Cabinet approves setting up of an Infrastructure Development Corporation for Ladakh
New Delhi, July 22, 2021
The Union Cabinet today approved the establishment of an integrated multi-purpose Infrastructure Development Corporation for the Union Territory of Ladakh.
The Cabinet also approved the creation of one post of Managing Director, for the corporation in the pay scale of Rs 1,44,200- Rs 2,18,200.
The authorized share capital of the corporation will be Rs 25 crore and recurring expenditure around Rs 2.42 crore per year.
The approval has an inherent potential for employment generation as the corporation will be undertaking various kinds of developmental activities, an official press release said.
The corporation will work for industry, tourism, transport and marketing of local products and handicrafts. It will also be the main construction agency for infrastructure development in Ladakh.
The establishment of a corporation will result in the inclusive and integrated development of the Union Territory of Ladakh. This will, in turn, ensure socio-economic development of the entire region and population of the Union Territory, the release said.
The impact of the development will be multi-dimensional. It will help in the further development of human resources and better utilization. It will increase domestic production of goods and services and will facilitate their smooth supply.
Consequent to the reorganisation of the erstwhile State of Jammu and Kashmir as per the Jammu and Kashmir Reorganisation Act, 2019, the Union Territory of Ladakh (without Legislature) came into existence on October 31, 2019.
An Advisory Committee was constituted under section 85 of the Jammu and Kashmir Reorganization Act, 2019 for making recommendations regarding the apportionment of the assets and liabilities of the erstwhile State of Jammu and Kashmir between the Union Territory of Jammu and Kashmir and the Union Territory of Ladakh. The committee inter-alia recommended the establishment of an integrated Infrastructure Development Corporation Limited on the lines of the Andaman & Nicobar Islands Integrated Development Corporation Limited (ANIIDCO), with an appropriate mandate to take up various developmental activities as per the specific needs of Ladakh.
Accordingly, the Union Territory of Ladakh sent a proposal to this Ministry for the establishment of the corporation, which was recommended by the Committee on Establishment Expenditure (CEE), Ministry of Finance in April 2021.