13th Finance Commission calls on Governor, discusses J&K development

The Governor, Mr. N. N. Vohra, while endorsing the Memorandum submitted by the State Government to the Thirteenth Finance Commission, urged upon the Commission to provide liberal funding to Jammu and Kashmir for ensuring all round and speedy development of the State in the next 5 years. He urged the Commission to factor in the very high cost of delivery of public services to people living in the far-flung and remote areas in the State, as compared to other states in the country, while finalising their Award.

The Governor was interacting with the Chairman of the Thirteenth Finance Commission, Dr. Vijay Kelkar and Members of the Commission, currently on a visit to Jammu and Kashmir, here this evening.

The Governor emphasized that there is urgent need for capacity building, particularly in terms of institutional and human capacity for formulation, implementation and monitoring of mega development projects in the State, through both on-site and off-site training programmes.

He advocated computerization of work-processes in a big way. Such initiatives would enhance the absorptive capacity and effective utilization of available funds by the State Government, besides ensuring timely and efficient execution of the projects right from the conception to the commissioning stage with strict monitoring of quality and time-schedules.

Referring to the need for rejuvenating and strengthening the institutional framework for delivery of public services, the Governor stressed the need for reviving Public Sector Enterprises in the State.

The Governor observed that a new financial architecture, with adequate financial support from the Central Government, will be imperative for turning around the ailing units and making them relevant and
responsive to emerging needs. He also called for providing one-time funding to the rural credit delivery institutions, particularly the State Financial Corporation, Grameen Bank and the cooperative institutions, to tackle the problem of their non-performing assets.

He said that such institutions had been dented by the obtaining security situation in the State and their revival will go a long way in easing credit flows, especially to the agriculture sector for boosting farm production and creation of rural employment. He said that about 60% population of the State is dependent on agriculture and allied
activities for their sustenance. Enormous resources are required for diversification and value addition to make the agro-based sectors more remunerative. Processing of horticulture produce at the household
level could substantially add to the existing income levels of the farming households. He emphasized that the farmers have to be provided assured means of irrigation, common facility centres, cold chains,
storage, marketing and credit facilities for enhancing productivity and production.

The Governor also highlighted the need for taking effective measures for employment generation at the decentralized household level. He mentioned that, as per an estimate, about seven lakh people are employed in J&K in about 3.5 lakh household enterprises. He said “we could improve this employability in the decentralized household sector in the coming years by ensuring upscaling of such enterprises through a combination of measures such as skill upgradation, technology transfer and credit support”. In particular, the Governor observed
that the handicrafts sector of the State, particularly the world famous Kashmir carpets, needed a special dispensation as it has suffered a demand slump due to global economic slowdown.

Referring to the implementation of the recommendations of the Sixth Central Pay Commission in favour of the State Government employees, the Governor urged the Finance Commission to provide necessary
financial support to the State Government to enable it to fulfill the commitment extended to the employees. He said that such a special dispensation will help channelising the energies of the vast manpower resource available within the State Government for addressing larger developmental concerns, particularly speedy delivery of public goods and services.

The Chairman and Members of the Commission had wide ranging discussions with the Governor on various aspects of the future development of the State.

Among those present during the discussions were the Members of the Commission, Mr. B. K. Chaturvedi, Dr. Indira Rajaraman, Dr. Sanjiv Mishra and Prof. Atul Sharma, Secretary of the Commission, Mr. Sumit
Bose, Joint Secretary, Mr. B. S. Bhullar and Principal Secretary to the Governor, Mr. B. B. Vyas.