ECONOMY OF J&K

AMKAY CLASSES
 Economy of Jammu and Kashmir

Industries:
• Important Industries
• Industrial Policy
• PSUs
• Important Institutions

Important Industires:
Industries play an important role in the development of an economy.
Important industries of Jammu and Kashmir are:

Silk Industry:
• There are two silk factories in J&K. One in Jammu and other at
Rambagh, Srinagar established by Maharaja Pratap Singh in
May, 1897.

Carpet Making Industry:

• One of the oldest industries in Kashmir as these carpets are
very famous for their excellent design and patterns.
• The main carpet manufacturing centres are in Srinagar
➔ The Cottage Industry Exposition (CIE)
➔ The Kashmir Carpet Factory
➔ John Carpet Factory and Oreintal Factory

Food Processing Industry:

 • J&K is ranked first in the production of apples, walnuts and
cherry.

Rice and Floor Mills:

• Sarveshwar Foods, a rice processing company became the first
SME company from J&K to get listed on National Stock
Exchange (NSE).
• A number of rice floor mills have been established at various
places in J&K like R.S Pura, Hira Nagar, Vijaypur, Kathua,
Srinagar, Baramulla etc.

Sports Goods Industry:

• These industries contribute immensely to J&K’s economy.
These goods are being manufactured at Miran Sahib (Jammu)
and in the villages of Anantnag.

Cement Industry:
• A number of cement factories have been established in Jammu
and Kashmir. The Wuyan Cement Factory was established in
1962, to which raw material is supplied from Uri and Baramulla
areas.
• In 1982, J&K Cements ltd. was established at Khrew.

Hindustan Unilever Ltd.:

 • It is situated in Bari Brahmana (Jammu). They manufacture
soaps, toothpastes, shampoos etc.

IT Industry:
• It is referred to as “Sunrise Industry” as it is an emerging sector
in J&K and has immense potential for employment
generations.

Resins and Turpentine Industry:

• Its centres are at Miran Sahib, Sunderbani and Rajouri.

Bottling Company:
• Cold drinks bottles are filled at Gangyal (Jammu).

Industrial Policy:
• The Industrial Policy (AMBITIOUS PLANS)- 2016 will remain
effective upto March 31, 2026. It sets up targets to increase the
share of “manufacturing, services and trade sector” in Gross
State Domestic Products (GSDP)
• To attract investment of Rs 20,000 crore in the industrial sector
and to create 15,000 direct and indirect job opportunities
annually upto 2026.
• Creation of Land Bank of about 20,000 Kanals and supply of
additional 150 MW power to the industrial areas every year.
PSUs (Public Sector Undertakings):
• PSUs were set up in the erstwhile state, keeping in view the
objective of industrial development for which private
investment was not available. However most of the PSUs are
running into loss with the exception of:

➔ Jammu and Kashmir Power Project Construction

Corporation Limited.
➔ Jammu and Kashmir Tourism Development Corporation
➔ Jammu and Kashmir Cable Car Corporation Limited
➔ Jammu and Kashmir Forest Corporation Limited

Important Institutions:

SIDCO:
• J&K State Industrial Development Corporation Limited was
incorporated in the year 1969 in order to promote and develop
medium and large scale industries in J&K. It has been acting as
a nodal agency for the ministry of Food Processing Industries,
GOI.

SICOP:
• J&K Small Scale Industries Development Corporation Limited
was established in 1975, with the main aim to develop Small
Scale Industries in J&K. Its main objective is to supply raw
materials, provide testing facilities and develop industrial
estates.
KVIB:
• J&K Khadi and Village Industries Board was established in 1962
in order to provide gainful employement to rural artisans of
J&K.

SFC:
• J&K State Financial Corporation was established to act as a
regional development bank with the aim of Promoting
industries and boosting economic development in J&K.

The J&K Bank:

• It was founded on October 1, 1938 under the reign of Maharaja
Hari Singh. It commenced business on July, 1939 and was
considered the first of its nature as a state owned bank in the
country.

JKEDI:
• J&K Entrepreneurship Development Institute was established
in March 1997 and started its regular activities in Feb 2004. It is
the only institute in J&K which enables Entrepreneurship and
promotes development in the grass roots in the real sense. The
main objective of the institute is to create awareness and
facilitate entrepreneurship in J&K by imparting skills,
education, up gradation training and bringing about
behaviourial changes towards the concept of Entrepreneurship
at the social level.
Industrial Complexes:

• Industrial Complex Lassipora at Pulwama in Kashmir

• Industrial Complex at Bari Bharamana in Jammu
• Industrial Estate at Gangyal in Jammu
• Industrial Estate at Zakura in Srinagar
• Electronic Complex at Khonmoh in Srinagar
• Industrial Growth Centre at Samba in Jammu
• Export Promotion Industrial Park at Kartholi in Jammu
• Industrial Area in Kathua
• Industrial Growth Centre at Ompora in Budgam
• Integrated Infrastructure Development Project at Udhampur in
Jammu

POWER (ENERGY RESOURCES):

J&K has abundant water resources and great potential for hydro
power, estimated at over 20000 MW
Important Hydel Power Projects in J&K:

Mohra Project:
• This hydroelectric power project commissioned in 1905 during
the reign of Maharaja Pratap Singh at Mohra, about 22.5 km
from Baramulla toward Uri in Kashmir valley.

Baglihar Dam:
• It is a 900 MW hydroelectric power project on the Chenab River
in Ramban District.
• Its first phase was completed in 2004 and second phase was
inaugurated by the PM Manmohan Singh on October 10, 2008.

Salal Hydel Power Project:

• It is a 690 MW hydroelectric power project on the Chenab river
in Reasi district operated and maintained by NHPC.

Dul Hasti:
• It is a 390 MW hydroelectric power plant on the Chenab river
in Kishtwar district. It was constructed between 1985 and 2007.
Kishanganga Hydel Power Project:
• It is a 330 MW hydroelectric power plant located in Bandipora
district. Its construction begun in 2007.
• It is a part of run of the river scheme designed to divert water
from Kishanganga river (Neelam river) to a powerplant in the
Jhelum valley.
• Its construction was halted by the Hague’s permanent Court of
Arbitration in October 2011 due to Pakistan’s protest of its
effort on the flow of the Kishanganga river. In Feburary 2013,
the Hague ruled that India could divert a minimum amount of
water for power generation.

Uri Dam:
• It is a 480 MW hydroelectric power station on the Jhelum river
near Uri in Baramulla district. The station is largely built under
a hill with a 10km tunnel. It was partially funded by Swedish
and British governments.
• Uri 2 power project was inaugurated on July 4, 2014.

Rattle Dam:
• It is a 850 MW hydroelectric power station on the Chenab river,
downstream of the village of Rattle in Doda district.
• The foundation stone for the dam was laid on June 25, 2013 by
the PM Manmohan Singh.
Pakal Dul Dam:
• It is constructed on Marusadar river, a truibutary of the Chenab
river in Kishtwar district.

Upcoming Mega Hydel Power Projects:

Kiru Hydel Power Project:

• The Union Ministry of Environment, Forests and Climate
Change has recently accorded environment clearance to 624
MW Kiru Hydroelectric Power Project in Jammu and Kashmir.
• It is proposed under Run of the river scheme on the Chenab
River near Village Patharnakki in Kishtwar district. It will be
developed by Chenab Valley Power projects Pvt. Ltd., a joint
venture among NHPC, J&K State Power Development
Corporation and Power Trading Corporation of India.
• It envisages construction of 123 metre high concrete gravity
with four underground powerhouse units of 156 MW each to
generate 624 MW of hydro power.

Kwar Hydel Power Project:

• It is proposed under Run of the River scheme 540 MW
hydroelectric power project on river chenab located village
Padyarna in Kishtwar district with the construction of 109
metre high dsm and an underground power house with four
units of 135 MW each.
JKSPDC:
• The Jammu and Kashmir State Power Development
Corporation (JKPDC) is a private limited Company which was
established by Government of Jammu and Kashmir on February
16, 1995.
• Its main function is to takeover, execute, complete, operate
and maintain all power stations and power projects of the
state.

JAKEDA:
• The Jammu and Kashmir Energy Development Agency
(JAKEDA) was set up in 1989 under the administration control
of the Department of Science and Technology. It is a nodal
agency for the promotion and development of renewable
energy programmes.
• The main objective of this corporation is to investigate
research, design detailed project reports and maintenance of
power stations sale of power and construction of transmission
lines and coordinated supply of power.

Important Government Initiatives:

Saubhagaya Scheme:
 • Pradhan Mantri Sahaj Bijli Har Ghar Yojana, shortened into
Saubhagya was launched in September 2017. Under this
scheme free electricity connections to all households in rural
areas and poor families in urban areas will be provided. It aims
to achieve universal household electrification in all parts of the
country.

Ujala Scheme:
• Unnat Jyoti by Affordable LEDs for All, shortened into Ujala was
launched in May 2015. This scheme replaced the ‘Bachat Lamp
Yojana’. Under this scheme, the government distributes the
LED bulbs among the people at subsidized rates. The main
objective is to promote efficient lighting and reduce electricity
bills and help preserve environment.

Deen Datal Upadhaya Gram Jyoti Yojana:

• This scherme replaced the Rajiv Gandhi Grameen Vidyutikaran
Yojana. Its main objective is to provide uninterrupted power
supply to the rural parts of India.

Transport Network:

National Highways:
• In Jammu and Kashmir there are four main National Highways
viz: NH-1A, NH-1B, NH-1C, NH-1D. After renumbering in 2010,
the numbers mentioned National Highways have changed.
 • NHAI (National Highways Authority of India) is the nodal
agency responsible for building, upgrading and maintaining
most of the national highways network. It maintains under the
ministry of Road Transport and Highways.

National Highway 1A:

• The total length of NH-1A is 663 km and NH-1A is now part of
NH-44. It connects Kashmir valley with Jammu and the rest of
India whose Northern terminal is in Uri (J&K) and the Southern
terminal is in Jalandhar (Punjab).
• The famous Jawahar Tunnel that connects Jammu with the
Kashmir valley across the Pir panjal range.

National Highway 1B:

• National Highway 1B is entirely within Jammu and Kashmir and
links Batote with Khanbal. The places Doda, Kishtwar and
Sinthan pass falls enroute.
• The total length of NH-1B is 274 km.

National Highway 1C:

• It is a short national highway covering a distance of 8 km
between Domail and Katra. Recently it has been renamed as
National Highway- 144.

National Highway -1D:

 • It is now part of National Highway 1 and is known as Srinagar
Leh Highway and connects Srinagar to leh In Ladakh UT.
• It is maintained by project Vijayak of the Border Roads
Organisation.
• The two highest passes on National Highway include Fotu la
and Zoji La.

Important Road links:

• Srinagar- Gulmarg road is 29 km long and connects Srinagar,
Tanmarg and Gulmarg.
• Srinagar-Pahalgam road is 96.5 km long and connects Srinagar,
Awantipora, Khannabal, Mattan, Aishmuqam and Pahalgam.
• Jhelum Valley Road is 132.5 km long and connects Srinagr,
Pattan, Baramulla, Mohra and Uri.
• Jammu-Poonch road is 230 km long and is important from
defense point of view.
• Srinagar-Shopian road is 53 km long and connects Srinagar,
Pampore, Pulwama and Shopian.
• Srinagar-Baltal road is 118 km long and passes through
Ganderbal.
• Srinagar-Bandipora Road is 56 km long and passes through
Sumbal, Mansalbal lake, Safapur and Ajas.
• Dhar-Udhampur road is a defense road connecting Dhar with
Udhampur.
• Srinagar Wayil road is 85 km long and passes through
Anantnag, Achabal and Kokarnag

Rail Transport:
 • The Jammu-Udhampur-Katra-Quazigund-Baramulla Railway
line is the biggest project in the construction of a mountain
Railway.
• J&K was brought on railway map of India in 1970 when city of
Jammu-Tawi was connected with Pathankot by rail. The
railway line between Jammu and Udhampur was completed by
1977-98.

Important Facts:
• 53 km stretch from Jammu to Udhampur has been completed
and opened to public by PM Manmohan Singh in April 2005.
• 25 km stretch from Udhampur to Katra has also been
completed by PM Shri Narender Modi on July 4, 2014.
• 116 km stretch from Katra to Banihal is in process under
Konkan Railway Corporation Limited.
• 132 km stretch from Banihal to Baramulla is also in operation.

Air Transport:
• There are two major airports in Jammu and Kashmir one is
Jammu airport and other is Srinagar Airport. Srinagar Airport is
international Airport and named as Sheikh- ul - Alam
International Airport.
Water Transport:
• The Jhelum river is navigable from Khannabal to Baramulla, a
distance of about 170 km. Doongas are used to carry 50
passengers at a time up and down the rivers and across lakes.
Khoch and Bahach are used to carry heavy loads like grains,
stones, bricks, timber, sand, clay etc.

Irrigation:

Irrigation in the Kashmir Valley:

The valley of Kashmir is mainly irrigated by by the canals which are

divided into:
• Zamindari Canals
• Government Constructed Canals
• The Zamindari Canals, locally called as Kuls are constructed and
maintained by the farmers and they irrigate about 60 percent
of the total irrigated area of Kashmir Division.
Canals in Kashmir:

1. The Martand Canal:

• It is the oldest canal in Kashmir about 50 km long and irrigates
9.5 thousand acre of Land around Mattan, Dichhanpur,
Khavapura and Anantnag.
• It takes its water from the river Liddar at Ganeshpora

2. The Shakful Canal:

• It takes its water from the Nullah Sind and irrigates many
villages from Manigam to Safapora.

3. The Sharabkul Canal:

• It takes its water from the Harwan lake and flows upto
Chashma Shahi and to the East of Dal Lake.

4. The Nur Canal:

• It is about 13 km long and takes its water from the river Jhelum
at Shadipur and then flows into the Wular lake. It irrigates
Inderkut village.

5. The Zainagir Canal:

• It is famous canal of Kashmir. It is 47 km long and takes in water
from the river Madhumati.
• It flows through Bandipora on the banks of the Wular lake at
Sonawari.
6. The Sumbal Canal:
• It takes its water from the Nullah Sukhnag at Kosa.
• It is about 35.5 Km long and irrigates Sonawari area and flows
back into the river Jhelum at Shadipur.

7. The Zarkul Canal:

• It takes its water from the Nullah Sind at Prang and was
constructed during the reign of Zain Ul Abideen. It irrigates
Mansabal, Lar, Asham and Ganderbal.

8. The Avantipur Canal:

• It takes its water from the Nullah Liddar at Doohjan. It was
constructed in 1953. It is about 36 km long and irrigates about
5000 acres of land to the east of Pampore.

9. The Rishipora Canal:

• It takes its water from the river Vishav at Mitrajan. It is about
18 km long and irrigates about 3000 acre of land. It was
constructed in 1956.
Irrigation in the outer plains of Jammu region:

1. The Ranbir Canal System:

• It has been taken out from the left bank of Chenab and its
headworks lie at Akhnoor. The Productive plains of Jammu and
R.S Pura are under its command having command area 1 lakh
acre.

2. The Pratap Singh Canal:

• It has been taken out from the right bank of Chenab at
Akhnoor.
• It is 36 km long and about 20,000 acres of Akhnoor tehsil are
under its control.

3. The Ravi Tawi Irrigation System:

• The Ravi- Tawi Irrigation Complex is a comprehensive irrigation
project, designed to connect these two rivers by a network of
canals. This project has the potential of irrigating about 1.5 lakh
acres of land in the Kandi and plain areas of Jammu region. It
consists of
• The Ravi Canal
• The Tawi Lift Irrigation Project
i) The Ravi Canal:
• It has been taken out from the right bank of Ravi at Shahpur-
Kandi Barrage. The length of main canal is 76 km and is linked
with Tawi Lift irrigation project at Vijaypur.
• This project will provide water to the rice and wheat growing
areas of the Kathua and Jammu tehsils.

ii) The Tawi Lift Irrigation Project:

• It has been constructed on the left bank of the Tawi river near
Bahu fort.
• The main canal has a length of about 29 km which has been
constructed from Jammu to Ramgarh with commanding area
of 15000 acres.
Minerals:

• The minerals are the backbone of industrial and technological

development of a country or region. The first survey of
minerals wealth in J&K was made by a reowned geologist Mr.
Middlemiss in 1924 in collaboration with the Government of
Jammu and Kashmir. But intens[-ive mineral survey was taken
up in the year 1956, when systematic investigation begun, as a
result of which mineral exploitation in J&K was organized and
developed.

Coal:
• It is the most important mineral which helps in the industrial
development of a region. J&K has very limited coal deposits.
• The major coal deposits in J&K are found at Kalakote,
Jangalgali, Metka, Ladha, Chinkah, Swalkote, Dhansal, Chakar,
Moghla, Sangarmarg and Kuri.
• It has also been reported in Baramulla, Handwara and
Pulwama districts of Kashmir division.

Lignite:
• It is an inferior quality of coal and its deposits are known to
occur in Karewa formations in Kashmir valley.
• The major lignite deposits are found in Nichahom, Chowkibal,
Shaliganga, Rathian, Tangmarg and Lolab valley.
Gypsum:
• The gypsum deposits occur in the areas of Assar and Batote in
Ramban district and Boniyar in district Baramulla. Its use is in
manufacture of Synthetic fertilizers, plaster of Paris,
distempers and in the cement factories.

Sapphire:
• In India, J&K is the only place in which Sapphire deposits of
good quality are found in Padder near Sumjan in Kishtwar. The
Sapphire extracted is deep blue in colour and is known and is
known for its purity and transparency.
• It is mainly used in Jewellery and has a high ornamental value.

Ruby:
• It is also found in association with sapphire bearing rocks in the
areas of Zanskar, Sumjan and Paddar.

Limestone:
• High quality limestone both cement grade and chemical grade
occurs in abundance in Anantnag, Pulwama and Baramulla
districts of Kashmir division.
• It is also found in Reasi, Jangalgali, Balal, Basholi, Kalakote.
• It is used in manufacture of cement and lime. It is used as
building stones and mortar.
Copper Ores:
• It is mostly used are found at Aishmuqam, Sumbhar
(Anantnag), Lashtial (Baramulla), Handwara, Sumbal, Kangan
and Lolab valley in the province of Kashmir.
• Copper is mostly used in the manufacture of electrical
equipments such as wiring and motors.

Iron Ore:
• Iron deposits occur in Sharda, Khrew, Haral, Uri and Lolab in
Kashmir valley. In Jammu division, thick beds of Hematite have
been located at Khandli Rajouri.

Graphite:
• Graphite is used in the manufacture of lead pencils. It is found
in Baraipora, Uri, Karnah, Malogam, Piran and Kishtwar.