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Pandit Ramchandra Kak : Tragic Tales of
The Forgotten Premier of Manisha Sobhrajani :
Terror vs. Terror Terror Hunt
P36 P4 P40

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N E W S , C U R R E N T A F F A I R S , S O C I A L S C I E N C E S
Jammu, April 1 ,2010 / Vol 4 / Issue 4 | Price Rs. 30 | Postal Regd. No. JK-350/2009 | www.epilogue.in

a d
Ro To
R e c o v e r y
E T10
2 0

nsible jo
se As an independent news monthly, Epilogue is moreover both an unbiased
h year of

40th f

source of information and a meeting ground for diverse perspectives, serving

issue e scholars and analysts in J&K, in the broader subcontinent, and abroad.



Associate Director, Program in Arms Control, Disarmament, and International Security (ACDIS), University of Illinois, USA P3
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

because there is more to know

www.epilogue.in CONTENT
Letters 2
Zafar Iqbal Choudhary
Publisher Terror vs. Terror 4
Manisha Sobhrajani
Yogesh Pandoh

Consulting Editor Ladakh Affairs

D. Suba Chandran HCHF in Service of 6
Himalayan Heritage
Dr. Sonam Wangchok
Associate Editors
Irm Amin Baig 90 Youths Trained for Enhancing 8
Tsewang Rigzin Cultural Skills
Legendary Scholar Kachen 8
General Manager Lobzang Zotpa remembered
Kartavya Pandoh Volume 4, Issue 4, April 2010 Samphel Reviews Tribal Development 9
Academy Discusses Cultural Issues 9
Art Editor with Councilors, Scholars
Keshav Sharma I N FOCUS
Budget 2010 Exclusive Series
Research Officer Pandit Ramchandra Kak : 36
10 Budget 2010-11
Raman Sharma The Forgotten Premier of Kashmir
The Road to Recovery
Epilogue Report Rakesh Ankit
Phones & email
Office : +91 191 2493136 11 Excerpts from Finance Minister's Fighting Terror
Editorial: +91 94191 80762 Budget Speech Tragic Tales of Terror Hunt 40
Administration: +91 94191 82518 M Shamsur Rabb Khan
subscriptions : +91 90188 87136 34 Opposition Reactions
editor@epilogue.in Building Peace
Budget is not About Reciting Couplets
subscription@epilogue.in Muzaffar Hussain Beigh,
Building Peace, 44
Former Finance Minister Countering Radicalisation
Discussion and Survey Report
Printed and Published by
Yogesh Pandoh for Epilogue 35 Opposition Reactions
NewsCraft from Ibadat House, Not Budget, It was
Madrasa Lane, Near Graveyard, Constitutional Filler
Tariq Hameed Karra
Bathindi Top, Jammu, J&K - 180012
Former Finance Minister
and Printed at : DEE DEE
Reprographix, 3 Aikta Ashram, New
Rehari Jammu (J&K)

Disputes, if any, subject to jurisdiction

of courts and competitive tribunals in
Jammu only.

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www.epilogue.in Vol. 4, Issue 4 Epilogue, April 2010

Letters 2
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

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.
2. 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.
3. 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.
4. 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.
5. 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.
6. The post of Editor, Ladakhi held by Sh. Nawang Tsering (Retired Now) was also upgraded to the level of Chief Editor.
7. The post of Drama Instructor for Leh is being advertised for direct recruitment.
J&K Academy of Art, Culture and Languages

www.epilogue.in Vol. 4, Issue 4 Epilogue, April 2010

3 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.

Associate Director, Program in Arms
Control, Disarmament, and
International Security (ACDIS),
University of Illinois, USA

www.epilogue.in Vol. 4, Issue 4 Epilogue, April 2010

column 4
Indo-Pak Dialogue

Terror vs. Terror


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 In negotiations, as Henry Kissinger In Siachen, also known as the
c o n f l i c t a n d I n d o - Pa k advises, one must never force the other world's highest battleground, the Indian
relations, one must not ignore side into a corner. One must always give army controls all of the 70 km long
the several issues related to Kashmir on it an honorable way out. Siachen Glacier as well as all of its
which early agreements would not just Kashmir is a highly inflammatory tributary glaciers as well as the three
bring interim peace, but ease the highly issue not just in India, but in Pakistan's main passes of the Saltoro Ridge
volatile conditions under which Kashmir domestic politics as well, and no leader immediately west of the glacier, Sia La,
is talked about at the policy level. Some -- military or civilian -- can afford to be Bilafond La, and Gyong La, thus holding
of these issues are: Siachen, Sir Creek, seen as being half-hearted about it. onto the tactical advantage of high
Wullar Barrage, and Baghlihar. India, as India, as the so-called status quo power, ground. The Pakistani Army controls the
the larger party, should take the lead in should not give the impression that it is glacial valley just five kilometers
'finding solutions'. Once these issues are sitting pretty in Kashmir and need not southwest of Gyong La. The line where
settled, there is a lot that can be done oblige anyone. In fact, a solution of the Indian and Pakistani troops are
towards the so-called 'final solution' to problem would benefit India as much as
presently holding onto their respective
the Kashmir dispute. anyone.

www.epilogue.in Vol. 4, Issue 4 Epilogue, April 2010

5 column
Indo-Pak Dialogue

construction began in 1999. Soon However, all the three parties –-

Kashmir is a highly inflammatory issue after, Pakistan claimed some design India, Pakistan and Kashmir -- will
not just in India, but in Pakistan's parameters of Baghlihar project have to show flexibility. India, without
domestic politics as well, and no leader violated the Indus Water Treaty of conceding territory and without
-- military or civilian -- can afford to 1 9 6 0 . Wo r l d B a n k m e d i a t i o n compromising its secular credentials
be seen as being half-hearted about it. acknowledged India's right to can show the way by diluting its
India, as the so-called status quo construct 'gated spillways' under the military presence in Kashmir. Pakistan
Indus Water Treaty of 1960. Though can gain much by the disappearance on
power, should not give the impression
both parties (India and Pakistan) have the ground of a dividing line without
that it is sitting pretty in Kashmir and
already agreed that they will abide by insisting that the legal status of that
need not oblige anyone. In fact, a the final verdict of the World Bank line be changed. The people of
solution of the problem would benefit report, Pakistan continues to be Kashmir should welcome any move
India as much as anyone. disturbed about it. that relieves their sufferings even
Coming back to Kashmir, the voice without any change in the de jure
of the Kashmiri people is not situation.
posts is being increasingly referred to as
unanimous: it does not even approach
the Actual Ground Position Line (AGPL).
a consensus. There is a perceptible
Demilitarization of the Siachen glacier The voice of the Kashmiri people is not
groundswell in favour of
has been over-discussed, and long
independence, but Kashmiris are
unanimous: it does not even approach
pending. a consensus. There is a perceptible
aware of the difficulties in the way.
The long-standing dispute over Sir groundswell in favour of independence,
Most Kashmiri leaders now concede
Creek hinges in the actual
that the interests of neither India nor but Kashmiris are aware of the
demarcation from the mouth of Sir
Pakistan can be ignored and these difficulties in the way. Most Kashmiri
Creek to the top of Sir Creek, a 96 km
strip of water disputed between India
interests do not allow for an leaders now concede that the interests
and Pakistan in the Rann of Kutch
independent state, which could of neither India nor Pakistan can be
become a hotbed of international ignored and these interests do not
marshlands. Since neither India nor
rivalry and intrigue. allow for an independent state, which
Pakistan has conceded ground, India
At the same time, there are
has proposed that the maritime could become a hotbed of international
certain matters on which a broad
boundary could be demarcated first. rivalry and intrigue. At the same time,
consensus is discernible. All Kashmiris
However, Pakistan has refused the
place primary emphasis on personal
there are certain matters on which a
proposal on the grounds that the broad consensus is discernible. All
security and want an end to
dispute should be resolved first. Kashmiris place primary emphasis on
bloodshed. All Kashmiris want to be
The Wullar Barrage dispute personal security and want an end to
free to travel anywhere in the
started in the year 1985 with the
erstwhile state of Jammu & Kashmir bloodshed. All Kashmiris want to be
construction of a dam on River Jehlum
without hindrance. All Kashmiris want free to travel anywhere in the
by India. The construction was stopped
in 1987 due to protests by Pakistan as it
more autonomy so that they can run erstwhile state of Jammu & Kashmir
their own affairs. All Kashmiris would without hindrance. All Kashmiris want
maintains it is in violation of the Indus
like to see cooperation between the more autonomy so that they can run
Water Treaty of 1960. India, in turn,
two parts of the state in fields like
reiterates its position that the their own affairs. All Kashmiris would
tourism, forest management, water
construction is necessary for fulfilling like to see cooperation between the
and power, and the environment. Most
the energy needs of the Kashmiri
Kashmiris welcome improvement in
two parts of the state in fields like
people. tourism, forest management, water
I n d o - Pa k r e l a t i o n s . T h e e a r l y
The Baghlihar river power project and power, and the environment. Most
resolution of Siachen, Sir Creek,
on the Chenab River was conceived in Kashmiris welcome improvement in
Wullar Barrage and Baghlihar is likely
1992, approved in 1996 and
to ensure all of this. Indo-Pak relations

www.epilogue.in Vol. 4, Issue 4 Epilogue, April 2010

LADAKH affairs 6

HCHF in Service of
Himalayan Heritage

P eople from different parts of the

globe have been overwhelmed
with the greatest historical monu-
ments or architectural masterpieces,
unique culture, magnificent and eye-
catching landscapes of the Himalayas.
The region has sustained over the cen-
turies a vivacious and rich cultural heri-
tage 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 bod-
ies, mountains etc.
In addition the region is full of mys-
tic traditions and beliefs. Since ancient
time wise men and women shared their
knowledge with the people who seek for disappearing in the region. Over the Ladakh and make reuse of their knowl-
healings and advices. This institution past several decades even, many edge. More publications on art and cul-
includes Lha-pa and Lha-mo (oracles), monastic arts and crafts which have ture would be pivotal in disseminating
Lha-rje (local physicians), and dbon-po served as the critical focus for rituals this information to a wider audience
(Astrologers). These wise men and and prayers have almost completely and help in generating awareness, espe-
women are always consulted for health, died out from within the monasteries. cially among the younger generation on
sicknesses, healing, offering rituals and It is obvious that many of built heritages the need to safeguard our rich heritage.
foretelling. These helpful institutions are being destroyed in several villages There are several Government
are an important part of the Himalayan in name of development and modern- organizations working in this direction.
culture for centuries. “The land of rich ization. Even the remaining ones are The Central Institute of Buddhist
cultural heritage” was a graceful epi- seen in advance state of decay due to Studies is one of the best examples of
thet conferred to the region by the out- lack of maintenance and time factors. formal training in art and crafts skills in
siders. All of a sudden, contemplation in Today, it has become essential to the region. Himalayan Cultural Heritage
retrospection started to happen in our draw attention of the local people to Foundation (HCHF) is a community-
society in fear of losing this graceful epi- the need to generate awareness on the based, non-government organization,
thet. importance of preserving all aspects of devoted to promote and conserve
The knowledge based on myths, our culture before they were lost for- Himalayan indigenous, natural and his-
beliefs, rituals and legends associated ever. We need to find as many resource toric heritage by working directly with
with built and natural heritages are fast persons as possible from the villages of

www.epilogue.in Vol. 4, Issue 4 Epilogue, April 2010

7 LADAKH affairs

the different mountainous communities

and strengthening and supporting com-
munity 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 practi-
cal and beneficial outcomes both in
terms of learning and preserving the cul-
tural heritage. The foundation will sup-
port 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 the present generation disregards Nubra valley, a book written by a local
training workshops to assist the village them. The workshop provided stage for astrologer on sacred landscape of Nubra
communities in this direction to revive singers, dancers, musicians and people valley and the news letter of the foun-
and promote endangered tangible and who are interested in preserving and dation in which students and local vil-
intangible cultural heritage. It also orga- promoting traditional songs and music. lagers will be predominantly encour-
nizes public and youth education, More than 30 historical songs were aged to write on different aspect of rich
awareness-building, participatory work- recorded and 12 trainees from different cultural heritage of Himalayas. In order
shops, seminars and training courses. villages were trained in playing tradi- to share this rich culture with the for-
One such example was the training tional musical instruments (Daman and eign guests and Ladakhi students study-
workshop initiated by HCHF in collabo- Surna). ing outside Ladakh, HCHF will be con-
ration with Safeguarding Cultural Another very important training ducting weekly talk on cultural heritage
Resources (SACRE) and Yarma Gonbo workshop to revive monastic art and from 18th April to end of September this
Society to revive and record traditional crafts was conducted last year by HCHF year. The lectures will be conducted in
music and songs in the Nubra valley was in collaboration with SACRE and the precinct of the historical building of
organized during last summer. Musical Chemdey Gonpa. During this two Lonpo house in the heart of Leh town
instruments are still preserved in most experts from Bhutan and Darjeeling where scholars both from Ladakh and
of the villages but there is no one to play trained about 20 young monks to make outside Ladakh will give presentations.
them during ceremonial occasions. butter sculptures and to draw more We believe this will not only benefit the
There are several folk songs associated than 25 different types of sand manda- tourists but also help Ladakhi students
with Nubra valley, describing the signifi- las which have almost completely diet and young scholars to learn more about
cance of sacred landscapes, monaster- out from within the monastery over the the cultural legacy of Himalayas.
ies, castles, kings and important per- past several decades. The author is the secretary of
sonalities in the history of the valley. HCHF is planning such more train- Himalayan Cultural Heritage Foundation
The folk songs confer information on ing workshops this year in collaboration (HCHF) and the Ladakh Liaison Officer
history, culture, religious services, with village communities. The founda- for International Association for Ladakh
trade and society. Unfortunately these tion is also coming up with series of pub- Studies (IALS). He can be reached at
beautiful songs are slowly dying out as lications which includes heritage map of sonam_sakya@yahoo.com

www.epilogue.in Vol. 4, Issue 4 Epilogue, April 2010

LADAKH affairs 8

90 Youths Trained Legendary

for Enhancing Scholar Kachen
Cultural Skills Lobzang Zotpa

Week long training program m e n t s o f Yo u n g B u d d h i s t he J&K Cultural Academy Leh in collab-
in skill development of sing- Association for selflessly working oration with Thiksay Monastery cele-
ing folk songs, playing tradi- for promotion of Ladakhi culture brated 88th birth anniversary of late
tional music, dancing, acting, and making lot of un-employed Kachen Lobzang Zotpa, one of Ladakh's leg-
anchoring and Interviewing ended youth skilled for self employment endary scholars, on March 12 at Thiksay mon-
March 10 at SECMOL Complex Phey. through knowledge and culture. Mr. astery.
As many as 90 trainees from all over Wangchuk assured that LAHDC will The President, Ladakh Gonpa Association, Ven
Ladakh including few from Kargil further extend all possible coopera- Tokdan Rinpochey was the chief guest on the
district participated in the training tion and assistance for holding such occasion. Ven. Tokdan Rinpochey in his
program. The training program was training program in future also. address said that celebration of such occasion
organized by the Ladakh Young The President, LBA, Mr. and highlighting the contributions of eminent
Buddhist Association in collabora- Lobzang Rinchen underlined that teachers and scholars in preservation and pro-
tion with Ladakh Autonomous Hill Ladakh Young Buddhist Association motion of cultural values is a true tribute to
Development Council, Leh. has been contributing a lot for the them. He urged that the religious poems and
On the occasion of valedictory over all welfare of the Ladakhi soci- literary works of Kachen Lobzang Zotpa should
function, the Executive Councilor, ety with special emphasis on pres- be brought into publication and disseminate
Art and Culture Mr. Tsering ervation and promotion of Ladakh's among the society in order to know their con-
Wangchuk was the chief guest while culture heritage. He appreciated tribution. Rinpochey has announced to pro-
as the President of Ladakh Buddhist the devotion of the workers of vide Rs: 25,000 from the Gonpa Association as
Association, Mr. Lobzang Rinchen Young Buddhist Association for work- a bit of assistance to publish Kachen Zotpa's
was the guest of honor. ing sincerely for a common cause of works.
Speaking at the function, Mr. the society. The Executive Councilor, Agriculture, LAHDC,
Wangchuk said that Ladakh is Earlier, the Vice President, Leh, Mr. Tsewang Tondup extended apprecia-
known for richness in its traditions Young Buddhist Association Mr. tion to the Cultural Academy Leh headed by
and culture, and as such, it is the Otsal Wangdus in his welcome Cultural Officer, Mr. Tsewang Paljor for cele-
high time to take such measures to address threw a light on the activi- brating this day in honor of a great scholar.
preserve and promote our heri- ties of the Association and sought Referring to an important resolution which
tages. He said that Ladakh has vast cooperation from LAHDC and all was passed in the recent general council of
potential for promotion of tourism walks of the society to carry for- LAHDC regarding preservation and promotion
industry and maintenance of cul- ward such programs. He said that of culture and heritages of this region, Mr.
tural principles and its values the main aim of holding this week Tsewang Tondup said that LAHDC would
becoming much and much impor- long cultural training program was extend all possible assistance at every level to
tant to protect our deep rooted cul- to prepare and train un-employed promote the cultural identity of this region by
ture as well for the economic bene- youth in various fields of skill so as strengthening the Cultural Academy Leh. He
fits to the people of Ladakh through to ensure their livelihood through strongly urged that the LBA, Ladakh Gonpa
tourism. acting, singing, music and anchor- Association, LAHDC, scholars, intellectuals,
He appreciated the commit- ing. monks and monasteries of Ladakh should

www.epilogue.in Vol. 4, Issue 4 Epilogue, April 2010

9 LADAKH affairs

jointly struggle for recogni-

tion of Bhoti language in Samphel Reviews
the Constitution of India so
that the identity of the peo- Tribal Development
ple of Ladakh is well pro-

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
The President, LBA, Mr.
progress under Tribal Sub Plan and other issues relating to Tribal Affairs.
Lobzang Rinchen, Mr. Samphel in view of making a systematic procedure to ensure scholarship to all
Councilor Thiksay, Mr. deserving students of Ladakh who studying our side Ladakh, sought a proposal that would
Tondup Spalzang, Gay facilitate the students in getting direct scholarship through the LAHDC in Leh itself. He urged
Thupstan Paldan Saboo, Dr. for having on-line information and application facility for scholarship so that all needy and
Jamyang Gyalson, Dr. deserving students would get scholarship without difficulty. He said that more than 200 cases of
Lobzang Tsewang also scholarship of Ladakhi students have been found rejected from Kashmir last year. Mr. Samphel
spoke on the occasion and further said that ST and SC Commission will do their best to get good flow of funding for Ladakh
highlighted the life and con- under tribal schemes and as such he sought good proposals and projects covering genuine
tributions of Kachen Zotpa. demands of the region.
Welcoming the guests and Briefing the scenario of Tribal Sub Plan, the Deputy Commissioner, Leh Mr. AK Sahu said
the audience, the Cultural that Rs: 15.00 lacs have been received to Leh during 2007-08 and thereafter no any fund has
Officer Leh Mr. Tsewang received. Mr. Sahu said that land for construction of hostel building for the ST students of
Pa l jor sa i d th a t th e 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
Academy has been cele-
him that a Career Counseling center is being set up at Degree College Leh to aware the students
brating the birth anniversa-
about their future strategies. Besides an Employment Mela is also proposed to hold very soon in
ries of three eminent schol-
Leh to educate the students about the potential of jobs.
ars of Ladakh i.e. Kachen
Lobzang Zotpa, Kachen
Ishey Tondup and Tashi
Phuntsog Zomde under the
Academy Discusses Cultural
approval of the govern-
ment for the last three Issues with Councilors, Scholars
years. He said that

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

www.epilogue.in Vol. 4, Issue 4 Epilogue, April 2010

in focus 10
Budget 2010

BUDGET 2010-11

The Road to Recovery

Epilogue Report

n an election year the lack of sops from the non-tax revenue thus leaving have to be seen how this mechanism has
in budgetary proposals sounds nearly Rs 4500 Crore hope on the central been arrived at”, says Dipankar
typically un-populist for any ruling grants. Sengupta, a professor of Economics at
regime but the National Leader of opposition Bhartiya the University of Jammu. What makes
Conference-Congress coalition Janta Party Prof Chaman Lal Gupta Sengupta to doubt figures is certain
seems to have taken that risk as Finance pointed out that Budget reflects huge positive aspects in Budget like
Minister Abdul Rahim Rather's budget dependence in the central grants and significant hike in capital expenditure
speech on March 12 reflected an there are no proposals at generating which was not expected in the present
approach at skirting the short term own resources. In trademark economic scenario.
concessions to focus at long term observation of his party, Gupta said, The key focus area of the budget
overhauls in state's economy. “over 75 percent receipts of collections 2010-11 is seen as organized attention
In view of upcoming elections to are from Jammu region but on to the primary sectors of economy
urban civic bodies and panchayats in the expenditure side share of Jammu is (agriculture, horticulture and allied
state, the Budget 2010-11 was expected awfully little”. His allegation is, sectors) and power generation. This
to be a slew of sops but the government, however, least substantiated by the focus is driven from the fact that
instead, came up with a focused budget documents. contribution of the primary sector to
approach to do some structural The trade and industry sector the Gross State Domestic Product is
overhaul in key areas like primary seemed quite happy over the budget drastically declining with this year's
sector and power production. While proposals as measures have been figures reaching as low as 24.60 per
hike in the toll tax has come in for suggested for creating an enhanced cent. Nearly two and half decades back
severe criticism as it is bound to industrial atmosphere. “This year's the primary sector contributed to 47 per
escalate prices of essentials, the budget is hugely encouraging for the cent of the GSDP and this alarming
humane side of the budget –a corpus industry”, says Annil Suri, representing decline is a worrying factor.
fund for cancer patients –has been Bari Brahmna Industrial Estate, one of In the strict terms of economic
widely hailed. the largest industrial growth centers in management, normally sector which is
Even has the Capital Expenditure the state. He said, the continuation of least contributing to the GSDP is not
has been pegged up higher much to the VAT remission and few concessions in taken up for support at the cost of well
surprise of economists, the stupendous some new areas will largely help the performing sectors but this year's
rise in revenue expenditure remains a industries grow even as major demand budget has made agriculture and allied
cause of worry. In Rs 25984 Crore of rationalization of VAT regime has areas a priority sector. To boost growth
Budget, a whooping sum of Rs 17698 been left unaddressed. The reasons not VAT has been completely waived off on
Crore goes to the revenue expenditure, touching the VAT regime, as Finance the agriculture inputs like seeds,
including security related expenses, Minister also indicated this morning, is fertilizers, tools and tractors etc even
leaving only Rs 8286 Crore as capital apparently to wait for a countrywide as incentives have been proposed
expenditure. Digging into the capital new taxation regime which is coming up intensive cropping. Irrigation
expenditure it comes out that Rs 3000 next fiscal. department has also got an increased
Crore is proposed to be mobilized from “A look at the figures makes it an allocation with a view to boost primary
the tax revenue and around Rs 800 Crore unexpectedly great budget but it will sector.

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11 in focus
Budget 2010

Former Finance Minister Tariq Hameed Karra says he is not

impressed with measures proposed for agricultural growth. Excerpts from
“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
Finance Minister's
reacting to the budget proposals. He described the overall
budget as “uninspiring, figurative to create confusion and
Budget Speech
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. ECONOMIC SCENARIO:
A step forward for Women empowerment in the State, the The preliminary estimates given in the Economic
special feature of the budget is a rebate of 25% in stamp duty in Survey place the State GSDP for the current financial year
matters of sale and transfer of landed property when in the at Rs.38,298 crore in comparison to last year's figure of
name of a female member of any family. Rs.34,805 crore indicating a growth rate of 10.03%. At
Rather also said that from the next financial year a constant prices, the GSDP works out to Rs.26,153 crore.
uniform tax regime, Goods & Services Tax, would be introduced This indicates a growth rate of 6.87% which is higher than
throughout the country and for the 2010 year he proposed the growth rate registered last year.
exemption of VAT and Toll tax on Industry and Tourism. He said a The per capita gross income works out to Rs.33,285 at
new trade policy is on the anvil favouring more investment and current prices and Rs.22,730 at constant prices. The last
trade activity. year's per capita income figure at current prices was
The Minister said the Centre has agreed to restore five Rs.30,665. Thus the per capita income has registered a
telephone links across LoC for making the trade transactions growth of 8.54%.
smoother and simpler. He said the State Government is A notable feature of these figures is that while the
requesting the Centre for making the trade easier and basic national GDP growth rate is being estimated at around 7.5%
infrastructure in this regard is being developed. He said the for the current fiscal – down from the last 5 years average
quantum of trade across LoC is also increasing. of 8%, there is considerable improvement in current year's

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in focus 12
Budget 2010

GSDP growth rate in our case. This is very detailed discussions with the available under the previous Award
despite the fact that our exports have Council of Ministers and various other indicating an increase of 29%. Thirdly, in
suffered for the second year in stake-holders. The Members of the addition to the enhancement of the
succession due to global economic Commission visited all the three regions provision for Natural Calamities Relief
meltdown and also that the agricultural of the State to have first hand account by 155%, the Commission has also
production has been hit by inadequate of development issues and further recommended specific needs grants of
rainfall during the last kharief and by interacted with various stake-holders Rs.135 crore for Kashmir and Rs.120
delayed rains during the current rabi locally. For the first time, we had crore for Jammu. For the first time,
season. arranged special meetings of the Rs.90 crore has been specifically
As per preliminary estimates, the Commission with the representatives of allocated for Ladakh region as strongly
primary sector has contributed 24.60% all the political parties and some advocated by the government. Fourthly,
to our GSDP. Secondary sector has honorable members of this House. As the Commission has also recommended
contributed 29.60% and the share of the per our information, all parties, a grant of Rs.1,000 crore for settling the
tertiary sector has been 45.80%. As will individuals and groups made very state government's over draft with the
be seen, the contribution of the primary effective and strong presentations J&K Bank. In totality, the Award of the
sector comprising of agricultural and before the Commission. I am really very Thirteenth Finance Commission works
allied activities has slipped down from happy to say that our joint efforts have out to Rs.40,439 crore which is almost
25.82% registered last year. The yielded adequate dividends. double of Rs.20,880 crore made
secondary sector comprising of industry The Award of the Thirteenth available to us by the previous
and manufacturing activities has Finance Commission has been laid by Commission.
improved from the last year's figure of the Union government before the We have noticed that the specific
28.29%. There is a marginal lowering of Parliament on 25th February, 2010. The needs grants and some other sector
contribution from the tertiary sector Report reveals that the Commission has specific components of the last Award
comprising of services from its last been particularly considerate in were not utilized fully. This has resulted
year's share of 45.89%. I may point out appreciating the needs of our State and, into great financial loss to the State as
here that during the last 20 years therefore, there are enough reasons to the un-utilized portion lapses at the end
counted from 1980-81, the share of thank the Commission for their Award. of the Award period. There are various
primary sector has come down from the Firstly, as against our share of 1.297% in stipulations attached to the release of
level of 47.40%. The secondary sector the central taxes recommended by the such grants such as preparation of
has substantially gained from 12.90% previous Commission, the present detailed plans of action, project
and the tertiary sector improved from Commission has enhanced our share to reports, proper sanction by the
39.70%. While the shares of the 1.551%. As a result of this enhancement, prescribed committees at the Centre
secondary and tertiary sectors have our share during the next financial year and periodical submission of progress
improved because of growing number of is estimated to increase to Rs.2,911 reports and utilization certificates in a
manufacturing and service units, there crore as against Rs.1,880 crore time bound manner. In order to ensure
is stagnancy in primary sector. This available during the current financial 100% utilization of the grants awarded
stagnancy calls for our fullest attention year. For the full period of the Award, by the Thirteenth Finance Commission,
for possible interventions and we are likely to receive Rs.20,183 crore the government shall constitute a High
corrections. on this account, as compared to the Level Empowered Committee headed
amount of only Rs.7,442 crore available by the Chief Secretary to monitor the
THIRTEENTH FINANCE COMMISSION under the previous Award. This progress of expenditure on all the
AWARD: indicates a jump of 171%. The actual relevant items. A Finance Commission
The Finance Commission devolution shall be related to the actual Cell in the Department of Finance shall
appreciated our memorandum as one of realizations of taxes by the Union keep regular tab on the periodical
the most comprehensive documents government. Secondly, the non-plan progress registered by the concerned
touching upon all the relevant issues revenue deficit grant for the next five departments. Each department shall
and its Terms of Reference. During its years has been increased to Rs.15,936 also make comprehensive quarterly
visit to our State, the Commission held crore as against Rs.12,353 crore review of the physical and financial

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13 in focus
Budget 2010

progress and apprise hon'ble Chief execution of Rs.400 crore tunnel H I G H L I G H T S

Minister about such progress. between Vailoo & Singhpora to provide
all weather connectivity between the Women Empowerment: A
MAJOR ECONOMIC INFRASTRUCTURE district of Kishtwar in Jammu Region
rebate of 25% in stamp
INITIATIVES: with the Kashmir valley. The project
The entire earth work for single report for its implementation in PPP duty in matters of sale and
lane of Rs.640 crore Mughal Road has mode has been prepared. It will be the transfer of landed
been completed. We are hopeful that earnest desire of the government to see property when in the
the consolidation and metalling of the this work getting started as early as
name of a female member
road surface will be completed in the possible.
next financial year so that the road is The Qazigund- Khanabal segment of any family.
thrown open for motorable traffic for of the railway line in Kashmir valley was
the general public. This road will fulfill formally dedicated to the people of the
one of the many dreams of Sher-e- State in October 2009 by the Prime
Special revolving corpus
Kashmir Janab Sheikh Mohammad Minister Dr Manmohan Singh Ji in of Rs. 10 crore for soft
Abdullah Saheb and provide an presence of the Chairperson of UPA loan for setting up self-
alternative road connection between Shrimati Sonia Gandhi ji. The entire
employment enterprises
Kashmir and Jammu as well as to Qazigund Baramulla railway line now
visitors from outside. The road shall stands completed. The work on the by the girls and women.
boost trade and commerce and further railway line from Udhampur-Katra to
strengthen the emotional & cultural Qazigund which remained suspended
bonds between the two regions of the beyond Katra for about two years, has
Monthly honorarium of
State. This road was being earlier been resumed due to personal efforts Anganwari Workers and
funded by the State and the Central made by our Chief Minister. It is now Anganwari Helpers
government on 50:50 basis. I am happy going on in full swing and is targeted for enhanced by Rs. 300/- and
to state that on the personal completion by the year 2017.
intervention of Hon'ble Chief Minister, Four laning and upgradation of the
Rs. 200/- respectively
the Hon'ble Prime Minister of India, Dr National Highway from Lakhanpur to w.e.f. 01.04.2010
Manmohan Singh Ji, during his visit to Srinagar is also progressing with good benefitting about 57,000
the State in October, 2009 has agreed pace. The entire length has been
to provide 100% funding for this road
women folk.
divided into six segments. All these
under PMRP. segments of the highway between
The government has recently Nagrota and Qazigund have been Employment provided to
decided to explore PPP possibilities for approved by the Central government for
over 20,200 youth since
January 2009 and so far
6500 new posts created
particularly in Health and
Education Sectors.

Cancer Treatment and

D. Capital Expenditure 5710 7790 7560 8286
Management Fund set up
with initial contribution of
Rs. 1 crore for the corpus
of this Fund.

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in focus 14
Budget 2010

execution under PPP mode at a cost of receipts are estimated at Rs.3,075 crore the other hand, the ever mounting
Rs.9,700 crore. in comparison to BE of Rs.3,011 crore demand of funds for the old pensioners
Completion of Toll Plaza Complex showing a further improvement of Rs.64 and the existing employees retiring in
at Lakhanpur is in its final stages and crore. I may mention here that in near future shall be gradually contained
shall get commissioned early in next comparison to last year's tax revenue of in a long-term perspective, indirectly
fiscal. Adequate funding for the same is Rs.2,683 crore, the current year's tax ensuring that the existing employees
being arranged. revenue is up by Rs.392 crore, also continue to get their pensionery
Two Central universities have been registering an increase of over 14%. The benefits and regular monthly pension
approved by the Union government – non-tax revenue figures proposed in the when they retire.
one each for Kashmir Valley and Jammu RE are Rs.1,294 crore in comparison to
region. Suitable sites have been budget estimates of Rs.1,219 crore BUDGET ESTIMATES 2010-11:
selected by the central team which indicating an improvement of Rs.75 I now take up broad budgetary
visited the State for looking into the crore. The fiscal deficit has been features of the budget for the next
suitability of various sites suggested by reworked at Rs.2,090 crore in financial year. The total budgetary
the State Government each covering comparison to the figure of Rs.2,081 receipts have been kept at Rs.25,984
about 500 acres of land. It is hoped that crore in budget estimates indicating a crore. Out of this, an amount of
these universities shall become very small variation of Rs.9 crore. Rs.22,849 crore is expected as revenue
functional very soon and they will take receipts and Rs.3,135 crore as capital
care of the growing needs of higher EXPENSES ON SALARIES AND receipt. Out of the total expenditure,
education and research, particularly in ESTABLISHMENT: also estimated at Rs.25,984 crore, the
the non conventional and sunrise areas As is well known to the Hon'ble revenue expenditure will be Rs.17,698
as well as in educational fields of Members of this August House, there is a crore both on account of plan and non-
modern relevance. spiralling effect on the cost of plan. The total capital expenditure is
Urban Transport System for establishment because of its big size, estimated at Rs.8,286 crore both on
Srinagar and Jammu cities requires implementation of the Sixth Central Pay account of plan and non-plan.
special focus. Apart from the regular Commission Award and release of two The State's own revenue
interventions being made by the new installments of DA every year. The comprising of tax revenue, non-tax
government to tackle the ever growing total salary expenditure is estimated at revenue and share of central taxes
traffic needs for these cities such as Rs.6,629 crore as per revised estimates. totals to Rs.7,873 crore and represents
construction of a fly over from Jahangir The expenditure on pension payment is over 30% of the total receipts.
Chowk to Rambagh in Srinagar and now estimated at Rs.1,495 crore in the Exclusive of our share of central taxes,
construction of another bridge over revised estimates. the state's own tax & non-tax revenue
river Tawi for Jammu city, a long term comes to Rs.4,962 crore which is about
solution to this problem is also called NEW PENSION SCHEME: 19% of the total budgetary receipts. I
for. The government accordingly I had announced introduction of have accounted for the non plan
intends to engage M/S RITES to prepare the New Pension Scheme for the revenue deficit grant of Rs.3,940
reports for creating Metro systems for employees who would be recruited available under the TFC Award. The
both these cities on the pattern of after 01.01.2010. A Bill incorporating inter se breakup of the remaining
Delhi. this scheme was passed by this House receipt figures shall be finalized by the
during the last session. The scheme has Planning Commission at the time of
BROAD BUDGETARY FEATURES: come into operation with effect from determining the scheme of financing
revised estimates for the current the first January 2010. The introduction of the next year's plan. The scheme of
fiscal (2009-10) of this scheme and gradual building of a financing shall also determine the
As per revised estimates, the massive Fund outside the annual state level of our next year's loans and
current year's receipts total to budget shall be insulating the market borrowings. For the time
Rs.22,885 crore in comparison to employees recruited in future from the being, I have based my assessment of
Rs.22,739 crore adopted in the budget regular budgetary pressures of the these figures on the pattern of
estimates, up by Rs.146 crore. The tax government on year to year basis. On financing of our current year's plan.

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15 in focus
Budget 2010


The next year's estimates of tax The total expenditure of Rs.25,984
revenue are Rs.3,655 crore indicating crore is divided between plan Rs.6,000 Exemption from sales tax
an increase of about 19%. The next crore, PMRP Rs.1,206 crore, centrally
on income from room
year's estimates of VAT receipts are sponsored schemes Rs.850 crore and
being placed at Rs.2,611 crore non plan expenditure of Rs.17,928 rent of hotels, lodges and
indicating increase of Rs.545 crore crore. In revenue & capital terms, the guest houses continued
over the current year's BE of Rs.2,066 break up is Rs.17,698 crore on revenue upto 31.03.2011.
crore. I am targeting a growth rate of account and Rs.8,286 crore on capital
over 26%. Excise revenue target for the account. Out of the total revenue
next year is Rs.280 crore. The target of expenditure, about Rs.8,200 crore is For popularizing
collection of taxes on goods & estimated to be spent on pay and mechanization of
passengers has been kept at Rs.384 allowances of the government
Agriculture and
crore. Duties on electricity are likely employees including Rs.725 crore on
to yield Rs.206 crore. Taxes on vehicles two new installments of DA and Rs.129 Horticulture farms,
and stamps duties are expected to crore on migrant salaries. A provision of agriculture tools and
yield Rs.101 crore and Rs.67 crore Rs.482 crore has been kept as grant-in- implements exempted
respectively. aid, mostly for government aided
institutions which use it mainly for
from VAT and Toll.
NON –TAX REVENUE: salary payments. Rs.1,800 crore have
The next year's budget estimates been kept for pensions and retirement Fodder, Fertilizer,
for non-tax revenue have been kept at benefits. Rs.2,251 crore is earmarked for
payment of interest. Expenditure on
Pesticides, Weedicides
Rs.1,307 crore indicating a negligible
growth. The main item is power receipt power purchase is another major item and Insecticides
for which next year's target has been and the next year's provision on this exempted from Toll.
kept at Rs.1,055 crore. Receipts from account is Rs.2,051 crore. As far as capital
mining, forestry, water supply and expenditure is concerned, Rs.959 crore are
health sectors have been kept at Rs.30 estimated to be spent on repayment of Solar appliances
crore, Rs.38 crore, Rs.27 crore and loans and Rs.7,327 crore on various exempted from VAT and
Rs.15 crore respectively. capital formation schemes including
Toll to encourage use of
capital component of the plan.
renewable source of

Feni, Agarbatti, Dhoop

exempted from VAT.

Anardhana, Guchchi,
Paneer exempted from

Bee hives and bee

colonies exempted from
VAT and Toll.

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in focus 16
Budget 2010

ANNUAL PLAN 2010-11: share to enable the Economic HORTICULTURE:

Despite the delay in sanctioning of Reconstruction Agency (ERA) to raise I had stated last time that the
the current year's plan outlay by the matching loans from the World Bank. productivity of our orchards can be
Planning Commission, we hope to meet Some of the salient features improved by providing root stock for
the physical and financial targets pertaining to various sectors are high density plantation from our
assigned to us under the plan. As such, summerised here. departmental nurseries as also by
the government has decided to ask for encouraging the private nurseries to
about 10% step up in the next year over AGRICULTURE: join in this effort. The initiative taken
the current year's plan. We feel that our Primary sector consisting of by the government is showing
request shall surely meet acceptance of agricultural and allied services sustains encouraging signs. The availability of
the Planning Commission. As such, the 75% of our population and engages 50% root stocks and planting material in the
plan out lay for the next financial year of our total work force. The natural next year is expected to increase by
has been kept at Rs.6,000 crore. The factors have not been favourable for more than 60%. The Horticulture
working group meetings of all our agricultural operations in the current Department is going to install micro
concerned officers with their financial year. Scarcity of rain during irrigation system at its Zainpora farm
counterparts in the Planning the last kharief and delayed rains during with a view to popularizing drip
Commission have already taken place the current rabi have caused substantial irrigation amongst the horticulturists.
yesterday and day before yesterday. We loss of production. The government has The Department is going to extend its
hope that the Plan outlay shall be decided to give thrust to paddy-wheat activities in difficult terrains such as
settled very soon in the meeting of our rotation techniques which will be now Gurez and Uri. While Apricot has been
Chief Minister with the Deputy carried into the next year. The introduced in Gurez, additional area is
Chairman of the Planning Commission as agricultural department has gone ahead being brought under olive plantation in
per past practice. with the acquisition of three units of Uri. Kiwi is also being popularized
Out of the total plan outlay, the paddy transplanters for mass amongst private orchardists. Stone
capital expenditure is estimated at demonstration during the next kharief fruits, pears, peaches and olive are
Rs.5,073 crore forming 84.55% of the 2010. Likewise, the department has being promoted in the hilly regions of
total plan outlay. The revenue also procured fourteen wheat thrashers Jammu. New varieties of apricots are
expenditure is estimated at Rs.927 for popularizing paddy wheat rotation being introduced in Ladakh region.
crore forming 15.45% of the out lay. The and farm mechanization. About nine Cluster approach is being followed so
increase in the revenue expenditures is thousand kanals of land has been that technical know-how to the farmers
mainly on account of creation of a large covered under this scheme during the can be effectively imparted. A MoU has
number of plan posts for the new current rabi season. been signed by the Department with
districts and establishments including The government is providing APEDA for arranging consultancy for
upgradation of the existing subsidy on purchase of agricultural setting up cold atmospheric stores and
establishments such as those in health machinery and farm equipments such as cold chain in the State.
and education sector. sprayers, irrigation pump sets, tillers,
Over and above the plan out lay of thrashers, shellers, reapers, potato SERICULTURE INDUSTRY:
Rs.6,000 crore, a sum of Rs.1,206 crore planters, seed cum fertilizer drills etc in As stated by me before this House
has been proposed to complete the order to encourage farm mechanization. in last August, the government is giving
schemes taken-up under PMRP. A In respect of tractors, the amount of lot of importance to this traditional
provision of Rs.721 crore has been kept subsidy is as high as Rs. 45,000. For industry of Jammu and Kashmir. A Multi
under the next year's state plan as the horticulture farm management Task Force has been constituted to work
State share for the centrally sponsored equipment and power tillers the subsidy out strategies for holistic development
schemes. This provision is expected to amount is Rs.15000. For seed cum of mulberry, cocoon production, silk
provide access to about Rs.2,377 crore fertilizer drills, the amount of subsidy is reeling, weaving of silk fabric and other
as central share from various ministries. Rs.20,000 and on potato planters, down stream products. Four clusters of
A component of Rs.118 crore out of potato diggers, strip till drill, Dal mill 100 sheds each are being established in
PMRP is being kept as state counter part etc the amount of subsidy is Rs.15000. the State for intensification of cocoon

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17 in focus
Budget 2010

rearing. The next year's target for enhancing toll tax on import of poultry H I G H L I G H T S
production of cocoons has been kept at birds has started showing positive
9 lakh kilograms. results. After my announcements to this Period of VAT
effect in the month of August 2009,
exemption on
FLORICULTURE: Lakhanpur check post has recorded a
After signing a Memorandum of decline of 23% in the import of poultry replacement of defective
Understanding with Airport Authority at birds and an increase of 22.5% in the parts by new parts raised
Srinagar, land measuring 150 square import of day old chicks upto the end of
from existing 90 days to
metre has been leased out to the February 2010. In terms of number, the
Department of Floriculture. APEDA has increase in import of chicks is 24.69 lakh 180 days.
been approached to provide financial and the decline in the number of poultry
assistance and set-up a walk in type birds is 15.85 lakh.
Simultaneously, the government is
Traders with a turnover
cooling chamber on this piece of land
for stocking perishable commodities also encouraging establishment of exceeding Rs. 60 lakhs
like flowers, fresh fruits and trout fish. backyard poultry units for which the will now be required to
The cooling chamber shall be managed department is gearing-up its production
for supply of low tech poultry birds from
file an audited report
by the Floriculturists Association on no
profit, no loss basis. the departmental hatcheries to the BPL under J&K VAT Act as
families. The Department is working on against Rs. 40 lakhs
POULTRY: a PPP initiative for developing hi-tech
Poultry farming has lot of potential parent stock.
for generation of employment The Central Government has
opportunities for our youth. The offered to extend financial assistance Slight enhancement in tax
government's policy of encouraging this for setting up of poultry estates.
However, as availability of chunks of
rates viz. VAT rate of 4%
industry has started showing results.
Several initiatives by the private sector land around the growth centers is to go up to 5%. VAT rate
are in the offing. In the meanwhile the limited, the State Government is trying of 12.5% to go up to 13.5%.
government initiative of using taxation to persuade the Central Government
not to insist on providing chunks of land
Rate of Service Tax to go
as an economic tool by abolishing toll
tax on import of day old chicks and for establishment of poultry estates and up from 8% to 10% and
to extend financial assistance for units 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

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in focus 18
Budget 2010

set up on private lands by the Rs.133 crore by TFC for the five year's HEP's to be executed by JKSPDC totals
entrepreneurs in clusters around period of the Award. to 2070 MW involving capital investment
identified growth centers. of over Rs.15000 crore. Installed
POWER SECTOR: capacity of joint sector and IPP project
IRRIGATION SCHEMES : Wide gap between demand and adds to an additional figure of 2810 MW.
Under the Indus Waters Treaty, the supply has been in existence in power Many other smaller HEP's are under
State can irrigate 13.96 lakh acres of sector. The present restricted peak execution by JKSPDC as also by the
agricultural land. We have covered an demand is estimated at 1450 MW where- private sector under IPP mode. A plan
area of 12.65 lakh acres so far. In the as the total availability from state's provision of Rs.519 crore has been kept
current year, we hope to add another sources comes to about 945.70 MW. The under power generation in the current
34000 acres to our irrigation potential. balance of the demand is met on year and the same is proposed at Rs.567
In Kashmir, Jammu and Ladakh payment against state's allocation in crore in the next year.
region,12 major/medium irrigation projects outside the State and by In the transmission and
schemes are under execution at a cost special adhoc allocations from the 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
of Rs.614 crore. Further more, five new Centre. The total availability of power government has engaged M/s TERI as
schemes are in the process of approval. comprises of State's own installed consultants to prepare a comprehensive
About 507 minor irrigation schemes are capacity of 758.70 MW and 12% free turn around plan. Simultaneously, 30
under execution at an estimated cost of power available from the central towns are being covered under
nearly Rs.900 crore. Out of them, 100 projects located within the State restructured APDRP at a cost of Rs.144
schemes are expected to be completed equivalent to 187 MW. The gap between crore as part B of this scheme. The state
in the current financial year. While demand and supply becomes precarious intends to install high voltage
more schemes are being formulated and during winter months when the distribution system and aerial bunched
regularly sanctioned to bring more area generation from the local hydel cables to avoid thefts and control the
under irrigation, efforts shall be made stations, owned by State as well as the mounting T&D losses. Under PMRP, 77
to compress the period of execution of Centre, is reduced to almost one third schemes of T&D stand approved at a
the on going schemes and all the of the installed capacity and the power cost of Rs.707 crore. The cost has been
requisite funds as may be needed for demand goes up primarily because of revised to Rs.1350 crore. Ten grid
the purpose shall be made available by heating needs. The long term answer stations are targeted for completion on
the government on priority basis. lies in the expeditious exploitation of turnkey basis in current year and the
For kandi areas of Jammu region, 9 our own hydel resources. The 450 MW remaining six grid stations shall be
check dams are proposed to be Baghlihar HEP-II is estimated to cost Rs. completed next year. Thirteen grid
constructed at a cost of Rs.80 crores 2800 cr and the work on execution of stations are being completed
under BADP and AIBP. Additionally 18 this project is already going on. We also departmentally. Fifteen Transmission
more check dams on rivers Basantar, hope to start work on execution of 1200 Lines are being completed in the
Ujh, Devak, Tarna and Yak are under MW Sawalkot HEP in near future for current & next financial year on turnkey
examination of the Central which the work on Rs.119 crore access basis and twenty one transmission lines
Groundwater Board for artificial road is going on in full swing. Bidding are under execution departmentally.
recharge of ground water. process for 690 MW Ratle HEP in IPP An allocation of Rs.504.13 crore
mode is in its final stage. Three projects has been proposed for next year for
FORESTRY: with an aggregate capacity of 2120 MW strengthening of T&D System, under
Forestry alongwith conservation of at Kiru, Kawar and Pakaldul shall be PMRP.
environment and ecology, wild life, taken-up by the JK SPDC with
forest protection and research shall be participation of NHPC. Preparatory POWER SECTOR REFORMS AND
provided due attention under plan works on 93 MW new Ganderbal HEP, 240 RECOVERIES OF DUES:
development. A sum of Rs.23.25 crore is MW Kirthai HEP, 50 MW Lower Kalnai HEP Power sector is in need of major
proposed to be allocated in the next and 37.50 MW Parnai HEP to be and basic reforms, particularly because
year's plan for this sector. The forest executed by our JKSPDC are in full of ever growing and unmanageable gap
sector has also been allocated a sum of swing. The installed capacity of all the between the amounts annually spent on

www.epilogue.in Vol. 4, Issue 4 Epilogue, April 2010

19 in focus
Budget 2010

power purchases and the total amounted to 31.12 % of the expenditure H I G H L I G H T S

recoveries made by the department. on power purchases. As compared to
The position can be better understood these figures, the expenditure on power Rs. 8 crore for migrants'
from the facts that six years ago the purchases in the year 2008-09 was
group mediclaim
expenditure on power purchase was Rs.2034 crore and the recovery was only
Rs.882 crore and the revenue realized Rs. 630 crore leaving a gap of Rs. 1404 insurance.
by the department was Rs.607 crore crore which amounts to 69.30% of the
leaving a gap of only Rs.275 crore which expenditure on power purchase.
Estimates of Total
Receipts (TR) – 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 2009-

Highest ever Share in

Central Taxes – Rs. 2911
crore under 13th Finance
Commission Award as
against Rs. 1880 crore in

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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in focus 20
Budget 2010

Under the Constituency collection of dues and settlement of plan allocation in tourism sector is
Development Fund Hon'ble Legislators disputes shall be made transparent and proposed to be enhanced to Rs.161
have been authorised to utilize upto user friendly. crore in the next year. Additionally, the
Rs.8.50 lakh for improvement of HT/LT In the meanwhile, the State Hydel Thirteenth Finance Commission has
net work in their areas against which Policy is being revised to make it provided Rs.50 crore for Mubarak Mandi
power development department will s i m p l e r, m o r e a t t r a c t i v e a n d Complex and Rs.25 crore for
provide Rs.25.50 lakh. An amount of practicable for private investors in development and conservation of Tawi
Rs.30 crore has been proposed in the micro and mini hydel area. front. Rs.15 crore allocation has been
transmission and distribution sector for proposed under the Plan for the Cable
improving HT/LT net work through TOURISM: Car Corporation to take up new projects
constituency development route. Rs.20 Tourism is one of the most crucial including one for Makhdoom Sahib in
crore allocation has been proposed for economic sectors for the State. Apart Srinagar and Mubarak Mandi at Jammu.
creation of a transformer bank to take from sight seeing and adventure sports, Apart from developing facilities
care of replacement, augmentation of the pilgrim tourism has become the and places of attraction at various
capacities and longer shut downs for biggest component of visitors to the places, the government is presently
repairs so that the inconvenience State. The government is encouraging engaged in preparation of a vision
caused to the consumers on this account and supporting the private sector with document and master plan for
is minimized. financial incentives and development of sustainable tourism for all the three
I have earlier mentioned that the infrastructure. Massive government regions of the State. Eleven
next year's power purchase budget has effort is also involved in providing experienced and professional
been kept at Rs.2050 crore. Against this regulatory and security cover to the consultants have been shortlisted by
figure, the revenue realization target is tourists. The government has also been the Department. Technical and
only Rs.1055 crore. This means a loss of undertaking promotional activities and Financial bids have been received from
Rs.1000 crore. I am excluding the organizing publicity to attract tourists them. Action has also been initiated for
energy available free of cost as well as to our beautiful state. collecting the necessary data for
operation and maintenance expenses The government has almost undertaking break even analysis of
from my calculations. It is clear that completed the project of widening and various tourism related activities so as
such heavy recurring losses in power upgradation of Khanabal-Pahalgam road to formulate an appropriate insurance
sector are not sustainable. To grapple at a cost of Rs.110 crore. The work on mechanism for various groups of
with this alarming situation, some Narbal-Tangmarg road is in full swing investors in tourism sector.
fundamental changes have become and is expected to be completed by
inevitable. Hon'ble Chief Minister has June 2010 at an estimated cost of INDUSTRY SECTOR:
already announced in this House that Rs.116 crore. The work on widening and Hon'ble Members may kindly recall
the government shall be bringing a new upgradation of Domel-Katra road is that the Central Government had
Electricity Bill and an Electricity under execution through Border Roads extended a special package of
Conservation Bill before this House for Organization. These three roads are incentives for new industrial units to be
consideration during the current being funded under PMRP. set up in J&K. Part of the package
session. Un-bundling of Transmission Completion of Rs.640 crore Mughal pertaining to excise duty exemption
and Distribution functions shall be road between Bafliaz in Poonch District was withdrawn without completing the
carried out and responsibilities of the of Jammu Division with Shopian town in prescribed period. The State
individuals and the organizations shall Kashmir Valley will open-up new vistas government had been vigorously
be pinpointed. Greater thrust shall be for tourism promotion in the State. pursuing the case with the central
given to the recovery of outstanding The government has sanctioned 22 Government for restoration of the
arrears. A system of incentives for local development authorities at original package of incentives and its
prompt payments and recoveries important tourist spots so that the extension by a further period of 10
coupled with an effective system of tourists are attracted to various other years. Our Hon'ble Chief Minister, Janab
penalties for delays and non recovery beautiful corners of the State apart Omar Abdullah Saheb had personally
shall be put into place. Billing and from the traditional tourists sites. The taken up the matter with the Central

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21 in focus
Budget 2010

government. I am happy to report that at Rangreth is making steady progress. H I G H L I G H T S

the excise duty exemption for value The government has approved
addition within J&K has been restored construction of a Rs.24 crore Udyog Revenue Expenditure
and the benefit has been extended by a Bhavan for Kashmir. This was a long
(RE) including Security
further period of 10 years. pending demand of entrepreneurs.
The government has constituted Food processing industry which is one of Related Expenditure
two Rehabilitation Task Forces for our thrust area shall receive a boost (SRE) – Rs. 17698 crore,
Kashmir and Jammu Divisions after the new promotional policy Capital Expenditure
respectively with a view to revive the recommended by the Task Force
(CAPEX) – Rs. 8286
closed and sick units. The Task Force appointed by the Prime Minister for J&K
constituted by the Prime Minister has is formally approved. crore.
recommended soft loans for revival of The government intends to
sick units for which creation of a corpus maintain the focus on promotion of
of Rs.100 crore has also been
Non Plan Revenue
handicrafts and handloom Sector. Six
recommended. A Standing Forum for handloom clusters are being Expenditure (NPRE)
simplification of procedures and operationalised. There is a plan to consumes Rs. 16717 crore
removal of bottlenecks is also being modernize 40,000 carpet looms at a of which Rs. 2251 crore
created. An Industrial Advisory Board cost of Rs.120 crore for which a
stands constituted where policy prototype is being developed in the
for interest payment.
matters and macro level issues can be Institute of Carpet Technology at
projected and promptly decided. The Srinagar. The government has decided Non Plan Capital
government is conscious of the fact that to provide 50% to 75% subsidy on
speedy industrialization will help in premium for health insurance cover to
Expenditure (NPCE) of
employment generation consistent with the handicrafts artisans which will the order of Rs. 1211
the policy frame work outlined in provide much needed relief to this crore of which Rs. 959
SKEWPY. segment of the population. crore comprise loans
The Common Effluent Treatment Crafts of Kanishawl, Pashmina and
Plant under execution at Lassipora Sozni have been brought under the
through the Central Leather Institute at purview of Geographical Indicators or
a cost of Rs.6.42 crore is expected to be GI. A pashmina testing lab is being Non-Plan salaries burden
completed by June, 2010. The established at a cost of Rs.4.62 crore.
construction of Inland Container Depot The government intends to facilitate a 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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in focus 22
Budget 2010

mega marketing campaign during approach in this direction. A sum of RESTORING INDUSTRIAL CLIMATE:
common wealth games and other Rs.60 crore has been proposed in the A very encouraging and promising
festive occasions to enable the next year's budget for this purpose. industrial climate was created by the
craftsmen and small traders of Disinvestment in the public sector strenuous efforts of the government in
handicrafts to clear their stocks. is an area which has not been attended the seventies and eighties.
The current year's plan allocation to so far. The government intends to Unfortunately, eruption of militancy
for industrial sector is Rs.93.12 crore. make a beginning in this direction in wrecked that climate. With the large
During the next year's plan, outlay of near future. scale closure of industrial activities,
Rs.111 crore has been proposed for this The government is providing premises of many industrial units and
sector. financial support to the local industry in industrial estates as well as other public
The J&K State Finance Corporation the shape of exemption from taxes on and private properties have been used
has gone out of way to help out the raw materials and finished products in for accommodating security forces. The
industrial units which suffered due to order to make them competitive. CST government has decided to gradually
law and order problems and other and VAT exemption for industry now restore the original activities in the
reasons during the last 20 years. Various costs Rs.375 crore. The toll exemption interest of industrial development of
exit schemes were sanctioned and alone accounted for Rs.90 crore during the State as well as for restoration of
implemented. I had announced a one last year. For market promotion, the normalcy. Hon'ble Chief Minister has
time settlement scheme during the last government has maintained a policy of himself taken the initiative in his hand
budget session which is presently under price preference and purchase and has constituted three Standing
implementation. In the process of preference to the local SSI units in all Committees at the State and Divisional
helping out the assisted units, the government purchases. Adoption of levels for regularly monitoring the
Corporation got drained out of its quality standards has been encouraged progress of vacation of the industrial
resources, particularly because Small with financial support. The government estates, industrial units and other
Industries Development Bank of India has initiated steps for setting up of two properties in a gradual manner by
(SIDBI) which is its co-owner stopped Tool Rooms in the State for the benefit providing alternative accommodation
further funding and refinancing of the of industry. However, in a global to the security forces. Significant
Corporation. We are seriously pursuing scenario of competition, the industry progress has already been made in this
the case of revival of the Corporation will have to come forward in a big way direction and more is expected to
with SIDBI and hope for a positive for brand promotion, as a very sizeable follow shortly.
outcome in near future. In the non-government market lies ahead for
meanwhile, the Board of Directors of them both within and outside the state. ROAD SECTOR:
the Corporation approved a The financial requirements for this Road sector, particularly the rural
comprehensive revival plan for the purpose shall be fully met by the roads are the life line of the community.
Corporation. As the first step in that government. They also make very valuable indirect
direction, the government proposes to contribution to the growth of the
contribute Rs.35 crore towards its TRADE POLICY: economy. We have 9,933 habitations in
additional share capital for which an A new trade policy is under the State out of which 4,163 habitations
initial provision of Rs.5 crore has been formulation for which a Committee were unconnected as on 1.4.2000. The
proposed in the next year's plan. stands constituted involving all R&B department aims to cover 1,426
Revitalization of the public sector concerned officers and representatives habitations under phases I to VI of
units remains in our focus. Rejuvenation of trade & commerce. In the meanwhile PMGSY at a cost of Rs.4,772 crore. Out
of economically viable units, disposal of proposals have been sent to of this target, 776 habitations have
unused assets particularly the real Government of India for approval and been connected ending January, 2010,
estate for mobilization of resources, allocation of funds, for creation of taking total connected habitations to
disposal of the closed units unfit for infrastructure for promoting trade 6,546. Under PMGSY, the current year's
revival and policy of golden handshake across LOC. Special phone lines have expenditure ending January, 2010 is
and voluntary retirement schemes are been authorised for reliable Rs.700 crore and 743 more habitations
the hallmarks of the government communication for trade. are expected to be taken up under

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23 in focus
Budget 2010

phases VII and VIII. The next year's plan Division on 6 projects estimated to cost H I G H L I G H T S
provision for R&B has been proposed at Rs.116.43 crore. Similar projects are on
Rs.687.93 crore. The Thirteenth the anvil for Kashmir under UID SS MT. A Starting with fiscal 2007-
Finance Commission has awarded scheme for Sopore town has been
08, an amount of Rs. 4
Rs.140 crore for maintenance of roads & cleared for Rs.33.53 crore. Schemes for
bridges. Anantnag and Dooru costing Rs.72.69 crore is being provided
crore are expected to be cleared soon. every year for settling
PHE, HEALTH AND EDUCATION: Projects for Baramulla, Bijbehara,
outstanding of JAKFED
Drinking water, health cover and Awantipora, Pulwama, Shopian,
primary education are the socio Khansahib and Chrar-i-sherief have towards JCCB crystallized
economic activities on which lot of been sent to the Centre for clearance. at Rs. 80 crore.
emphasis is being given by the
government. The number of rural water URBAN DEVELOPMENT:
supply schemes completed so far is The Housing & Urban Development Besides Rs. 128 crore for
2,283. Department is charged with the maintenance under non-
Accelerated Rural Water Supply responsibility of housing, execution of
Scheme has been renamed as National schemes under various components of
plan, Rs. 20 crore under
Rural Drinking Water Programme and JNNURM, Urban Local Bodies and Plan also for Flood
made a part of Bharat Nirman environmental engineering works. It has Protection and R&B
Programme. The current year's taken up a scheme for conservation of
Tawi waters by diverting nallahs and
estimated expenditure on this scheme
is Rs.447.74 crore and 400 schemes are drains. Protection of water bodies is
expected to be completed this year. likely to receive momentum with the
Annual Plan 2010-11 for
Additionally, urban water supply initiatives taken by the central
schemes are being executed under the government as also the funding Rs. 6000 crore submitted
state plan and ERA. expected to be provided under the excluding Rs. 1206 crore
Upto the current year, 17.70 Award of the Thirteenth Finance
under Prime Minister's
Million Gallons per day capacity has Commission. Two abattoirs are being
been added to the system in Jammu City constructed at Srinagar and Jammu. Reconstruction Plan
and 12.25 MGD added for Srinagar City. Provision has been made in the Master (PMRP).
Rupees 46 crore are being spent in Plans for developing warehousing
current year for other towns in Jammu facilities in the capital cities. Many
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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in focus 24
Budget 2010

parking sites have been already improved performance. During the in budget formulation. In view of the
developed in both the cities and more current year, till date 101.03 lacs importance of this concept, I have
sites have been planned for execution in mandays have been generated and included a separate report in the budget
government sector as well as in PPP 6,48,196 Households have been documents for information of the
mode. provided Job Cards. Number of works Members.
taken up for execution is 24,459 out of The government has sanctioned
SCIENCE AND TECHNOLOGY: which 10,029 works have been 3,094 new Anganwari Centres in the
Remote villages and hamlets completed and funds to the tune of current financial year, taking the total
numbering 27 in Gurez tehsil have been Rs.132.16 crore have been absorbed in number to 28,577. The government has
provided 3,726 solar home lighting the Scheme. This is a very significant further decided to enhance the
systems. Additionally, 68 remote improvement over the last year. remuneration of Anganwari Workers and
villages have been identified under this Under Indira Awas Yojana (IAY) Anganwari Helpers. I accordingly
scheme. The Ministry of New and 26,804 houses were taken up for announce increase of Rs.300 PM in the
Renewable Energy has agreed to construction out of which 19,010 were remuneration of Anganwari Workers and
provide 41,000 additional solar home completed last year. During the current Rs.200 PM in respect of Anganwari
lighting systems to 191 remote villages financial year 38,968 houses were taken Helpers. The total financial implications
and hamlets at a cost of Rs.54 crores up for construction out of which 15,005 on this account are Rs.15.30 crore per
under this scheme. The beneficiary is have been already completed. annum.
required to meet a small component of Similar achievements and
about Rs.750 where as assistance of improvements have been made in INCLUSIVE DEVELOPMENT:
more than Rs.11,000 is available from implementation of Swaranjayanti Gram The government is committed to
the central government. Swarozgar Jojana (SGSY), and Total balanced regional development for all
Solar power plants are being Sanitation Campaign (TSC). regions and sub regions of the State.
provided to Dargah Sharif Hazratbal, The government would like to do it in a
Shri Mata Vaishno Devi ji Shrine and WELFARE SECTOR: systematic and structured manner The
Ziarat Chrarisharief. The Rajbhawans at Welfare of weaker sections of the State Finance Commission constituted
Srinagar and Jammu and the Legislature society like scheduled castes, to study the issue and suggest solutions
Complexes at Srinagar and Jammu, scheduled tribes, backward classes etc to the problem alongwith the related
together with 22 health institutions are and attending to the special needs of issues of financial restructuring,
also being provided solar power plants. women and children is amongst the top economic development,
The Union Ministry for New and most priorities of the government. decentralization, good governance,
Renewable Energy has also agreed to Talking of all these segments together in empowerment, employment issues etc
provide assistance of Rs.45 crore for my budget speech does not in any way has concluded its field visits, meetings
implementation of 56 micro Hydel reduce the importance which the with all strata of the society, studies and
projects. It has further indicated a government attaches to each individual debates. They are in the process of
target of upgrading 2000 water mills constituent of this group. The analyzing the collected data and
and installation of 3000 biogas plants government is, in fact, attending to the preparing the final report. Accordingly,
during the next two years. needs of each and every constituent the government would now be keenly
separately. A sum of Rs.253.73 crore is awaiting their recommendations after
RURAL DEVELOPMENT: proposed to be kept in the next year's which this important task shall be
During the last year, 79.25 lacs plan for ameliorating the conditions of attended to in right earnestness in a
mandays were generated, 13,122 works the weaker sections of the society and systematic manner.
were taken up and funds to the tune of for welfare of women and children. In the meanwhile, the State
Rs.86.90 crore were utilized under The State Women Commission Government has provided Rs.10 crore
National Rural Employment Guarantee organized two workshops for the senior under BADP for development of areas
Scheme. This year, we increased the officers of the government for adjoining international border, line of
daily wage rate from Rs.70 to Rs.110 per highlighting the principles of gender control and line of actual control. A
day. This has expectedly resulted into budgeting and incorporating the same similar amount is expected to be

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25 in focus
Budget 2010

available under this programme during per the latest figures available with us, H I G H L I G H T S
the next financial year as well. the number of youth registered in these
centres is 5.84 lakh, comprising of 3.08 Rs. 114 crore for
EMPLOYMENT ISSUES: lakh in Kashmir and 2.76 Lakh in Jammu implementation of Sher-e-
During my last budget speech, I division. These figures have given us a
fair idea of the size and nature of the
Kashmir Employment &
had drawn the kind attention of the
hon'ble members of this august House problem now. This information input Welfare Programme for
towards the growing unemployment in shall be utilized to work out feasible Youths.
the State, particularly amongst our solutions suiting to various segments of
educated youth. In this connection I had unemployed youth.
also enumerated various steps which As promised, the government has
For bringing greater
the government intended to take to announced the “Sher-e-Kashmir transparency and
tackle this problem in a systematic and Employment and Welfare Programme accountability in
holistic manner. I am glad to announce for the Youth” on 5th December, 2009. It implementation of
that all those measures have been is for the first time the government has
development programme,
placed on the ground for fulfillment of documented a well thought out plan of
their declared objectives. action to specifically deal with all
150 projects worth Rs. 744
The government's announcement aspects of un-employment and laid for crore assigned to
about the policy evoked a very positive itself not only a number of pre- NABCONS and M/S
response from the unemployed youth identified tasks to be performed in the Mckenzy.
who came forward in large numbers to coming years but also fixed the
get themselves registered in the District numerical targets for generation of
Employment and Counseling Centres. As employment in various fields and Rs. 60 crore for meeting
cost of VRS/GHS in

Provision of Rs. 2051

crore for purchase of
power from CPSUs and

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.

www.epilogue.in Vol. 4, Issue 4 Epilogue, April 2010

in focus 26
Budget 2010

sectors. An innervated self employment are also under finalization. The process which are to be filled up shortly through
programme and a massive skill for setting up of an Empowered a special recruitment drive.
upgradation programme for improving Employment Facilitating Agency is also The government has taken a bold
employability of our educated youth are on. and historical initiative of introducing
in the offing. A sum of Rs.10 crore has been Voluntary Service Allowance for the
Five Rural Self Employment & sanctioned by the government in favour unemployed youth hailing from
Training Institutes (RSETIs) are being o f J & K Wo m e n D e v e l o p m e n t financially weaker families from the
established by the J&K Bank and the Corporation for setting up self next financial year. The details of the
State Bank of India in collaboration with employment enterprises by the girls and VSA form part of the policy document on
the Ministry of Rural Development, women. The Women Development SKEWPY copies of which had been sent
Government of India in the current year. Corporation is presently engaged in the by the government to the hon'ble
In the coming years, all the remaining process of identifying entrepreneurs members. The government considers
districts shall be covered by such and selecting appropriate schemes for that this support extended to the most
institutes. The government has started them for setting up women specific deserving boys and girls among the
a process of creating mass awareness entrepreneurial ventures. educated unemployed youth shall prove
amongst the youth about the bright The government has already to be an important hand holding
prospects in self-employment instituted 5 awards in the field of measure in the interim, till they get
programme to be undertaken under the innovations with a prize of Rs. 1 lakh absorbed in their self employment
seed capital scheme of the J&K each as announced by me during the last ventures or get a government or private
Entrepreneurship Development budget session. A committee has also sector job during their eligibility
Institute. A sum of Rs. 50 crores has been constituted for selecting the best period. This measure is also in
been provided as Entrepreneurship innovations every year. consonance with the popular demand
Development Fund to be As per the declared policy of the made by many members of this august
operationalised through J&K government, the selections by the PSC, House during the last session.
Entrepreneurship Development SSSB and the Police Recruitment Board The policy document released by
Institute. (JK EDI) for this purpose. The have been fast tracked. As per the the government was mostly welcomed,
JKEDI has already finalized the figures available for the year 2009, 1300 though criticized by some. We have
procedural aspects in consultation with candidates have been selected by the tried to pick up all constructive
the concerned state government PSC, 10,045 candidates have been suggestions for further improvements in
departments and J&K Bank for selected by SSSB and 7499 candidates our plan of action reflected in SKEWPY.
implementation of the programme and selected by the Police Recruitment In fact, I will be very keen to listen to
the same is expected to be on the Board after first January, 2009. The more suggestions from the Hon'ble
ground very shortly. government has simultaneously settled members on making further
The employment department has 2912 cases of compassionate improvements in the scheme shaped up
been organizing District Level appointments under SRO-43. Out of this by the government and gratefully
Employment fairs as part of its efforts to number, employment has been provided acknowledge well meaning practical
create mass awareness amongst the in 1,362 cases and cash assistance in the and concrete suggestions forthcoming
youth about various aspects of SKEWPY remaining cases. This takes the total from any quarter on this engaging issue
and to set up their own enterprises with figure of employment to 20,206, the which is our common problem
the help of government's active support highest ever in a single year. regardless of the positions of the chairs
and financial help. The government has created we occupy in this House.
An Overseas Employment around 6,500 new posts since January A provision of Rs.113.80 crore has
Corporation has been approved by the 2009. Currently, 20,665 vacancies have been kept under plan and non-plan for
government and the same shall come been identified and accordingly over implementation of various schemes
into existence very soon after 20,000 youth are likely to get falling under SKEWPY. The government
completion of legal formalities. The government jobs in the year 2010. The shall not hesitate in supplementing
procedural formalities for its government has additionally created these allocations to any extent as per
registration under the Company's Act 3000 posts exclusively for the migrants actual need.

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27 in focus
Budget 2010

WELFARE OF CANCER PATIENTS: involvement of the government. our government employees have a
Apart from providing Assistance from the Fund shall be human heart full of compassion and
infrastructure for long-term benefits to targeted toward poor and lower middle such exceptions would be rare. The
the society, it also becomes necessary class families. I announce an initial Fund shall seek voluntary donations
for the government to give lead in such contribution of Rs100 lakh for corpus of from individuals and philanthropic
philanthropic measures as are generally this Fund. institutions as well.
initiated and carried out by There are a large number of
conscientious members of the society. employees in the government and THE FOURTH ESTATE:
Cancer is a malady which cannot be autonomous bodies who are drawing a The Press is recognized as the
handled merely by making available substantial amount in the name of Fourth estate in our democratic set up.
infrastructure and diagnostic facilities monthly medical allowance. I appeal to Apart from serving as a potent medium
in government institutes or private them to get a small amount ranging for expressing public opinion, it also
sector mainly because the treatment between Rs.10 per month to Rs.50 per provides an effective medium of
and management of cancer is expensive month deducted at source from this communication between the
and beyond the financial means of poor allowance as contribution towards the government and the people in respect
and even middle class families. Cancer Treatment & Management Fund of government policies and
Accordingly, the government has to help their less fortunate brothers and
decided to create a Cancer Treatment sisters. I will be issuing instructions to
and Management Fund designed to run the DDOs on these lines.
on voluntary donations qualifying for As the proposed donations shall be
income tax rebate. The Fund shall be purely voluntary, any employee may ask
Rs. 35 crore envisaged for
managed under the advice of experts his DDO in writing not to make such enhancing share capital of
and philanthropists with the active deductions. However, I am sure that all 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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in focus 28
Budget 2010

programmes. Often this objective is central government. A Unique the State for the benefit of its economic
achieved through government Identification Authority of India (UIDAI) development and prosperity.
advertisements. With the ever has been already created. The State
increasing costs of printing, the need Government is in close touch with this SIMPLIFICATION OF TAX
for making an increase in the Authority and would like to take a lead ADMINISTRATION:
advertisement rates was felt and the in getting the first set of UID numbers in During my pre-budget discussions,
same has been already notified by the our State. This scheme shall provide an the need to bring about several
government. With a view to ensuring effective platform for financial amendments, in various taxation laws
that no shortage of funds is faced in inclusion and targeted subsidy and rules pertaining to Excise and
making timely payments to the payments. The Voluntary Service Commercial Taxes Departments was
newspapers and magazines, I have Allowance announced as part of emphasized by representatives of trade
already enhanced the budgetary SKEWPY shall be brought into the ambit and industry. Many of these suggestions
allocation of Information Department of this scheme. The Public Distribution are seemingly logical and need mutual
from the existing level of Rs.530 lakh to System shall be our another major understanding. Dynamism lies at the
Rs. 680 lakh in the revised estimates of initiative for electronically controlling core of every taxation law. As a
the current financial year. For the next the movement and stocking of food consequence, the law keeps on
year, a provision of Rs.925 lakh has been grains, issuance to the dealers and evolving. With the twin objective of a
proposed. monitoring of distribution of food grains better tax administration and a hassle
These allocations are in addition to to the targeted population which shall free compliance, I propose to constitute
the funds drawn for meeting be linked to UID scheme. Matters of a Committee, comprising of senior
department specific needs from the Permanent Resident Certificates are officers of the Commercial Taxes,
allocations under individual schemes being linked to this scheme, resulting Excise and Finance Departments to
and projects. I intend to create a into lot of convenience to the people. revisit various provisions and to propose
mechanism for ensuring that no The government is also examining changes, wherever required.
liabilities are carried forward by any the possibility of introducing e-
department on account of costs of tendering with a view to make VALUE ADDED TAX AND PROPOSED
advertisements and all bills are paid off t e n d e r i n g o f w o r k s s p e e d i e r, GOODS & SERVICES TAX ACT.
in a timely manner from the budgetary transparent and more efficient. Successful transition from the
allocations of the same financial year. State General Sales Tax Act to the Value
ENTRY TAX: Added Tax regime has been experienced
GOOD GOVERNANCE: The State Government is heavily in our state. Now transformation of
The government is committed to investing in infrastructure Value Added Tax into a much more
bring in good governance at the door developmental programmes to change comprehensive Goods and Services Tax
steps of the people. Transparency in the the economic landscape. The is under consideration of the
functioning of the government, Right to Government granted exemption from Empowered Committee of State finance
Information Act, effective monitoring of payment of Entry Tax, (subject to the ministers of which I am also a member. A
all government schemes and fulfillment of certain conditions) on lot of debate has already taken place on
programmes are hallmark of realizing 'earthmoving machines' required by this subject. The Union Finance Minister
goals of good governance. Hon'ble registered contractors for execution of has announced that GST Act may be
members will be happy to know that for works contract in respect of Centrally considered for adoption with effect
the first time a sizeable chunk of our Sponsored Schemes, Mega Flagship and from 01.04.2011.
plan projects numbering 150 and other Central Schemes. It has been The SSI units operating in the state
costing Rs.744 crore have been assigned experienced that the procedure in were enjoying Sales Tax exemption on
for monitoring to independent vogue, for grant of such exemption is raw material and finished goods for the
professional agencies in consultation time consuming. I, accordingly propose periods prescribed in the package of
with the Planning Commission. to simplify the procedure by a suitable incentives sanctioned by the
The Unique Identification scheme regulation. This shall ensure speedy government from time to time. With the
for all citizens has been launched by the completion of development projects in transition from the State GST Act to VAT

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29 in focus
Budget 2010

regime, exemption from general sales achieved by better management and Rates for various categories. The
tax was automatically withdrawn. In expected growth in economy. However, individual states are free to go above
order to protect the industry from the a portion will have to be contributed by the Uniform Floor Rates. We have
additional burden falling on account of introducing changes in the existing maintained a large number of items at
imposition of VAT, I continued taxation rates. I propose to touch only the Uniform Floor Rate of 4%. Now the
exemption favouring industry even two items for meeting my instant Empowered Committee has decided to
under the VAT regime. Now that the objective. increase the UFR for this category to 5%.
proposal for application of the new The Value Added Tax or VAT is being I propose the enhancement of the
Goods and Services Tax Act has been administered under the policy frame existing rate of 4% to 5% accordingly. On
deferred by one year and VAT Act shall work designed by the Empowered a proportionate basis, the rate of
continue to be in force, I propose to Committee of the State Finance service tax chargeable under GST act is
extend the benefit of this exemption to Ministers constituted at the national proposed to be increased from 8% to
the eligible industry by one more year. level so as to maintain uniformity in 10%. I did not intend to change the
taxation rates for important existing VAT rate of 12.5%. However, our
TAXES ON ROOM RENT CHARGED BY commodities all over the country and neighboring states have gone for a 10%
HOTELS, LODGES AND GUEST HOUSES: avoid tax war between neighboring surcharge on this rate which means an
Income arising out of room rent by states. The rates are enforced by all the increase of 1.25%. I have no option but
hotels, lodges and guesthouses is liable states on a system of Uniform Floor to fall in line keeping in view the
to tax. With a view to support the understanding in the Empowered
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.

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 A. Plan Capital Expenditure 4106 6047 5770 6279
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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Budget 2010

Committee and, therefore, propose an However, the land available for feeding to do away with the VAT on this item as
increase of only 1%. them is far from being adequate. It is well.
The rate of toll tax chargeable by estimated that about 60% of our Guchchi or Gushian, Gul Banafsha
weight and fixed at Rs.40 per quintal requirement of green and dry fodder is or Banaksa and Anardana are items from
more than seven years ago has not been met by purchases from outside the forests and barren lands which are
revised for a considerably long time state. I accordingly announce abolition collected by a large number of people
though the cost of goods has increased of toll tax on fodder as well. living in villages for their livelihood. The
by now several times. I propose to Bee hives and bee colonies are VAT rate on these items is 12.5%. In view
increase it to Rs.50 per quintal. often required to be transported across of labour intensive process of collection
the state border. The movement of of these items, I propose to include this
RELIEF TO FARMERS: these items is currently subjected to item in 0% category of VAT schedule.
I mentioned in the beginning that toll tax. The bee colonies and bee hives Wheat, flour, suji, besan, paddy
the agriculture and horticulture sector are also subjected to VAT. In order to and rice are presently in 0% VAT
needs stimulation. I intend to start the encourage beekeeping, I announce category. I propose to continue them in
p r o c e s s b y a b o l i s h i n g VAT o n abolition of both toll tax as well as VAT the exempted category for another
Agricultural tools & implements on bee hives as well as bee colonies. year.
because these items are already being Solar energy equipment including
subsidized by the government for solar cookers, solar heaters, solar GENDER BUDGETING:
popularizing mechanization of dryers, solar lantern, solar street I have mentioned about creation of
agricultural and horticultural farms. lighting etc need to be encouraged in additional Anganwari Centres and
The proposed measure shall make them the interest of keeping our planet green increase in honorarium of Anganwari
still cheaper and their use will, and to help a large number of our people Workers and Helpers. Mention has been
hopefully, become more popular. The living in remote villages. Even in urban made by me about employment
toll tax on these items shall also be areas such equipments need to be programme for women under SKEWPY.
abolished. encouraged. Accordingly, I propose to In our society, most of the landed
Pesticides, weedicides and abolish VAT as well as toll tax on these property is held in the names of men
insecticides are essential for disease items. folk. Transfer of ownership rights to
control in agriculture, horticulture and Fresh cheese or paneer is a very women in the family will result into
allied sectors. As a support to the important source of protein and positive socio economic changes and
farmers in crop protection, I propose to particularly important in a vegetarian qualitative shift in the attitude of the
abolish toll tax on these items as well. diet. I propose abolition of VAT on this male dominated society toward the
During the last budget session, I item. Incidentally, this should also help female members of the families. In
had experimented with using toll tax as in promotion of D-Industry in the state. order to encourage adopting of such a
a tool for stimulating economic activity practice by the society, I propose to
by abolishing toll tax on day old chicks SOME OTHER RELIEF: provide concession of 25% in the amount
and increasing the rate of toll tax on Feni or Femian is an item of chargeable stamp duty if the land is
poultry birds. Encouraged by the consumed particularly on some special purchased in the name of a female
success of that experiment, I propose to occasions by our mothers and sisters member of any family. This will
abolish toll tax on all types of fertilizers when they take to fasting to celebrate empower our women folk in real sense.
w.e.f. 01.04.2010. I hope that this some very pious occasions. The item
measure shall provide a much-needed presently attracts VAT rate of 12.5%. I RELIEF TO TRADERS:
major stimulus to the agriculture sector propose to abolish VAT on this item all Every trader with a turnover
as the cost of all fertilizers including together. Similarly dhoop and agarbatti exceeding Rs.40 lakh is required to file
urea shall be now lower by Rs.500 per are popularly used for cleaning up the an audited report under section 60 of
MT. air and environment. Accordingly, it has J&K VAT Act, 2005. With the passage of
The state is supporting a large come to be associated with worship and time, this limit needs to be increased. I
animal population, almost equal in important social occasions in all regions propose to increase this limit to Rs.60
number to the human population. of the State and all religions. I propose lakh.

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31 in focus
Budget 2010

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.


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
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
“In our discussions with State
Governments, a significant portion of

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Budget 2010

the memoranda presented and the I may also share with the Hon'ble been fixed at Rs.3940 crore which
discussions on the future fiscal roadmap members that all Finance Commissions sharply declines to Rs.2096 crore in the
centered around the impact of this give Awards keeping in view a basic last and the final year of the Award. It is
award on state finances. For the common objective to put the states a dip of Rs.1856 crore. Not only this,
Centre, arrears alone amounted to under pressure to improve their own the Commission has also stipulated
Rs.28,160 crore on a salary base of resources and fiscal performance during that the fiscal deficit in respect of our
Rs.44,360 crore. While many reforms the next five years of Award. state should be reduced to 3% in the
can and should be, contemplated to end Accordingly, they normally provide final year of the Award. Therefore, our
this self-inflicted distortion, one action higher non plan revenue deficit grants borrowing capacity shall also get
that could be taken immediately is that in the first year and gradually reduce reduced gradually. Intermediate
of making the pay award commence the same to a lower level in each targets for reduction of fiscal deficit
from the date on which the successive year. The state governments from its current level of 5.5% to 3%
recommendations of future Pay are consequently bound to improve have also been prescribed by the
Commissions are accepted by the their own resources and to cut their non Commission.
government. In effect, this would do plan expenditure. Any increases in I am sure that the Hon'ble members
away with the need for arrears. Since expenditure such as incremental of this August House understand the
state governments' awards typically growth in salary e xpen diture, position clearly. I appeal to the
follow those of the central government, additional DA installments, office government employees who have been
this would allow states to time their expenses and other establishment costs resorting to frequent strikes on this
awards such that the need for arrears etc have to be fully matched by issue to understand the position with
does not arise. In our view, if Finance improvements in their own tax and non the same clarity. The government
Commissions are able to present their tax revenues. The Thirteenth Finance earlier committed to pay the arrears as
inter-governmental recommendations Commission has chosen to give this soon as the resources for the same
without any need for retrospective message rather more loudly and would be found. The government would
fiscal transactions, then the same strongly. Speaking of my own state, I like to reiterate its commitment with
should be possible in the case of Pay may point out that our non plan revenue the same degree of conviction. After we
Commission as well”. deficit grant in the year 2010-11 has found that the issue has been closed by

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33 in focus
Budget 2010

the Thirteenth Finance Commission, our sessions with the representatives of The first year of functioning of
Hon'ble Chief Minister has raised this farming community representing the coalition government has been
demand at the highest level asking for diverse interests like agriculture, m om e n tou s i n m a n y re sp e c ts,
additional funds specifically for horticulture, sericulture, vegetable inclusive of fiscal corrections and
liquidation of these arrears. We have growers, floriculturists, sheep and consolidation of financial
not lost our hope nor I would like the cattle breeders, poultry, milk management. Apart from what I have
fraternity of the government employees processing, cooperation and credit, bee been able to do within one year, I am
to think differently. Without arranging keeping etc. I would be failing in my fully conscious that a lot more remains
the requisite additional funds, issuing duty if I do not express my to be done quickly. All that remains
a government sanction shall be appreciation for the knowledge they will have to be done with patience,
meaningless. Similarly no amount of exhibited about the government understanding and dispassion to
strikes or agitations can generate functioning and programmes and the enable the people of the state to
resources. Either we get the requisite awareness of the national and in some become equal and effective partners
additional funds in near future or we cases global environment in which in the national economy in the global
sit across together and mutually look they are operating. Some of the context. The solutions to all our socio-
into any practicable alternatives. I Hon'ble Members of the House chose to economic problems will continue to be
accordingly appeal to the employees address communications to me searched in progressive, scientific,
to cooperate with the government on through print media. They were also transparent and pragmatic manner by
this issue. All of us sitting in this House joined by economists, intellectuals utilizing the latest skills, tools and
and the government employees who and activists from various fields. I have technology available across the globe.
are on the streets today, are studied their communications with This vision of the coalition government
accountable to the people and also interest and reverence. The valuable headed by our dynamic and young
duty bound to work for their welfare. information collected through all Chief Minister Janab Omar Abdullah
Even if a single individual member of these interactions has been preserved Sahib will continue to guide all our
the public suffers because of by us and shall continue to guide us in policies and programmes.
abstention of employees from work, it future.
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.

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 34
Budget 2010

Budget is not About
Reciting Couplets

MUZAFFAR HUSSAIN BEIGH Mufti Mohammad Sayeed some serious As far as fiscal deficit is concerned,
Former Finance Minister efforts were made in both the sectors. the government has to bring down the
The proposal of Rs 118 crore corpus tax debt ratio by 25 percent by the end of

he budget presented by Finance for employment is not going to solve any the year 2014 but there is no road map
Minister Abdul Rahim Rather was purpose because last year 85 crores for this in the budget proposal. Finance
more or less a balance sheet of a were kept for same purpose. The Minister also appears to have failed in
company secretary as this document government has failed to take taking some concrete measures to
lacks concrete road maps to solve the suggestions from the poultry and sheep improve power situation in the State.
burning economic issues confronting breeding experts in this regard. No provision has been made in the
the State. By writing couplets you are budget for the augmentation of
not going to change the economic transmission lines especially in the
landscape of the State. The government has to bring down the Kashmir Valley to improve power
I understand limitation of a debt ratio by 25 percent by the end of situation. In its award the Finance
Finance Minister but nothing concrete the year 2014 but there is no road map Commission has mentioned that
has been proposed in the this year's for this in the budget proposal. Finance conservation of electricity and efforts
budget to address the burning issues Minister also appears to have failed in to control power thefts be given
like unemployment, price rise, power, priority. It is height that Chief Minister
taking some concrete measures to
fiscial deficit, problems of employees who himself holds power as well as
improve power situation in the State.
and public sector units. Home portfolios has shown his inability
No provision has been made in the to control power thefts despite
The provisions made in the budget
budget for the augmentation of powerful state apparatus in his hand.
for creating job avenues are all
transmission lines especially in the The excuses being offered by the
cosmetics and unrealistic. People of
Kashmir consume mutton, chicken and
Kashmir Valley to improve power government in resolving issues of
milk products worth Rs 2000 crore per situation employees particularly on sixth pay
year but in your budget proposal no commission recommendations are
provision has been made to involve Opposing proposal of the Finance questionable. In my opinion you have
unemployed youth of the State in this Minister to increase VAT by one percent, not properly read Award of the 13th
sector. More than two lakh youth could I warn that this step would have Finance Commission as according to my
be provided employment in dairy, cascading effect as it will further opinion the Commission has accept in
poultry and sheep breeding sectors. It increase prices of essential principal. The Finance Commission in its
is unfortunate that in the budget commodities and poor people would be Award has asked the State Government
Finance Minister has not make proposal worst suffer of the this unnecessary to dis-invest or privatize all non
to tap this sector. I am equally surprised step. This is no compulsion on the State profitable public sector units by the end
over Finance Minister's non serious to increase VAT by one percent. Despite of March 2011. No roadmap has been
attitude on herbs and floriculture decline in the agriculture production proposed in the budget in this regard.
sectors in creating employment this sector has not given thrust in the (Excerpted from Beigh's speech
opportunities. During the tenure of budget proposals. in Legislative Assembly)

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35 in focus
Budget 2010

Not Budget, It Was
Constitutional Filler

TARIQ HAMEED KARRA incompetence. During our term,

Former Finance Minister Rather sahib used to say that the budget The coalition government is out to
figures were fudged. Today he has given create a messy situation in the power
sector by losing Rs 1300 crores which

his year's budget appears me an opportunity to say that today's
more like constitutional filler budget is fraud of figures. State used to get from the New Delhi
than a concrete document. It was for the first time in the as power reforms. In our rule, the
What Finance Minister Abdul Rahim history of Kashmir that a tentative power transmission and distribution
Rather read out in Assembly sounded budget has been presented in the losses were just 45 per cent. However,
quite uninspiring and a crude fraud assembly. The presentation of in just one year, it has reached 72 per
of figures. It reflected a collective tentative budget has exposed the cent. Interestingly, the department is
incompetence of the National government's performance. The run by the chief minister himself. This
Conference-Congress coalition government has presented the speaks volumes about the
government. budget without having figures. Last performance of the State government
People had lot of expectations year the government said the plan
from the budget presented by allocation was Rs 5500 crores but they
State government. During our rule,
finance minister, Abdul Rahim conveniently created fraud. Out of Rs
every year we would get Rs 1300 crores
R a t h e r. B u t w h a t R a t h e r h a s 5500 crore budget, 3000 crores were
from New Delhi. However, since NC took
presented is very uninspiring and advanced additional assistance,
over, we're suffering a deficit of Rs 1300
figurative. The intention seems to recoverable within next five years. In
on power infrastructure sector. Against
confuse the members. In some actuality, last year's plan was just 2500
the projected revenue of Rs 1100 crore,
sectors, the minister has even crores. As far as the State annual plan is
the government was only able to collect
blamed nature to hide his concerned, maximum the state
Rs 670 crore revenue from the power
government will be able to achieve will
sector. The government is not providing
be 80 per cent with the parked money of
electricity to the people. However, the
Rs 600 crores.
bills are rising. When Mufti sahib took
The coalition government is out
over as chief minister in 2002, concrete
to create a messy situation in the
It was for the first time in the history steps were taken to improve the power
power sector by losing Rs 1300
scenario. Thankfully we achieved a lot.
of Kashmir that a tentative budget has crores which State used to get from
Instead of controlling the price
been presented in the assembly. The the New Delhi as power reforms. In
rise of essential commodities, the
presentation of tentative budget has our rule, the power transmission and
government was increasing toll tax,
exposed the government's distribution losses were just 45 per
service tax and VAT taxes. Fresh
performance cent. However, in just one year, it
taxes are burden on the people as
has reached 72 per cent.
they had to bear the brunt. The
Interestingly, the department is run by prices of essentials are soaring. I fail
the chief minister himself. This speaks to understand why meat prices rise
volumes about the performance of the only during NC's rule.

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exclusive series 36
New Research on Kashmir


The Forgotten Premier of Kashmir

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.

K ak begins by setting the record office, when decision had been taken had identified itself with Sheikh
straight that while the question with regard to the partition of India into Abdullah and lent its great weight of
of accession was posed to the two dominions and Srinagar was asked authority to his agitation against the
Jammu and Kashmir Government on two whether it would accede to India or to State Government'. For Kak, 'the climax'
different occasions under two different Pakistan. On this latter occasion, the J was the behaviour of the Congress
sets of conditions, the reaction of the & K State proposed stand-still leadership – in particular Pandit Nehru –
Kashmir Government was the same in arrangements with both Dominions 'in when the Sheikh was arrested in May
both cases: it did not wish to accede, respect of the spheres in which the 1946. For the next two months, the
but would be willing to enter into a State's administrative arrangements, Congress leaders sent telegrams to Hari
stand still agreement. He confirms that for example the running of post office, Singh and Kak demanding Abdullah's
on the question of accession, his views were interconnected with different release; 'highly coloured, inaccurate
and those of His Highness Maharaja Hari areas now to be incorporated within and vituperative statements' were
Singh (1925-1947) 'coincided though not India or Pakistan' (underlined in published; Nehru courted arrest in
for identical reasons'. The subject of original). trying to pay a visit to Abdullah at
accession arose first in late-1946 post- The decisive factor which Muzaffarabad and Uri; Asaf Ali and
the deliberations of the Cabinet influenced Kak in 1946 to hold the others from the Congress stayed at
Mission. At this time, the issue of abovementioned view on accession was Srinagar appearing for Abdullah's
partition had not arisen except as a 'the attitude of the Indian National defence in his trial; the Congress passed
remote contingency, and accession was Congress, in regard to the affairs of the a resolution condemning the Kashmir
envisaged only with reference to the State'. Kak had been worried by the Government and appointed a
newly to-be-created Dominion of India. growing closeness between the Commission comprising Jairamdas
It arose for a second time in 1947, after Congress and Sheikh Abdullah during Daulatram and Sri Prakasa to hold an
Lord Mountbatten's assumption of 1938-46. In his opinion, 'the Congress

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37 exclusive series
New Research on Kashmir

enquiry with regard to the happenings then decide'. Kak rejoined, 'That means to Kak – 'quickly appreciated the reasons
in connection with Sheikh Abdullah's that you advise us to accede to Pakistan. prompting the State's decision as
agitation, arrest, trial and conviction; It is not possible for us to do that; and regards accession'. They parted on the
and, pressure was brought on Kak since that is so, we can not accede to understanding that Menon would visit
himself – to secure Abdullah's release – India'. As Kak later put it, 'since Kashmir Kak soon after the transfer of power on
in his meetings with Mahatma Gandhi would not accede to Pakistan it could 15 August to consider the future
and Sardar Patel in Bombay which also not accede to India' (underlined in security arrangements – a meeting
saw Kak agreeing to Nehru's visit to original). which never happened as Kak was
Kashmir and meeting with Abdullah removed from his post by Hari Singh on
which duly took place at the end of July Kak's case falls into two parts – 11 August. Jinnah, after a long talk,
1946. economic survival and politico-military advised Kak 'to accede to Pakistan and
It was against this background that stated that Kashmir, by immediate
survival. According to Kak, in 1947, the
Kak and Hari Singh decided not to accession would get far better terms
revenue of the State was about Rs. 5
accede in 1946. Earlier in the year, in from Pakistan than she was likely to get
crores 60 lakhs, out of which about a
April, Kak had, 'notwithstanding the later'. When Kak responded by assuring
crore was expended on the army. The
attitude of the Congress in regard to the Jinnah that Srinagar's position on non-
Kashmir Government', supported the
period of Sir B. N. Rau's prime- accession was definite, Jinnah said that
Congress' demand – emphatically and
ministership (1943-45) had been 'so far as he was concerned, he was
unequivocally – for the transfer of difficult for Kashmir and the State had prepared to concede that this was an
power in India to the Congress, to Lord to borrow from the J & K Bank a sum option which could be exercised by the
Pethick Lawrence when the Cabinet of Rs. 10 Lakhs to supplement its State and so long as the State did not
Mission visited Srinagar. revenue in the budget year 1945-46. accede to India, he would not mind if it
In 1947, once Lord Mountbatten Kak managed to turn the fortunes did not accede to Pakistan'.
and partition both arrived on the scene, around, pay off all the liabilities and August-September 1947 is an
accession which had previously been achieve a surplus of Rs. 77 lakhs in the action-packed and dramatic period in
merely a matter of choice now became budget year 1946-47. Writing in 1956, Kashmir's modern history – perhaps the
a matter of necessity. Kashmir now had Kak surveys around among other most moving and decisive in the crisis of
to state whether it would accede to comparable under- Kashmir. Its significance stems from
India or to Pakistan. Mountbatten developed/developing Asian/African what Kak terms 'the decapitation of the
visited Srinagar in June 1947 with the countries that were slowly emerging entire administration'. Kak was
specific object of getting a decision from their colonial periods and asks eliminated from the scene on 11 August;
from Hari Singh on accession. He also sardonically, 'whose resources…are the Revenue Minister was retired a few
met Kak and then met him again in Delhi days later and then came the deluge.
now adequate to meet all the needs?
the following month. On both occasion, The Chief Secretary, the Chief of the
Kashmir could also have queued up
he emphasised the 'admissibility and Army Staff, the IG-Police, the Governor,
with the rest for assistance without
advantages' of accession and pointed the Director of Civil Supplies, the Chief
any undue feeling of shame
out that he himself was 'by birth, up- Engineer – all were removed and in their
bringing and conviction' a believer in place were appointed people 'of little or
constitutional monarchy. Kak relates an During this visit to Delhi from 23 to no experience; doubtful reputation;
interesting anecdote from these 27 July 1947, Kak also met Mahatma [and, most crucially] the majority
meetings. When asked by Kak, as to Gandhi, Jinnah, Sardar Patel, Pandit belonging to one community, the
which Dominion he advised Kashmir to Nehru ('for a few minutes') and V. P. Maharaja's own'. The lack of authority
accede, Mountbatten said, 'That is Menon. Kak's accounts of his was best symbolised by the 82-year old
entirely for you to decide. You must conversations with Jinnah and Menon Major General Janak Singh – the new
consider your geographical position, are particularly important – in the light Prime Minister – and his 64-days tenure.
your political situation and the of what happened later. After a 'lengthy So if – as stated in the beginning –
composition of your population and and frank discussion', Menon – according there was no difference of opinion

www.epilogue.in Vol. 4, Issue 4 Epilogue, April 2010

exclusive series 38
New Research on Kashmir

between the Maharaja and his Prime power, for example, the NWFP where course, short of acceding to Pakistan,
Minister with regard to the policy of despite a Congress ministry 91% people was, in the circumstances then
non-accession, particularly after the voted for accession to Pakistan in the prevailing, to remain outside the
partition, then what changed? How did referendum. arena…To achieve this, however, it was
things start to unravel so rapidly from He further points out that 'the only essential so to act that it was obvious to
towards the end of August 1947? Why rational course for a state – if it decided all, friends and foes alike, that the
was Kak removed and then detained; an to accede – [was] to assure itself first State's policy was genuine and that it
enquiry initiated on charges brought whether its population would support really meant what it said'.
against him? Was Kak's persecution, as As for India and Pakistan, Kak
he puts it, 'initiated by Hari Singh to During his meeting with V. P. Menon in writes that 'it would have paid both to
mask the discrepancy between his real come to an understanding between
July 1947, Kak had drawn a parallel
intentions se elements inside the State themselves, at any rate, during the nine
between the circumstances of 1846 –
which urged immediate accession to weeks that elapsed between 15 August
when the state of J & K was created
India, to believe?' 1947 and 22 October 1947, that no
and 1947. It is an insightful and
Kak is at pains to clarify that 'so inducement be held out or pressure
long as it was thought that India would
meaningful lesson from history. The J& exercised to bring Kashmir within the
be one single unit, his objection to
K State emerged under General Gulab orbit of either the one or the other, and
accession was due to the identification Singh after the first Anglo-Sikh War in that both Governments would
of the Congress with Sheikh Abdullah, which while the Sikhs had been guarantee the security of the State from
and their refusal to see any other point militarily defeated, their political base outside aggression'.
of view'. From May 1946 onwards, and power had remained far from Of course, we know what
Congress had insisted not merely on being vanquished. The East India happened. Events developed
Abdullah's immediate release but on the Company agreed with Gulab Singh in otherwise; interests in Delhi, Srinagar,
drafting of a new constitution for the 1846 for the creation of a semi- Karachi and Rawalpindi pulled Kashmir
State and transfer of power to the independent J & K State – an area in different directions and an
Sheikh under its terms. This was ceded by the Sikh Government of unresolved saga began. What then is the
obviously unacceptable to Kak but this Lahore to them – which would remain 'Missing Link' in the story of the dilemma
unacceptance had more to do with the friendly with the British and be a less- of accession, mentioned in the title? It
'particular set of circumstances' in 1946 expensive economic and military ally is, namely, 'could Kashmir have survived
and not to the principle of accession per from behind the backs of the still- if it had not acceded?' As the man most
se. However, in 1947 – when the decision turbulent Sikhs of the Punjab. The committed to the possibility of such a
to partition was taken – Kak's objection scenario, Kak now argues his case. With
strategic idea was that if the Sikhs
to accession, was of 'a fundamental the passage of time and the benefit of
moved against the East India Company,
character'. hindsight, it is a useful – if an academic –
Gulab Singh and the J & K forces would
Kak explains his position exercise to take a trip down the 'Kak
be able to harass them from the rear.
brilliantly in his note. lane' and probe the possibility of this
He begins by arguing that alternative.
'whatever may be said to the contrary, the accession' (and gives the highly Kak's case falls into two parts –
the decision to partition India owed its pertinent example of the Nawab of economic survival and politico-military
inception to the state of discord Junagadh and his failed attempts to survival. According to Kak, in 1947, the
prevailing between the Hindus and the accede to Pakistan); notwithstanding revenue of the State was about Rs. 5
Muslims' and was to be effected 'in such the rather 'disingenuous and lofty legal crores 60 lakhs, out of which about a
a manner that not merely did the option to accede to either'. crore was expended on the army. The
country fall into two parts, but For Kak, 'In the case of Kashmir, period of Sir B. N. Rau's prime-
provinces and even districts were with an extensive border running with ministership (1943-45) had been
divided' along the majoritarian Pakistan and a population of 76% difficult for Kashmir and the State had
principle regardless of the party in Muslims, the only safe and possible to borrow from the J & K Bank a sum of

www.epilogue.in Vol. 4, Issue 4 Epilogue, April 2010

39 exclusive series
New Research on Kashmir

Rs. 10 Lakhs to supplement its revenue (military interventions). in Punjab not very different from the
in the budget year 1945-46. Kak During his meeting with V. P. 1846 boundary between the Company
managed to turn the fortunes around, Menon in July 1947, Kak had drawn a forces and Ranjit Singh's successors in
pay off all the liabilities and achieve a parallel between the circumstances of Lahore – this obvious and powerful
surplus of Rs. 77 lakhs in the budget year 1846 – when the state of J & K was parallel was best summed up by Maj.
1946-47. Writing in 1956, Kak surveys created and 1947. It is an insightful Gen. W. J. Cawthorn, the founder of
around among other comparable under- and meaningful lesson from history. ISI, in a speech (ref. no. 8/1575) at the
developed/developing Asian/African The J& K State emerged under General Royal Institute of International Affairs
countries that were slowly emerging Gulab Singh after the first Anglo-Sikh (Chatham House), London on 28
from their colonial periods and asks War in which while the Sikhs had been September 1948:
sardonically, 'whose resources…are now militarily defeated, their political 'Whatever the legal position might
adequate to meet all the needs? base and power had remained far from be, from the political, economic and
Kashmir could also have queued up with being vanquished. The East India strategic points of view, Pakistan could
the rest for assistance without any Company agreed with Gulab Singh in not afford to have a hostile India right
undue feeling of shame'. 1846 for the creation of a semi- up to the Western borders of J & K : a) It
Turning to the security scene, Kak independent J & K State – an area would bring Indian army within 30 miles
convincingly claims that in an internal ceded by the Sikh Government of of the military headquarters of Pakistan
sense, in the period 1945 to August Lahore to them – which would remain and right behind the vital north-south
1947, the J & K State did better than friendly with the British and be a less- communication line; b) it would give
both its neighbours – the Punjab and the expensive economic and military ally India control over the waterworks of
NWFP – in maintaining law and order and from behind the backs of the still- Chenab, Jhelum and Indus; c) it would
tackling with the refugee problem turbulent Sikhs of the Punjab. The give India direct contact with
arisen from the communal clashes in strategic idea was that if the Sikhs Afghanistan and Chitral and Swat in the
these two provinces while dealing with moved against the East India Company, backdrop of indications that the Indian
the agitations of the National Gulab Singh and the J & K forces would Congress and the Young Afghan Party
Conference and the Muslim Conference. be able to harass them from the rear. were jointly encouraging the
Kak goes further and claims that 'on or Three years late, in 1849, the second Pathanistan idea; d) it would also place
two occasions (eg. at Kohala), the State Anglo-Sikh war brought to an end the India in an almost direct contact with
Forces rendered assistance to the Sikh political/military dominance in Russia'.
Punjab authorities in dealing with Punjab and showed the short- The above reasons then meant that
disturbances in their area'. sightedness of the hurried nature in since Kashmir did not accede to
Externally, Kak has no illusions that which the Company had come to terms Pakistan and could not become
Kashmir would not have withstood for with Gulab Singh. With the 1947 independent, it was not allowed to
any length of time, an attack from its boundary between India and Pakistan accede to India, either.
northern, north-western and north-
eastern borders. That left the Indian Authorised Dealer :
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 pre- VARILUX
dominantly Muslim State population aman.kwality@gmail.com
responsible for the events of August-
October 1947 with none-too-subtle
Authorised Dealer : Baush & Lomb, Rayban, Fastrack, Tommy, Vogue etc.
participation from New Delhi (political Jain Bazar, Jammu 50-North Block, Bahu Plaza Complex, Jammu
maneuvers) and Karachi/Rawalpindi Phone : 0191- 2542468 Phone : 0191- 2471036

www.epilogue.in Vol. 4, Issue 4 Epilogue, April 2010

fighting terror 40
Persecution of Muslims

Tragic Tales of
Terror Hunt

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.

T 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 ill-
treatment 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 Commission headed by Justice shoddy and illegal investigations and
working of ATS or Special Cell that have G.D.Khosla, and following the extra-judicial methodology adopted by
been instrumental in the violations of recommendations of the Srivastava the Special Cell started casting doubt
legal procedures and professional
Committee, it has 70,000 personnel to over its covert operations. The most
ethics, which led to the prosecution of
look after the security of Delhi. The glaring example of Special Cell's
many innocent Muslims in the country.
Special Cell of the Delhi Police was investigation is the terror attack on
With the motto 'with you, for you
formed in 1986 as a counter-terrorism Parliament in December 2001, which it
always' and manning 177 police stations
force, which shot into prominence in completed in mere 17 days! On the
in India's capital, Delhi Police is
the late 1990s, when some of its speed with which the investigations of
considered to be a model police force in
'counter-specialist' officers went on to such an important case were carried
the country. Reorganized in 1946 and
kill many terrorists and claimed to have out, the Delhi High Court pulled up the
again in 1966, when the Government of
solved several cases. But very soon, Special Cell for the production of false
India constituted the Delhi Police

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41 fighting terror
Persecution of Muslims

arrest memos, doctoring of telephone Ravinder Tyagi, one of its celebrated new finding to its deceased officer MC
conversations and the illegal confining officers and a member of the Sharma. Interestingly, the links of
of people to force them to sign blank September 2008 Jamia Nagar Qamar and Ali with Baig were not
papers. Despite these observations, encounter, for framing two police mentioned in the charge sheet filed by
instead of any strictures against the informers on terror charges – Irshad Ali the Special Cell in a lower court in May
officers, the Supreme Court of India, it and Moarif Qamar – the CBI demanded 2006, and this theory came only after
is startling to notice, accepted the Cell's action against him. In an affidavit, the the CBI filed a closure report in the case
charge sheet against the accused CBI said that a team from Delhi's Special with a conclusion that the two were
verbatim and upheld the death Cell (the same team that led the Jamia innocent (see Delhi Police Special Cell
sentence of Mohammad Afzal, albeit the Red-faced, Outlook magazine, April 21,
apex court acknowledged that there 2009). As a result, Ali and Qamar spent
was no proof that Mohammed Afzal
Reorganized in 1946 and again in 1966, five years in jail.
belonged to any terrorist group, but when the Government of India Going through the dismal record of
went on to say, quite shockingly, "The constituted the Delhi Police the Special Cell of Delhi Police, there is
collective conscience of the society will Commission headed by Justice no doubt that not it has picked up
only be satisfied if capital punishment is G.D.Khosla, and following the innocent Muslims and framed false
awarded to the offender." recommendations of the Srivastava cases against them, it has crossed all
In time, some of Special Cell Committee, it has 70,000 personnel to limits of a legal entity, and which has
officers began to figure in extortion look after the security of Delhi. The been ridden with communal approach
cases and dubious encounters. In August Special Cell of the Delhi Police was to prosecute Muslims. More than that,
2005, a Delhi court ordered the Delhi formed in 1986 as a counter-terrorism this security agency, instead of
Police Commissioner to hold an inquiry force, which shot into prominence in upholding the law, has been engaged in
into the alleged high-handedness of its the late 1990s, when some of its criminal act and if the Special Cell or
officers for officially registering the 'counter-specialist' officers went on to ATS is not checked by the government,
arrest of a couple four days after they kill many terrorists and claimed to many more innocent Muslims will be
were actually arrested and for have solved several cases. But very trapped in the quagmire of its extra-
threatening to implicate them in a false soon, shoddy and illegal investigations judicial authority. Commenting on the
case. The victims – Nazar Ali and his wife shoddy role of Special Cell of Delhi
and extra-judicial methodology adopted
Kusum – were picked up from their Police, noted lawyer Prashant Bhushan
by the Special Cell started casting
house at Loni in the wee hours of July 24 said: “Unfortunately, whenever the
doubt over its covert operations. The
in a fake case but their arrest was courts have found that they [the Special
most glaring example of Special Cell's
officially indicated to have taken place Cell] have been framing people by
on July 27 morning. After the arrest, the
investigation is the terror attack on fabricating evidence, they have not
police demanded Rs 50,000 for Parliament in December 2001, which it suggested any action to be taken.
releasing them and threatened them completed in mere 17 days! Unless they are punished very severely
that if the amount was not paid, they by law, police officers will keep on
would be implicated in a false case. The Nagae encounter, including Mohan framing innocents as terrorists.”
Metropolitan Magistrate observed: Chand Sharma) had abducted two Since the advent of terrorism in
“Prima facie, it appears that the innocent men, Irshad Ali and Moarif India, the country has faced with
accused was detained by the police Qamar, in December 2005, planted two unprecedented loss of life and property,
prior to his actual time and date of kg RDX and two pistols on them, and in addition to a constant threat of bomb
arrest shown in the their file; the report then arrested them as "terrorists" who blasts anywhere, anytime by invisible
of Investigation Officer (IO) along with belonged to Al Badr. To counter it, hands. However, more heartening has
this order be sent to the office of Special Cell put up a new theory, filing been the fact that in the aftermath of
Commissioner of police to conduct a an affidavit to the Delhi High Court in every terror strike, persecution of
separate inquiry in this case.” which it linked the duo with a Pakistan- innocent Muslims has become a
In November 2009, charging based terrorist, Baig and attributed the systemic pattern. In order to prove their

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fighting terror 42
Persecution of Muslims

discredited credentials, what the police The 11 July 2006 blasts in suburban testify to this process of illegal
and investigating agencies do after railway trains in Mumbai, for example, detention. One such story, 'Picked up
every bomb blast is to go on arresting killed at least 207 people and injured randomly, tortured, branded terrorist,
Muslim youths indiscriminately, detain more than 700. Albeit no individual or acquitted with no evidence'. (Hard
and torture them before they are group officially claimed responsibility News, February, 2009) is of Ahmed
acquitted due to lack of any credible for the attacks, a large segment of the Mohiuddin Rashid from Bhongir district,
evidence against them. Once the blast media, the police as well as a number of Andhra Pradesh, who mentions in the
occurs media come up with stories of politicians and groups were swift to 'Peoples Tribunal on the Atrocities
police catching 'terrorists' who point the finger at Muslims, and hence Committed against Minorities in the
invariably happen to be Muslims. This in the aftermath of the bombings, about Name of Fighting Terrorism' as to how
trend has been very much in practice in 350 Muslim from Muslim majority areas he was picked up by task force
Maharashtra, Gujarat, Madhya Pradesh, of Mumbai were detained overnight by personnel on August 20-21, 2004, when
Andhra Pradesh and Rajasthan, where he came out of the mosque after
ATS has been engaged in indiscriminate Since the advent of terrorism in India, offering evening prayer. This perverse
arrests and victimization of innocent the country has faced with trend has been used systematically in
Muslims followed by illegal detention; Gujarat and reflected during and after
unprecedented loss of life and
third-degree torture, long periods in the Jamia Nagar encounter, when the
property, in addition to a constant
police remand without bail, and entire community was hounded,
threat of bomb blasts anywhere,
prolonged trials and finally, the condemned, and some youngsters
anytime by invisible hands. However,
traumatic impact of their persecution picked up with little evidence to show.
and repeated harassment even after
more heartening has been the fact that We have the same story after the
acquittal. in the aftermath of every terror strike, Pune blast. For example, some of
We have many innocent young persecution of innocent Muslims has headlines like 'Indian Mujahideen is
Muslim youths from Hyderabad, become a systemic pattern. In order to Prime Suspect' (The Hindustan Times),
Azamgarh, Delhi, Mumbai, Ahemedabad prove their discredited credentials, 'Hunt Begins for Mohsin, Missing IM
and Jaipur who are in jails on mere what the police and investigating Recruiter' (The Indian Express), 'Intel
suspicion. Many Muslim youths were agencies do after every bomb blast is Suspects IM Hand' (The Asian Age), 'Pune
arrested and later released to go on arresting Muslim youths Blast Part of Karachi Project' (The
immediately after Hyderabad's Makkah indiscriminately, detain and torture Times of India) do send the message
Masjid blast of May 2007 underwent them before they are acquitted due to that it was done by Pakistan-based LeT
severe torture and were labelled as lack of any credible evidence against or JuD with the help of Indian Muslims
terrorist. A set of stories 'They Just Want them. albeit neither the probe is complete nor
Muslim Boys To Be Always in Jail' and 'A the government is sure about the
Doubtful Crime, And Years Of Unfair the ATS headed by K.P. Raghuvanshi, possible Indian suspects. Media reports
Punishment' (Tehelka, August 16, 2008) and who is in charge of the Pune blast. were quick in jumping to conclusion. In
proves beyond doubt that how young The suburb of Mahim was especially a news report 'Pune blast: Police to quiz
Muslim students randomly arrested and targeted by the ATS and more than 250 IM militant Shahzad' (The Indian
tortured with electric shocks by the people from the area were detained and Express, February 15, 2010), the Pune
police during investigations in interrogated a few days only after the Police Commissioner Satyapal Singh
Hyderabad. One of stories go on to blasts. After the Jaipur blast in May ruled out any group in connection with
prove how Moutasim Billah, an 2008, many Muslims were picked for the attack. But on the next day, more
engineering student of Hyderabad was questioning by the police that than 30 Muslim were picked up from
arrested on March 5, 2008, after his conducted raids without proper legal Pune, Aurangabad and elsewhere, many
name came up in alleged confessions of documents. of them on pretext that they are
other Muslims, and who was forced to In many cases, Muslims are picked believed to have been associated with
give up studies because of cases of up off the streets with no explanation IM leaders at any point of time. We have
sedition and terrorism against him. for their arrest. Numerous experiences the media full of reports about the

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43 fighting terror
Persecution of Muslims

arrest of Salman, alias Chhotu, a Article 21 of the Constitution

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.
guarantees the right to life, liberty,
equality and dignity of every individual
citizen that are also embodied in the
international covenants and
because there is more to know
Similarly, in the first week of February enforceable by the courts in India. As
2010, another youth, Shahzad, was per the resolution adopted by the UN
arrested as accused in the 2008 serial General Assembly on December 17, Monthly Magazine
blasts in Delhi and is linked to Jamia 1979, all security personnel shall
Nagar encounter. Along with Muslims of respect and protect human dignity and Extensively Researched
Azamgarh, a top Muslim body, Ulema uphold the human rights of all persons
Council claimed that Shahzad was
falsely implicated in the terror case.
and abide by the international
conventions against torture and other
Written with Clarity
Given the number of false cases that ATS
of various states and Special Cell of
cruel punishments, principles of
and Insight
Delhi Police have found to be involved, The 11 July 2006 blasts in suburban
should we not cast doubt over the claim railway trains in Mumbai, for example, Covers Four Key Issues
of any new arrest linked to terror? killed at least 207 people and injured
Once arrested, the life of such more than 700. Albeit no individual or Politics
Muslim youths and their families group officially claimed responsibility
becomes a living hell. From for the attacks, a large segment of the Economy
victimization and illegal detention to media, the police as well as a number
third-degree torture, long periods in
police remand without bail and
of politicians and groups were swift to Culture
point the finger at Muslims, and hence
prolonged trials to the traumatic impact
of their persecution and repeated
in the aftermath of the bombings, Strategic Affairs
about 350 Muslim from Muslim
harassment even after acquittal. Since
majority areas of Mumbai were
the legal process (including defence
detained overnight by the ATS headed
lawyers being beaten, branded anti-
by K.P. Raghuvanshi
national and even killed) is made so
complicated and full of hurdles that
Unlike the General
they have hardly any chance to get bail.
Some of the accused have more than 50
cases registered against them in four
international cooperation in the
detention, arrest, extraditions and Run of the Mill
states and six cities. How can a poor or
middle class family afford to get
punishment against humanity. Given the
frequency of terror attacks, the role of
security forces has become crucial in
News Magazines
justice? The Prime Minister Dr. upholding the rule of law, rather than
Manmohan Singh acknowledged a few alienating a community through blatant
weeks after the Mumbai serial blasts discrimination, hence weakening our
that "terrorism has resulted in certain
sections of our population being
targeted, with the result that a wrong
fight against terror. The principle
objectives of an effective counter-
terror measure are to safeguard human
impression has been created of the rights, uphold rule of law and Has a shelf life That Extends
radicalization of the entire Muslim strengthen democratic values. And in
community". any circumstances, the investigating
Far Beyond the
The sheer violations of human agencies can neither be selective nor News Period Covered
rights is matter of deep concern since repressive.

www.epilogue.in Vol. 4, Issue 4 Epilogue, April 2010

building peace 44
IPCS Report


Countering Radicalisation

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 to occur in the state. By connecting the grassroots; second, setting up of
Additional Director, people and ideas, hope can be nerve centers that could identify new
Center for Air Power Studies, New Delhi regenerated in the region. radical political thought; third, further
Subsequently, decentralization in the sensitization of the police forces; and,
It is imperative to recognize that in region should be strengthened. This lastly, revival of the old city of Srinagar
Jammu and Kashmir (J&K), the tradition approach should be based on the to prevent it from becoming a centre for
and culture of Sufi Islamism has stayed Legislative Assembly at the top and radicalization.
strong. Despite the pressure that has autonomous Councils at the lower level
been generated in the region, the with the Panchayati Raj institutions
shrines in J&K are flourishing. For the made more effective. The report could
first two or three years after 1990, further expand to study the significance
there was a fear of the gun, but that of the Right to Information Act (RTI) as a
vanished after 1996. On the other hand, means of empowering people at the
the community that has become grassroots.
radicalized is the Kashmiri Pundits and Few recommendations that could
it would be interesting to analyze how be considered for implementing the
the highly educated and intellectual above mentioned steps include: one,
Kashmiri Pundits got radicalized. setting up a regional group responsible
An issue that needs to be worked for identifying moderates and urban
upon is connectivity within the region. communities that could recommend
It needs to be widened for any progress individual action on peace-building at

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45 building peace
IPCS Report

GOPAL SHARMA, concerned, it does not always work. For

Former DGP, instance in the recruitment for police
Jammu and Kashmir Police service, reservation for Scheduled
Castes (SC) is eight percent in J&K, but
When militancy started in the region, it
there SC population in Kashmir valley is
was only confined to the Kashmir valley
very small. This only compounds
where as the major land areas of Ladakh
problems by creating dissatisfaction
and Jammu were hardly affected. It,
among the public. On the other hand,
however, slowly spread to the entire
problems might get solved by greater
state. The radicalization of Ladakh can
employment opportunities and
be traced back to the mid-1980s with
economic development. There should
the agitation by Ladakh Buddhists
be a better process for the selection of
demanding central rule from 1989.
police and government service
There is a feeling now that more
personnel because the government is
problems might emanate from Ladakh.
the biggest employer in J&K.
As far as decentralization in the state is

PROF. SIDDIQ WAHID must be avoided and decentralization can assist in

Vice Chancellor, reducing the threat of radicalization. The Gorkha Hill
Islamic University, Srinagar 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
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
The IPCS workshop report needs to be lauded for for the Kashmiri Pundit community, but for the Muslim
contributing to developing a nuanced understanding of community and the Buddhist community. The row over
radicalization in the region. By pointing out that Central University can be turned around by looking at
radicalization is not specific to any particular region or universities as integrators of society. There is also a denial of
religion in J&K, the report greatly enhances the radicalization in Kashmir and Jammu and this should be
understanding of the region. Radicalization in Ladakh addressed.

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building peace 46
IPCS Report

The Army and the Police:

Given the ongoing atmosphere of insta-

bility 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 soci-
ety at large, and on the other hand,
there are extremist propagandas work- Gen. Dipankar Banerjee (Second from Left) Chairing Panel at New Delhi Discussion Session.
ing against the army. Human rights vio-
lations have undeniably taken place, Radicalization: Decentralization:
but the Indian army has managed with The report deals with the issue of 'radi- A division along communal lines might
the templar model of insurgency. In calization' in J&K, which can be not work because that will be artificial.
Kashmir, it has been confined to mortar
described as a situation where one is not Jammu will have to work on another
and small arms. There have been talks
willing to live with other communities plan, maybe based on governance at the
about replacing the army with the
and a situation where violence is used to grassroots level. The problem is bad poli-
police but it must be realized that the
express dissent. Radicalization also rep- tics (majoritarianism and
danger of the police going in there is
resents extremism; not just harboring minoritarianism), and radicalization go
that they have local agendas. Police
an extremist view, but imposing it on hand in hand. The model in Ladakh is
reforms are urgently required. Elders
others. both in Leh and in Kargil but it is not
have to be consulted in the law enforce-
In J&K, there is religious radical- working in Kargil because of corruption
ment process. The Police has now
ization but the responses have been sec- and factionalism. Even in Leh, the
become a near paramilitary force
ular. Religion has always been used as model is not perfect. Leh is seen as pre-
because it has the communication,
medium of communication because it is dominantly Buddhist but there is a
equipment, the professionalism, but
they are human beings and so could the only education that has been given nested community of Muslims, some
develop local orientation. to the society. Many leaders have done Shias and some Sunnis.
On the other hand, it must be that, Gandhi too did that and it is the
appreciated that policing in J&K is not only education that is universal. To coun- Young Political Leaders:
an easy task. Policing in a state is based ter radicalization, there is a need to go J&K's young political leadership must be
on a principle that the population is back to religion because secular consulted because the majority of the
abiding with the state apparatus, but in responses will not be adequate. leaders in the assembly are not old peo-
J&K, the population is against the state In Jammu, there has been no effort ple and they have been elected by 64
apparatus. The Police become an easy to understand the issue of per cent of the voters and they are not
victim as was witnessed in the Shopian marginalization and radicalization. hardliners and their viewpoints on the
case. If the police cannot be supported Radicalization in Kashmir leads to radi- way forward, must be considered.
then the armed forces should not be calization in Jammu among the Hindus,
removed because this means that the giving rise to feeling of marginalization Democracy and free media:
state apparatus is not being allowed to among the Muslims in Jammu. Transparency, objectivity and free
deal with the situation. There is no one The assumption that Sufism in J&K media can really transform
to defend the police, except the media is not under attack needs to be ana- misperceptions. As soon as Shopian hap-
and civil society which goes by rumors; lyzed. Ahl-e-Hadith University's philoso- pened the initial report was that no mur-
but the army has the government's back- phy is the philosophical base of Lashkar- der took place, but hardliner elements
ing. There should be caution against say- e-Toiba's and they are growing in were shaping agenda to turn falsehood
ing that police should not be there; Kashmir. If the state is sponsoring this into truth. At the end, democracy and
their operations now are almost without University, then it has already agreed to civil society can really make a differ-
collateral damage and they are even try- the marginalization of Sufism in ence in J&K.
ing to protect buildings. Kashmir.

www.epilogue.in Vol. 4, Issue 4 Epilogue, April 2010

47 building peace
IPCS Report


Participants at Jammu Workshop

Despite the recent elections for the ments, that the Institute of Peace and Regional Radicalization
Legislative Assembly of J&K and the Conflict Studies (IPCS), New Delhi, In recent months, there has been an
Parliament during 2008-09 and the con- undertook a project on the above theme. unmistakable rise in the radicalization of
tinuing cross-LOC interactions, the state The primary focus of the project was to regional sentiments between Jammu,
of J&K has been witnessing an increas- understand the nature of change that has Kashmir and Ladakh. The violence that
ing radicalization of three distinct kinds been taking place at various levels followed the Amarnath Shrine Board
– regional, religious and ethnic. While within the state and work towards crisis in Jammu and Kashmir regions,
there has been much focus on military building peace. It aimed to bring and the growing demand for Union
and human rights issues in the state, the together the younger generation from Territory Status for Ladakh are expres-
growing regional antagonisms, radical- different regions to discuss these emerg- sions of how divided these three regions
ization and souring relations between ing issues and reach an understanding are today.
various local communities, are newer on how to prevent further radicalization Administrative issues such as the
trends that need to be studied and and build peace among the various com- establishment of educational institu-
addressed. munities of J&K. The project was specifi- tions have also demonstrated their
It was with a view to understand cally focused on the following three potential to exacerbate the regional
these contemporary negative develop- forms of radicalization: divide, as was observed during the

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building peace 48
IPCS Report

recent agitation in Jammu regarding the munal violence in Kishtwar, Rajouri, among the youth, to understand their
setting up of the Central University in and Poonch bears testimony to this new perceptions of religious, regional and
the region. trend. Despite the presence of different ethnic differences, and the measures
religious communities, these sub they deem necessary for the state and
Religious Radicalization regions and cities have always main- civil society to adopt to prevent an esca-
There has been a slow, but steady tained religious harmony. Though there lation of conflict and violence. The ques-
radicalization that has taken place have been tensions between communi- tions were open-ended, seeking the opin-
between and within different communi- ties, these have largely been contained ion of the respondents to find what they
ties in Jammu, Kashmir, and Ladakh. through local dialogue. However, in the considered the causes for radicalization
Kashmir Valley has been well recent past, not only has J&K seen an and their recommendations on how the
known for its practice of Sufi Islam, accelerated recurrence of such tensions, growing divide between communities
which has played an important role in but has also been witness to distur- may be addressed.
preserving what is defined as bances in one region or town spilling Additionally, the Institute also com-
Kashmiriyat — the composite cultural over to and adversely affecting the com- missioned discussion papers on regional
identity of the people in this region. munal harmony in neighbouring and religious issues to academicians,
Unfortunately today, both Kashmiriyat regions/towns. journalists, media persons, bureaucrats,
and Sufi Islam are under stress due to the researchers, and conflict resolu-
radical onslaught, which has progres- Ethnic Radicalization tion/transformation experts from Delhi
sively crept into the state in recent years. Besides the religious and regional and the regions of Jammu, Rajouri,
A section of the younger generation, divide, one can also observe a growing Poonch, Doda, Kishtwar, Anantnag,
unlike their elders, does not believe as divide between the Gujjar and Pahari Srinagar, Kargil, Leh, and Turtuk, to
much in Sufi Islam. Led by certain mili- communities in the Jammu, Rajouri and seek their perspectives and recommen-
tant groups, there has been a deliberate Poonch belt. Ever since the Gujjars were dations. These papers were subse-
effort to alter the nature of Islam in the granted the ST status, the Pahari com- quently discussed in interactive sessions
Valley. While the older generation munity has felt disadvantaged. The par- during a workshop held in Jammu, in
stresses the Sufi nature of Islam, a sec- allel processions and counter arguments collaboration with the University of
tion within the younger generation and articulation of interests by both Jammu. Some of these papers have
seems to be looking beyond Sufism. these comminutes against each other are already been published in the December
In Jammu region, certain funda- indicators of a growing divide that has edition of Epilogue.
mentalist forces have been trying to radi- the potential to affect the peace and har- In the second phase, the Institute
calize the Hindu youth. There have been mony between these communities organized a three-day workshop in col-
deliberate attempts to use the Amarnath which share common space in these twin laboration with the University of Jammu
Yatra for instance, and places of Hindu districts. on 'Building Peace and Countering
worship such as Vaishno Devi, I I Radicalization in Jammu, Kashmir and
Ragunath Temple in Jammu, and METHODOLOGY Ladakh', during 2-4 December 2009 in
Buddha Amarnath in Poonch district to The project was divided into three Jammu.
radicalize the Hindus in the Jammu- phases. In the first phase, the Institute
Rajouri-Poonch belt. There seems to be a commissioned surveys to a select Three-day Workshop in Jammu
definitive trend in the sudden spurt in research team of the IPCS, which were University
these yatras, under the deliberate conducted across the three regions – The objective of the workshop was
patronage of certain groups. Jammu, Kashmir, and Ladakh, specifi- to engage people from the academic and
Radicalization within communities cally in ten towns – Jammu, Rajouri, strategic communities, media, and stu-
has also had an adverse impact on the Doda, Kishtwar, Anantnag, Srinagar, dents from various regions of the state to
relations between communities, mainly Baramulla, Sopore, Kargil, and Leh. The reflect on the nature of radicalization
Hindus and Muslims. The recent com- surveys were conducted primarily and its impact on the region and people

www.epilogue.in Vol. 4, Issue 4 Epilogue, April 2010

49 building peace
IPCS Report

and also draft policy recommendations reports that will be made available on the Amarnath crisis, became evident. It
based on the deliberations of the work- the IPCS website and circulated widely became clear that these misperceptions
shop. The three regions of Jammu, as news briefs among leading newspa- had fueled significant insecurity and trig-
Kashmir, and Ladakh were discussed pers and magazines in Jammu and gered negative responses from either
through background papers and survey Kashmir. Further, the Institute will also side during the entire episode.
reports. bring out a set of recommendations to be What also came to the fore during
The workshop primarily aimed to submitted to the governments of India the debate on this and various other
get the younger generation from differ- and J&K, and circulated among the civil issues, was the physical isolation of dif-
ent regions of the state to discuss and society at large. ferent regions and lack of connectivity
debate the issues outlined above. It that have affected emotional linkages
brought together youth from varied FOCUS OF THE WORKSHOP: between and within the regions.
backgrounds – students, scholars, and MAJOR ISSUES OF DEBATE Participants, especially from Leh,
media persons, representing various The discussion which spanned Kargil, Kupwara, Doda, Kishtwar,
communities of Jammu, Kashmir and eight sessions, touched upon critical Rajouri, and Poonch, highlighted the
Ladakh, to deliberate on these issues in issues such as the regional differences existing situation in terms of connectiv-
smaller, sub-groups and make specific within J&K, role of the Amarnath land ity and the urgent need to improve it.
recommendations on how to prevent row agitation in polarizing communities These sub regions, thanks to the lack of
further radicalization. The workshop and regions and its spillover effect in physical connectivity, have become
also witnessed the participation of other states, the gradual waning of Sufi inward-looking, isolated islands.
senior scholars who acted as Resource influence in the Valley, displacement of Besides these, the participants also
Persons to help the younger participants Kashmiri Pandits, alienation of Rajouri debated another crucial issue—the allo-
understand the current issues in a larger and Poonch districts, the growing cation of funds for regional develop-
perspective. Gujjar-Pahari divide in these twin dis- ment. It was clear from the debate that
Additionally, the surveyors briefly tricts, and the challenges that confront every region and sub region believes
presented the findings of the surveys Ladakh since its division into Leh and there is an imbalance and that they are
conducted by them across J&K to give Kargil districts, among other topical specifically being neglected while the
the participants a sense of ground level issues in the context of J&K. other regions and sub regions are bene-
perceptions and in turn, make the work- The debates contributed to devel- fiting at their cost. However, in the
shop proceedings more meaningful. oping a nuanced understanding of absence of sufficient data to prove or dis-
During the workshop, the partici- regional perspectives on radicalization prove these claims, significant
pants were divided into two groups to and underscored the fact that radicaliza- misperceptions continue to exist
discuss religious and regional issues tion is not specific to a particular region between the regions and sub regions.
respectively, make policy recommenda- or religion, but has infected all regions These misperceptions in turn, have
tions and suggest measures to counter across J&K and the country in varying fueled acerbic sentiments and mobilized
the growing radicalization. On the third degrees. people to respond violently. The recent
day of the workshop, both groups made The Amarnath land agitation, violence and apprehensions regarding
their recommendations on how to being a recent controversy, was the cen- the Amarnath land and Central
address the regional and religious differ- ter of attention and debate during the University rows are expressions of these
ences in the state. first day of the workshop. The differ- misperceptions.
The final phase of the project which ences in perceptions of various commu- In view of the growing regional rad-
the Institute is currently engaged in is nities, especially with respect to the 'eco- icalization, the most interesting session
focused on the summation of the pro- nomic blockade' were also debated at was on identity politics in the districts of
ceedings of the entire workshop as also length. As the discussion proceeded, the Doda, Kargil, Rajouri and Poonch.
the findings of the surveys conducted, misperceptions on either side regarding Speakers commented on the demand for
through separate workshop and survey how each viewed the different phases of autonomous development councils on

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building peace 50
IPCS Report

grounds of distinct ethno-cultural com- highlighted the role of violence in trig- speakers emphasized the need to
munity identities. gering internal displacement from develop infrastructure and tourism to
There was also an intense and emo- Doda, Ramban, Kishtwar, Rajouri and improve connectivity and enhance
tional debate, on the issue of the tensions Poonch regions; it was in particular, the mobility across regional and religious
between the Gujjar and Pahari ethnic displacement of Kashmiri Pandits and divides.
identities. It was pointed out by some their possible return that became an emo-
that while the Gujjars have benefited tionally charged debate. MAJOR RECOMMENDATIONS
immensely since being granted the Subsequently, the participants also An important achievement of the
Scheduled Tribe (ST) status, the Paharis debated religious radicalization in all workshop was organizing the young
have lagged behind considerably. While the regions and sub regions of J&K. The participants from different regions and
the Gujjars maintain that they deserve growing attack on the Sufi tradition of sub-regions of J&K into two Working
the reservation status, the Paharis argue Islam in J&K and the new and mounting Groups to discuss these vital issues and
that they are just as deserving since both pressures on the composite nature of the make recommendations on regional and
communities have been living together State's culture were also discussed, religious issues. The two working
in the same space, share the same groups made certain recommendations,
resources and have suffered the same which were discussed at length during
social and economic challenges. This has the workshop. Some of the agreements
led to a reinforcement of the ethnic reached by the participants of the work-
divide between the two communities,
The debates contributed to developing shop include the following:
while also bolstering demands from the
a nuanced understanding of regional
There are serious regional and reli-
non-Gujjars to be included in the ST cate-
perspectives on radicalization and
gious issues between the three regions,
underscored the fact that radicaliza-
which need to be addressed in a con-
Ladakh, an Autonomous Hill
tion is not specific to a particular
structive way; there is a need to under-
Development Council, divided into
region or religion, but has infected all stand each other's perspectives and
Kargil and Leh with majority Shia
regions across J&K and the country in address both, real and perceived griev-
Muslim and Buddhist populations
varying degrees. ances.
respectively, is demanding a union terri- Commissions should be set up and
tory status on the grounds that it has suf- studies undertaken to enquire into the
fered on account of the gross negligence problems of refugees, migrants and the
of both, the Union government and the along with what could be done to coun- internally displaced. This is important
state of Jammu and Kashmir. It also ter this new negative trend. given the significant mistrust regarding
claims autonomy on the basis of preserv- The last session addressed the what has happened in the last two
ing its own culture and the need to future concerns and measures that could decades vis-à-vis the movement of popu-
develop its regions economically, a need help minimize the growth of radicaliza- lations. It is essential to have independ-
which has been subsumed by other con- tion in the state. The key areas discussed ent studies on these issues, with a view
cerns of the Jammu and Kashmir were roads, the economy, and tourism. It to publish white papers on what has actu-
regions. Lack of physical connectivity, was suggested that the development of a l l y h a p p e n e d . T h e s e c o m m i s-
neglect by Jammu/Srinagar and poor these would be an effective way to sions/studies should be impartial, com-
social and economic indicators drive address the grievances of the people and prising people from all regions and sub-
their demand to maintain an independ- build cross-regional bridges. The costs mit a white paper on the issues.
ent identity. of non-cooperation between regions are Independent research organizations
The workshop also witnessed significant because radicalization has could commission such studies with
intense debate on internal displacement not only constrained the growth of the inputs from all three regions of J&K.
in J&K, especially with respect to the economy, but has also impeded greater Governance must be taken down to
Kashmiri Pandits. While the discussion connectivity between the regions. The the grassroots level and political decen-

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51 building peace
IPCS Report

tralization should take place through the communities, debates within each Baba Ghulam Shah in Shahadra near
Panchayati Raj Institutions (PRIs). One community are equally important. Rajouri is a symbol of harmony; people
of the major challenges to effective gov- Unfortunately, in recent years, the from different regions and faiths, not
ernance in J&K is the question of decen- debate has been inward-looking, as was only from J&K, but also from outside
tralization. Projects implemented by the seen during recent controversies such as visit this shrine. Such institutions
State and Union governments are the Amarnath land transfer and new should be encouraged.
caught up in State capitals—Jammu and Central University for J&K. There is a There are numerous apprehen-
Srinagar. They seldom reach the district need for communities to strive to arrive sions regarding the safety and mainte-
headquarters in all the three regions. at a consensus within themselves as also nance of places of worship, especially in
Even if they do, they never move beyond to be cognizant of the sensitivities and Kashmir Valley. Kashmiri Pandits, liv-
the district headquarters. Effective grievances of others. ing outside the Valley for instance, fear
implementation of PRIs is the only way Recent years have also witnessed the desecration or occupation of their
to ensure that the decentralization pro- temples. On the other hand, the
cess reaches the grassroots level in the There was also an intense and emo- Kashmiris feel that the local civil society
far-flung areas of J&K. tional debate, on the issue of the ten- has taken extra care of these places of
Besides the effective implementa- sions between the Gujjar and Pahari worship and that the fear of the Pandits
tion of PRIs, the working of the Hill are exaggerated. Many in the Valley
ethnic identities. It was pointed out by
Councils in Leh and Kargil should be would welcome an independent study
some that while the Gujjars have bene-
studied closely to find out whether these on this issue, to ensure that these fears
fited immensely since being granted
models could address the growing alien- which are exaggerated or motivated
the Scheduled Tribe (ST) status, the
ation between regions, by empowering may be addressed.
people at the grassroots level. There has
Paharis have lagged behind consider-
Lack of connectivity has been the
been a growing demand for regional ably. While the Gujjars maintain that major factor in keeping the regions
councils in Doda and Rajouri/Poonch they deserve the reservation status, divided — physically and psychologi-
regions. Despite their several problems, the Paharis argue that they are just as cally. Measures to improve infrastruc-
the Hill Councils in Leh and Kargil are deserving since both communities have ture to promote connectivity and mobil-
important models of governance, that been living together in the same space, ity between regions should be under-
could become effective in the Doda and share the same resources and have taken. Unless there is a physical move-
Pir Panjal regions. suffered the same social and economic ment of people, especially students,
There exist serious grievances — challenges. media, and the business community, the
real and perceived, along regional and regions are likely to remain divided.
religious lines. Irrespective of whether an enormous and increasing strain on Besides improved connectivity
they are real or imagined however, there Sufi Islam in J&K, which until now has between the regions, there is also a need
is a need to first, create awareness and an remained the bedrock of peace and tran- to improve connectivity within the
understanding of each other's senti- quility in the state, ensuring harmony regions. Gurez in Kashmir Valley; Doda,
ments as a means to promote peace and both, within and between communities. Rajouri and Poonch in Jammu region;
tolerance within the state. Second, The revival of Sufism should therefore, and Batalik, Nyoma and Turtuk in
besides creating awareness, there is a be encouraged, to dilute radical ele- Ladakh, remain on the peripheries. For
need to initiate a debate at two levels — ments. the people, traveling within their
between and within the communities. As part of the endeavor to pro- regions, even to the capital cities of
Such a debate should not only be aimed mote communal harmony and peace, Srinagar, Jammu and Leh, is a major chal-
at seeking to understand the other's there is a need to strengthen institu- lenge. Even the district headquarters in
grievances, but must also attempt to find tions, such as shrines, across the three many of the border districts lack basic
common ground and understanding. regions which welcome devotees from facilities of accommodation, transport,
In addition to the debate between all faiths. For example, the shrine of boarding and lodging. Unless the border

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building peace 52
IPCS Report

districts are physically connected with A p a r t f r o m t h e s e f o r- which could become religious centers of
the rest of the region, and each of these mal/institutional exchanges, the stu- attraction for all faiths.
regions in turn, are connected with the dents could initiate informal cross-
others in J&K, people are likely to regional interactions. Students from Looking Ahead
remain disconnected not just physically, each region could visit other regions In the days ahead, the Institute
but also emotionally. and stay with the families of students proposes to pursue the following,
Initiatives such as the revival of the from these areas. Both these initia- depending on the availability of fund-
tourism industry and other cultural tives, the student participants at the ing support: To research and debate
activities will help in the growth of the workshop believed would help build specific issues such as Regional Hill
economy and facilitate cross-regional institutional and inter-personal net- Councils, the Right to Information
movement. Tourism has a major role to works thereby, weakening regional Act, decentralization, and Panchayati
play in not only developing the local barriers Raj Institutions and how these might
economies, but also bridging gaps The regional media could provide contribute to effective governance in
between the different regions and also space in each other's respective papers to J&K.
with the rest of the country. highlight the several instances of com- Subject to the availability of
The tourism industry in J&K needs munal harmony within their regions funding support, this debate will be
to be revived through special packages which often go unreported. As a means carried forward and continued
and schemes that will help the communi- to counter growing religious radicaliz- among the youth on contemporary
ties to invest in addressing basic issues. ing tendencies therefore, the regional issues confronting the different
The media as a platform to voice media could publish a series of progres- regions of the state. While the first
the concerns of the people within the sive stories on communal harmony round took place in Jammu, there
three regions in a constructive manner, within each region and highlight the sig- will be similar interactions in other
is also of vital importance. It has a nificance of certain shrines in Jammu centers—Srinagar and Leh, followed
responsibility to objectively communi- and Kashmir regions such as the by regional towns, including Kargil,
cate the ground realities in J&K to the Shahdra Sharief and Khir Bhavani, Doda and Rajouri.
other regions as also to the rest of the
People must be made part of the
solution and must begin to see opportu-
nities 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 soci-
ety along with the government will be
crucial to prevent further radicalization
and build peace among various commu-
nities and regions of J&K.
It is imperative to promote inter-
regional movement for which the youth
in particular, must take the lead to par-
ticipate in cross-cultural and educa-
tional programmes. Both the
Universities in Jammu and Srinagar
could act as nodal agencies to facilitate Former US Diplomat Howard B Schaffer discussing his book ‘The Limits of
such interactions. Influence: America’s Role in Kashmir’ at an event hosted by IPCS in New Delhi

www.epilogue.in Vol. 4, Issue 4 Epilogue, April 2010

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