The Union Home Ministry has informed the Lok Sabha that the central government has approved Rs 1,352.99 crore on 25th September 2020 for Jammu and Kashmir. The written response was given to Saptagiri Sankar Ulaka, a congress MP from Koraput, Odisha.

The question sought the details 'whether the government has created a stimulus package for J&K to address the economic slump caused by yearlong lockdown and communication blockade.' It further asked about the quantum of funds released and utilized as of 31st December 2020.


In response, G. Kishan Reddy, the Minister of State in Home Ministry responded that a mega business revival package of Rs.1,352.99 crore has been approved on 25th September 2020. The reply also read, "An amount of Rs. 434.08 crore was released up to 31st December 2020, out of which Rs. 250 crore was as Economic Relief package and Rs. 184.04 crore as COVID relief. The amount of Rs. 434.08 has been fully utilized by 31st December 2020."

Package announced last September

Last year, Lieutenant Governor (L-G) Manoj Sinha had announced a mega relief and revival package of around Rs 1,350 crore to support tourism and other business sectors in Jammu and Kashmir to help overcome the Covid-19 crisis. The package included financial and non-financial components.

Manoj Sinha
J&K LG Manoj Sinha

The government waived 50 percent of the electricity and water bill amounts for a year across Jammu and Kashmir as part of the package, with the goal of providing immense relief to farmers, families, and businesses.

Until September 2020, J&K had lost a whopping Rs. 42,000 crore since the abrogation of Article 370 due to internet shutdowns and COVID-19 related lockdown.