Cabinet approves establishment of an Integrated Multi-purpose Corporation for Ladakh

Source: PIB

What is the News?

The Union Cabinet has approved the establishment of Integrated Multi-purpose Infrastructure Development Corporation for the Union Territory of Ladakh.

Background:

• After the re-organisation of the erstwhile State of Jammu and Kashmir as per the Jammu and Kashmir(J&K) Reorganisation Act, 2019, the Union Territory of Ladakh (without Legislature) came into existence in October 2019.
• As per Section 85 of the J&K Act, an Advisory Committee was constituted. It will recommend the apportionment of the assets and liabilities of the erstwhile State of Jammu and Kashmir between Jammu and Kashmir and Ladakh.
• The Committee then recommended the establishment of an Integrated Infrastructure Development Corporation Ltd., similar to the Andaman & Nicobar Islands Integrated Development Corporation Ltd (ANIIDCO).

About Integrated Multi-purpose infrastructure Development Corporation:

• The Corporation has been established with an aim to bring in development in Ladakh and boost the Atma Nirbhar Bharat Abhiyan in the Union Territory.
  • Presently, there is no such similar organization within the newly formed Ladakh.

Key Functions of the Corporation:

• Firstly, the corporation will work as the main construction agency for infrastructure development in the UT of Ladakh.
• Secondly, it will work for industry, tourism, transport, and marketing of local products and handicrafts. This will in turn ensure the socio-economic development of Ladakh.
• Thirdly, it will also aim to increase domestic production of goods and services and will facilitate their smooth supply. This will give a boost to the Atma Nirbhar Bharat Abhiyan.