J&K suffered Rs 16,000 cr loss due to Kashmir unrest

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Jammu: Jammu and Kashmir suffered losses to the tune of over Rs 16,000 crore during the five-month long unrest in the Kashmir Valley due to complete halt of economic activity coupled with loss of property worth crores of rupees. “Losses caused due to the unrest from July 8 to November 30, 2016 are estimated at more than Rs 16,000 crore,” Economic Survey 2016 report tabled by Minister for Finance Haseeb Drabu in the Jammu and Kashmir Assembly today stated.
“The scraping of internet services, mobile and phone services for long spells during the turmoil made communication in the state very difficult. Hartals, bandhs, stone pelting, curfews and restrictions immobilised life in all the 10 districts of the Valley,” it said. On the issue of macro-economics costs, it said the conflict has reduced per capita GDP growth, FDI inflow, exports and trade flow in the state. The number of tourist who visited the Valley in 2015-16 stood at 6,23,932 including 2,20,490 Amarnath yatris. The disappearance of tourist in the Valley during four peak months resulted in loss of business to hoteliers, restaurants, houseboats, handicrafts, poniwallas, transporters, shikara walla and so on, it said adding the revenue loss in the second quarter of 2016-17 was of Rs 751.97 lakh (80 per cent) compared to revenue realisation of Rs 936.89 lakh in Q2 of 2015-16. The report said the industrial sector in Kashmir suffered losses of Rs 13,291 crore. Private sector lost 6,548 crore and government sector Rs 6,713 crore. As far as estimated turnover and revenue loss is concerned, it is to the tune of Rs 13,291 crore.
The banking sector accumulated non-performing assets due to the turmoil. Gross NPAs increased from 5.39 per cent on 31 March, 2016 to 7.08 per cent on September 30, 2016. As far as the impact of the disturbance on credit dispensation by the banking sector is concerned, the total credit disbursed under annual credit plan 2016-17 at the end of current financial year stood at Rs 5631.13 crore (20.37 per cent of the ACP target) as compared to credit disbursement of Rs 8080.21 crore (34.23 per cent of the ACP target) as at the end of the first half of financial year 2015-16. Some of Jammu-based small scale industrial units also suffered production losses to the tune of Rs 1800 crore in turnover and revenue losses of Rs 275 crore, it said. The transport sector, the report said, also born the brunt as stone pelters targeted “all types of vehicles and damaged two wheelers, three wheelers, four wheelers and six wheelers”. It said the non-earning of transporters due to the conflict resulted in non-payment of bank loans and consecutive default in repayment of loans for three months and more. The shutdowns also hit Jammu and Kashmir State Road Transport Corporation (JKSRTC) which suffered loss of revenue to the tune of Rs 5.25 crore as compared to last year and its 182 vehicles, including 76 trucks, were damaged by miscreants. Food supplies and consumer affairs were also hit as 4,908 kilolitres of kerosene oil could not be lifted and distributed among beneficiaries, it said adding the comparative analysis of the department revealed that only Rs 7.50 lakh (4 per cent) was expanded during Q1 and Q2 of the year 2016-17 as against Rs 36 lakh (21 per cent) during the same period in 2015-16.