Centre may stop UPA’s 11 years old PMRP Scheme for J&K

Sanjeev Pargal

JAMMU, Mar 14: The BJP-led NDA Government at the Centre headed by Prime Minister Narendra Modi seems to have decided to either disband Prime Minister’s Re-construction Plan (PMRP) or carry it with a changed name since it has stopped funds to the State under this Plan during current financial year of 2014-15.
Official sources told the Excelsior that out of Rs 600 crores approved by the Centre for PMRP for current financial year, the Centre has released only meager amount of Rs 45 crores and there was very little or virtual no hope that any more amount would be released under this category in the remaining fortnight of current financial year.
“The Government of India has dropped enough hints that it can do away with the PMRP or continue the Plan with changed name. The Centre was exploring all possibilities and was likely to take a decision after consultations with the State Government during next financial year beginning from April 1,” sources said.
They admitted that the Centre had earlier released Rs 45 crores under the PMRP but later didn’t release the remaining amount. There were indications that no more funds would pour in under the PMRP during current fiscal year, they said adding that the projects undertaken in hands by the State Government under the PMRP for current financial year of 2014-15 would be financed from other resources available with the State Government.
The then Prime Minister Dr Manmohan Singh as head of UPA-I had announced Rs 24,467 crores worth PMRP for Jammu and Kashmir during his first two days visit to the State after taking over as the Prime Minister of India on November 17 and 18, 2004. The PMRP projects taken under Central and State sectors were scheduled to be completed in five years but due to slow funding and other hurdles, several projects overshot the time leading to massive cost escalation.
As per the last estimates, total cost of the PMRP had reached around Rs 35,400 crores.
Despite lapse of the PMRP after five years, the then UPA Government continued to extend it after every year till it exited the office in May this year and new Government led by the BJP took over.
Sources said the new Government didn’t seem to be interested in continuing with the PMRP but would fund the projects, both in Central and State sectors, which have already been taken in hands by the Centre and State Governments in Jammu and Kashmir either by changing name of the Plan or through other resources.
“A decision to this effect was expected to be taken shortly after the start of next financial year when J&K’s Finance and Planning and Development Departments would initiate talks with newly formed NITI Aayog, which has replaced the Planning Commission, and the Union Finance Ministry official on next year’s Annual Plan and funding under other sectors including Centrally Sponsored Schemes, State Share from Central Taxes etc,” sources said.
Out of a total of 67 projects/schemes in four areas covering 11 sectors of economy, only 39 had been completed so far. Total cost of the PMRP projects had jumped due to delay in completion of some of the projects, whose deadline for commission has also expired.
The Centre has so far released about Rs 7300 crores for Jammu and Kashmir for the PMRP projects in the State sector during past about 11 years of the Scheme.
Pointing out that out of a total of 67 projects/schemes started under the PMRP under both Central and State sectors, only 39 have been completed so far, sources said work was on in 23 other projects/schemes while in case of remaining five projects, the proposals were in the stage of finalisation.
The Centre has so far released about Rs 7300 crores for Jammu and Kashmir under the PMRP in the State sector. In 2005-06, J&K was allocated Rs 771.72 crores while the amount had come down to Rs 539.9 and Rs 576 crores in 2006-07 and 2007-08 respectively but it again went up to Rs 1012.97 crores in 2008-09 and Rs 1200 crores each in 2009-10, 2010-11 and 2011-12. The amount again came down to Rs 700 crores in 2012-13 and Rs 600 crores in 2013-14. In 2014-15, only Rs 45 crores have been released under the PMRP.
The plan, which was given to the State as a package for raising economic infrastructure damaged during the militancy, is being implemented in two sectors-Central and State. The Central projects, mainly power generating hydro-electric projects, are being constructed by National Hydro-electric Power Corporation (NHPC) while State sector projects are being executed by different agencies.
The State amount is released in installments every year with this year’s share kept at Rs 600 crores of which the State has so far received only Rs 45 crores and there was no hope of any fresh amount in remaining 15 days of the financial year.