NEW DELHI: Nirmala Sitharaman, Minister of Finance, Government of India, announced the first gas pipeline project for the union territory (UT) of Jammu and Kashmir on Monday, February 2. She also announced the construction of a central university in Leh district, UT of Ladakh, to assist those seeking education in the area.
The central government has allotted a budget of Rs 30,757 crore for the UT of Jammu and Kashmir whereas Ladakh has been provisioned an amount of Rs 5,958 crore in the Union Budget for 2021-22. Sitharaman said that the central government is committed to the concept of fiscal federalism. She added that in 14th Finance Commission, Jammu and Kashmir was entitled to get a devolution as a state but now the funds will be provided by the centre. The centre has said that it will soon auction the work of setting up a pipeline transport system for gas pipeline capacity as the country aims to reduce its carbon footprints and deepen its gas market.
India has adopted the foreign system of setting up the transport system operator as in western countries where gas markets are developed. The country aims to raise the share of gas in the energy production capacity from the current 6.2 per cent to 15 per cent. Authorities have taken various steps such as gas trading exchanges and the provision of marketing and pricing freedom to producers.