J&K lost over Rs 16000 crore during the five month long Kashmir uprising in 2016. This was revealed in Economic Survey 2016, a report tabled by Minister for Finance Haseeb Drabu in the Assembly on Tuesday.
"Losses caused due to the unrest from July 8 to November 30 this year are estimated at more than Rs 16,000 crore. The cost of security related expenditure is over and above the losses caused due to the 2016 unrest in JK state,” reads the report.
The report states that the civil strife caused “tremendous” miseries, loss of life and complete halt of economic activities in Kashmir coupled with loss of property worth crores of rupees.
The survey has attributed the scraping of internet services, mobile and phone services for long spells during the turmoil to the Kashmir unrest. “Hartals, bandhs, stone pelting, curfews and restrictions immobilised life in all the 10 districts of Kashmir," the report said.
It states that chronic patients suffering from cancer, heart diseases and those requiring dialysis had to suffer and general medical services were badly affected as well.
“Lack of primary treatment resulted in death of some of the patients.”
The report says that the conflict has reduced per capita GDP, FDI inflow, exports and trade flow in the state and reduced domestic investment and savings.
“The tourist flow was also reduced besides affecting demand for transportation,” the report reveals.
"The tourist season last year started in April and was in full swing up to July 7 but the remaining four months remained completely tense and registered closure of all activities due to turmoil resulting in almost zero arrival of tourists in Kashmir".
The report states that “disappearance” of tourists in Kashmir during four “peak” months resulted in loss of business to hoteliers, restaurants, houseboats, handicrafts, poniwallas, transporters and Shikara walla.
The report states the revenue loss in the second quarter of 2016-17 was of Rs 7.52 crore (80 per cent) compared to revenue realisation of Rs 9.37 crore in Q2 of 2015-16.
The report reveals that class 10th and 12th could only complete 40 to 50 percent of total curriculum and schooling was conducted only for a period of four months.
“These fire fighting measures would definitely tell upon the learning capabilities, quality and quantity of education attained by the students of Kashmir which will impair their future learning and competitive abilities,” report said.
The report has also revealed that construction activities received a setback due to the 2016 uprising stating that all the work on major and minor construction projects came to halt due to the “turmoil”.
“Almost 90 percent skilled and unskilled labour from Bihar/UP and West Bengal which migrate to Kashmir during April 2016 stayed only up to June,” the report reads.
The report has attributed the delay in the completion of Jehangir Chowk-Ram Bagh flyover and Kishan Ganga Hydel Power project to the 2016 unrest. “The construction agencies who were constructing major projects like flyover, bridges and major power projects have come to grinding halt,” reads the report.
“The delay in completion of the projects will escalate the cost of these projects.”
The report has termed transporters as the worst hit sector and stated that non-earning of transporters due to turmoil resulted in non-payment of bank loans. “The consecutive default in repayment of loans for three months and more to the Banks means increase in NPA to the banks,” the report reads.
The report has stated the 2016 turmoil adversely affected the economic pursuits of all the business establishments in the State and the impact has resulted in borrower’s inability to conduct their business in normal manner.
The report states that the huge credit portfolio of the banks operating in the state was under stress and may slip to NPA.