Release of PMDP funds to be expedited
Sanjeev Pargal
JAMMU, July 27: Chief Minister Mehbooba Mufti today called on Union Finance Minister Arun Jaitley, who also holds additional charge of the Defence Ministry, in New Delhi this afternoon and discussed with him the Prime Minister’s Development Package (PMDP), release of certain specific funds for Jammu and Kashmir and compensation in lieu of implementation of Goods and Services Tax (GST), which has been assured to almost all States of the country.
“The Centre has been very positive to the demand of Jammu and Kashmir including release of annual funds as well as the amount under Rs 80,000 crores worth Prime Minister’s Development Package (PMDP), which after sanction is now being looked after by the Union Home Ministry headed by Rajnath Singh,” sources told the Excelsior.
The Chief Minister, who reached New Delhi this afternoon, had half an hour long meeting with Jaitley during which she was understood to have discussed the status of State’s finance, post-implementation of GST in the State on July 7, the steps taken by the State Government on implementation of the GST and release of certain grants including under the Centrally Sponsored Schemes (CSSs), welfare measures, PMDP and various other developmental related projects to give boost to infrastructure development of J&K.
She would return to Srinagar, the summer capital of the State, tomorrow morning.
The Union Finance Minister is understood to have assured the Chief Minister that the Centre was ready to extend every kind of support to Jammu and Kashmir Government to carry forward the developmental projects under PMDP and normal annual funding.
This was the first meeting Mehbooba had with Jaitley after implementation of GST in the State on July 7, a week later than all other States of the country.
Sources said a proposal by Jammu and Kashmir Government and 10 other States including eight from North East and two Himalayan States of Himachal Pradesh and Uttarakhand for Central budgetary support to the industry in place of Central excise Duty was under “active consideration” and was likely to be approve anytime.
Minister of State in the PMO and Incharge North Eastern States, Dr Jitendra Singh told the Excelsior that the Centre has received representation from three Himalayan States including Jammu and Kashmir, Himachal Pradesh and Uttarakhand and eight North Eastern States seeking budgetary support to the industry after implementation of the GST regime across the country.
Dr Jitendra Singh said the issue has been taken up by him and it was under “active consideration” of Narendra Modi Government. Hopefully, he added, the positive results would come out very shortly.
Sources pointed out that industrial units in eight North Eastern States and three Himalayan States were receiving Central Excise Duty exemption before implementation of the GST. The exemption had expired on March 31 this year but was likely to be extended. However, after implementation of the GST, the Central Excise Duty ceased to exist.
“All these 11 States had been assured by the Centre that their demand for relief to the industry would be appropriately addressed under the GST regime,” sources recalled and said the Centre after receiving representations from the States was now finding ways and means to extend incentives to the industry, which were available to them before implementation of the GST.
They added that the incentives were likely to be extended in the form of budgetary support and the Government of India could make an announcement to this effect shortly.
According to sources, the decision by the Government of India to extend incentives to industry in post-GST regime would go a long way in helping industrial sector to grow in all 11 States, where there was not much industrial growth. Post-GST regime, these incentives were not possible as Central Duty exemption, which the industrial units were getting, ceased to exist.
Meanwhile, according to sources, the Central Government was likely to expedite release of funds to the State Government under Prime Minister’s Development Plan (PMDP) to give boost to the development projects.
“The PMDP is being implemented in two parts-Centre and State sectors. In the State sector, the Centre was mulling release of funds for the projects, which have been undertaken by the State Government and work on whom was satisfactory,” sources said.
Follow our WhatsApp channel
