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Monday, October 19, 2026
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Jammu Kashmir Faces Rs 4.16 Crore Refund Demand Over Unbuilt Apple Infrastructure Project

   

SRINAGAR: The Government of India has sought Rs 4.12 crore from the Jammu and Kashmir Government after a project to establish modern facilities for grading, packing and storing apples failed to materialise despite repeated deadline extensions over nearly two decades.

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The Agricultural and Processed Food Products Export Development Authority (APEDA), functioning under the Union Ministry of Commerce and Industry, had released Rs 1.42 crore to the then Jammu and Kashmir Government in 2005 for the project aimed at improving post-harvest infrastructure for apple growers.

However, the project remained unimplemented, prompting the Centre to seek repayment of the funds along with annual interest of 10 per cent.

Documents reveal that APEDA had awarded the project to the Jammu & Kashmir Horticultural Produce Marketing and Processing Corporation (JKHPMC) for development of an integrated pack‑house. The total cost of the project was estimated at Rs 3.88 crore, and APEDA released Rs 1.42 crore to JKHPMC on September 28, 2005.

According to the documents, the project has failed to take off to date, despite APEDA accommodating the constraints cited by JKHPMC by extending the deadline several times, the last being in June 2022. “Due to prolonged delays, cost escalation, and obsolescence of the technology required in the pack‑house as compared to existing pack‑house technology for apples, it was decided to cancel the MoU dated 15/07/2005 signed with JKHPMC and IPA dated 22/07/2005,” the documents state.

Citing GFR 2017 Rule 231, the documents mention that 10 percent per annum interest is applicable on the released amount of Rs 1.42 crore, which works out to Rs 4.16 crore. “Therefore, a sum of Rs 41621680 is to be refunded by JKHPMC to APEDA,” the documents add.

The records further show that the J&K Government did not respond to repeated missives from the Centre over it. “Reminders were sent vide letters dated 11/09/2023 from the APEDA Chairman’s office and 31/01/2024 from the Additional Secretary, Department of Commerce, which were not responded to, indicating that JKHPMC is not able to execute the project,” the documents read.

The disclosure raises serious questions over the Government’s claims about creating post‑harvest infrastructure for Kashmir’s apple industry. (KNO)

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