Grant released in 2005, last deadline extended in 2022
Project never took off despite repeated extensions
Srinagar, Oct 19: In a major embarrassment for the Jammu & Kashmir Government, the Government of India has sought Rs 4.12 crore from it after successive regimes in the erstwhile state failed to execute a dream project for apple growers. The Agricultural and Processed Food Products Export Development Authority (APEDA), which functions under the Union Ministry of Commerce and Industry, had released Rs 1.42 crore way back in 2005 to the J&K Government for setting up modern infrastructure for grading, packing, and storage of apples. Despite repeated extensions of deadlines over nearly two decades, the project never took off, forcing the Centre to demand a refund of the funds along with 10 percent annual interest.
Documents in possession of news agency—Kashmir News Observer (KNO) reveal that APEDA had awarded the project to the Jammu & Kashmir Horticultural Produce Marketing and Processing Corporation (JKHPMC) for development of an integrated pack‑house. The total cost of the project was estimated at Rs 3.88 crore, and APEDA released Rs 1.42 crore to JKHPMC on September 28, 2005.
According to the documents, the project has failed to take off to date, despite APEDA accommodating the constraints cited by JKHPMC by extending the deadline several times, the last being in June 2022. “Due to prolonged delays, cost escalation, and obsolescence of the technology required in the pack‑house as compared to existing pack‑house technology for apples, it was decided to cancel the MoU dated 15/07/2005 signed with JKHPMC and IPA dated 22/07/2005,” the documents state.
Citing GFR 2017 Rule 231, the documents mention that 10 percent per annum interest is applicable on the released amount of Rs 1.42 crore, which works out to Rs 4.16 crore. “Therefore, a sum of Rs 41621680 is to be refunded by JKHPMC to APEDA,” the documents add.
The records further show that the J&K Government did not respond to repeated missives from the Centre over it. “Reminders were sent vide letters dated 11/09/2023 from the APEDA Chairman’s office and 31/01/2024 from the Additional Secretary, Department of Commerce, which were not responded to, indicating that JKHPMC is not able to execute the project,” the documents read.
The disclosure raises serious questions over the Government’s claims about creating post‑harvest infrastructure for Kashmir’s apple industry. (KNO)
