NEW DELHI: The bifurcation of the state of Jammu & Kashmir into the Union Territories of Jammu & Kashmir and Ladakh is not likely to benefit the latter much, said sources in the government familiar with the procedure of how assets will be distributed between the two UTs. Officials also confirmed that Leh will be made the capital of Ladakh considering "sentiments of Ladakhi people".
With most of the state’s physical assets located in Jammu & Kashmir regions, Ladakh won’t be able to gain much in capital assets (dams, power projects) as they will remain where they are, sources said. The erstwhile J&K has quite a few hydro-power plants. And whatever power plants are located in the regions of Ladakh and J&K, they will remain there.
But suppose J&K needs power supply from plants in Ladakh because Jammu & Kashmir is more populous, it will have to pay Ladakh for the same,” explained a senior government functionary. At present, the state where a power plant is located gets a 12 per cent royalty on sales. Ladakh, however, is likely to get a few physical assets located outside Jammu & Kashmir. The former state has six properties in Delhi, Amritsar, Chandigarh and Mumbai, which will be divided between the two union territories, sources said.
These include the Kashmir House on Delhi’s Prithviraj Road and J&K House in Chanakyapuri. Sources in the Jammu & Kashmir government said a three-member advisory committee, constituted by the Centre on September 9 to divide the assets and liabilities between the two UTs, is currently looking into the issue. The committee, headed by former defence secretary Sanjay Mitra, has been given six months to submit its report.