*32 Corpns to remain with J&K; Ladakh to have 20% equity in 6
*Reasonable proportion of J&K Bank employees to be from Ladakh
JAMMU, Oct 31: On the directions of the Union Ministry of Home Affairs, assets, liabilities and posts of erstwhile State have been apportioned between the Union Territory of Jammu & Kashmir and Union Territory of Ladakh as per the provisions of the Reorganization Act, 2019 passed by the Parliament in the month of August last year.
The detailed exercise in this regard was conducted by an Advisory Committee under the chairmanship of Sanjay Mitra, retired IAS officer, which was constituted by the Central Government in terms of Sections 84 and 85 of the J&K Reorganization Act.
After the submission of report by the Advisory Committee, the comments of the Government of J&K and Government of Ladakh were sought by the Ministry of Home Affairs and accordingly based on the agreements reached between both the UTs, the MHA issued directions for issuance of orders.
Accordingly, the Lieutenant Governor of J&K UT Manoj Sinha has apportioned the assets, liabilities and posts between the UTs.
As per the order, 32 Corporations/companies will remain under the control of J&K Government with no division of equity, investment and loans. These entities include J&K State Forest Corporation, Ellaquai Dehati Bank, JKPCC, Police Housing Corporation, SIDCO, JKTDC, JK Industries Ltd, Medical Supplies Corporation, Cooperative Banks, J&K Power Development Corporation and Chenab Valley Power Projects Pvt Ltd.
However, the employees of these companies/Corporations who are posted in UT of Ladakh or otherwise will be given the option to work in UT of Ladakh or in any new entity to be set up by Ladakh UT.
In six companies/corporations namely J&K State Financial Corporation, Grameen Bank Limited, SICOP, SC/ST/BC Development Corporation, Trade Promotion Organization and State Cooperative Bank Limited, 20% of the equity and 20% of the loans extended by the erstwhile Government of J&K have been notionally/temporarily transferred to UT of Ladakh. Provided that these companies will continue their operations for both the UTs till transfer to a designated entity in UT of Ladakh takes place.
The J&K Bank Ltd will continue its operations as a going concern in both the UTs but the J&K UT will continue to have majority shareholding. Fifty-one percent of the shareholding in the J&K Bank shall remain with J&K UT and the remaining 8.23% shareholding (approximately 13.89% of the existing shareholding of erstwhile State) will be transferred to Ladakh UT. One post of Director on the Board will be earmarked for UT of Ladakh and a reasonable proportion of employees of the bank shall be recruited from the UT of Ladakh, details of which will be worked out by the bank.
Moreover, the UT of Ladakh will have one representative on the Board of Directors in J&K Grameen Bank, J&K SICOP, J&K SC/ST/OBC Development Corporation Limited and J&K State Cooperative Bank Limited. The exercise for seeking options and transferring staff of the Corporations to the UT of Ladakh or to its designated entity will be completed by December 31, 2020.
As far as generation and supply of electric power is concerned, the power purchase agreements of NHPC plants at Chutak and Nimoo Bazgo and PPAs of another 25 MW from Central Thermal/Gas Generating Stations stand transferred to Ladakh UT. However, the UT of J&K will use the services of its consultant to assist in the establishment of a separate power company for the UT of Ladakh, if required.
Any immoveable assets of the J&K State Power Development Corporation and the Chenab Valley Power Projects Limited located in Ladakh shall be transferred on an ‘as is where is’ basis to an entity to be set up by the UT of Ladakh or designated by it. The existing Power Corporations of J&K UT will continue to operate the facilities of Ladakh till such time a new entity is set up there.
Similarly, all arrangements for water will be apportioned between the UTs of J&K and Ladakh on an ‘as is where is’ basis based on location.
There will be Joint Finance Corporation for the UT of J&K and UT of Ladakh created by renaming the JKSFC and 20% of equity and 20% of the loan extended by the erstwhile Government of J&K to JKSFC will be apportioned in favour of UT of Ladakh. The Joint Finance Corporation will have one Director from Ladakh in the Board of Directors.
As far as education sector is concerned, the State Board of Technical Education and J&K Board of Secondary Education will continue to function for the UT of Ladakh till end of academic year 2020-21. Similarly, Board of Professional Entrance Examination will continue to conduct the entrance examinations for various professional courses for UT of Ladakh and the seats earlier reserved in professional colleges in erstwhile State for STs of Leh and Kargil stand apportioned to the UT of Ladakh to be filled up in a manner to be decided by Ladakh UT.
While the J&K Academy of Arts, Culture and Languages will continue with the UT of J&K, the immoveable assets of the Academy stand apportioned between the UTs based on location on an ‘as is where is basis’. Similarly, Wakf properties and Haj Committees will remain in the UT of J&K.
About immoveable property located outside the erstwhile State, it has been decided that UT of J&K will have the right of usage of the 3rd floor of Block B of J&K Guest House at Chanakyapuri till December 31, 2021 after which it will stand fully transferred to UT of Ladakh. Similarly, J&K House at Prithviraj Road, the Rajaji Marg property, the Guest House at Shalimar Bagh, the J&K Emporium at New Delhi and Guest House at Amritsar and the property at Chandigarh will remain with the UT of J&K.
A house at Chandigarh, flat at Mumbai and all properties of LAHDC at Jammu and Srinagar will remain with the UT of Ladakh. However, all the guest houses/circuit houses in the UT of J&K will remain with the UT of J&K but available for use by officials of UT of Ladakh as and when required.
All unpaid liabilities/bills will be discharged after due process/scrutiny by the respective UT where the works/projects were executed or expenditure incurred. However, investments in capital works/projects indicated in the State of Financial Assets under Other Capital Expenditure amounting to Rs 1956 crore stand transferred to UT of Ladakh.
Funds and pension liabilities stand apportioned as required following the actual allocation of employees between the UTs of J&K and Ladakh. Moreover, the financial liabilities of Rs 2504.46 crore stand transferred to UT of Ladakh at the rate of 2% of the total liabilities.
As far as posts and manpower are concerned, 325 additional gazetted posts from overall strength of UT of J&K have been transferred to UT of Ladakh. Similarly, 3000 additional non-gazetted posts from the overall strength have been transferred to Ladakh. For identification of the additional posts to be transferred, officers of UT of J&K and UT of Ladakh will meet and finalize the list by November 25, 2020.