Sinha announces ₹1,350-cr economic package for J&K

SRINAGAR: Jammu and Kashmir Lieutenant Governor Manoj Sinha on Saturday announced a ₹1,350-crore economic package for the Union territory to give a much needed boost to tourism and other sectors hit by the economic slowdown caused due to the Covid-19 pandemic and the security scenario.

As a part of the package, the administration announced that it has waived 50% of the electricity and water bill amounts for a year across J&K with an aim to bring a huge relief to farmers, families and businesses.

However, principal secretary Rohit Kansal clarified that the 50% discount on electricity and water charges is on fixed demand charges for industrial and commercial consumers. “J&K IndustrialPackage2020. Electricity and water charges. #Clarification. The 50% discount on electricity and water charges announced in today’s package is a 50% discount on fixed demand charges for industrial and commercial consumers. This is not a discount on electricity bills,” he tweeted. people. “We are setting up a customised help tourism scheme by the J&K Bank for financial assistance to persons associated with the tourism sector,” he said.

“Green shoots of economic revival are visible and I am confident that with this package, we will be able to steer J&K through the current crisis,” he said.

Kashmir Chamber of Commerce and Industries president Shiekh Ashiq said, “The business community appreciates this gesture. We are going through the components and if there will be any shortcoming we will again meet the Lt Governor.”

The LG had constituted a committee on August 18 to assess the help required by the business community of Jammu and Kashmir and also suggest administrative measures to boost banking, industry, tourism, agriculture and handicrafts.

The committee headed by KK Sharma, the advisor to the LG, submitted its report on September 1 after deliberations with at least 35 business organisations from Srinagar and Jammu

PTI Jammu and Kashmir Lt Governor Manoj Sinha with chief secretary BVR Subrahmanyam in Srinagar on Saturday. Sinha also hinted that the Centre is actively considering an “unprecedented and historic package” for assistance to business entities, which will cover both the existing and new enterprises and will be a big boost to business and industry in the UT. Announcing this, the LG said, “You know that at the most, a two-per cent interest subvention is provided and that is what the people expect as well. However, keeping in mind the special situation here— businesses have been suffering for the last about 20 years— we have decided to give an interest subvention of 5% without any discrimination to all businesses whether small, medium or heavy. This is an unprecedented decision.” He said the UT administration will directly support this with ₹950 crore. Sinha also announced that stamp duty has been exempted in case of all borrowers up to March next year. He said the new economic package is apart from the package announced by Prime Minister Narendra Modi under the Aatmanirbhar Bharat Abhiyaan. The LG said under the Aatmanirbhar Bharat Abhiyaan, ₹1,400 crore have already been provided to people through the Jammu and Kashmir Bank. He added that the government is working on a structured mechanism and package for taxi drivers, transporters, autorickshaw drivers, houseboat owners, shikarawallas and other affected