J&K economy faced war, drought setbacks last year: CM Omar
Jammu, Feb 6: Chief Minister Omar Abdullah on Friday said Jammu and Kashmir’s economy faced multiple shocks over the past year due to geopolitical tensions, drought, and sector-wide slowdown, but expressed confidence that stability could be restored if the current year progresses as planned.
Addressing a post-budget press conference, Abdullah said the previous year had been particularly difficult, with no sector remaining unaffected. “Whether it was hospitality, industry or the service sector, the earnings we had expected last year could not be realised,” he said.
Referring to external challenges, the chief minister said uncertainty caused by conflict between two countries had impacted the overall economic environment. He added that the situation was further compounded by a drought-like condition around October, especially in parts of Jammu, which resulted in losses due to deficient rainfall.
Abdullah said the Centre had announced a Rs 1,430 crore package for permanent reconstruction in Jammu and Kashmir following the damage caused by natural calamities. “We are utilising this amount properly and moving ahead with reconstruction,” he said, adding that these developments remained major challenges for the administration.
Comparing the current situation with the previous year, the chief minister said the economic atmosphere had changed significantly. “Last year, when we addressed a press conference here, flood relief was not even part of the discussion. This year, it is,” he said.
He said the government aimed to place Jammu and Kashmir’s economy on a stable and strong footing if progress continued during the year.
On hydropower development, Abdullah said ongoing projects including Ratle, Kiru, Pakal Dul and others would continue as per their existing designs. “There will be no change in their scope, design or water-holding capacity, and therefore no change in generation capacity under the Indus Water Treaty framework,” he said.
He added that future projects could benefit the region if treaty-related restrictions were addressed, but noted that power projects required long gestation periods.
The chief minister said short-term gains could be achieved by exploring navigation possibilities on the Jhelum and improving water management, which could enhance generation at downstream hydropower projects such as Lower Jhelum, Uri-I and Uri-II.
He also said supplying water to Jammu city from the Chenab near Akhnoor could help resolve the city’s water shortage.
Abdullah said the Indus Water Treaty had not significantly impacted the power sector so far.
During the interaction, the chief minister acknowledged contributions made by previous governments and the Centre, thanking former prime minister Manmohan Singh for initiatives such as central universities and highway projects, and also expressed gratitude to the Prime Minister, Home Minister and Finance Minister for financial support to Jammu and Kashmir.(KNS).
