Jammu and Kashmir Chief Minister Defends Special Assistance Scheme
Chief Minister Omar Abdullah of Jammu and Kashmir strongly defended the Special Assistance to States for Capital Investment scheme, dismissing claims that it is a “debt trap.” He emphasized that securing Rs 3,000 crore under the program is a significant achievement for the Union territory.
During the Budget discussions in the Assembly, Abdullah criticized those who criticized the scheme, stating that their objections were based on a misunderstanding of its provisions and long-term financial impact.
Abdullah addressed concerns raised by some individuals, stating that Jammu and Kashmir would receive an interest-free loan for 50 years under the SASCI scheme. He refuted claims that the Union territory was being pushed into a debt crisis, highlighting the financial assessment conducted by the government.
The Chief Minister clarified that taking a loan of Rs 3,000 crore today would not lead to a significant debt burden after 50 years. He explained that after accounting for interest and future value, the loan amount would be equivalent to only about Rs 97 crore in the future.
Abdullah also responded to criticisms from Congress MLA Tariq Hameed Karra, pointing out that several states, including Punjab and Himachal Pradesh, have availed substantial funds under the SASCI scheme. He highlighted the amounts borrowed by these neighboring states over the years to demonstrate that Jammu and Kashmir’s loan was not an anomaly.
Despite apprehensions expressed by members of the Congress and the PDP, Abdullah defended the scheme, emphasizing that securing Rs 3,000 crore for the people of Jammu and Kashmir was a significant achievement for the government.
However, PDP MLA Wahid-ur-Rehman Para called for a House committee to examine the long-term implications of the SASCI scheme in Jammu and Kashmir. Congress MLA Karra also expressed concerns about the scheme and cautioned against accepting funds without thorough scrutiny to avoid falling into a debt trap.
