Centre Gives Rs 2,504.46 Cr to Ladakh For Managing Its Jammu Kashmir Liabilities | Kashmir Life

SRINAGAR: The Lok Sabha on Monday approved additional expenditure of Rs 2,504.46 crore for the Union Territory of Ladakh, to be transferred to Jammu and Kashmir as part of the apportionment of liabilities between the two Union Territories following the reorganisation of the erstwhile State of Jammu and Kashmir.

The approval forms part of the Union Finance Ministry’s supplementary demands for grants for the financial year 2025–26. According to the documents placed before Parliament, the allocation relates to the distribution of assets and liabilities between Jammu and Kashmir and Ladakh, both of which came into existence as separate Union Territories after August 5, 2019.

In a significant allocation under the supplementary grants, the Finance Ministry has also provided Rs 340.15 crore towards additional expenditure for equity contributions to two major projects — the 624 MW Kiru hydroelectric project and the Jhelum Tawi Flood Recovery Project (JTFRP). Of this, Rs 154.81 crore has been earmarked as equity contribution for the Kiru project, while Rs 185.34 crore has been allocated for the JTFRP, which is an externally aided project.

Through the same supplementary grants, the Finance Ministry has sanctioned Rs 2,504.46 crore to the Union Territory of Ladakh to meet additional expenditure required for transfer to Jammu and Kashmir towards the apportionment of liabilities between the two Union Territories.

Ladakh has also been sanctioned Rs 20.14 crore as additional expenditure for transfer to Jammu and Kashmir for the construction of the High Court complex at Jammu.

In addition, the Finance Ministry has allocated Rs 148.64 crore to enhance the budgetary support for Ladakh’s two Autonomous Hill Development Councils — Leh and Kargil. While the Kargil Hill Development Council is currently in place, the Leh Hill Development Council ceased to exist in October this year due to the delay in holding elections, following which its powers were vested with the Deputy Commissioner, Leh.

According to the apportionment of liabilities worked out between the two Union Territories, Ladakh has been assigned two per cent of the total liabilities of the erstwhile State of Jammu and Kashmir, amounting to Rs 2,504.46 crore.

Following the abrogation of Article 370 and the reorganisation of Jammu and Kashmir, the Government of India had constituted a three-member committee to determine the distribution of assets and liabilities between the two Union Territories. The committee was headed by former Defence Secretary Sanjay Mitra and included retired IAS officer Arun Goyal and retired Indian Civil Accounts Service (ICAS) officer Giriraj Prasad Gupta.