some improvements in health with respect to
certain indicators. After 1990, there was a sudden decline in annual birth rate
which fell to nearly 20 per million from the level of 34 per million. The
annual death rate also registered a sharp decline from 7.90 in 1990 to 5.40 in
1998 in the state. A comparison of infant mortality with the rest of the country
shows that the IMR in Jammu and Kashmir
average of 71.6 per thousand. This indicates a very positive signal for the state
towards reducing infant deaths.
b. In order to improve health conditions and promote women and child
development, a concerted effort should be made in the fields of water supply,
unemployment, health, education and health care system as mentioned below:
Ø Water Supply: There is an urgent need to provide safe drinking water to
the people with regular water surveillance and water purification on costeffective
methods. Better leak detection and maintenance of water system
can improve the supply of water to a large extent. Safe water will
increase personal hygiene and reduce the occurrence of skin and other
diseases.
Ø Unemployment: Setting up of cottage industries would help in reducing
unemployment among women and make them economically self-reliant
xxxvii
and independent. Females can be given special training in preparation of
products that are in demand.
Ø Health Education: Informal health education on sanitation, hygiene, etc.,
needs to be imparted at family level. Information can also be disseminated
through mass media by showing plays on negative aspects of bad
sanitation, etc.
c. Health Care Delivery System: Representatives from the local population can be
chosen to provide health care to the people. The representatives may be given
training in first aid and basic knowledge about treatment of minor ailments.
They would keep track of all young married women for giving advice on
various aspects of family welfare.
EDUCATION
government to promote education in the state. The state government keeps taking
various initiatives from time to time to improve the education system. The
government runs many centre and state supported schemes, especially for the
backward/underprivileged sections of the society, so that they are not deprived of
education. It includes providing free education up to the college level, mobile
institutions for the nomadic population, scholarships, free books and uniform to
deserving students. The Annual Report of the Education Department states that
around 2000 privately run schools are operating in the state. A significant number
of privately run technical and other institutes, is limited only to cities and towns.
Education sector in the State needs various reforms such as:
a. There is a need to rationalize the scheme of providing free education at all the
levels in the state and to reconsider the decision of providing free education at
the university level. As higher education is directly related to the employment
sector, the stress should be on vocational education leading to better placement
in the job market. The need of the hour is to learn the latest technologies
available and government institutes need to be equipped with the latest
infrastructure so that students are better informed.
b. Steps should be taken to ensure a higher ratio of enrolment among girls. As
the existing infrastructure is not sufficient, adequate infrastructure, training and
learning material should be made available. Locally employed teachers should
be encouraged to minimize absenteeism in schools especially in the remote
areas. As in the case of Madhya Pradesh, village panchayats have been
associated with the supervision of functioning of schools in the villages. This
xxxviii
experiment has met with considerable success in reducing absenteeism on the
part of teachers in Madhya Pradesh. The government of Jammu and Kashmir
could try this experiment too.
URBAN DEVELOPMENT
The increasing concentration of population in the urban areas of Jammu
drinking water and problems of drainage and sewerage, pollution, unemployment,
poverty, etc. The continuous growth of population pressurizes the housing market,
demanding more houses. With the demand for houses having increased, the quality
and condition of housing have received much less attention. The mushrooming
growth of private housing colonies, which are either ill planned or un-planned, have
created various problems for urban local bodies in providing basic amenities to these
colonies. For instance, against the demand of 63 MGD drinking water in Jammu
city, the present availability is 50.80 MGD. The problem of water supply has been
so acute that the PHE department has also started exploitation of ground water in
a big way due to the depletion of surface water resources. With a high growth of
urban areas and increase in developmental activities, the quantum of untreated
wastewater and solid waste is rapidly increasing. Various sewerage schemes have
been taken up by the state to tackle the problem. The continuing urbanization and
relentlessly growing urban population have increased the problem of urban poverty.
In order to achieve speedy development in the urban sector, the followings actions
are necessary:
a. The state government should prepare comprehensive integrated urban area
development plans including zonal, district and sector plans and layouts.
b. There should be involvement of the private sector in the provision of urban
services to meet the increasing demand.
c. The concepts of user-pay, abuser-pay and polluter-pay should be implemented
while determining the service charges to assess the practical aspect of pricing.
d. The state government can take up some externally funded projects to augment
water supply and sanitation.
e. Increasing emphasis can be given to the formation of housing cooperatives to
meet the growing demands of housing facilities in urban areas.
f. The state government should give due attention to urban transport and prepare
a transport policy that is affordable, environment friendly and fuel-efficient,
financially sustainable and provide accessibility and reasonable mobility to all
sections of the people.
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PANCHAYATI RAJ
The promulgation of Village Panchayat Regulation Act. No.1 in 1935 marked the
commencement of the unique history of Panchayati Raj in the state. Subsequently
the Act of 1935 was amended in 1941 to cover a wide range of subjects and to
delegate more powers to the panchayats. Before the Panchayati Raj system could be
introduced in the whole country, Jammu & Kashmir took a lead by passing the
Jammu & Kashmir Village Panchayat Act of 1958, repealing its earlier Acts.
Although the Act was passed primarily to make better provisions for the
administration of Village Panchayats, the manner of its implementation made it open
to manipulation by various vested interests. In order to improve the system further,
the Jammu & Kashmir Panchayati Raj Act, 1989 was passed in March 1989. The
information collected through informal sources reveals that at present, panchayats are
not at all in a comfortable state of affairs on various counts .A large number of
seats are vacant as the number of panches and sarpanches became targets of
militants and lost their lives. Due to shortage of funds, panchayats are non-functional
and development schemes continue to be implemented by departmental functionaries.
Moreover, the delegation of power to panchayats has not taken place, keeping them
in a dysfunctional state. In this context, the following major steps are to be taken:
a. Functional devolution, both administrative and financial, is an essential step. If
panchayats were assigned a developmental role and greater autonomy, it would
be necessary to introduce changes in the pattern of field administration. Many
statutory powers now exercised by the field-level bureaucracy may have to be
transferred to the panchayats. In order to make panchayati raj effective, its
revenue base needs to be strengthened.
b. Instead of retaining nomination quotas in the Act, people should be given the
freedom to choose their representatives rather than impose governmentnominated
people in the local government.
c. There is a need to strengthen the planning apparatus at the halqa panchayat
level and to reduce the workload of the Village Level Worker.
IMPROVEMENT OF GOVERNANCE
Good governance requires accountability by public officials along with transparency
in regard to decisions and actions taken by various authorities. People’s participation
is necessary to make the system more accountable and transparent. The three
divisions of the state, i.e., Jammu , Kashmir and Ladakh consist of plains, valleys
and hills. It is not necessary that whatever is suitable for plains may also be
x l
implemented in the hilly areas with the same kind of restrictions/conditions. So it
becomes imperative for the state government to give importance to all the three
regions as far as the implementation of the programmes is concerned. This will
prove beneficial in minimizing the dissatisfaction over policies by the people
concerned. The growing distrust between various communities, the increasing
disparities in the regional development and the perceptible alienation and cynicism
of the general public are the issues that need to be addressed urgently and
imaginatively. In this context, the following measures are essential:
a. Security concerns of officials should never become a hindrance in approaching
them for the redressal of grievances by the people. Proper follow-up of these
complaints and grievances should be done.
b. Geographical conditions of different regions of Jammu & Kashmir should be
considered while implementing various programmes. The state government
should give importance to all the three regions equally as far as implementation
of programmes is concerned. This will prove beneficial in minimizing the
dissatisfaction over policies by the people concerned.
c. The growing distrust among various communities, the increasing disparities in
regional development and the perceptible alienation and cynicism of the general
public are issues that need to be addressed urgently and imaginatively.
STRATEGY FOR POTENTIAL SECTORS
1 Horticulture Sector
The horticulture sector occupies an important position in the farming system of
temperate and cold arid. Each agro-climatic region has its own potential to grow
specific fruits. Temperate fruits like apple, pear, peach, plum, apricot, cheery,
walnut, etc. grown at elevation of 1000 to 3000 metres above sea level are important
cash-fetching fruits of the state. These fruits not only supplement the diet of the
people in the state and country, but form an important item of our exports.
The horticulture sector plays a significant role in Jammu & Kashmir in providing
employment. From the stage of tree plantation to the point of its marketing, it has
a good potential in employment creation. There is need to explore other options, that
too in the field of value added agriculture. However, the state is facing many
problems in regard to the development of horticulture. It includes low productivity,
great variability in important crops like walnut and almond, higher percentage of offgrade
fruit, poor connectivity with the market place and small and fragmented land
holdings.
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The state government has taken certain initiatives to promote the horticulture sector.
It has introduced high-density plantation of apples and soft fruits like strawberry and
currants around cities and towns. In cooperation with NABARD, it has developed 19
markets, 17 satellite or rural markets, one terminal market and one grain market.
Some individual fruit-growers have started the marketing of fruits as a private
initiative. Still, a lot needs to be done to exploit the huge potential in this
horticulture sector. Some steps are:
a. It is essential for the state to provide proper marketing facilities to the growers
especially by promoting the private initiative in the marketing of products.
b. APEDA should be encouraged to set up an Export Promotion Zone to promote
the export of selected fruits and vegetables including strawberry, mushroom and
cumin seed.
c. There should be emphasis on the optimum use of land by using high-density
crops like apples. Considering the importance of research in this field, the state
government should collaborate with SKUAST, which has developed certain
technology, e.g., tissue culture.
d. There is need for improvement in the post-harvest handling of fruits.
e. The horticulture department should take certain initiatives for the development
of new variety of fruits like kiwi fruit, wild apricot, nectrine, olives, etc.
f. The climate of the state is ideally suited for production of exotic, high-value
vegetable crops like asparagus and mushrooms. Asparagus, mushrooms and
broccoli can be grown profitably.
g. Since Leh, Srinagar and Jammu
arrangements with the airlines for the transportation of perishable items like
fruits and vegetables to Delhi , Chandigarh
country.
2. Handloom and Handicrafts
The handloom and handicraft industry, the state’s oldest traditional cottage industry,
has special socio-economic significance due to its vast potential for economic
activities like the generation of employment and revenue. All the three regions of
the state have unique specialties in this sector. Jammu
painting, calico painting, phoolkari; Kashmir specializes in carpets, shawl, wood
carving, papier mache, chainstitch, crewel; and Ladakh’s areas of expertise covers
wood carving and painting, clay moulding, pashmina weaving, carpet, and thanka
painting.
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The production of the handicraft sector registered a growth of 126.07 per cent in
terms of value from Rs.280 lakh to Rs. 633 lakh during 1998-2000. The handicrafts
and handloom sector provides employment to over 4 lakh people. Realizing the vast
potential for employment, the JAMMU AND KASHMIR
various programmes including training programmes for the youth in different crafts
and market assistance schemes. Several welfare measures have been undertaken for
the weavers, e.g., modernization of the looms in order to boost the handloom
activity in the state. In order to revive the handloom sector, a multi-pronged strategy
as mentioned below should be pursued:
Ø Addition of new designs and product diversification.
Ø Improvement of productivity of weavers through enhancement of skills,
introduction of more efficient looms and other related equipment.
Ø Greater market access to the handloom products produced in the state through
effective marketing strategy and appropriate incentives. In this connection the
National Handloom Development Corporation Ltd.’s marketing infrastructure in
products.
As regards the handicrafts sector, there is an urgent need for adopting a pragmatic
approach to exploit its potentialities through the following steps:
a. Adopt a cluster approach by identifying and promoting various handicrafts
clusters in the state, giving them necessary support in design development,
production and marketing of various handicraft items.
b. The Central Silk Board should provide liberal assistance to re-engineer the silk
sector including the establishment of a cocoon bank to enable cocoon produced
in JAMMU AND KASHMIR to be reeled within the state. This would help the
state to increase the value addition of cocoons both for yarn and converted
fabrics.
c. There should be a systematic promotion of handicrafts of Kashmir in
international markets and developing a brand name.
3. Tourism
a. Kashmir is known as the paradise on earth because of its numerous scenic
spots and attractions. The other important aspect of tourism potential is the
existence of shrines, monasteries, temples and cave temples in the three
regions. The tourism sector has immense backward and forward linkages in
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terms of both income and employment and can contribute significantly to the
economy. The services of the local transport at present are not up to the
international standard. All major tourist destinations in the world have hotel
chains of international standard whose facilities, norms, standards are uniform
throughout the world. Tourism, once the mainstay, is now languishing and the
challenges faced by this sector are many. In a climate of armed militancy in
up. The economy therefore has been severely impacted. Drastic steps, as
suggested, are essential to revive the tourism sector in the State:
Ø Srinagar airport should be declared an international airport and made a
charter destination as also Leh, capital of Ladakh.
b. Kargil airport needs to be commissioned for the promotion of tourism to the
Suru valley, Drass area and Zanskar.
c. In Ladakh, the local residents need to be encouraged to create paying-guest or
houseguest accommodation, as many tourists would love to stay in local houses
and experience the Ladakhi way of life.
d. The work on construction of a railway line connecting Jammu
should be completed on a priority basis.
e. There is need to upgrade and refurbish the Patnitop complex and consider
handing over of its management to the private sector. As some pilgrims visiting
Vaishno Devi Shrine visit Patnitop too, a sustained promotion campaign could
attract a larger number of visitors.
f. The people of Jammu and Kashmir
so imparting of specialized skills and state–of-the-art hospitality related technical
education to them could boost tourism.
4. Information Technology (IT)
The IT industry, though not well developed in the state, has tremendous potential for
growth. For developing IT, the knowledge-based industry, a large pool of educated
and skilled youth in the state provides the required manpower. The geo-climatic
condition offers an ideal location for setting up the IT industry. The development of
this industry would help the state economy to solve the current problems of educated
unemployment, weak industrial base, poor accessibility and small market. The state
government has taken certain initiatives to develop this industry and its new
industrial policy provides a favourable environment for increased investment in the
IT industry. The state government should take the following steps to promote the IT
sector in the state:
xliv
a. Establish a university, under private auspices, on the lines of the Indian
Institute of Information Technology (IIIT) as in other parts of the country.
b. Encourage local youth to set up their own units, and persuade JAMMU
KASHMIR Bank, SIDCO, etc., to provide soft loans.
c. Improve infrastructure and ensure uninterrupted power to the IT units.
d. To promote JAMMU AND KASHMIR
companies, the state government must provide infrastructure and living
conditions comparable to any other location in the world. It should formulate
and implement national and international promotional programmes to attract IT
companies to the state.
e. Encourage Non Resident Indians (NRIs) to invest in the IT sector.
f. Online banking, e-commerce, e-governance, etc., new areas where IT can be
used to the benefit of the economy should be focused.
5. Biotechnology
The climate of the state is ideally suited for research and development (R&D) in the
field of biotechnology. Some infrastructure already exists for this purpose. As stated
earlier, the state is divided into three geo-climatic zones - subtropical, temperate and
cold arid zones with specific needs. Most of the research in biotechnology has taken
place for temperate zones of the country. Technical innovations cannot simply be
borrowed from other states. There is need to develop indigenous technology for
productivity enhancement and developing new varieties of crops, keeping in mind
the local conditions and demands. The only source of funding available for research
in biotechnology is government funding. More private companies need to come
forward and invest in R&D in the state. Another important challenge for the
development of biotechnology is the linkages between the research institutes and the
cultivator, a gap which becomes a hurdle in the commercialization of biotechnological
research. The following steps should be taken to improve the biotechnology sector:
a. The state government should to build the infrastructure for biotechnology
research and encourage private research initiatives in hybridization, micropropagation,
tissue culture and other biotechnological applications in
horticulture.
b. The state government should emphasize the use of biotechnology to introduce
new and improved cattle breeds.
c. As the Ladakh region provides excellent soil and climate for seed production,
the state government should encourage experimentation in this area. Ladakh is
ideally suited for production of medicinal plants which should be encouraged.
xlv
d. A Biotechnology Park can be set up in the state to provide basic infrastructure
along with various incentives to private investors.
e. Biotechnological methods should be used for the development of low-cost and
high-nutrition fodder.
STATE FINANCE
The state has been facing serious financial problems with revenue and fiscal deficits
increasing at alarming rates. The account of the state government for 2000-01 closed
with a revenue deficit of Rs. 961 crore while the fiscal deficit increased to Rs.1873
crore in 2000-01. The state suffered due to militancy for a long period from 1989
onwards resulting in erosion of the tax base, increase in expenditure, depletion of
infrastructure and various other factors related to law and order. The state income
did not grow due to difficulties in collecting user charges and sales tax. While these
factors affected the availability of funds for the business of the government and were
responsible for the phenomenal increase in expenditure, inefficient fiscal management
further accentuated the problem of deficit.
The problem of large and persistent revenue/fiscal deficits is serious, and calls for
urgent attention. The state needs to institute improved practices of financial
management and radical re-orientation of major policies for improving the efficiency
of resource use. In fact, a sound and effective management of state finances calls for
efficiency, economy and effectiveness of revenue and expenditure operations. There
is a lot of potential for improving the revenue receipts in the state.
a. Expenditure on establishment: Revenue expenditure is the major drain on the
limited financial resources of the state. Huge establishment cost is the single most
contributory factor that has aggravated the problem of sharp increase in revenue
expenditure. In this regard, the following steps may be taken:
l Most of the public sector undertakings in the state are running into losses.
PSUs like the JAKFED, AIDC, JKTDC, JK Cable Car, and HPMC can be
privatized as some of these organizations own large assets including cold
storages, buildings and large tracts of lands which can fetch good money for
the government through disinvestments.
l Government institutions that have outlived their utility, e.g., Housing Board,
Agrarian Division and Command Area Development Authorities need to be
abolished.
l The Voluntary Retirement Scheme (VRS) can be implemented with the
xlvi
assistance of Government of India or through banking arrangement. Similar
assistance can be given for dispensing with the services of employees of most
of the corporations that can be listed for closure.
l There should be specific targets for the reduction of the size of the bureaucracy
within a definite time frame.
b. Control of overdraft:
l An upper limit for overdraft must be fixed, keeping in view the critical
requirement of the state and should be fully enforced through different measures
including guidelines from RBI. There should be a special dispensation to cover
the overdraft over a period of 3 years.
l The practice of re-appropriation of funds by different officers of the government
beyond their competence should not be allowed without proper permission from
higher authorities.
l A proper and readily accessible record of works done, under process and
planned under different heads with outlays, should be maintained at different
concerned levels and in all DDOs and treasury offices of the area in order to
stop the duplication of payments under different heads, completely.
l All functions of the finance department and its offshoots should be computerized
and linked with each other on a priority basis in order to improve the
management of finances of the state and bring transparency in its financial
transactions.
c. Development programme: With regard to the funding of development programmes,
the following steps need to be taken:
l Re-examintion of all ongoing schemes with reference to zero budgeting.
l Merging, convergng or weeding out of schemes with a common objective.
l Singe-source funding for similar schemes appearing on Plan and non-Plan side.
l Reviewal of projects suffering from time and cost overrun. The projects, which
can be completed, soon should be accorded priority vis-a-vis those with a long
gestation period.
d. Others:
l The government should make a complete shift to zero-base budgeting.
l Expenditure related to security needs to be fully reimbursed by the Government
of India
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l Large-scale reforms in the power sector should be undertaken to ensure proper
account of power supply and distribution and thereby reduce huge financial
losses.
CONCLUSION
As a state with unique features and a strategic location, the speedy development of
government should be to create a secure environment by improving the law and
order situation in the state. State finance should also receive proper attention in
order to ensure better fiscal management. A sound policy should be devised to
exploit the potential in the sectors of strength. The development of potential sectors
such as horticulture, handloom and handicrafts, biotechnology, tourism and
information technology will have strong inter-linkages with the rest of the sectors.
In a nutshell, sound policy and good governance can lead the state of Jammu
GULBADIN
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