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Nationalised banks to resume operations in Kashmir valley: Sinha

All licensed branches of public sector banks in the Kashmir valley, which had shut shop following the eruption of militancy in 1989, will resume operations by December 31 this year.

This was announced by visiting Union Finance minister Yashwant Sinha while addressing a press conference in Srinagar before his return to New Delhi.

Though the Centre had made an announcement to this effect two years ago, till date not a single public sector bank has resumed operations in the valley.

"Chief Minister Dr Farooq Abdullah has assured all help to re-open the branches of the various banks in the Kashmir valley," Sinha said.

He said the deputy governor of the RBI, who was part of Sinha's high-level central team, has 'assured liberal grants for re-opening of new branches in the state'.

The minister said, "Public sector banks will launch a drive to recruit locals to run their operations in the valley. No branch will be allowed to suffer for want of staff as arrangements have been made to borrow officials from the Jammu and Kashmir Bank wherever necessary to meet immediate needs."

The Finance minister announced increase of about Rs 1200 crore (Rs 120 billion) in credit flow from nationalised banks and financial institutions to Jammu and Kashmir for revival and rehabilitation of various sectors of the economy.

"The credit disbursement would increase from Rs 3847 crore (Rs 384.7 billion) in March this year to Rs 5000 crore (Rs 500 billion) by March 2002.

Earlier addressing the convocation ceremony of the University for Agriculture Science and Technology, Sinha called for 'devising appropriate mix of approaches and strategies for sustainable agricultural development, with emphasis on ecological restoration, bio-preservation and economic upliftment'.

"Productivity levels needed to be raised in crops. Even in foodgrains, our yield rates are low. China's paddy yield per hectare is 6 tonnes compared to just 2.9 tonnes in India," he pointed out.

Sinha allayed apprehensions arising out of removal of import restrictions under the World Trade Organisation agreement and said, "Instead, there is a need to draw lesson from the rapidly changing policy frame work."

He referred to the availability of the US and New Zealand apples in Delhi and other cities in the lean season at the rate of Rs 90 to Rs 150 per kg.

"We need not to worry about it. What we should do is to ensure availability of Kashmir and Himachal apples throughout the year and not just between August to February," Sinha said.

"Our policy and mindset has to be transformed to deal with surpluses rather than shortages," he added.

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