J&K approves special assistance package for submission to Centre

The assistance package will be used as relief for flood-affected people of the state

Jammu and Kashmir government has approved a special assistance package of Rs 44,000 crore for submission to the Centre as relief for flood-affected people of the state.

The approval to the special assistance package was granted by the state government at a marathon cabinet meeting chaired by Chief Minister Omar Abdullah yesterday, an official spokesman said.

"The Cabinet approved the special financial package for submission to Government of India for providing of funds to the tune of Rs 44,000 crore for rehabilitation of the people who suffered due to floods and for restoration of the damaged infrastructure," the spokesman said after the nearly six hour meeting.

The cabinet also decided to approach the Union Home Ministry for releasing funds to the tune of Rs 1947.20 crore under NDRF besides requesting the Union Government to declare tax holiday for Jammu and Kashmir for a period of 10 years to help in the revival of the State's economy.

The Cabinet also recommended the Union Government for issuing directions to all banks and financial institutions for re-scheduling of loans or granting of moratorium and remission of interest during the moratorium period and providing of fresh loans in favour of flood affected people.

It also sought waiver of loans availed by an individual upto Rs 3 lakh and interest subvention of five per cent on the loans already raised after completion of the moratorium period.