CM Omar Meets Finance Minister Nirmala Sitharaman, Seeks Enhanced Funding for Jammu Kashmir

SRINAGAR: Chief Minister Omar Abdullah on Tuesday met Union Finance Minister Nirmala Sitharaman in New Delhi to seek increased funding for Jammu and Kashmir, sources informed.

J&K CM Meets Union Finance Minister Nirmala Sitharaman on November 15, 2024 (File Picture)

Sources revealed that the Chief Minister pressed for enhanced financial support to the Union Territory to address liabilities from the last financial year.

“The CM is believed to have sought additional financial support from the Centre to address liabilities amounting to Rs 10,000–12,000 crore accrued during 2023–24,” they said.

Omar, according to the sources, engaged in pre-budget discussions with the Union Finance Minister and emphasised the necessity of robust central support for the region.

“The Finance Minister assured the J&K Chief Minister of all possible assistance and pledged to address his concerns,” the sources added, noting that such meetings between the J&K Chief Minister and Union Ministers are part of regular administrative engagements.

This meeting marks the second between Omar Abdullah and Nirmala Sitharaman within a span of one and a half months, with the previous meeting taking place on 15 November 2024.

After the meeting, Omar Abdullah shared on Instagram, “Called on Union Minister of Finance and Corporate Affairs, Smt. @nsitharaman ji. Our discussion centred around crucial economic matters concerning Jammu and Kashmir. I passionately advocated for much-needed support from the Union Finance Ministry for the region.”

He expressed optimism about collaborative efforts with the Central Government, which he believes will enhance financial stability and promote sustainable development in Jammu and Kashmir.

The Chief Minister also sought the Finance Ministry’s support for securing multi-lateral funding to develop new tourism destinations in the region. The initiative aims to decongest existing tourist locations and establish world-class infrastructure at newly identified sites.

Omar Abdullah thanked the Finance Ministry for approving the Competitiveness Improvement of Agriculture & Allied Sectors Project (JKCIP) for Jammu and Kashmir. This project, with a funding of USD 100 million from the International Fund for Agriculture Development (IFAD) over seven years, is expected to rejuvenate the region’s agriculture sector.

In this context, the CM requested the Ministry of Finance to treat Jammu and Kashmir on par with North Eastern states for incentives related to Externally Aided Projects (EAP) and to make J&K eligible for a special lending arrangement under these loans.

He further urged the Finance Minister to consider Jammu and Kashmir for funding under the “Special Assistance to States for Capital Investment” scheme, which provides a 50-year interest-free loan for capital expenditure.

The Chief Minister also highlighted the fiscal challenges faced by Jammu and Kashmir, requesting additional central assistance of Rs 6,000 crore to bridge the resource gap in the Union Territory’s budget for FY 2024–25. (KNO)

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