Sanjeev Pargal
JAMMU, Aug 18: After extending industrial incentives for next 10 years in favour of Jammu and Kashmir and other Himalayan and North Eastern States, the Centre Government has taken up the proposal for the similar States for doing away with mandatory funding by the States in the Centrally Sponsored Schemes by allocating 100 per cent funds for the Central projects.
Official sources told the Excelsior that the Himalayan and North Eastern States, which have been brought under the category of `Special Category States’, have projected their case with the Government of India for facilitating 100 per cent funding from the Centre under the Centrally Sponsored Schemes on the ground that, in certain cases, they even don’t have 10 per cent or 30 per cent mandatory funds for the project, a result of which the project is either shelved or gets delayed, leading to massive cost escalation.
“Some of the States including Jammu and Kashmir either couldn’t take up certain projects under Centrally Sponsored Schemes or they were delayed for want of requisite funds for them that led to delay in execution of projects as well as escalation of costs,” sources pointed out and said if there was 100 per cent funding from the Centre, the project will not only be taken up in time but completed within the prescribed period and there will be no cost escalation.
Asserting that the proposal is very significant, sources pointed out that when approved it would help the Himalayan and North Eastern States a long way in executing the Centrally Sponsored Schemes well in time without any financial constraints, leading to developments of the States.
When approached for comments, Minister of State in the Prime Minister’s Office (PMO) Dr Jitendra Singh told the Excelsior that the project was under “active consideration” of the Centre and was being vigorously pursued by him with the Union Finance Ministry.
“The Himalayan and North Eastern States have projected their case for 100 per cent funding of Central projects. The proposal has been examined and taken up with the Finance Ministry. Hopefully, there will be positive response,” Dr Jitendra Singh, who represents Jammu and Kashmir in the Council of Ministry and holds Independent charge of North Eastern States, said.
Dr Jitendra Singh said the proposal would help the Special Category States in timely implementation of their projects and prevent cost escalation.
The Himalayan and North Eastern States, which have projected their demand with the Centre, included Jammu and Kashmir, Himachal Pradesh and Uttarakhand, Sikkim, Arunachal Pradesh, Assam, Meghalaya and Manipur.
Sources said the proposal was being considered by the Union Finance Ministry and there were bright prospectus of it getting Central nod soon in view of Prime Minister Narendra Modi Government’s decision to ensure speedy development of Jammu and Kashmir, other Himalayan and North Eastern States.
A day before, the Cabinet Committee on Economic Affairs (CCEA), on recommendations of the Union Finance Ministry headed by Arun Jaitley, had cleared proposal for extension of 10 years the industrial incentives to Jammu and Kashmir and other Himalayan and North Eastern States in the aftermath of implementation of Goods and Services Tax (GST).
According to sources, the States have projected that they have been getting number of projects under the Centrally Sponsored Schemes but were unable to take up big projects due to their inability to spare funding from the State sector. It was in this context that the States have pleaded for full funding for the Central projects, sources said, adding that a decision to this effect could be taken shortly.
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