Mr President,
Secretary General,
FICCI Functionaries,
Distinguished members, Ladies and Gentleman,

It is my privilege to participate in the platinum Jubilee celebrations of this prestigious organisation. I would like to convey my sincere thanks to FICCI for providing me with this early opportunity to talk about Jammu and Kashmir.

We are all aware of the trials and tribulations, which the people of my state have gone through in the past decade and more. The shattered economy of the State and disruption in the social Sector infrastructure has engulfed most of the state. Over the years J&K has not only been a political hot spot with an enormous fall out on the security situation of South Asia, it has also emerged as one of the gravest human disasters. Leaving behind the events of the recent past let me remind you that there was also a day before in Kashmir. It was indeed a heaven both in the scenic and metaphoric senses. Most of you, distinguished ladies and gentlemen, have been regular visitors to that Kashmir, when it was considered the safest place in this part of the World. But, what happened then? Why couldn't an entrepreneurial bond develop between us and the rest of the country to introduce an economic element into the boldest political union the modern World has known? This is a question to be pondered over and lessons learnt from it. I am of the firm view that the absence of a stake for the ordinary Kashmiri in the huge industrial and commercial sector of the country at almost all levels was a factor that added to his vulnerability on emotive issues. We must address this situation squarely.

Let me refer to the past investment scenario. If the country is finding it easy to switch over to globalization and a market economy, much of the credit should go to the vast resources and the infrastructure created as a result of Governmental investment. It is not only the private sector that shied away from Kashmir at a time when it had no reason to do so, the public sector did distinguish itself with a higher degree of apathy. Out of an investment of about Rs 180 lakh crores made in the public sector, the share of J&K has been hovering under 20 crores in two units, out of which the major one has almost closed its activities.

But we can't live in the past. There is a future awaiting us in Jammu & Kashmir. A future that J&K voted for in the recently concluded historic elections. These elections have been a defining moment for the people of the State, a triumph for democracy and ringing affirmation of India's liberal tradition. We are at crucial cross roads where a new edifice of trust and faith can be built or the recent gains on the political front frittered away.

A new beginning has been made in the industrial sector by the central Govt. by announcing an attractive economic package for J&K. Under this package Tax exemptions including exemption from central excise have been granted to new investors and, on substantial expansion to the existing industries. The package also carries attractive fiscal incentives. I hope this package will vastly improve the investment climate in the State. The initial response from trade and industry has been very encouraging.

The economy of the state has to rise above doles and the youth have to have a vision and faith in their abilities. That is an area where you can guide and help us. I am aware that this august body has always been concerned about the problems of the state. An initiative had emerged from FICCI way back in 1997. With proper follow up it could have resulted in considerable gains for the state and I hope that it would be pursued now to its logical conclusion.

While Kashmir was facing senseless violence a new generation has grown up. They are undaunted by these events and heavy odds. They have acquired skills in various fields, most prominently in the Information Technology and Engineering Sectors. These human resources are waiting to be harnessed. The State has over 10,000 highly trained and skilled professionals available for employment. With Central Govt. assistance, we have a software technology park in Srinagar with adequate bandwidth and connectivity. The Government of India is poised to approve a massive project for providing I.T. Services at the Block Level. This infrastructure awaits commercial exploitation, which would provide substantial avenues of employment for the skilled manpower from the State. The Government will do all that is required to create a proper atmosphere and working conditions for the initiatives from outside the State and this sector shall be given the highest priority.

My State is a rather late entrant in the area of industrialization and also new technologies. The available data reveals that the per capita income of J&K exceeded the national level per capita income till the plan period 1980-85. In the year 1980-81, against the national average of Rupees 1630, the per capita income of J&K stood at Rupees 1776. However, from the mid eighties, because of various factors, J&K started sliding from its position at the national level. The onset of militancy dealt a severe blow to the growth of the state's economy. The state also lost the advantage, which it had under various policy dispensations as a backward State. Alongside the political difficulties witnessed by the State during this period, the liberalization of the economy, ironically, pushed the state economy down due to the loss of entitlements granted under various regulatory policies of the Central Government aimed at the equitable growth of all the regions of the country. Under the liberalized regime, this state, unfortunately, could not benefit from the upsurge in economic growth and enhanced capital flow both from within and outside the country.

A mutually beneficial relationship between the Centre and the State in a truly federal spirit is an important political goal of my government. This arrangement must be holistic, encompassing political, social and economic spheres. We need to open up Kashmir and its economy to the rest of the world. For this purpose the basic requirement would be an easy access and connectivity to the valley. Though the Government of India has already taken up a project for linking Kashmir through railways, the terrain, type and nature of traffic movement of passengers, services and goods, all entail a dependable, time and energy saving road access. The only available road link is through one of the most over crowded highways, which is becoming undependable and unsafe with every passing year. Upgradation of this highway has already been included in the National Highway project announced by the Hon'ble Prime Minister and has been made part of the North-South Corridor. The economic viability of this project on BOLT or BOOT basis has been established by a survey conducted with the assistance of HUDCO. Return travel between Srinagar and Jammu with in a day can become a reality with the construction of this Highway. I seek the assistance of FICCI in making this project a success. I need not emphasise the positive impact of this project on the economic, political and social life of the State. I am thankful to the Hon'ble Prime Minister for his keenness to support this project.

My Government is concerned about our fragile eco-system, environmental degradation and increased pollution in our towns and cities. The treasured bounty of nature is reflected in our forests, hills and water bodies. This natural landscape has acted as our USP serving the economic interests of the State in the shape of a thriving tourist industry. It is unfortunate that callousness human greed and lack of policy initiatives are robbing us of these resources. My Government will earnestly address the restoration of the pristine glory of the world famous Dal lake and other water bodies. Some proposals have already been formulated for the protection of the Jehlum and Chenab rivers as these rivers have acted as the life line of society. My Government will further fine tune these proposals which shall, however, require a higher degree of funding from National and International bodies.

The State of J&K is a repository of herbal and medicinal plants. Genetic materials from high altitude herbs are a great resource for the Bio-technology industry. The low volume and high value nature of this industry makes it an ideal growth area for our state. I invite private investment in technologies, research and development in this sector.

Another potential growth area is horticulture and agro-based industries. I am happy that FICCI has prepared a report on this sector which will be our guiding document. But apart from technical advice the industry majors will have to ensure their presence on the scene. There is a vast food industry in Kashmir with delicacies in cuisine and bakery. Similarly, Kashmir is the repository of a variety of organic foods, the worldwide craze for which can be exploited for significant economic gains.

I am happy to mention here that the state has already taken up the construction of three Food Parks with the assistance of the Government of India at Srinagar, Sopore and Jammu. These parks can act as launching pads for the food processing industry.

Power has been the proverbial Achilles heel of the State. Our waters, just partly ours thanks to the Indus water treaty, could, inspite of curbs on their use, generate something like 20,000 Megawatts of Hydel power, I would not burden you with the problems the state has been facing in organizing funds for hydel projects but I must inform you that the sector is up for investment by the private sector with sufficient incentives. We have also embarked upon a plan to modernize our transmission systems, which will be accompanied by sectoral reforms. Suggestions on this vital area from you would be immensely valuable and welcome. I would like to mention here that the process of reform through out the country in the power sector has been a long drawn one. Thus while we wait for the reforms, we should not neglect any short term measures that can be taken.

The Secretary General of FICCI has, in one of his papers, aptly described the present scenario in Kashmir by stating that this land of opportunity, beauty and grace is back on track and all we need is the political will and analytical tools to bring out a spurt in economic activity. I am also encouraged by the remarks made by the ambassador of the United States on his last visit to J&K a fortnight back in which he has promised international assistance and assistance from his country for the economic development of the State.

My Government plans to embark on a programme of providing quality infrastructure that shall serve the socio-economic sectors of the state. This will lead to economic upliftment of the people, so essential for the ongoing process of restoring normalcy in the state. This is the challenge we have accepted and this is the area where I seek wholehearted support from this forum.

Ladies and Gentlemen, I am grateful for the courtesy shown to me by your distinguished fraternity. I would avail such opportunities which will help us in reaching out to investors, experts and leaders of public opinion. I have often said that the burden of hope that the new government has generated among my people is scary. That is no over statement. But, I am strengthened in my resolve by the belief that this great country is with us. I have begun by generating hope and am determined to convert it into actual relief for the people. I will count on your participation in this great and exciting task.