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LEH: Grappling with sharp decline in tourist arrivals in the aftermath of the Pahalgam terror attack, various delegations, including tourism players, met the visiting Finance Minister Nirmala Sitharaman here and advocated special relief for tourism and allied sectors in the Union Territory of Ladakh, an official said on Sunday.
The delegations also demanded restoration of budget allocations to financial year 2025-26 and also requested that Budget Estimates and Revised Estimates be finalised based on expenditure up to December, rather than September-October, to reflect the region’s actual spending capacity.
Sitharaman reached Leh on a four-day official tour on Saturday, attended the light and sound show at Leh Palace and visited Shanti Stupa besides meeting various delegations led by Chairman-cum-chief executive councillor of Ladakh Autonomous Hill Development Council (LAHDC), Leh, Tashi Gyalson, the official said.
He said the delegation also included key stakeholders from All Ladakh Travel and Trade Alliance, All Ladakh Hotel and Guest House Association (ALGHA), All Ladakh Tour Operators Association (ALTOA), All Ladakh Transport Association (ALTA), Merchant Associations, Biker Associations, Taxi Unions, and other tourism-related bodies.
The collective representation highlighted the wide impact of the current situation on all sections of Ladakh’s economy which remains heavily dependent on tourism, the official said.
Submitting a memorandum to the Finance minister, Gyalson led a high level delegation of LAHDC, Leh requested for a special relief package for tourism and allied sectors.
This includes rescheduling of existing bank loans, extension of moratorium periods, and recognition of tourism as a distressed sector, the official said.
The memorandum also urged her to restore Ladakh’s budget to FY 2025-26 and requested that budget estimates and revised estimates be finalised based on expenditure up to December, rather than September-October, to reflect the region’s actual spending capacity, given the regions short working season due to extreme geographical and climatic conditions.
Expressing appreciation for the Centre’s continuous support to Ladakh through various budgetary allocations and centrally sponsored schemes, the delegation particularly acknowledged the positive impact of flagship programs such as the Vibrant Villages Programme, which has significantly contributed to the upliftment of remote border areas in the Union Territory.
The delegation also requested enhancement of financial powers of chief executive officer and deputy commissioner, Leh to approve administrative sanctions up to Rs 10 crore, at par with chief engineers.
The delegation sought the Finance Ministry’s intervention to expedite the apportionment of J-K Grameen Bank’s assets and staff between J-K and Ladakh, and proposed creation of a dedicated Regional Rural Bank for Ladakh to improve financial inclusion.
The delegation also proposed the establishment of a Ladakh Development Finance Corporation (LDFC) to support region-specific industries and establishment of an RBI office in Leh to strengthen banking supervision, address public grievances, and promote financial literacy.
The delegation of various tourism and trade sectors of Ladakh outlined the growing concern over the significant decline in tourist footfall following the April 22 Pahalgam terror attack in which 26 persons were killed.
Another delegation of councillors also submitted a memorandum highlighting key financial and developmental concerns of the region, the official said, adding a key request was made to restore Ladakh’s budget allocation for the financial year 2025-26 to ensure uninterrupted execution of ongoing and proposed developmental projects critical to the socio-economic progress of the Union Territory.
The finance minister gave an assurance that the issues will be examined for suitable consideration.(Agencies)
