Trans-LoC Trade: Infrastructural Investment Faster In Poonch Than Uri

SHAH ABBAS
SRINAGAR

The pace of building permanent infrastructural facilities for trade and travel at TFC Salamabad (Uri) is slower than Chakan-Da-Bagh (Poonch) crossing point, the government informed the state legislature on Thursday. Details suggest that Rs 675.12 lakhs out of Rs 8.95 crores meant for physical status of trade facilitation centre Salamabad sands spent till August 2012 while as 792.14 lakhs out of 7.95 crores was spent at Chakan-Da-Bagh in Poonch.

The facilities at both the trans-LoC crossing and trading centres include setting up of waiting area, terminal and clearing procedures, development of approach roads, development of parking yards, construction of waiting halls for PAK drivers, construction of a godown hall and structure for whole body scanner.

The trade was initiated in 2008-09 after an agreement between India and Pakistan. Since then the barter trade on the line of control has increased manifold. Against the total exports of Rs 1.76 crores in 2008-09, it has reached Rs 286.77 crores in August 2012..

“As of now, only 21 products of permissible items for cross LoC trade are being traded by both sides, however the state has requested government of India to include 98 more items in the export list and five in import list”, the government informed the state legislature on Thursday.

While giving the details about the proposed model on cross LOC trade between the two divided parts of erstwhile Jammu and Kashmir, the government said, “It is envisage that the commercial banks in J&K and PaK would provide a facility to their exporters to realize their dues by opening a ‘Trade Facility Account’ at their end. The initial debit and final credit by the exporters ‘ bank would be through the facilitation account”.

It further reads: “The exporter would be paid only after the importer has paid his bank treating the transition akin to payment of bills on collection basis and fifteen days have been provided for the settlement cycle, while as ten days have been set aside for the transaction to be completed by the importer.”

The government revealed Union Finance Ministry is establishing Banking Mechanism for the cross LoC trade. The government  said the number of trading days had been enhanced from two days per week to four days a week.

Offering an overall picture of the trade volume, the government said items worth 259.45 crore (Indian currency) were exported from Poonch and Rs 643.95 crore from Uri, so far. Against this, the overall imports (Pakistani currency) stood at Rs 457.24 crore from Poonch and Rs 1012.64 crore from Uri.

While the government has provided additional staff at the two TFCs, it is in the process of creating infrastructure at the two places at an overall investment of Rs 16.90 crore. Of this amount, so far, Rs 14.67 crore has already been booked.