Apportionment of assets | Ladakh gets 8.23% shareholding in Jammu & Kashmir Bank, PPA of 3 power plants

On the eve of the first anniversary of implementation of J&K Re-organization Act 2019, the government of India has finalized the apportionment of assets and liabilities of the erstwhile state of Jammu and Kashmir between newly created Union Territories of J&K and Ladakh.

Under the provisions of the Act, the assets and liabilities of the erstwhile state of J&K were to be divided among the two newly carved Union Territories.

Union Ministry of Home Affairs has constituted an advisory committee headed by Sanjay Mitra, IAS. The advisory committee has submitted its report to the Home Ministry which has conveyed it to administration of both UTs.

In this regard, General Administration Department has issued a notification which says: “In terms of section 84(3) read with section 85(2) of the Jammu and Kashmir Reorganization Act, 2019, the Lieutenant Governor of Jammu and Kashmir is pleased to apportion the Assets, Liabilities and Posts of the erstwhile State of Jammu and Kashmir between the Union Territory of Jammu and Kashmir and Union Territory of Ladakh.”

The apportionment orders will come into effect from October 31 as per the notification.

J&K Bank:

As per the notification, UT of Ladakh will get 8.23 percent of the shares in Jammu and Kashmir Bank.

“J&K Bank Ltd. shall continue its operations as a going concern in both the UTs. 51% of the shareholding in the J&K Bank Ltd. shall remain with the UT of J&K. 8.23% shareholding in the J&K Bank Ltd. (approximately 13.89% of the existing shareholding of the erstwhile State of Jammu & Kashmir), shall be transferred to the UT of Ladakh. One post of Director on the Board of the J&K Bank shall be earmarked for the UT of Ladakh,” the notification reads.

Power Sector:

As per the apportionment, Power Purchase Agreements (PPAs) of NHPC Plants at Chutak and Nimoo Bazgo and PPA of another 25 MW from Central Thermal/Gas Generating Stations stand transferred to UT of Ladakh.

“Any immoveable assets of the J&K State Power Development Corporation Ltd. (JKSPDCL) and the Chenab Valley Power Projects Pvt. Ltd. (CVPPL) located in the UT of Ladakh shall be transferred on an as-is-where-is basis to an entity to be set up by the UT of Ladakh or as designated by the UT of Ladakh.”

It says that existing Power Corporations of the UT of J&K shall continue to operate the facilities of the UT of Ladakh till such time a new entity(s) is set up or new arrangements made in the UT of Ladakh.

Apportionment of manpower and posts:

325 additional Gazetted posts from the overall strength of UT of J&K stand transferred to the UT of Ladakh. 3000 additional Non-Gazette posts from the overall strength of UT of J&K stand transferred to the UT of Ladakh.

Assets:

Investments in capital works/projects indicated in the statement of Financial Assets under ‘Other Capital Expenditure’, amounting to Rs. 1956 crore stand transferred to the UT of Ladakh. The book value of capital assets of the erstwhile State of J&K shall be transferred on a notional basis to the UT of Ladakh on the principle of as-is-where-is basis.

Companies/Financial institutions/PSUs:

According to apportionment, UT of Ladakh has been transferred 20 percent of equity and 20 percent of loans extended by the erstwhile state from J&K State Financial Corporation, Grameen Bank, J&K Small Scale Industries Development Corporation Ltd, J&K Scheduled Castes, Scheduled Tribes and Backward Classes Development Corporation Ltd, J&K Trade Promotion Organization, State Cooperative Bank Ltd.

It says that the JKSRTC will remain a going concern for the UT of J&K only. There will be no apportionment of equity of JKSRTC to UT of Ladakh.  The fixed assets of JKSRTC, located in the UT of Ladakh shall be transferred to any entity designated by the UT of Ladakh, as and when it is established or designated.

Liabilities:

Financial liabilities of Rs. 2,504.46 crores stands transferred to the UT of Ladakh @ 2% of the total liabilities.    

The interest amount of the Compensatory Afforestation Fund Management and Planning Authority (CAMPA) shall be apportioned as Rs. 117.67 crore and Rs. 54.10 crore to the UT of J&K and UT of Ladakh, respectively. The principle amount will be apportioned by the Ministry of Environment and Forests, Government of India.

The Building and Other Construction Workers Welfare Board (BOCWWB) shall remain with the UT of J&K. The cess Rs. 17.24 Crores, which is the net balance of Rs. 22.03 crores cess received from the UT of Ladakh, Rs. 4.7133 crore expenditure on worker welfare and Rs. 0.0764 crore administrative expenditure, stands transferred to the UT of Ladakh or an entity designated by it.

However, Wakf Properties shall remain with the UT of J&K. The Haj Committees for the UT of J&K shall remain in UT of J&K. Sher-i-Kashmir Institute of Medical Sciences (SKIMS) Srinagar shall continue to function as it is in the UT of J&K. J&K Social Welfare Board shall remain with the UT of J&K, except for any fixed assets in the UT of Ladakh which stand transferred to the UT of Ladakh on ‘as is where is’ basis.  

Immoveable Property Located Outside the Erstwhile State:

The J&K House at 5 Prithviraj Road, New Delhi; the Rajaji Marg property at New Delhi; the Guest house, BRIL, Shalimar Bagh, New Delhi; the J&K Emporium at Baba Kharak Singh Marg, New Delhi; the Guest House at Amritsar; and the property at SCO 28-31, Sector 17-A, Chandigarh shall remain with the UT of J&K.

The H. No. 36, Sector 5-A, Chandigarh, Flat No. 32 Adamant Building, Mumbai, 11-Engineering Building 4th Floor, Sleater Road, Mumbai and all properties of LAHDC at Jammu and Srinagar shall remain with the UT of Ladakh.

The Guest Houses/Circuit Houses in the UT of J&K shall remain with the UT of J&K, but available for use of officials of the UT of Ladakh as and when required.