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Rediff News  All News  » Business » ADB promises financial aid for J&K

ADB promises financial aid for J&K

February 26, 2004 17:04 IST

Jammu and Kashmir will receive 'liberal financial support' for modernisation projects from the Asian Development Bank, the government said on Thursday.

A visiting trio of the bank's top executives gave the assurance at a meeting Wednesday night with Deputy Chief Minister Mangat Ram Sharma, the government said in a statement.

"The areas where the ADB funding would be required include modernisation and overhauling of power supply systems, sewerage and drainage in the two capital cities of Srinagar and Jammu, besides other towns," the statement said.

The statement did not say how much money the government needed.

Srinagar and Jammu serve as state capitals for six months each during summers and winters, respectively.

The bank's team is on a three-day tour of Kashmir, where a revolt against New Delhi's rule since 1989 has left tens of thousands dead.

The government also wants the ADB's help to improve the supply of drinking water and to create housing for poorer communities.

Sharma told the bank's officials that the state government had drawn up plans in the two capitals but they could not be implemented due to a lack of funds.

Sharma also briefed the delegation about the potential for generating electricity and sought funding for new hydroelectric projects.

"Non-availability of adequate power is an obstacle for industrialisation in the state," he said.

The revival of the Kashmiri silk industry, the promotion of handicrafts, food processing, floriculture, herbal plants and tourism were also discussed.

The ADB delegation is led by chief economist for India and deputy country director Sudipto Mundle.