Jammu, Feb 10 (PTI) Jammu and Kashmir Chief Minister Omar Abdullah on Tuesday lashed out at those terming the Special Assistance to States for Capital Investment scheme a “debt trap”, calling securing Rs 3,000 crore under the programme a “big achievement” for the Union territory.

In his reply during the Budget discussions in the Assembly, Abdullah claimed criticism of the scheme stemmed from a lack of understanding of its provisions and long-term financial implications.

“Mr Speaker, one of my young friends spoke at length here about the Special Assistance to States for Capital Investment (SASCI) scheme. He became very emotional and said this is some kind of corporate trap, that it is a company debt, corporate debt, and the debt of Adani and Ambani.

“Mr Speaker, it is very important to understand the SASCI scheme. Unfortunately, those who do not understand it are commenting on it,” Abdullah said.

The chief minister said that Jammu and Kashmir would receive an interest-free loan for 50 years under the scheme, and dismissed concerns that the Union territory was being pushed into a debt crisis.

“Mr Speaker, under SASCI, Jammu and Kashmir will receive an interest-free loan for 50 years. One of my young colleagues said that we are drowning Jammu and Kashmir in debt. I want to clarify.

“It has been said that we are being irresponsible. You understand the Budget well. You can estimate the value of the rupee today and what its value will be after 50 years,” he said.

Abdullah also said the government carried out its own financial assessment of the loan.

“If today we take a loan of Rs 3,000 crore, and if after 50 years it becomes Rs 20,000 crore, I would say that it is an issue. We have done our own calculations. If we take a loan of Rs 3,000 crore and look at it with interest and future value, after 50 years, it would be equivalent to only about Rs 97 crore.

“The Rs 3,000 crore that we are taking today will not even be worth Rs 100 crore after 50 years. Does taking this money means being irresponsible? Please tell me, is this irresponsible,” he asked.

Referring to concerns raised by Congress MLA Tariq Hameed Karra, Abdullah said that several states have availed substantial funds under the scheme.

“One of our senior colleagues, Karra Sahib, said that this Rs 100 crore ceiling has been given only to us and that others (states) have not taken money because they want to trap Jammu and Kashmir.

“For the information of Karra Sahib, I would like to provide data about our neighbouring states and how much money they have taken. This scheme was started in 2020-21,” Abdullah said.

He then detailed the loan accounts of two neighouring states – Punjab and Himachal Pradesh – and said, "If we talk about Punjab, in the first year it took Rs 296 crore, in the second year Rs 223 crore, in the third year Rs 800 crore, and in 2024-25 Punjab took Rs 2,070 crore.

“Similarly, look at Himachal Pradesh – in the first year it took Rs 91 crore, then Rs 135 crore the next year, after that Rs 1,270 crore, and then Rs 1,500 crore.” Taking a dig at his critics, Abdullah said, "Other states are taking so much money… So, if we are able to secure Rs 3,000 crore for our people, I think it is a very big achievement of the government for the people.” However, the members of the Congress and the PDP expressed apprehensions over the scheme, terming it a “potential debt trap”.

PDP MLA Wahid-ur-Rehman Para questioned the implementation of SASCI in Jammu and Kashmir, and demanded the constitution of a House committee to examine its long-term implications.

“I did not make any wrong demands. I only said that a House committee should be formed. Since the Congress is their (NC) ally, Tariq Karra Sahib should be made the chairman of the committee, which should examine whether this SASCI loan is safe and secure for J-K, or whether it can be dangerous,” Para told reporters outside the Assembly.

Congress MLA Karra said there were apprehensions about the scheme, and cautioned against accepting funds without thorough scrutiny.

“There are some constraints and some apprehensions about SASCI. It should not happen that we blindly accept such funding and use it in the state in a way that traps us in debt. You understand what a debt trap can be,” Karra said. PTI AB ARI