J and K govt to introduce VRS in next fiscal: Finance Minister

Jammu, Feb 3 (UNI) Jammu and Kashmir Finance Minister Tariq Hamid Karra today said the state government decided to introduce Voluntary Refreshment Scheme (VRS) to reduce administrative expenses.

Chairing the 45th Annual General Meeting of the shareholders of the Jammu and Kashmir Transport Corporation here, the Finance Minister stated the state government has proposed to reduce the non performing assets (NPAs).

''For this a settlement scheme has been put in place to reduce administrative expenses by shedding off excess flab, ... a VRS to be funded by the government shall shortly be adopted,'' he said.

For raising funds from the market at cheaper rates, a grant on a government guarantee is a necessary pre-requisite, he said, adding that this shall be sorted out before the expiry of the current financial year.

The government is contemplating to initiate comprehensive measures to enable effective financial measures so that the Corporation can be restored to its pristine glory enabling it to play a significant supplementary and complementary role in development of the state, he said.

Mr Karra emphasised the need for diversifying the mix of products of the Corporation and change of mind set so that the challenges being thrown by the liberalised economic scenario are effectively grappled with.

He further emphasised that the adhoc policies have to be shunned and greater level of seriousness is required to give a new direction to the corporation.

Giving resume of the Corporation, Mr Karra said the Corporation had sanctioned Rs 11.24 crore as loan during financial year 2004-05 and disbursed an amount of Rs 8.51 crore to 150 entrepreneurs and recovered an amount of Rs 22.18 crore.

Mr Karra, however, directed to re-look into the affairs of the Corporation seriously and catch bull by its horns, adding that there is a silver lining in the sky as the Corporation has been able to improve its recovery portfolio during last four year.

UNI