Jammu, Feb 6 (PTI) Jammu and Kashmir Chief Minister Omar Abdullah on Friday said there is no "magic wand" to make the UT economically self-reliant, stressing that sustained multi-sector interventions are required to strengthen its financial position.

Addressing a post-budget press conference here, Abdullah said the government is working to improve Jammu and Kashmir's economic standing through targeted measures across sectors.

"If you are asking whether I have a magic wand to make Jammu and Kashmir self-reliant, the honest answer is no. These budgets have been directed towards improving our economic standing across sectors," he said.

He expressed hope that the region would eventually reduce its dependence on central assistance beyond its due share.

The chief minister said the government is working under difficult economic realities but has still managed to present a realistic and operational budget for the Union territory (UT).

"This year has been particularly difficult for us. We were expecting a growth of around 5 to 10 per cent, but the Pahalgam incident and floods caused heavy losses. We hope to bring growth back on track," he said, adding that despite the challenges, a "good and workable budget" has been placed before the people.

Replying to another question, Abdullah said that the UT is not presently a hydropower-driven economy, despite having significant potential in the sector.

"We have hydropower potential, but the economy gets almost nothing in terms of actual earnings from hydropower. Perhaps in the future, when all projects come on stream and the power is fully ours, hydropower could change the economic focus of Jammu and Kashmir. But it is extremely capital-intensive, with heavy upfront investment, so it is not easy," he said.

"Hydropower is an important part of our infrastructure, but our economic focus remains on agriculture, horticulture, industry, tourism and handicraft," Abdullah added.

The chief minister said the UT's economy continues to be largely agrarian and dependent on agriculture, horticulture and allied sectors. "That is why this budget places special focus on agriculture, horticulture, productivity improvement and dairy development," he said.

He further said there is a major push to expand dairy capacity in the region. "When you compare Jammu and Kashmir, which processes about 40 per cent of its milk, with a state like Gujarat, which processes nearly 90 per cent, the gap becomes clear," he said.

On migration of youth for education and employment, the chief minister said the movement of people is natural and not necessarily a negative trend.

"If students go outside to study and come back, I don't think it is a bad thing. I would be concerned if investments or productive assets were moving out, but people improving themselves and returning is not a bad development," he said, adding that educational institutions in Jammu and Kashmir also attract students from outside the UT.

Replying to a question on providing six free LPG cylinders announced in the budget, Abdullah said, "The only concern of beneficiaries is whether they receive the cylinder free of cost. How we fund it is the government's responsibility. We will not raise prices for others to fund it." On restoration of statehood, Abdullah said he remains hopeful that the commitment made to Jammu and Kashmir would be fulfilled and declined to elaborate, saying the issue was not the subject of the press conference.

He further said the much-awaited Jammu Master Plan for urban development is in the final stages and will soon be placed before the Council of Ministers for approval.

"There is no order yet. The draft was put to public scrutiny, and several comments were received. Some changes were required. Such a comprehensive document, which includes a substantial portion of Jammu, cannot be prepared in a hurry," he said.

Responding to concerns over shrinking agricultural and horticultural land, Abdullah said land-use change cannot be completely banned.

"People have the right to build houses and to use their land as they want. Our effort is to make conversion difficult, not impossible, and to protect productive agricultural land as far as possible," he said.

Citing a recent example, the chief minister said the government had requested the Centre to suspend proposed railway projects to Pahalgam and Shopian as their alignments were affecting fertile land. "I am grateful to Railway Minister Ashwini Vaishnaw for accepting our request," he said.

On irrigation, Abdullah said strengthening the canal network is a priority. "Timely desilting is essential, not only in main canals but also in tail-end canals, because often water reaches the main canal but farmers at the tail end do not receive adequate supply," he said.

Speaking on provisions related to Kashmiri Pandits, he said the budget includes measures for filling vacant posts, improving living arrangements and addressing welfare concerns but added that financial packages alone cannot ensure their return to the valley.

"They left because they felt unsafe. They will only return when a genuine sense of security is restored. Restoring that confidence is our collective responsibility," he said.

On fiscal challenges, the chief minister blamed the previous PDP-BJP government for artificially inflating the size of Jammu and Kashmir's economy.

"That growth was unsustainable and unrealistic. It placed an enormous burden on the economy. We are undoing that damage," he said. PTI AB PRK PRK