Business Today

Far From Reality

Abrogation of Articles 370 and 35A might excite investors, but for real investments to come in, Jammu and Kashmir regions will need major infrastructure buildup

In November 2018, the Jammu & Kashmir state administrative council (SAC) approved an alteration to the J&K Gas Pipeline Act, 2014. The council could do that since J&K was under President's rule then. This allowed pipeline construction companies the right to use land for five years, instead of two years earlier. This alteration happened seven years after GSPL India won the rights to build the Mehsana Bahtinda Jammu Srinagar gas pipeline. The construction till Bathinda is expected to be commissioned by March 2020.

Changing the Act was necessary, because provisions of the Article 370 of the Indian Constitution prohibited the implementation of the Petroleum and Minerals Pipeline Act, 1962 and required a separate law in J&K. In 2014, the Omar Abdullah led state government enacted this law after three years of discussions. The tweaks SAC allowed were stuck for three years, and there still hasn't been any decision

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