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EPILOGUE OCTOBER 2008

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18 22 23 24 38 I N F O C U S LoC Trade Associate Editor Irm Amin Baig News Wrap J&K Stories Volume 2, Issue 9, October 2008 Who Said What Days Gone By 4 5 7 3 www.epilogue.in Srinagar Sentiments C O N T E N T S Diary Designs & Layout Keshav Sharma Price : Rs 15 Document Hear & Hear Mubeen Shah Poonch-Rawlakote Beginning Of A New Chapter Ram Sahai The Road Much Traveled, Less Visisted Making Borders Irrelevant Epilogue Ø 1 × October 2008 Indo-Pak Joint Statement Interview

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Page 1: EPILOGUE OCTOBER 2008
Page 2: EPILOGUE OCTOBER 2008
Page 3: EPILOGUE OCTOBER 2008

Epilogueb e c a u s e t h e r e i s m o r e t o k n o w

www.epilogue.in

Editor Zafar Iqbal Choudhary

Consulting EditorD. Suba Chandran

Associate EditorIrm Amin Baig

Designs & LayoutKeshav Sharma

Mailing AddressPO Box 50, HO Gandhi Nagar, Jammu

Phones & emailOffice : +91 191 2493136Editorial: +91 94191 80762Administration: +91 94190 [email protected]@[email protected]

Edited, Printed, Published and Owned by Zafar Iqbal Choudhary. Published from : Ibadat House, Madrasa Lane, Near Graveyard, Bathindi Top, Jammu, J&K - 180012 and Printed at : DEE DEE Reprographix, 3 Aikta Ashram, New Rehari Jammu (J&K)

Disputes, if any, subject to jurisdiction of courts and competitive tribunals in Jammu only.

Price : Rs 15

CONTENTS

Prologue

Letters to the editor 4

Hear & Hear

5

News Wrap

J&K Stories 7

Column

Vision From Valley 44Srinagar Sentiments 51Days Gone By 53

Ladakh

Project Himank 44Diary 47

3

Who Said What

Volume 2, Issue 9, October 2008

IN FOCUS

LoC Trade

Beginning Of A New Chapter17Interview18Mubeen Shah

Interview22Ram Sahai

Document 23Indo-Pak Joint Statement

Making Borders Irrelevant24Poonch-Rawlakote38The Road Much Traveled, Less Visisted

Epilogue Ø 1 × October 2008

For more News, Views & Analysis Log on to

www.epilogue.in

Page 4: EPILOGUE OCTOBER 2008

MAKE YOUR CONNECTION TODAY

www.epilogue.in

JAMMU & KASHMIR

POLITICSBUSINESSVIEWS & NEWS

CULTURESTRATEGIC AFFAIRS

Page 5: EPILOGUE OCTOBER 2008

or all those Kashmir is not import tea from India. Similarly,

anything to look at, trans- Pakistan is one of largest producer of

LoC contacts have always molasses and India one of biggest Fbeen a major suggestion to consumers but there is no mutual

ease tension not only between two trade. Being partners in trade,

divided parts of troubled Jammu and Pakistan and India can emerge as

Kashmir but also between India and stable economic powers and also

Pakistan. For a layman, trading with resolve their most contentious issue

each other means investing in each of Kashmir which has been eating up

other –investing in business, investing their economies to the roots. The

in trust, investing in confidence, trans-LoC trade will go down in the

investing in cooperation and investing annals of history as the most practical

in peace. When the an area of dispute m e a s u r e t o w a r d s e c o n o m i c

becomes area of mutual investment integration of the region divided at

in all the above sectors it can, of b i r t h . W h i l e t h i s c a l l s f o r

course, change destiny of it land and celebrations, at the same time there

people. Therefore, the agreement of is need to look inwards. The trade ties

trans-LoC trade between two parts of are breaking down between Kashmir

Jammu and Kashmir comes as a and Jammu. Trade was perhaps one

biggest confidence building measure major area where these two regions

of all the initiatives taken by India of the state enjoyed a level playing.

and Pakistan towards resolving With political and social ties between

Kashmir and having cordial relations two regions already bruised, severing

with each other. Though the trade of trade ties is fraught with dangerous

across LoC begins in October as a consequences. Onus is on all

symbolic measure of building stakeholders to save state from this

confidence between both sides but disaster. With a report from United

eventually it will be trade between States Institute of Peace as cover

India and Pakistan and Kashmir will be feature, our present issue looks at the

the bridge. After a big hearted whole scope and future of trans-LoC

initiative of India and Pakistan, once contacts towards blurring of borders.

Jammu and Kashmir sets the trend, Our most sincere thanks are due to

India and Pakistan will learn from USIP and in particular Mr Kay Hechler

here the basics of investing in each for endowing to Epilogue their latest

other. They will have to change the report 'Making Borders Irrelevant'.

mindset. See, Pakistan is world's Feedback :largest importer of tea and India

[email protected] producer. Still Pakistan does

Let Boundaries Blur

Zafar Choudhary

Epilogue Ø 3 × October 2008

P R O L O G U E

FROM THE EDITOR

Epilogueb e c a u s e t h e r e i s m o r e t o k n o w

EPILOGUE aims at providing a platform where a meaningful exchange of ideas, opinion and thoughts can take place among the people and about the people of Jammu & Kashmir. The attempt is to research, investigate, communicate and disseminate information, ideas and alternatives for the resolution of common problems facing the state and society of Jammu & Kashmir and in the context of their significance to South Asia as a whole.

We welcome contributions from academics, journalists, researchers, economists and strategic thinkers. We would also like to encourage first-time writers with the only requirements being a concern for and the desire to understand the prevailing issues and themes of life in Jammu & Kashmir

Contributions may be investigative, descriptive, analytical or theoretical. They may be in the form of original articles or in the form of a comment on current events. All contributions have to be neatly typed in double space and may be sent to the address given alongside or e-mailed to the editor.

W h i l e t h e e d i t o r a c c e p t s responsibility for the selection of the material published, individual authors are responsible for the facts, figures and views in their articles.

Page 6: EPILOGUE OCTOBER 2008

Mirror to state of affairs Political duplicity Welcome initiative on Ladakh

The world knows a very little about No one can deny the fact that the state It is ridiculous when Jenab Shafi Uri Ladakh and the knowledge and interest failed to tackle the Land issue, Gautam blames his political rivals and India of even the journalists mainly remained Navlakha's deep rooted research based for mis-handling the situation in the focused on tourism in Ladakh, but with fact story is a mirror for the state state during the Amarnath land EPILOGUE we are able to know and politics and immature policies of the controversy, N.C has ruled the state explore Ladakh and its economy beyond state and union to handle the sensitive for a long time, they had even tourism. Really it is quite appreciable issue of Kashmir. He not only described shared the power at center with the that you provided us a glimpse of real

the background but also tries to depict saffron brigade, but then they Ladakh beyond tourism. Prior to your

the further consequences of the policy n e v e r e v e n t r i e d t o b r i n g Story we could not even believe that failure of the government in Kashmir. I transparency on the issue on the farming would have been the profession am really happy to experience such a conscious mind of Jammu region on of Ladakh people.wonderful analytical story and he truly the discrimination. It would have deserves congratulations for his been better if his senior leaders had Suraj Parkash,wonderful piece of work with Bangalorealso adopted a balanced approach EPILOGUE. while parroting different slogans in

Obvious DivideJammu, Delhi and Kashmir.Anu Sharma,

Scholar, Jammu University A small administrative order over the Shehraza Malik,land transfer gathered the momentum Law Student, Pune

and put the state on fire, there was an Keep it up obvious reaction form both the sides,

whereas in Jammu they came with Press, not so freeWith a hope of continuity of EPILOGUE discrimination saga and in the valley

to depict the socio-political scenario of The credibility of media was doubted Hurriyat and other mainstream parties

also missed no chance to fuel the fire. Jammu and Kashmir to the world, we and there was an attempt to oppress the Its hurting but still the fact that the two feel proud to be the reader of Jammu freedom of press, EPILOGUE's months agitation has divided the state, and Kashmir's perhaps only such chronological views on the number of like Russia and U.S.A during their cold Magazine available throughout the incidence of attacks on the journalists war period, the two regions of the state country. Any how the last issue of the and cameramen clearly enlights on the have fallen into the vicious trap of magazine was fabulous and especially duplicity of the state on the name of so vested interests. The last issue of the 'movie reviews' at the same time it is called freedom of press. What could be EPILOGUE represented the balanced really a matter of concern for us that more shameful for a democracy when views from both the regions and have

how a smaller issue got the potential of your voice is thrashed with guns and appreciably adopted a unique

a wildfire in the state. force ?approach.

Dr. Zeeshan Chouhan Imran ul Hasan,Satyam Bhagat,

Unani Medicines, Srinagar District: RambanRohini, New Delhi

M A I L B O X

LETTERS TO THE EDITOR

Epilogue Ø 4 × October 2008

Mail your letters to [email protected]

Page 7: EPILOGUE OCTOBER 2008

Epilogue Ø 5 × October 2008

H E A R A N D H E A R

WHO SAID WHAT

I believe that the Hurriyat has the right to say We do not have ideological compatibility with that they represent the people, I don't think any party. It is easy to go for alliance in any that only those who participate in elections other state but not in J&K. have the right to claim representation of the

people.Arun Jaitely, Senior Leader BJP Saif-ud-din Soz, Union Minister for Water Resources

Starting trade on Cross-LOC route is a non-issue I don’t believe that independence for Kashmir for us. Our struggle is far right to self is a feasible or a viable option and I stand by determination.that.

Syed Ali Shah Geelani, Senior Separatist Leader

Omar Abdullah, President N.C.

Elections are essential to ensure a legitimate representative status. The Hurriyat Conference should Trifurcation of Jammu and Kashmir is contest elections so that the people may take them completely out of question. We are seriously at home and aborad. committed to address alienation with all

sensitivity.Bhim Singh, Supremo, JKNPP

Sonia Gandhi, President Congress Party

Addressing the public sentiments with open Kashmir remains the 'core issue' between mind is a challenge and gun could not be India and Pakistan and every Pakistan Ex-state's medium of expression in the current Government has viewed it so. The Pakistani scenario.position is well know.

Mufti Mohd. Sayeed, Former Chief Minister Asif Ali Zardari, President, Pakistan

Central Government should nationalize the road to the Amarnath Yatra so that in future no attempt is made to disturb the social harmony for political reasons Rajnath Singh, National President, BJP

Page 8: EPILOGUE OCTOBER 2008
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Epilogue Ø 7 × October 2008

N E W S W R A P

J&K STORIES

are ready whenever Commission decides”. ome four months back when then Chief Secretary BR

Kundal resigned to join Ghulam Nabi Azad cabinet, BJP is the one party which wants elections held as soon as Selections were seen happening anytime then. Ministers possible. “If Kashmir is not ready for elections why should

were missing from their secretariat offices as all politicians Jammu and Ladakh regions wait for that”, says Arun Jaitly

were fanned out to their electoral constituencies. Ruling party general secretary and incharge of J&K affairs. When

coalition partners Peoples Democratic Party and the asked about the separatist movement in Kashmir which may

Congress were as usual, warring against each other take bring the poll participation down to negligible, Jaitly said,

credit of populist measures –many of them still waiting to be “this is a wrong notion. More mainstream politics and

announced. It was apparently with an eye on garnering more competitive elections will neutralize the separatist

seats in the Hindu majority Jammu region that Chief constituency”.

Minister Ghulam Nabi Azad did a quick approval to In fact the BJP is desperate to reap the harvest of Amarnath shrine land allotment and the PDP of recent agitation on Amarnath land row in Muftis opposed move playing up to its Jammu. This agitation saw strengthening Kashmir constituency. Four months down and rise of rightwing political parties in the line, the mainstream political at least four of the ten districts. The landscape has been changed to so Shri Amarnath Yatra Sangharsh Samiti worst that even talk of elections is –which spearheaded agitation –has so sounding ridiculous. far no plans of contesting elections

As per the legislative calendar, by and therefore the BJP expects a

this time the poll season in Jammu cakewalk on dozen odd

and Kashmir should have been at its constituencies if elections are held

zenith. Post-Amarnath land row, the immediately as the agitated

mainstream politics has got such a sentiments against Congress and

severe beating that not only the political Kashmir based parties are still fresh.

parties but also the Election Commission of The Election Commission after meeting India is clueless about election timing. Term of political parties had series of consultations present Jammu and Kashmir and Legislative with security agencies, J&K state administration Assembly (dissolved on July 10 after fall of Ghulam Nabi and the Union Home Ministry. A final meeting of Election Azad government) was to end on November 20 and a new Commission with Governor NN Vohra, who is keen to have an government should have been elected by that time. A little elected government in place at the earliest, is still pending. over 50 days have left for that deadline but there is still no The UPA government is in a double whammy on the movement on the poll front. elections. If elections are held now and the poll percentage Almost all political parties, except BJP, clearly put their in Valley does not go beyond five percent this can be an foot down to the disturbed security scenario when the embarrassment for India internationally. India has always Election Commission of India had its first consultation defended the secessionist voices and the international meeting in New Delhi on September 8. With their wide support thereof by its elections results. Valley base, Peoples Democratic Party and the National Valley had polled 29 per cent in 2002 assembly elections Conference told election commission that situation in which definitely boosted India's image. In 2002 byelections Kashmir was not suitable for elections. The Congress, with a on three Valley constituencies in north Kashmir, the poll poor presence in Valley and drastically shrunk base in percentage was as high as 70 per cent – far and far above Jammu region, played it diplomatically. “We have left it to the national average. India had obviously wanted to see this the Election Commission to decide poll dates”, said Union trend repeated in 2008 elections, and there were definite Minister and state Congress President Saif-ud-Din Soz. “We chances for this, but the Amarnath land row has pushed

ELECTIONS

International Audience, DomesticDissidence Delaying Assembly Polls

Page 10: EPILOGUE OCTOBER 2008

Epilogue Ø 8 × October 2008

N E W S W R A P

J&K STORIES

Valley back to the wall.

To ease situation in Kashmir, which

literally back to early 1990s era,

the UPA government and the state

Governor NN Vohra's administration

have recently took a slew of

firefighting measures to ease

sentiments and create a conducive

situation for elections. The idea

was to through the Srinagar-

Muzaffarabad route open for Cross-

LoC trade and to connect the

Valley with Muslim dominated

districts of Rajouri and Poonch via

Mughal Road before Eid so as to

address some amount of

alienation. The Cross-LoC trade

though has been decided to

commence on October 21 but a

possible fair weather drive on the

Mughal Road is reported to have

been snowed in may be till early

next year when the snow melts.

It is all a guess work about final

timing of elections. While the

elections in present scenario are

fraught with the doubts of lacking

legitimacy with a poor public

participation, delaying the

exercise may still be a bad

advertisement for India at

international level. Sources say

that the Election Commission is

likely to take a final call on

schedule in first week of October.

As per the revised electoral rolls,

Jammu and Kashmir now 64,81,000

voters listed for the 2008 assembly

elections. There were nearly 63

lakh registered voters when last

assembly elections were held in

2002. According to Election

Department, in the forthcoming

assembly elections 4.48 lakh fresh

voters will be casting their votes

while 3.68 lakh of them are the

new voters –attaining age of 18

after last elections –who will be

casting first vote of their life.

ollowing

Amarnath Fland row

agitation and

unprecedented

regional

polarization

between Kashmir

and Jammu the

voices of

regional

discrimination

are getting

shriller than

ever. While this

grouse has

remained

predominant in

Jammu for all

sixty years

–precisely since

the end of Dogra

Maharaja's rule

–of late harsher

complaints from

Kashmir have

started pouring

in. With both

regions

complaining

against each

other the task

has become

difficult for

planners and

researchers to

actually reach at

an objective opinion. In this backdrop, the Governor NN Vohra has proposed a

pragmatic step to lay the foundations for balanced funding as India's Thirteenth

Finance Commission has started working out the next Five Year Plan.

J&K's coalition government in its last year in office had constituted as State

Finance Commission with an objective to regional imbalances in funding

DEVELOPMENT

Plan Model Being Re-StructuredAs ‘Discrimination’ Voices Get Shriller

JAMMU KASHMIR

Agriculture

Irrigation

Roads & Buildings

Health

Tourism

Sewerage

Drainage

Housing & Urban Dev

Power

All figures in Rupees Crore, based on Five Year Plan Fundings

5761 104.5 FYP8147.31 253.17 FYP9270.49 380.29 FYP10337.56 519.41 FYP11

91.14 136.64 FYP8112.79 210.05 FYP9267.76 446.72 FYP10282.54 365.35 FYP11

114.2 247.22 FYP829.38 403.67 FYP9730.93 751.03 FYP101229.24 1229.24 FYP11

123.92 135.34 FYP8226.07 274.45 FYP9330.32 390.25 FYP10510.81 819.22 FYP11

15.21 34.39 FYP834.99 58.01 FYP947.17 109.85 FYP1036.29 83.09 FYP11

2.92 6.81 FYP86.26 14.61 FYP930.61 71.42 FYP1011.54 35.67 FYP11

20.37 45.53 FYP827.84 64.96 FYP932.31 75.41 FYP1067.75 109.61 FYP11

19.38 45.23 FYP839.87 93.02 FYP969.65 162.52 FYP1027.94 518.88 FYP11

516.75 775.12 FYP856.94 85.41 FYP91154 1731.43 FYP103278.78 4918.17 FYP11

Page 11: EPILOGUE OCTOBER 2008

Epilogue Ø 9 × October 2008

N E W S W R A P

J&K STORIES

pattern and propose suggestions for future

development funding so that each region gets its due

share. Vohra recently had a meeting with the Finance

Commission –its chairman Mehmood-ur-Rehman and

three members, one each drawn from Jammu, Kashmir

and Ladakh regions.

The Governor observed that the recommendations on

the fiscal devolution to civic bodies and other

measures for strengthening the Local Self Governing

bodies could go a long way in decentralization of the

decision making process, a leading to qualitative

improvement in governance. Rehman apprised the

Governor about the Commission's visits and

interactions in each of the districts of the State except

two, which the Commission proposes to visit along with

other remote and backward areas across the State. He

said that the Commission had also extensively studied

various Public Sector Corporations across in the State.

The Commission was, in particular, looking into the

issues pertaining to corporate governance, with the

objective of restructuring of these institutions of vital

public importance.

Rehman said that the Commission was mapping the

regions and sub-regions with reference to well

accepted development indicators for identifying the

backlog of development in backward areas and suggest

strategies for short-term and long-term correction. He

said that the Commission was also identifying measures

to bring about a paradigm shift in the approach for

inter-se allocation of resources by treating each region

and sub-region within the region as a targeted

economic unit. The Chairman said that the Commission

was also reviewing the state of finances and suggesting

restructuring of the public finances, restoring

budgetary balance, achieving macro-economic stability

and debt reduction. He said that the Commission would

be suggesting measures needed to augment the

resources of the State Government, particularly to

supplement resources of Halqa Panchayats,

Municipalities and Municipal Corporations. Meanwhile,

a senior BJP leader, Prof Hari Om seems to have put in

a lot of effort in pointing out that “Kashmiri political

elite” alone is not be blamed for the alleged regional

discrimination against Jammu is New Delhi is an “equal

culprit”. Hari Om has complied the sector-wise funding

details of last four Five Year Plans which clearly show a

lopsided funding, if the figures are genuine as Hari Om

claims. (See table)

t has not been heard anywhere in India, but Jammu and

Kashmir is on the way to set a precedence. Voluntary Ishut downs as part of agitations is always considered as

voluntary and not forced; therefore government

compensation in such cases is something unheard of. The

Shri Amarnath Yatra Sangharsh Samiti (SAYSS), which

spearheaded two-month long agitation in Jammu on

Amarnath shrine land row, put a specific condition before

the government for calling off agitation. Besides restoration

of the controversial piece of 800 kanals of forest land to the

shrine board, the Samiti put 12 other conditions before the

government which included compensation to all sectors of

economy which suffered losses during agitation. Cornered at

all fronts, the government was quick to agree. Though the

demand was specific for Jammu region alone but in its

balancing act, the Government decided to extend this

benefit to Kashmir Valley's units of economy as well. The

Governor's administration has now constituted a Working

Group under the Chief Secretary to examine cases of losses

and work out the compensation package. The Working Group

has to complete the exercise in two months (before October

end). The cash starved J&K Government will be forwarding

the case to Central Government for financial assistance.

Though an exact and authentic tabulation of losses is yet to

be made, but representative bodies of trade, commerce and

industries in Jammu have said that losses run beyond Rs

10,000 Crores. Ram Sahai, President of Chamber of

Commerce and Industries have said that the losses mount to

over Rs 9600 Crores. Some other sections not covered by the

CCI have also been reporting losses in hundreds of crores of

rupees. The Kashmir Chamber of Commerce and Industry has

reported losses to the tune of Rs 25,000 Crores. Now it has

to be seen as how government works out this more than Rs

30,000 Crore compensation package.

ECONOMIC LOSSES

Agitation Reportedly Cost Economy Over Rs 30,000 Crores

Page 12: EPILOGUE OCTOBER 2008

Epilogue Ø 10 × October 2008

N E W S W R A P

J&K STORIES

ashmir Valley has definitely returned to its early-1990s era of separatist upsurge but

there is one remarkable difference –the gun discourse is missing. However, traveling Ksouth of Pir Panchal, in Jammu region the scene is being reset to the mid and late

1990s with a visible presence of the gun.

Ever since Kashmir Valley re-erupted June this year with the dominant Azadi discourse, what

has lend credence to the voices and added to the worries of New Delhi is the fact that all is

not being done on the gun point. In early years of 1990s when the slogan shouting Valley

residents stayed more on streets than their houses, the popular perception was all that

being done under the shadow of gun. That may have been largely those times, but this time

around gun has been carefully kept away from the scene to send a message of popular

uprising and not the militancy.

Surprisingly, militancy is on its revision course in Jammu province where sporadic incidents of violence and infiltration are on an alarming rise. Intelligence reports have that some 800 ultras are waiting on the other side of International Border and Line of Control along Jammu region to cross over at an opportune time. Such “opportune times” are now happening much frequently and that too under the fire cover provided by Pakistani Rangers or Army. While the Winter Capital City is reeling under a constant terror fear since ultras sneaked in on August 25 and took a family hostage before being killed in a 19-hour long gun battle, the fear

fter surviving

prolonged Adiplomatic rows,

geographical hurdles and

bureaucratic red-tapism,

J&K's most ambitious

power project, so far,

the 450 MW Baglihar

hydro-electric power

project is all set for

commercial generation

by middle of October.

Test run on three

turbines of 150 MW has

been performed

successfully.

On Baglihar, India had

fought a long row with

Pakistan under the

Indus Water Treaty. It

MILITANCY

Gun Relatively Silent In Valley,Jammu Returns To Late 1990’s era

POWER

450 MW Baglihar Project Ready To Change J&K’s Destiny

Page 13: EPILOGUE OCTOBER 2008

Epilogue Ø 11 × October 2008

N E W S W R A P

J&K STORIES

factor is also looming large in the countryside and the border melting hot with activity.

Having enjoyed few years of security and peace in their home and hearths since November 2003 ceasefire, the border residents along five districts in Jammu region are again a worried lot. Since November 2003 ceasefire agreement between India and Pakistan, life had limped back to normalcy along the International Border and the Line of Control and people had resumed their usual farm activity which was on doldrums after the Kargil conflict of 1999. However, since past few months a deep sense of insecurity is prevailing among the residents of border areas as cases of firing and infiltration have picked up drastically and some times getting more frequent than the pre-ceasefire times.

Reports from across the region have been pouring in on the presence of militants. It was around two to three months back when people in the border districts of Rajouri and Poonch started reporting huge presence of militants in the interiors and now a similar situation is being reported from the areas along IB, in Jammu, Samba and Kathua districts.

Between April and August this year, there have been at least 29 instances when Pakistani troops violated the truce with India and fired at Indian posts along the Line of Control (LoC) to provide covering fire to militants. One incident was reported in April, two in May and seven in June. The figure rose to 10 in July, while at least nine violations took place in August. About 150 intruders had managed to cross over to the Indian side since January, sources said.

'The recent firing along the LoC is mainly an attempt of infiltration by militants and the armed forces are keeping a vigil. By and large, we have been able to defeat the attempts of militants. The coming few months are crucial and we have to be more alert and the armed forces have been asked to be more vigilant,' Defence Minister AK Antony said on September 5 in New Delhi.

Infiltration into Jammu and Kashmir normally begins at the end of March when the snows in the Himalayan ranges melt and the passes become accessible. Between March and July, the Indian Army says, there have been over 130 infiltration bids, of which about 20 succeeded.

was in February last year that a World Bank commissioned major functional projects like Dul Hasti are in the Center

expert panel headed by Raymond Liffete cleared the sector owned and operated by the National Hydroelectric

project of all objection with some suggestions of slight Power Corporation in which Jammu and Kashmir gets only 12

design change including reduction in height of the dam to per cent royalty share of the total production.

143 meters from the then height of 145 meters . On July There are more than 25 power projects –both in State and 31 this year, a three-member team from Pakistan led by Central sectors –harnessing a potential of around 1500 MWs. Central Water Commission (Indus Water Treaty) Some of the projects are operational while others are into Commissioner Syed Jamait Ali Shah had visited Baglihar various stages of completion. project and had given a clean chit to the project in its The peak hour electricity requirement in Jammu and report, after complete inspections. Kashmir around 2040 MWs but the total production in The project was started in 1999 and is almost complete state sector has so far been only 311 MWs. After resorting after much delay due to dispute raised by Pakistan and to scheduled power curtailments, the minimum supply is changes undertaken in design. The project, constructed by managed by around 950 MWs –procured from royalty out of

Jaypee Indistrues, was initially slated to be completed at a Central Sector projects, Power Trading Corporation of

cost of Rs 4000 crores by June 2006 but due to India and other sources. This supply too falls to around

unprecedented floods in mid 2005, the project received a 650 MWs in peak summers as well as in peak winters due

severe set back, as its tunnels got severely damaged. The to drop in river discharge and transmission and

distribution losses. natural calamity resulted in time and cost over run in the

project with the project cost rising from Rs 4000 crores to With generation of 450 MWs of power at Baglihar power Rs 5200 crores. project the total electricity production in the State Sector

will go upwards 800 MWs. This will not only push the This is first major state-owned power project in Jammu and

economic growth of state but will also bring down the huge Kashmir and its commissioning is going to be a major

expenditure on electricity procurement. milestone in economic development of the state. All other

Page 14: EPILOGUE OCTOBER 2008

Epilogue Ø 12 × October 2008

N E W S W R A P

J&K STORIES

n aesthetic and comfort marvel of Indian Railways,

the Kashmir Valley is all set to have one of the most Abeautiful and comfortable trains of country chugging

between its northern most part –Baramulla and the southern

most township of Qazigund. However, the dream of

integrating Kashmir with rest of India by train is getting

elusive by the day even as authorities are making a discreet

silence on imminent delay on the project.

sparked off doubts which the authorities are yet to clarify. Rail link within and to Kashmir Valley has two phases –one

which connects Valley within and the other connects Valley As a part of Jammu-Udhampur-Baramulla rail link the

with rest of country. Valley's internal rail line is a 199 world's third highest railway bridge was coming up over River

Kilometer track between Qazigund and Baramulla. The Chenab in village Kauri in the newly created Reasi district.

After spending more than Rs 100 Crores and risking the

claims of an international construction consortium running

beyond Rs 200 Crores, the government is reported to have

cancelled the project after belatedly learning about its

unfeasibility.

After global tendering the Konkan Railways had in 2004

allotted the construction work of this project to Ultra-

Afcons-VSL, an international construction consortium. The

bridge on river Chenab was supposed to have a total length

of 1320 metres, the single longest arch span of 480 metres

and the height from the bed level to the rail level of 359

metres –highest anywhere in the world.

At an estimated cost of Rs 500 Crores, the Kauri bridge was

to be completed in a period of 30 months which, however,

had elapsed early last year. The construction work on the

bridge had picked up only earlier this year but now the construction work on this section having 800 bridges is 95 per report has come about cancellation of the project. cent complete and Rs 2200 Crores out of the estimated prost In a letter dated September 4, the railway board announced cost of Rs 2400 Crores have already been spent. An air- "all existing contracts" with Konkan Railway Corporation conditioned, eight coach diesel multiple unit with push back Limited (KRCL) for a 34-km stretch of the railway link seats will chug on this track which has 15 stations on the way between Jammu and Kashmir, which includes the with the central Srinagar-Nowgam station being construction of the Chenab mega arch bridge, have been architecturally and aesthetically, the most beautiful station

in the Indian Railways.

However, the line linking Kashmir with rest of the country –the

148 kilometer Katra-Qazigund track –is appearing to be an

elusive project yet. The special feature of this section is that

80 per cent of the 148 kilometer track will be covered by

tunnels and 12 per cent by bridges, thus leaving only 8 per cent

open. This section was supposed to have world's third highest

railway bridge but recent reports of change in alignment have

RAILWAYS

Suspense, elusion over Kashmir’s‘Rail-Line Integration’ With India

The railway project in the State comprises three sections- Udhampur-Katra, Katra-Qazigund and Qazigund-Baramulla, taken up at a cumulative cost of Rs 11000 crores. For the current financial year, Rs 1000 crores have been earmarked.

Upon its commissioning the Qazigund-Baramulla track would would generate direct employment for 3900 persons in the Valley, in addition to indirect employment. The Railways is also processing 400 cases for providing employment to one person in each of the land loser families, those which have given to the Railways more than 75 per cent of their holdings, in Kashmir. Appointment letters have been issued to 120 candidates so far, who are undergoing training in different parts of the country.

Railways were constructing 270 kilometers of access roads, at the cost of the Railways, to carry machinery and equipment to the Project sites. After the completion of the Project, these roads would connect 60 villages and will be of immense use for the locals of the concerned areas.

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J&K STORIES

"short closed" (meaning, terminated before completion of alignment of the entire 125 km track between Katra and

work).? Banihal skirting the mountains at altitudes ranging from 800

to 1,700 metres.As a corollary, the board's decision puts a stop to the sub-

contract signed by KRCL in 2004 with the international This has sparked off doubts as authorities are not officially

consortium, Ultra-Afcons-VSL, to design and build the clarifying the proposed change in alignment. The only word

Chenab bridge within 30 months. Though the stipulated which we have about the impact of this design change is

period for the execution of the project lapsed last year, the from a meeting which J&K Governor NN Vohra had with the

consortium is yet to build even the foundation in the official of Northern Railways in New Delhi on September 16.

mountain slope on either side of the river as Northern Briefing about the meeting, an official spokesman of J&K

Railways, in view of the treacherous geological conditions, government said that despite change in alignment on

could not clear any of its plans for the bridge.? Jammu side of the Udhampur-Katra-Qazigund rail line, the

Northern Railway has assured Governor NN Vohra that the In a tacit reference to the claims of Rs 300 crore submitted completion of the railway link will not be delayed beyond by the consortium for the manpower and machinery idling at the stipulated time. the site, the board said, "A proper record of material,

unfinished work abandoned at the site shall be kept for “Allaying the apprehensions about the change in the

examining legitimate claims."? alignment on the Jammu side of the track, the General

Manager assured that the work on this track will be speeded The decision to scrap the bridge was taken by the board's up to facilitate the early completion of the Project”, said member (engineering) S K Vij as a sequel to an order passed the spokesman.by him on July 14 suspending all works on the existing

The construction work on this section having 800 bridges is 95 per cent complete and Rs 2200 Crores out of the estimated prost cost of Rs 2400 Crores have already been spent. An air-conditioned, eight coach diesel multiple unit with push back seats will chug on this track which has 15 stations on the way with the central Srinagar-Nowgam station being architecturally and aesthetically, the most beautiful station in the Indian Railways.

The special feature of Katra-Qazigund section is that 80 per cent of the 148 kilometer track will be covered by tunnels and 12 per cent by bridges, thus leaving only 8 per cent open.

Governor Vohra on Kashmir train ride

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ammu and Kashmir is though not able to compete most of other states in important

parameters of development but its Lok Sabha constituencies are doing quite good. JIndia Today's latest survey of best and worst constituencies of India has put J&K's Lok

Sabha segments in a class of their own. As the trend has it, the constituencies with large

urban base have faired well than those spread over hilly and rural areas. What makes the

state proud is that in an indexing of 543 Lok Sabha constituencies, its best is placed at

rank 208 and worst at 367 while Bihar makes an entry at 330 and Uttar Pradesh has 29 of

the 100 worst constituencies.

The Srinagar-Badgam Lok Sabha presently represented by National Conference president

Omar Abdullah segment has been placed at 208 rank in terms of performance on socio-

economic sector and at 279th in terms of infrastructure development. Omar's arch rival

and another young leader Mehbooba Mufti constituency –Anantnag-Pulwama -finishes

poor at the second last rank among six constituencies in the state.

Congress MP Chowdhary Lal Singh's constituency of Kathua-Udhampur-Doda has been

placed at the poor last rank in the state but he does not have to worry about it. After

all, Lal Singh's performance, though poor as per the survey finding, is at least 50 points

better than that of Congress president Sonia Gandhi's Rae Bariely constituency and

General Secretary Rahul Gandhi's Amethi constituency.

“Nothing quite compares with the eloquence of numbers. By definition India is a mosaic

of cultures, geographies and economies. And nothing symbolises this better than the

rankings of the Lok Sabha constituencies”, says the India Today magazine's survey of

India's best and worst constituencies.

The Jammu-Rajouri-Poonch Lok Sabha constituency represented by Madan Lal of

Congress has ranked at number in the state. Out of all LS seats in India, Madan's

constituency is at rank 260 in terms of socio-economic development and 247 in terms of

infrastructure access. The Congress MP has reason to feel happy and elated.

“I have put in all my efforts to repay to my electors the faith they reposed in me”, says

Madan. Among his major achievements, he counts over half a dozen colleges and double

laning of Jalandhar-Jammu rail line.

Ladakh constituency represented by Thupstan Chhewang of Ladakh Union Territory Front

is ranked at number three in the state and at all India level it is at rank 264 in terms of

socio-economic development and 184 in terms of access to infrastructure. The

Baramulla-Kupwara constituency represented by Abdul Rashid Shaheen of National

Conference is at 277 rank in terms of socio-economic development and 205 in access to

Constituency MP Socio-Eco Index Infrastructure

Srinagar-Budgam Omar Abdullah 208 279

Jammu-Kashmi Madan Lal 260 247

Ladakh Thupstan Chewang 264 184

Baramulla-Kupwara A.R. Shaheen 277 205

Anantnag-Pulwama Mehbooba Mufti 296 308

Udhampur-Doda Lal Singh 363 357

ith majority of the c e n t r a l l y f u n d e d Wa m b i t i o u s

infrastructure projects in J&K running appallingly behind schedule, a Parliamentary Panel has suggested a funding mechanism for this state where money is not considered lapsed at the end of financial year. Currently, most of the funds earmarked for the states are getting lapsed as harsh climatic conditions don't allow works at a steady pace. The panel also expressed concern that the Planning Commission and the Finance Ministry reduces the plan outlay for Jammu Kashmir projects due to non-completion of works.

Of the works running behind schedule are some of the major projects funded under Prime Minister's Special Infrastructure P a c k a g e . U n d e r t h e reconstruction plan made in 2004, seven road projects were taken up. None of it has met the deadline. Construction of Mughal road between Pulwama district in Kashmir valley and Poonch and Rajouri of Jammu was scheduled to be over in March 2007 but now a new deadline of April 2010 has been set. Out of the Rs 639.85 crore of fund alloted to the project, only Rs 162.35 crore had been spent till this April. Similarly, widening of Domel-Katra road by Border Road Organization (BRO) has missed the deadline of March 2007 and out of the total fund allotment, only 61per cent has been spent.

INFRASTRUCTURE

Major ProjectsSurpassing Deadlines By Years

SURVEY REPORTJ&K Lok Sabha ConstituenciesDoing Better Than Many In India

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infrastructure.

Peoples Democratic Party president Mehbooba Mufti's

constituency of Anantnag-Pulwama is the second worst

performer at 296 rank in terms of socio-economic

development and 308 in access to infrastructure.

Chowdhary Lal Singh of Congress doubts the indexing

methodology as his constituency finishes last -363 in terms

of socio-economic development and 357 in terms of

infrastructure access. Lal Singh has a reason to protest.

The indexing is not the basis of performance an individual

MP may have registered during the present term. The

parameters also include what he inherited from his

predecessors.

“I have got more than 400 projects completed so far in the

areas of my constituency and am sure of meeting the 800

target before end of my term”, Lal Singh said. He further

said, “in Omar Abdullah's constituency only 90 projects

have been taken so far.

“Uttar Pradesh, which sends 80 MPs to Parliament and has

been home to eight prime ministers, makes an entry at

number 212 with Kanpur, thanks to the dividend of legacy

the commercial city delivers”, says the India Today survey.

“The real shocker is that Bihar boasts of 32 of the worst 100

constituencies while Uttar Pradesh is home to 29 to the

bottom of the pile. Curiously the listing reads virtually like

the first list of 100 worst districts classified by the Patel

Committee in 1964. It is as if time has stood still”.

Phulpur and Allahabad, represented by Jawaharlal Nehru,

who was prime minister for 17 years, rank 409 out of 543 on

the socioeconomic index.

Lucknow, which elected Atal Bihari Vajpayee, is placed at

269. Ballia, which elected Chandra Shekhar (and now his

son), ranks 388 and Chaudhary Charan Singh's Baghpat is

362.

Amethi which has elected members of the Gandhi family-

Sanjay Gandhi, Rajiv Gandhi (twice), Sonia Gandhi and

now Rahul Gandhi-five times out of 10 polls.

It ranks 484 on the socio-economic index and 475 on the

infrastructure ranking.

Nehru-Gandhi home turf of Amethi, presently represented

by Rahul Gandhi ranks at 484 while Rae Bareily

constituency is at 507 rank in terms of socio-economic

index.

The survey report concludes, “unless public

representatives realise that the huge monster called

government is made to deliver, they will be haunted by

anti-incumbency and their voters by poor governance.

These ratings simply reflect the distance between the

need of the voting class and a slothful system”.

or past few years, the Central and State government have

laying huge thrust on attracting investment in Jammu and FKashmir. This included a multi-pronged strategy mainly

focusing on positive images building, allaying fears of militancy,

creating industry infrastructure and easing the land acquisition

norms. However, nothing seems to have worked well as investors

are not keen. Many have run away after swindling huge subsidies

and concessions while others are not enthusiastic in making

investments. In the recent 'State of States' survey report of thIndia Today, Jammu and Kashmir has emerged at poor 16 rank.

While there is no remarkable achievement on any parameter of

growth, Jammu and Kashmir appears to have suffered a massive

damage to its projected investment friendly environment.

Among 20 big states in country Jammu and Kashmir ranks at 16 in

attracting investors. What is more worrying is the fact that this

ranking has been on a constant decline for last four years.

At least two Chief Ministers –Mufti Mohammad Sayeed and his

successor Ghulam Nabi Azad –always claimed that they

mobilized huge investment for the state. However, a credible

survey points to the contrary. The survey says that Jammu and

Kashmir ranked at number nine in terms of its investment

friendly environment in 2004 which declined to number 10 in

2005, number 12 in 2006, number 14 in 2007 and number 16 in

2008. This clearly points out that India's industry barons are

least interested in investing in Jammu and Kashmir.

This had already been pointed by Prime Minister's Task Force on

Jammu and Kashmir's Economic Reconstruction which

submitted its report in December 2006. The Task Force headed

by former Reserve Bank of India Governor R Rangarajan had said

that besides unreliable security environment, the cumbersome

land acquiring process and complex taxation regime keeps the

investors away from Jammu and Kashmir.

Himachal Pradesh, though a hilly state almost like Jammu and

Kashmir, has emerged as number one state in the country in

terms of attracting investment. This first rank in attracting

investment had earlier been held by Gujarat consecutively for

last three years.

The latest “State of the States Survey” conducted by country's

leading current affairs magazine has put Jammu and Kashmir at

eleventh rank among the 20 big states of the country. Punjab

still maintains its Numero Uno position in the list while Tamil

Nadu has gone up to number two and Himachal Pradesh is at

number three. As usual Bihar is at the last rank.

India Today's annual “State of the States” survey, as it is well

known, is considered not less than the reports of Planning

INDUSTRIAL INVESTMENT

Loosing Ground ToNeighbouring Himachal Pradesh

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enjoyed fourth rank in primary health sector in 2004 but declined to Commission. The survey conducted by leading Economists Bibek number but it declined to number seven in 2006 and 2007. Debroy and Laveesh Bhandari examines three categories –Big

States, Small States and Union Territories. There are 20 States in Remarkable improvement has also been noticed in primary the category of Bog States and Jammu

and Kashmir comes at eleventh rank.

Jammu and Kashmir is maintaining this

eleventh rank, well below halfway,

consecutively for last two years though

its performance has declined in many

crucial sectors of economic growth and

general environment. In the same

survey, J&K ranked at tenth place in

2005 and 2006 which declined to

eleven in 2007. Agriculture is regarded

as backbone of Jammu and Kashmir's

economy but there is no remarkable

growth in this sector. For straight

second year, the state is at 16th rank education where Jammu and Kashmir once stood at number among 20 states. Position was slightly better between 2004 and seven in 2004 and declined to eight in 2005, number 10 in 2006 2006 when state ranked at number 15. This year's survey has put and number eight in 2007. This year again state has been ranked Madhya Pradesh at number one and Punjab at number two. The at number eight. There is also a decline for the worst in law and worst performing state in Agriculture sector is Gujarat. order sector. In this sector, the state has registered a decline of

The primary health sector, however, appears to be only hope for one rank from 15 to 16. Between 2004 and 2004, J&K ranked

image of Jammu and Kashmir. The state has ranked at number four continuously at number 17 when it improved to 15 in 2007. This

among 20 states while Tamil Nadu is the best and Bihar still remains year there is a decline by one point.

the worst. It may be mentioned here that Jammu and Kashmir

n a major boost to state's economy and industrial growth, Kashmir Valley has got its first steel plant. Union Steel Minister Ram Vilas Paswan on September 22 laid the foundation of the first steel-processing plant in the industry-starved Kashmir Valley Iwhich will give employment to around 4,500 people. The plant in Lassipora industrial growth centre in south Kashmir Pulwama

district will have an annual capacity of 160,000 tonnes and will become operational in 2010. Paswan said the capacity of the steel-processing plant would be expanded after it becomes operational in January 2010.Complimenting the central government and the union steel ministry for setting up the unit in the valley, Governor N.N. Vohra said the plant would help to meet the steel demand of the valley besides assuring employment to a good number of people.Paswan announced that the initial cost of Rs.900 million of the upcoming unit would be enhanced to Rs.1.5 billion to ensure full-fledged facilities in the unit.Earlier on September 8, the government's Apex Clearance Committee (APCC) for industrial investments cleared 23 industrial projects in medium and large sectors with an estimated investment of Rs One Billion which also included the Lassipora steel plant. Among others Shri Cements projects was also approved with an investment of Rs 164 crore. The project will have a potential for creation of many ancillary units.The other projects cleared are for manufacturing of high precision auto components, terri-towels, cement, hi-tech batteries, LT/HT wire cables, steel products, paints, DG sheets, electric motors and steel pipes etc. The total investment to be mobilized on setting up of the 23 projects cleared by the committee will be to the tune of Rs 1002 crore and direct employment to be created in these units will be about 5500 persons.The Chief Secretary directed for proper zoning of new industrial estates keeping in view various industrial activities, pollution norms and other related factors so that requisite pollution control measures like setting up of Common Effluent Treatment Plants could be designed and set up in the states.

BUSINESS & ECONOMY

State Gets Steel Plant, Rs One Billion More Investment On The Way

Jammu & Kashmir 2008 2007 2006 2005 2004

"! Overall Ranking 11 11 11 10 10

"! Agriculture 16 16 15 15 15

# Primary Health 04 07 07 05 04

$ Investment Environment 16 14 12 10 09

"! Primary Education 08 08 10 08 07

# Infrastructure 10 11 11 08 10

# Macro Economy 06 07 06 07 07

"! Consumer Markets 08 08 08 08 07

$ Law & Order 16 15 17 17 12

Excerpted from India Today Survey

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Zafar Choudhary

Beginning Of A New Chapter

I N F O C U S

LOC TRADE

Almost all arrangements for trade on 63 per cent of the divided families on here was an overwhelming both routes have been put in place. On both sides of Jammu and Kashmir. response in Jammu and September 6, a team of Union Ministries Traders in Poonch and its adjoining Kashmir on September 25, T of Finance, External Affairs and Home district of Rajouri are grasping for a barring few voices of obvious along with top officers of J&K minimum knowledge about their stake reservation, when Prime Minister Dr government visited the LoC crossing in the whole affair. Manmohan Singh and President Zardari point at Kaman and custom station at made announcement of trans-LoC trade Salamabad in Uri district to review from New York where both leaders were Trade between two divided parts of

rd preparations. Work on roads, buildings visiting to attend 63 United Nations Jammu and Kashmir has a different and other infrastructure facility was by General Assembly session. Congress, meaning for different people. For that time 95 per cent complete. Peoples Democratic Party, National peaceniks it is an initiative which However, there is slow pace of work and Conference, CPI(M) and a wide enhances the people-to-people lesser enthusiasm on the Poonch-majority of separatists welcomed the contacts between both sides, brings Rawalakote trade link. Neither full move and most of them described this down the walls of mistrust, ensures a facilities have come up there nor is as realization of urges and aspirations greater level of cooperation and there much awareness about what is of the people of Kashmir. Hardliner eventually strengthens the urge for going to happen. Since the Srinagar-Syed Ali Shah Geelani's was the lone peace. For traders, particularly on this Muzaffarabad link earns a lot of voice to underplay the move. side of divide, it is a biggest opportunity publicity and the Valley being major “Opening for trade the routes which of economic growth and reaching to the producer of commodities to be traded, already have restricted movement for international markets. For Kashmiri's it the level of involvement in Kashmir is people is a non-issue for us…we are is an end to the perceived psychological far higher than anywhere else in the fighting for a larger cause”, said suffocation as for them Jawahar tunnel state. Poonch does not have any well Geelani. In Jammu, the BJP saw trade has been only opening to the world since organized trade lobby and the Chamber agreement as an act of treason. “1994 division of state. In a larger perspective of Commerce and Industry in Jammu as Parliament resolution holds Pakistan the trans-LoC trade eventually emerges well as their Srinagar counterparts are occupied Kashmir as a part of as a move of economic integration not seen taking any interest in Poonch-India…this agreement (on trans-LoC between India and Pakistan with Jammu Rawalakote route. However, it is trade) amounts to giving up claim on and Kashmir as a bridge. Being a interesting to note that this route, our territory and accepting LoC as traditional bone of contention between which was opened to passengers in International Border”, said BJP's two nuclear armed neighours, Kashmir 2006, is easiest and closet link between Jammu unit president Ashok Khajuria. becoming a bridge of cooperation can

More than 61 years since the last truck load of goods moved on either side of Kashmir Valley's main trade

highway to the world, a new is era to set to begin in 2008 –an historical epoch indeed. Nearly three weeks after

Pakistan's new President Asif Ali Zardari promised India some good news (immediately after his swearing in), the

trans-LoC trade between two parts of Jammu and Kashmir has been agreed upon. Trucks will roll down on 130

kilometer long Srinagar-Muzaffarabad road on October 21 and on 47 kilometer long Poonch-Rawalakote road on

October 28. Seen in the context of Indo-Pak peace process, the trans-LoC trade can well be described as the

Biggest Confidence Building Measure so far.

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ultimately pay way

for resolution of issue

wh i ch ha s been

hanging fire for 60

years.

Huge potential

The initial list of

commodities to be

exchanged between

both parts of Jammu

and Kashmir appears

more symbolic in

nature but in next

couple of years these

trade links are set to

change economic

profile of the region.

K a s h m i r ' s a p p l e

industry alone is

worth Rs 2500 Crores

and with a little boost

it can touch Rs 5000

Crore mark in next

few years. “Right now

our apples are worth

Rs 2500 Crore but if

proper technology is

a pp l i ed we c an

produce five times

higher than this

figure –Rs 12500

Crores in next few

years”, says Shakeel

Qalander, President

Federation Chamber

o f I n d u s t r i e s ,

Kashmir. “It is all

a b o u t e f f i c i e n t

logistics”, says Dr

Mubeen Shah, the

President of Kashmir

C h a m b e r o f

C o m m e r c e a n d

Industry. With the

Interview Mubeen Shah, President, Kashmir Chamber of Commerce and Industries

It’s Beyond CBM. Kashmir Always Needed An Alternate Trade Route

ver since the talk of trans-LoC trade began few years back this has been described as mother of all Confidence Buildings Measures. Now trucks are all set to move across LoC. How do you look at the situation? E

Trans-LoC trade was most important thing to happen to Kashmir and we are happy that this has been agreed upon. But I don't think this need to be linked with the Confidence Building Measures. Now this is a reality and necessity and not just symbolism that we should have trade relations with Pakistan administered Kashmir and beyond.

Could you please explain this?

See there are two major factors for which Kashmir should have trade ties with Pakistan administered Kashmir. One is natural and permanent and other is recent creation of communal forces. Kashmir has only surface link with world (Jammu-Srinagar National Highway) which is not fully dependable due to weather vagaries. The highway remains closed for weeks together due to snowfall and landslides resulting into severe shortage of commodities in the Valley, particularly during winter months and rainy season. Therefore, an alternate trade route is the necessity to maintain the basic minimum supply lines.

Another reason for alternate trade route, preferably linking Pakistan administered Kashmir was felt strongly when some communal forces in

Jammu forced economic blockade of Valley to the extent that we even ran short of baby milk powders and life saving drugs. After having faced such hostility now we can't depend on the traditional trade route. You never know how many times they force economic blockade of Kashmir.

But these charges of economic blockade have been severely denied in Jammu. Moreover during agitations, shutdowns and curfews supplies normally get affected.

If there was no economic blockade we were not the fools to lead a march to Muzaffarabad. Our fruits and farm produce worth crores of rupees were allowed to rot in the mandis. People in several areas did not have anything to eat for several days. For weeks Valley ran empty of even most basic and essential commodities. Life saving drugs had to be procured directly from New Delhi by air as truckers were being attacked on the National Highway. Come here and meet the truckers who survived lethal attacks of communal hooligans. If there was no economic blockade then why the government had to hand over the National Highway to Army to make some movement of trucks to Kashmir. We have been deeply hurt particularly by the action of those people who had business dealing with us.

Now since the situation in Jammu has ebbed, is there full resumption of economic

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supplies and also the restoration of hopes and expectations that Epilogue permanent structures. How do you

business dealings with traders in does justice to the issue. explain this? The then Chief Executive

Jammu? Officer of the Shrine Board is on record

having said that a dam will be First of all the resistance to the land constructed and exclusively owned by No. We are no more interested in allotment was on the basis of the Board for power generation. Don't d e a l i n g w i t h J a m m u b a s e d ecological dangers. The land around you see this tendency of creating a traders…they have betrayed our trust. Amarnath shrine is home to glaciers. “State within State”. Just imagine In fact we have decided to resume the Increased human activity there would what happens when they talk of taking trade patterns of pre-1990s. have a direct bearing on our two rivers over our tourist spots of Pahalgam and –Jehlum and Lidder. Long term Gulmarg. We protested against these dangerous effects are not only in What is this pre-1990 trade pattern? basis biases but were unfortunately Kashmir but across the country as the labeled as communalists and rivers are sustained by glaciers. We

Before eruption of disturbance in secessionists. had opposed construction of structures Kashmir in 1990 we had direct trade which was given a communal rebuttal ties with producers, suppliers and by the Shrine Board authorities. Well let's come back to the trans-LoC wholesalers in different parts of

trade. What is the quantum of trade country, particularly Amritsar, you see happening between both Second most important aspect is of Ludhiana and New Delhi. They had parts of Kashmir. Who gets the economy. You have two shrine boards in their C&F (Clearance and Forwarding) maximum benefit –this Kashmir or Jammu and Kashmir –Mata Vaishno Devi offices in Srinagar which were shut that? Shrine Board and Shri Amarnath Shrine down by the onset of disturbance. We

Board –both headed by the Governor. have requested them to revive that system. Meanwhile, we have started The management of Shrine Boards has As I already said this is not going to be a

procurements from different parts of different yard sticks for both symbolic trade. We are gearing up for country bypassing Jammu. This has pilgrimages. There are three essential business in real terms. The quantum of been made clear to the traders in facilities required to be offered to the trade as it appears on the list is not Jammu. And I must make this clear pilgrims –food, accommodation and much but this has to go up with the here that this is not an individual transport. In case of the Vaishno Devi passage of time. decision. This is a decision of the pilgrimage (in Jammu) the Shrine Board people of entire Kashmir Valley who has left it to the local businessmen to This side of Kashmir stands to benefit have refused to pick up commodities offer all these three facilities to the most from the trans-LoC trade for very supplied from Jammu. pilgrims. However, in case of Amarnath simple reasons of efficient logistics.

pilgrimage (in Kashmir) the Shrine Board Besides handicrafts, what we sell most wants to handle everything itself. Why you people protested allotment is fruits and vegetables which are Protesters in Jammu demanded full of land to Amarnath shrine? Afterall perishable goods. It takes 36 hours for management of Amarnath pilgrimage by that was a turning point in widening our trucks to reach New Delhi while the Shrine Board (which has always been of gulf between Kashmir and Jammu. Islamabad is just 8 hours away. Once an exclusive affair of Board) but why we are in Islamabad, our good are in don't they ask the same thing for Vaishno the international market. We have I am sorry to say but the media has a Devi pilgrimage? Is this something media s i g n e d a m e m o r a n d u m o f poor knowledge of this whole issue. All can't understand? understanding with the traders in newspapers and channels have sought

Dubai and they will get in touch with to link the controversy on several Look at the blatant discrimination the Pakistan Foreign Ministry for patterns ranging from secessionism to unleashed by the Shrine Board. In procuring goods from Islamabad. Other communalism. You people speak to Pahalgam our hotels can offer a side of Kashmir too enjoy benefits of separatist and mainstream leaders and monthly occupancy of 250,000 beds economic spin offs. Our apple produce the religious extremist. And the but the Shrine Board does not allow alone is worth Rs 2500 Crores. Just see politicians base their opinions on your pilgrims to stay in hotels. They create if this traded through Muzaffarabad reportage which lack depth. Why no separate camps for them and then commissions can make a huge one has bothered to address the issue demand land allotment for creating difference. of ecology and economy. I have high

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government's finance wizards both in plenty. “Though fruit is also produced in opening of Jehlum Valley road, New Delhi and Islamabad to give a slow Jammu region, particularly Bhaderwah transportation cost and time, start to the process so that the whole but this is nothing to be called as particularly for perishable commodities gamut could be understood. Pakistan trade…this is mere symbolic”, says will be reduced drastically. Normally a administered Kashmir traders are Sahai. “We have forwarded a list of 20 truck takes 36 to 40 hours from Srinagar reportedly less enthusiastic in the LoC items to the Government and would to markets in New Delhi and much trade as they expect a clear dominance push for their inclusion”, he says. A longer to other markets. Islamabad is of their Indian counterparts in the delegation of Pakistan administered just 6 to 8 hours away from Kashmir coming years. “they don't have much to Kashmir Chamber of Commerce and besides this road being all weather and sell here which is why they have been Industry is likely to arrive in J&K by dependable. The Kashmiri traders dragging feet for last two years”, says middle of October when both sides sit besides saving on transportation are Ram Sahai, the President of Jammu down to work out the modalities. looking at wider international markets Chamber of Commerce and Industry beyond Muzaffarabad and Islamabad. commenting on delay in arrival of a “We have spoken to people in Dubai and Trust deficit delegation of Muzaffarabad Chamber of other countries to trade with us via Commerce and Industry. Pakistan”, says Shah. There is indeed a quite unpleasant

scenario prevailing in Jammu and The trade and commerce bodies in Estimates suggest that in next few Kashmir. Trade between two parts of Jammu are not too overwhelmed. In the years, the trans-LoC trade could touch Kashmir is being initiated at a time initial list of commodities to be anything upwards One Billion US when the Kashmiri traders are snapping exchanged, Basmati rice and Rajmash Dollars. It is the enormously high the i r t ie s w i th the i r Jammu are the only items Jammu produces in counterparts. Ever since the trans-LoC potential of trade which has made

‘MARCH TO MUZAFFARABAD’ :Jehlum Valley Road, August 11

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Epilogue Ø 21 × October 2008

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trade was first agreed upon 'in did not wish to be named. The highest so far. Many in Jammu

principle' between New Delhi Kashmiri traders however say and elsewhere in the country are

and Islamabad in May 2006, the that they have already started describing initiation of LoC trade

trade and commerce lobbies dealing directly with the traders “at this stage” as succumbing

both in Kashmir and Jammu had in other trade centers of country before the separatist pressure

been working in tandem to see with a view to bypass Jammu. even though it has been a part of

this happening. Now when the Trade and industry in Jammu composite dialogue.

trans-LoC trade has become stands almost isolated at Alleging blockage of economic reality, the Kashmiri and Jammu present. The trans-LoC trade was supplies from Jammu during the based traders are not seeing supposed to building trust on Amarnath land row, the Kashmiri each other eye to eye. Kashmiri both sides of Line of Control but separatists announced a march traders accuse their Jammu this is being initiated when there to Muzaffarabad with trucks counterparts of siding up with is huge trust deficit within the loaded with fruits. Home the alleged communal forces in state. Minister Shivraj Patil was on a past two months to force, what two-day J&K visit as head of a they say, 'economic blockade' of central delegation. At a Srinagar Double whammy the Valley. “We have lost trust in Press Conference on August 11, Jammu traders and would never Patil said, “I appeal these people For the Congress led United like to deal with them again”, not to make any such move which P r o g r e s s i v e A l l i a n c e says Mubeen Shah. His Jammu puts them (Kashmiri traders) and government, the initiation of counterpart Ram Sahai refutes us in a difficult situation”. Patil Cross-LoC trade is though a the allegations. Sahai, who was went on say, “I appeal them from major brownie point in its part of the Shri Amarnath Yatra here, please put off your peacemaking record, at the Sangharsh Samiti, spearheading proposal (of Muzaffarabad same time it could be a most two-month long agitation on march) as we are sincere about difficult situation of the recent Amarnath land row, says, “there opening the LoC route for times. The trans-LoC trade has was never any organized trade…wait for October…this will its own political advantages and blockade”. Describing allegations be open”. Patil's response to the disadvantages. If the political as far from truth, he says, “Muzaffarabad call” was perhaps atmosphere continues like it is “disruption of supplies is natural enough to make a Confidence prevailing now, the political during shut downs and curfews”. Building Measure look like disadvantages may far outweigh

surrender. the advantages. It was the UPA Jammu and Kashmir has an Government under Pr ime annual trade volume of around Rs Patil's appeal notwithstanding on Minister Manmohan Singh which 52,000 Crores and out this August 11, lakhs of people from won hearts of lakhs of people by around Rs 30,000 Crore exchange different parts of Valley trooped initiating two trans-LoC bus is between Kashmir and Jammu. to the Line of Control along services for divided families –one If the ongoing boycott by Jehlum Valley road in their in 2005 and other in 2006. That Kashmiri traders continue, symbolic march to Muzaffarabad. was internationally billed as Jammu's trade economy is likely Security forces used force to mother of all Confidence to suffer a loss of something thwart the attempt and 18 were Building Measures and Pakistan's between Rs 12,000 and Rs 15,000 killed in two days. Since then then President Musharraf too Crores. “This is temporary and people in Kashmir Valley have earned huge accolades. This under pressure from separatists, been in toes fighting pitched time the same route is being we are sure Kashmiri traders will battles with the forces. More than thrown open for trade when resume ties with us”, said a trade 40 have been killed in firing of separatist sentiment in Kashmir representative in Jammu who security forces since August 11. Valley is at its highest –perhaps

Carpets, Rugs,

Papier Mache,

Embroidery,

Shawls and

Tapestry,

Cricket Bats,

Furniture, Silk

& Products,

Fresh Fruits,

Dry Fruits,

Kashmiri

Spacies,

Kashmir

Saffron,

Kashmir

Wazwan,

Aromatic &

Medical Plants,

Coriander,

Mong Dal,

Rice, Basmati

Rice, Rajmash,

Black

Mushroom and

Green Tea.

Spices, Apples,

Walnuts, Rice,

Precious Stones,

Papier Mache,

Powder, Gabbas

& Namdas,

Furniture,

Marble, Onion,

Garlic,

Medicinal Herbs,

Embroidered

Items, Pine Nuts

and Carpets

Exports

Imports

What Is on Menu

Page 24: EPILOGUE OCTOBER 2008

Epilogue Ø 22 × October 2008

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Interview Ram Sahai, President, Jammu Chamber of Commerce and Industries

‘Let It Be Appeasement, Eventually It Is Going To Be Pure Business’

or a couple of years you have what does Jammu gain out of it. Jammu region. What prospects do you

been a part of discussions see for this route? I told you the present list is more and consultations on the symbolic in nature but eventually it has Fprocess as one of most vocal to expand. We believe that the list is Not quite bright. We are making a

votary of the trade. How do you look being revised to accommodate apple strong case for opening of three other at the scenario when prospects of which was not on the original menu and routes –from Nowshera, Pallanwalla and trans-LoC trade between two parts of taking advantage of this revision we Suchetgarh. On Sialkote-Suchetgarh Jammu and Kashmir are appearing have made a strong case of inclusion of r oad –wh i ch w i l l r un ac ro s s more practical than ever? some more items which will make International Border in Jammu region Jammu region an equal partner in trans- –we have support of top trade and

LoC trade. Well, in backdrop of recent tension industry lobbies of the country

between Kashmir and Jammu, I don't including FICCI and ASSOCHAM. Once

want to comment much except that the there routes are opened, the Poonch-So what are those items? trans-LoC trade is good happening but it Rawalakote route would have hardly is being projected in a wrong manner. any utility for trade. We have asked for inclusion of

pharmaceuticals, aluminium cables, Wr on g m an n er ? You m ean It is nice that trade links are being copper cables, welding electrodes, TMT appeasement to separatists following established across Line of Control but steel, paints and varnishes, plastic their march to Muzaffarabad? within state gulf is seen widening. goods, corrugated packaging, sanitary

Kashmir based traders are snapping wares, coir and spring mattresses and ties with Jammu on the allegations pipe fittings etc. Jammu has huge Let it be appeasement but eventually it that economic blockade of Valley was potential of all these products and any is going to be trade to the common forced during Amarnath land row. good number of items agreed from this benefit of all stakeholders on both sides

list can change destiny of the region. of Line of Control. Nine to ten of the top pharmaceutical First of all I would like to clarify that companies of India are based in Jammu. there was no economic blockage at all. How do you look at the list of items Other products named above are of There may have been some disruptions agreed upon for trade? Does this really international quality and offered at but that is normal when normal activity make a business sense? highly competitive prices. Most of these of life is concerned. As far as widening items in the Pakistan administered gulf and snapping of trade ties between

The initial list which we are seeing now Kashmir are of Chinese origin and reach Kashmir and Jammu is concerned, this

does not hold much promise but there at a high cost. Trade in these problem is momentary and will settle

eventually it has to expand to make commodities will help both regions down soon. Kashmir and Jammu are

trade more practical. immensely. interdependent and inseparable parts

of the state as whole and they have to Most of the items on trade list have

live with and deal with each other. It is Poonch-Rawalakote road is also being their Kashmir specific origin –like

unfortunate that the politicians are not thrown open for trade along with fruits, dry fruits, handicrafts etc.

playing a role of cementing ties. Srinagar-Muzaffarabad. Poonch falls in

Page 25: EPILOGUE OCTOBER 2008

verifiably prevented. he President of Pakistan and Severe actions would Prime Minister of India met be taken against any during the 63rd UNGA session T element directing or in New York. Prime Minister involved in terrorist Singh congratulated President Zardari acts. on his election as the victory of

democracy in Pakistan.

Pres ident Zardar i

reassured PM Singh He expressed the hope that this would that government of pave the way for a profound Pakistan stand by its transformation of the bilateral c o m m i t m e n t o f relationship so that India and Pakistan January 6, 2004. Both could work together on their shared leaders agreed that the objectives of peace, prosperity and

Indian Embassy in Kabul. forces that have tried to derail the security. peace process must be defeated.

The expansion of people-to-people Both leaders welcomed the several

contact, trade, commerce and This would allow the continuation and positive outcomes of the four rounds economic cooperation provides an deepening of a constructive dialogues of the Composite Dialogues which effective platform to develop and for the peaceful resolution and have brought their people and strengthen bilateral relations. satisfactory settlement of all bilateral businesses and institutions closer

issues including Jammu and Kashmir. while permitting sustained efforts to Towards this end, it was decided to: be made to resolve all outstanding

Open the Wagah-Attari road link issues: these gains need to be The Foreign Secretaries of both to all permissible items of trade. consolidated. countries will schedule meetings of

Open the Khokrapar-Munnabao the 5th round of 'Composite Dialogue' rail routes to all permissible items of in the next three months which will They agreed to work for an early and trade. f o c u s o n d e l i v e r a b l e a n d full normalisation of relations

comprehensive achievements. Continue interaction between the between India and Pakistan, on the planning commission of both the basis of mutual respect, peaceful co-countries to develop mutually existence and non-interference. Both The cease-fire should be stabilised to beneficial cooperation including the leaders acknowledged that the peace this end, DGMOs and sector energy sector. process has been under strain in commanders will stay in regular

recent months. Commence cross LoC trade on the contacts. Srinagar-Muzaffarabad and Poonch-

Rawalakot roads on October 21, 2008. They agreed that violence, hostility A special meeting of the Joint Anti-Modalities for the opening of the and terrorism have no place in the Terror Mechanism will be held in

Skardu-Kargil route will be discussed vision they share of the bilateral October, 2008 to address mutual soon. relationship and must be visibly and concerns including the bombing of the

New York, September 25, 2008

Indo-Pak Joint Statement

D O C U M E N T

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Epilogue Ø 23 × October 2008

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Epilogue Ø 24 × October 2008

P.R. Chari & Hasan Askari Rizvi

Making Borders Irrelevant

I N F O C U S

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either India nor Pakistan has been able to impose its preferred solution on the long-standing Kashmir conflict and both sides have gradually shown more flexibility in Ntheir traditional positions on Kashmir, without officially

abandoning them. This development has encouraged the consideration of new, creative approaches to the management of the conflict.

The approach holding the most promise is a pragmatic one that would “make borders irrelevant”—softening borders to allow movement of people, goods and services instead of redefining or removing them. The governments of India and Pakistan have both repeatedly endorsed the concept, but steps to implement it have been limited.

Myriad suggestions for putting this new mantra into practice have been made, from establishing more bus services to increasing trade and tourism across the Line of Control (LOC).While some of these suggestions still await official consideration, others are being examined, and some have already been implemented.

Liberalization of the travel regime would be a major step toward enabling the two parts of Kashmir to develop a multifaceted and normal relationship. Such liberalization requires overcoming a mixture of political, bureaucratic, and regulatory challenges.

A survey of opinion on both sides of the LOC reveals that the public mood in both countries favors peace, stability and a softening of the LOC. The international climate is also propitious for confidence-building measures.

It remains to be seen, however, if New Delhi and Islamabad can muster the political will necessary to overcome the resistance of key stakeholders within both countries bureaucracies and militaries.

This report commissioned by USIP, analyzes the possibilities and practicalities of managing the Kashmir conflict by “making borders irrelevant” —softening the Line of Control to allow the easy movement of people, goods, and services across it. The report draws on the results of a survey of stakeholders and public opinion on both sides of the Line of Control. The results of that survey, together with an initial draft of this report, were shown to a group of opinion makers in both countries (ff bureaucrats and diplomats, members of the armed forces, academics, and members of the media), whose comments were valuable in refining the report's conclusions. P. R. Chari is a research professor at the Institute for Peace and Conflict Studies in New Delhi and former member of the Indian Administrative Service. Hasan Askari Rizvi is an independent political and defense consultant in Pakistan and is currently a visiting professor with the South Asia Program of the School of Advanced International Studies, Johns Hopkins University. This report was commissioned by the Center for Conflict Mediation and Resolution at the United States Institute of Peace. The Center supports a variety of projects that explore the potential of cross-border collaboration especially economic and business-based cooperation to resolve the protracted conflict between India and Pakistan.

Summary

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aspirations of the Kashmiris were Kashmir, without officially abandoning Minds Set in Concretelargely ignored, but there is now a them. Subtle changes in their positions

growing appreciation of the fact that have stimulated creative ideas for The strategic compulsions on the

any solution to the Kashmir dispute managing the conflict. Several Kashmir issue that are currently

must be acceptable to the local people. developments have contributed to this impelling the ruling elites in India and

An additional complexity in J&K is the attitudinal shift, among them the end of Pakistan have encrusted over its sixty-

conviction among many people in two the Cold War, the disintegration of the one-year history and are now deeply

sub-regions of the state Jammu and Sovietembedded in their psyches. In India, the

Ladakh—that the agenda for the peace ruling elite is adamant that the princely

process has been hijacked by the Union and the current resurgence of state of Jammu and Kashmir (J&K), Muslims in the Russia, the rise of China and its support having acceded to India in October

for the peace process between India 1947,has become an inalienable part of Kashmir Valley. Consequently, the and Pak i s tan , the sp read o f Indian territory and that Pakistan must Kashmir dispute becomes tri-cornered globalization and its implications for vacate the territory it illegally at two levels: India, Pakistan and international security, internal occupies. Hence, the only dialogue Kashmiris on both sides of the LOC at economic pressures, the nuclear tests India needs to hold with Pakistan is a one level and the Valley, Jammu and conducted by India and Pakistan in May discussion about the return of occupied Ladakh at another level. The 1998 that consolidated a nuclear territory. Further, India refuses to multifaceted nature of this conflict has deterrent relationship, and the U.S. accept any form of third-party complicated the quest to resolve it, global response to the attacks of intervention to resolve the Kashmir requiring management of the regional, September 11, 2001.dispute. India argues that the UN ethnic and religious diversities both arts resolutions on Kashmir passed in 1948 f Kashmir. The last two of these developments and 1949 envisaging the holding of a

have led India and Pakistan to realize plebiscite in J&K have become obsolete

Despite their repeated assertions of that a military victory over the other is with the passage of time, and that

these con f l i c t ing c la ims and not possible. The acquisition of nuclear several elections held in J&K over the

counterclaims, India and Pakistan have weapons has highlighted the grave risks past six decades make it clear that the

been unable to extend their respective of trying to alter the status quo by local population accepts the Indian

claims across the LOC. Neither direct military means, as illustrated during the government and has no desire to join

military action nor covert operations Kargil conflict of 1999 and the 2001-02 Pakistan.

nor support for dissident movements border confrontation. During the Kargil

has thus far succeeded. Each country, conflict neither country could extend Pakistan rejects the Indian argument however, has invested too heavily in the its theater of operations because of that the UN resolutions have become struggle to accept the loss of its part of fears that the conflict might become redundant. Indeed, Pakistan's position Kashmir, and both countries reject the nuclearized. For similar reasons, India on Kashmir has always been based on idea of Kashmir becoming an was deterred from attacking Pakistan the strict implementation of the UN independent state. during the border confrontation in resolutions that call for holding a

2001-02. Pakistan has also realized the plebiscite in J&K to determine whether dangerous implications of supporting its people wish to join India or Pakistan. Changing attitudesmilitancy; it was Pakistani-backed

militants who attacked the Indian Forgotten in this standoff are the The Kashmir dispute has reached an

Parliament on December 13, 2001, Kashmiris living in J&K and Azad Jammu impasse. Unable to impose their

triggering the border confrontation. and Kashmir (AJK, the political entity on preferred solution, both India and

Pakistan's readiness to support the Pakistani side of the LOC).In the Pakistan have become flexible

militancy has also diminished since past, the Kashmir dispute was viewed in regarding their traditional positions on

Pakistan itself has become the target of purely bilateral terms and the

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Epilogue Ø 26 × October 2008

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Islamic jihadists and has experienced Kashmir belongs to India and has shown people living along the border. The

terrorist attacks throughout the signs of departing from its stated policy resulting peace process, though slow,

country. of negotiating with Pakistan only after has made steady progress, with

cross-border terrorism ceases. Further, significant improvements occurring in

India's long-standing policy of shunning cross-border communications and the The U.S. global war on terrorism has international mediation and insisting on movement of people and goods. also increased the cost for Pakistan of strict bilateralism in its dealings with indulging in provocative behavior. The Pakistan has been diluted considerably. terrorist attacks in New York and A flexible impasseOn Pakistan's part, former President Washington, D.C., on September 11, Pervez Musharraf abandoned his 2001, created a global consensus for

The peace process and changing country's traditional position of insisting controlling transnational terrorism,

attitudes have produced greater on implementing the UN resolutions on especially Islamic militants and jihadi

transparency in negotiations for a Kashmir. The new government in groups. Pakistan has since found it

solution to the Kashmir problem. There Pakistan has declared that it wishes to difficult to support the jihadi Islamic

is a new realization that peace and take the peace process forward. groups in J&K. Furthermore, the

stability are essential for both countries Indeed, Asif Zardari, cochairman of the passage of a 2007 law in the United

to attain their full political and States has linked American military and

economic stature and that, conversely, economic assistance to Pakistan to its

tensions and instabilities will retard performance in stopping cross-border

their growth, resulting in their internal terrorism. The United States has now

security situation deteriorating and established a physical presence in

spilling cross orders. Pakistan to pursue its “war on terror” in

Afghanistan, which inhibits hostilities Both countries agree that independence

being initiated by either India or for Kashmir is not an acceptable option,

Pakistan. Any attempt by either country although they also agree that the

to improve its ground situation in Kashmiris should be included within the Pakistan People's Party, even suggested Kashmir would be frowned upon by the peace process and assured a measure of freezing the Kashmir issue, although he international community and might self-rule within the present borders of later had to backtrack n hat proposal. prompt economic repercussions, as the two countries, and that these

occurred during the 2001 –02 border borders should be made more This transformation in India-Pakistan confrontation crisis when “travel permeable. Appreciation has grown of relations can be traced back to Prime advisories ” were issued by the United the role that multiple dialogues can Minister Atal Bihari Vajpayee's States and several other developed play in animating the peace process and statement in the symbolically countries, is couraging heir citizens of the need to reach an agreement on significant venue of Srinagar the from visiting India. the Kashmir dispute that is acceptable summer capital of J&K —on April 18, to India, Pakistan, and the Kashmiris. 2003, extending a “hand of friendship” Given that a major conventional These negotiations must address the to Pakistan. A cease-fire along the LOC conflict is dangerous, a nuclear conflict differences between New Delhi and was suggested by Pakistan's Prime is unthinkable, and any forcible Islamabad, New Delhi and Srinagar, Minister, Zafarullah Khan Jamali, in alteration of status quo would be Islamabad and Muzaffarabad (the November 2003. India accepted his unacceptable to the international capital of AJK) and finally, Srinagar and offer and suggested its extension to community, both India and Pakistan Muzaffarabad. Both India and Pakistan Siachen, an undemorcated region north have realized that they have no have a greater sympathy now toward of but adjacent to the LOC. On alternative but to enter into a peace the human dimensions of the issue. A November 26, the cease-fire went into process. India has discarded its new recognition has also accrued about effect, greatly improving the safety of traditional stand that the whole of permitting freer movement of people

Both countries agree that independence for Kashmir is not an acceptable option, although they also agree that the Kashmiris should be included within the peace process.

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across the LOC, including members of public's level of enthusiasm for visiting process would diminish if Kashmir

the media and political leaders from the other country. Tourist traffic, as dropped off the national security

both sides. well as other kinds of traffic, across the agenda. In addition, large sections of

border is growing rapidly and would the strategic elite (mm of serving and

dramatically increase if the visa regime retired civilian and military officials, As part of this study, a survey was was made less restrictive and travel intelligence officers, concerned media conducted on both sides of the LOC to schedules were made less onerous. persons, academics, and politicians elicit the opinions of various interested

with special interests in security groups —including businessmen, matters) argue that the time is not yet members of the media, academics, A plethora of Track-II initiatives have ripe for the peace process to proceed former government servants and the strengthened the official peace fruitfully. Their negative belief is public at large —regarding their process. Regular meetings between sustained by the parlous state of attitudes toward the peace process, officials involved in the Track-I process domestic politics in India and Pakistan, their understanding of the concept of have also created an atmosphere which constitutes the greatest “making borders irrelevant,” and their favorable to normalizing bilateral challenge to peacemaking. Any thoughts on what could be done to relations. Thanks in part to back-individual or party pleading for a advance that process. On the Indian channel diplomacy conducted by deepening of the peace process is likely side, the survey was conducted in the interlocutors designated by both to be attacked for “selling out” the summer and the fall of 2007 in twelve countries, a serious commitment to the n a t i o n a l i n t e r e s t . I n I n d i a , towns in J&K, with twenty-five fundamentalist and hard-line Hindu respondents in each town being chosen groups and right-wing parties are at random from among the local o p p o s e d t o a n y p o l i t i c a l population. Budgetary and time accommodation with Pakistan and to constraints dictated a smaller sample in any flexibility in India's traditional Pakistan, where the survey was position on Kashmir.conducted in the districts of Mirpur,

Muzaffarabad and Rawalakot in AJK peace process can now be found at the

among some fifty respondents, very highest political levels in both A similar situation exists in Pakistan,

including local people, refugees (post- Pakistan and India, despite some where hard-line Islamic parties,

PP and immigrants after 1990),, r e s e r v a t i o n s w i t h i n t h e i r militant Islamic groups and major right-

members of divided families, and those bureaucracies. wing political groups are critical of the

living close to the LOC. peace process and want the government

to revert to its earlier insistence on At the same time, any resolution of the implementing the UN resolutions on Similar questions were asked on both Kashmir dispute wil l have to Kashmir.sides of the border by interviewers who acknowledge and overcome a number of

had no contact with one another. serious constraints on the peacemaking

Remarkably, the answers obtained were p r o c e s s . E a s i l y r e c o g n i z a b l e Any discussion of the options for

very similar. The most significant constituencies in India and Pakistan addressing the Kashmir dispute must

finding is that the public mood among have a vested interest in continuing the appreciate the importance Kashmiris

Kashmiris on both sides of the border Kashmir dispute, seeing dangers to their place on preserving their Kashmiri

favors peace and stability. Reflective of personal and institutional interests identity and Kashmiriyat-based culture,

a widespread fatigue with mutual should the dispute be resolved. For which is an amalgam of a distinct

tensions and persistent instabilities and instance, elements within both language (KK a secular polity, and a

of cynicism regarding officially inspired coun t r i e s ' c i v i l and m i l i t a r y cross-cultural character that includes

negative propaganda—there is a popular bureaucracies, especially within their elements of Islam, Buddhism, and

desire to normalize relations. This intelligence agencies, know that their Hinduism. Kashmiriyat has greatly

sentiment has manifested itself in the centrality in the decision-making eroded over the last three decades due

Easily recognizable constituencies in India and Pakistan have a vested interest in continuing the Kashmir dispute.

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to increased Islamic orthodoxy and manage the Kashmir conflict without the Indian Union to demand greater

militancy. The human aspects of the having to agree to a final settlement. autonomy or self-rule. Were Kashmir to

Kashmir dispute must also be factored be granted greater autonomy or self-

into devising any solution to this rule, similar demands could be voiced These steps would address the major problem. Most people in the Kashmir by other states in the Union, which concerns of the parties involved and Valley (883 percent according to the would need to be conceded on grounds would be in accordance with the basic survey conducted) support the peace of equity. The Union government has policy parameters laid down by the two process as a good beginning, but are been wary of loosening its political, countries. The Indian government has skeptical about its outcome, believing economic, and administrative control repeatedly argued that borders cannot that the peace process is meaningless if over the states and altering the balance be changed, while Pakistan refuses to it remains bilateral and excludes them. of power within India's federal accept the LOC as an international

structure, lest it release centrifugal

forces in the country.These various constraints have stymied

the adoption of a number of possible

solutions to the Kashmir dispute. The In Pakistan, any solution premised on

governments of India and Pakistan, the permanent division of Kashmir is

academics, and others interested in the anathema to the military, as well as to

welfare of the people of Kashmir have the major political parties. Therefore,

explored options ranging from total or the Pakistani government and the

partial independence to autonomy, military are unwilling to accept any border. The softening of the LOC would

referendum, partition, and even the solution that converts the LOC into an thus satisfy Indian demands that there

maintenance of the status quo. None of international border. However, be no territorial exchange and no legal

these comprehensive solutions has been conscious that neither India nor alteration of the border. Another

supported by any consensus of public Pakistan can gain control over the whole a d v a n t a g e f r o m t h e I n d i a n

opinion, which strengthens the case for of Kashmir by either war or diplomacy, government's perspective is that

reducing tensions by measures that Pakistani officials favor the idea of making the LOC irrelevant skirts the

both sides can accept measures such as making the LOC irrelevant. Incidentally, dangers of encouraging other states in

making the existing borders permeable

and irrelevant.

The potential Value of Making

Borders irrelevant

The strategy of making borders

irrelevant by “softening” borders is a

compromise between the elimination of

the LOC and its conversion into an

international border. Under this

approach, the LOC would be retained as

a dividing line but softened by allowing

the easy movement of people, goods

and services across it. Important steps

were taken by India and Pakistan in 2005

and 2006 to effect this cross-LOC

interaction, and these steps could be

expanded to enable the parties to

The LOC would be retained as a dividing line but softened by allowing the easy movement of people, goods and services across it.

TERMINAL : Central team at Kaman Post an Sept. 6

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Epilogue Ø 29 × October 2008

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no group in Pakistan opposed the economy and help people in the two families, who, when the border

launching in 2005 of the Muzaffarabad- parts of Kashmir to understand one remained closed, had to travel long

Srinagar bus service (discussed below), another and evolve a common position distances by circuitous routes to meet

and similar steps would be acceptable on a possible solution to the dispute. their relatives. Conversations with local

to the Pakistani government, which is The Kashmiri intelligentsia remains people suggest that divided families

already seeking to build support for a convinced, however, that neither India constitute more than 60 percent of the

“pragmatic” solution to the Kashmir nor Pakistan will ever agree to the total population in AJK. Although they

dispute. On August 15, 2007, Pakistan's unification of the state except on its do not have any influence over the

foreign minister, Khurshid Mahmood own terms (terms that the other p o l i c i e s o f t h e i r r e s p e c t i v e

Kasuri, said in an interview that any country will inevitably reject)and that governments, divided families do enjoy

solution to the Kashmir problem cannot the idea of making borders irrelevant is widespread support within civil society

be “ideal” for the concerned parties, thus the best available option. at regional and national levels.

but that both parties will have to make

concessions to resolve the problem. He According to the survey, most Kashmiris The strongest support for the idea of added, “Ultimately a solution to believe that “vested interests” (i.e. the soft borders is found within the business Kashmir will be one that is not the best armed forces and intell igence communities, in particular within the perceived either by a majority of organizations) oppose the idea of manufacturing, horticultural, and Indians, majority of Pakistanis or a making borders irrelevant because they tourism industries throughout Kashmir. majority of Kashmiris.” Within Kashmir The business community believes that itself, the proposal to make borders movement of goods across a divided irrelevant means different things to territory is a natural corollary to the different people. Some understand it to movement of divided families. If trans-mean that different parts of Kashmir LOC arrangements are negotiated to the will be united, other interpret it to satisfaction of the two countries and mean that they will be allowed to travel offer tangible benefits to people in both and trade freely, and still others believe parts of Kashmir, these measures will will lose their relevance and budgets if that making borders irrelevant will gain popular support. Much depends on the peace process succeeds. The Union permit greater cultural exchanges. what arrangements are negotiated and government and the J&K government

how swiftly they are implemented.are also seen as stumbling blocks, being These differences in understanding are slow to make decisions and insincere in not important to a resolution of the their commitment to the peace process. Steps toward Making Borders Kashmir problem. What is significant is A small section of the public believes irrelevantthat the proposal accommodates the that free and increased movement immense ethno-political diversity and across the LOC would generate new and

A wide range of measures have been incipient fissiparous rends within he unpredictable dynamics with the proposed to promote interactions region. The value of peace has been potential to embarrass both national across the LOC and enable the two parts underlined since the devastating governments, and might even lead to of Kashmir to develop a multifaceted earthquake of October 2005; as the development of a new Kashmiri relationship. Some of these measures Kashmiris have come to realize, if consciousness, which would be are already being implemented. Others efforts to rehabilitate and reconstruct welcome Islamabad and New Delhi. are in various stages of negotiation or the damaged areas are to proceed implementation. Still others remain smoothly, peace needs to prevail. More

Several constituencies in Kashmir have just proposals for now, being seen as generally, most Kashmiris believe that a vital interest in seeing the borders impractical or too far-reaching one or increased movement across the LOC between the two Kashmirs reopened. both governments. In essence, they all would not only bring relief to divided The most numerous of these groups are emphasize a people oriented approach families but would also revive the area's the divided families, especially poor while highlighting the need for freer

Conversations with local people suggest that divided families constitute more than 60 percent of the total population in AJK.

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issue critical to both cross-borders,

people-to-people contacts and trade

and exp lores the regu la tory,

bureaucratic and political changes that

need to be made to allow liberalization

of proceed.

People-to-People Contact

People-to-people contact can be

enhanced by facilitating cross-border

mobil ity and by creating and

strengthening civil society linkages.

Facilitating Cross-Border Mobility

Crossing points: India and Pakistan

decided to ease interaction across the

LOC after the earthquake in Kashmir on

October 8, 2005; the AJK part was hit

very hard and several districts in the

Northwest Frontier Province were also

affected. On October 29 the two

countries agreed to open five new

crossings on the LOC to expedite relief

operations and reunite divided families.

These five foot-crossings were Nauseri-

Tithwal, Chokothi-Uri,

Hajipur-Uri, Rawalakot-PP and movement of people and trade across security administration.Tattapani-MM When the first crossing both sides of Kashmir, instead of point, Rawalakot-Poonch was opened continuing the quest for an elusive on November 7 to allow the exchange of territorial solution to the Kashmir earthquake relief goods, several problem.hundred Kashmiris on the Pakistani side

surged toward the LOC in their Measures with the potential to make

eagerness, saying they wanted to go to borders irrelevant can be classified into

the other side to meet their relations, four broad categories: Each of these four categories is

although they had not completed the * Promoting people-to-people discussed below. In each case, the

necessary travel formalities and had to contact discussion covers steps already taken,

be restrained by force. steps proposed, difficulties in * Increasing trade and commerce

implementing specific measures and across the LOC Bus Services: The most significant step

possible solutions to those difficulties. * Encouraging humanitarian aid and toward increasing cross-border mobility

Thereafter, this report takes an in-development.has been the reestablishment of bus

depth look at one particular measure, * Improving governance, including services between J&K and AJK. In April liberalization of the travel regime an

The most significant step toward increasing cross-border mobility has been the reestablishment of bus services.

CHINARI MUZAFFARABAD ISLAMABAD PESHAWAR

FIRST RUN : Srinagar-Muzaffarabad bus, April 7, 2005

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2005, the Srinagar-MM road was opened established across the LOC. In its report of these new road openings are being

and the bus service along it (which had issued in January 2007, the Working negotiated by the two governments.

been suspended since 1965) restored. Group on Strengthening Relations The roads do not presently carry enough

This service was disrupted by damage to across the Line of Control (established traffic to make commercial bus services

the road caused by the October 2005 in May 2006 by New Delhi as one of five viable, but their opening would allow

earthquake, but after some months the working groups tasked with exploring people to move across the LOC by

service was restored. In January 2006 particular issues relating to J&K) private transport and might eventually

,India and Pakistan agreed to start identifies seven roads that could be generate enough traffic to permit

another bus service, linking Poonch and opened to cross-border traffic: Kargil- commercial bus services.

Rawalakot. Official Indian statistics Skardu, Jammu-Sialkot, Turtuk-

show that almost three thousand Khapulu, Chamb-Jaurian-MMirpur, Proposals to improve cross-LOC travel passengers traveled on the Srinagar-MM Gurez-AA Tithwal-Chilhan, and Jhangar have been criticized on the grounds that bus service between April 2005 and the (N Mirpur-KK 4 “Kashmir:Present the number of travelers along the end of 2006. The Poonch-Rawalakot bus Situation and Future Prospects,” the Srinagar-Muzaffarabad road has service, which started in June 2006, 2007 report by Baroness Emma dwindled considerably since it was carried fourteen hundred in the second Nicholson, the European Union' opened in April 2005. While it is true half of 2006. srapporteur on Kashmir, draws that the initial enthusiasm to use the

attention to the value of linking Ladakh road has declined, it should be noted with the Northern Areas in Pakistan, a The two bus services are very important that some travelers now prefer to take step that could erode the aspirations for conf idence-bui ld ing measures. the subsequently opened Poonch-separatism in this subregion. A more However, passengers have to go through RRawalakot road. Moreover, the radical suggestion is to open the a cumbersome procedure to get symbolic significance —indeed mystique Karakoram highway to trade and travel permission from both governments to of the Srinagar-Muzaffarabad road from the Ladakh region in J&K. Several cross the LOC, which discourages many should not be underplayed. Its opening

people from traveling. The federal

intelligence agencies need to verify visa

applications, which leads to delays.

Furthermore, only those applicants

with close relatives on the other side

are allowed to travel. There is also an

absolute prohibition on officials from

Pakistan traveling across the border into

J&K. Consequently, only a limited

number of people from both sides have

benefited from the new bus services.

Demands for simplifying the visa

procedures (for instance, by letting the

local state governments handle the

granting of visas) have not yet been

accepted by the two national

governments.

Road links: Calls have come from

several quarters for more roads to be

opened and more bus services A Kashmir passenger being received in Muzaffarabad

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initiated the process of restoring students and faculty from universities the LOC would greatly stimulate

communications between AJK and J&K. on both sides of the LOC, as well as contact between people on both sides

It has given concrete shape to the exchanges of journalists and lawyers. of the border, allowing them to

“peace dividend,” which has influenced Other groups that could profit from exchange e-mail, post and respond to

other aspects of India-Pakistan exchanges include professional groups blogs and stay abreast of developing

relations. It has also created a concerned with public health and news stories. Internet access would also

psychological sense of space in the disaster management. allow journalists for electronic and

Valley, because travel from the Valley to print media to develop closer cross-

other parts of J&K is seriously limited by border contacts with one another. Joint University: A multicampus the unavailability of roads and adverse Television programs broadcast from one university could be established that weather conditions for much of the year side of the LOC can usually be watched straddles the LOC. Initially, two

on the other side, and some attract campuses could be situated in large audiences, reflecting the common Pilgrimage Routes: A radical suggestion Muzaffarabad and Srinagar, with other culture of the people on both sides of has been made to open the Leh-Xinjiang campuses established subsequently in the LOC.road across the LOC, which would other cities on both sides of the LOC.

provide an alternative route for the This would facilitate the exchange of

Kai lash-MM yatra (p i lgr image) Trade and Commerceundertaken by Hindus from India to

Tibet. This idea highlights the Trade between the two parts of Kashmir

possibility of cross-LOC traffic being is only a fraction of what it could be if

extended not just to major cities in both tariff and nontariff barriers were

India and Pakistan but also to removed. Currently, the bulk of trade

Afghanistan, Central Asia and Tibet between India and Pakistan trade

thereby restoring the freedom of travel occurs via third-party transfers and

that prevailed before partition and dad teachers and students. According to the smuggling, leading to corruption and existed since historical times. survey conducted for this study, the the loss of customs revenue. The

academic community strongly supports reestablishment of pre-Partition Rail links: The establishment of rail cross-border schooling and employment patterns of trade and commerce, links between Jammu and Sialkot and initiatives. especially between the two parts of between Srinagar and Muzaffarabad Telephonic Communications: The Kashmir, would greatly assist the (and from there onward to Abbotabad restoration of telephone landlines that improvement of mutual relations. It and Rawalpindi), would be welcomed by were cut in 1965 and an expansion of would also spur economic recovery from people on both sides of the LOC and give mobile telephone services across the the October earthquake, and could help a great impetus to the peace process. LOC should be considered. People in to educe militancy, which is largely

J&K are not allowed to make direct fueled unemployment.

telephone calls across the LOC—yet this Creating and Strengthening prohibition makes little sense, or alls an Horticultural products, handicraft Civil Society linkagesf course e made via mobile phones and items, and dry fruits are the goods that satellite-linked communications. The were traditionally exported from J&K to

Contacts between interest Groups: government of India is reconsidering markets in Pakistan's Punjab province.

Contacts between special interest and this ban but the Indian security forces Some newer and nontraditional items,

professional groups need to be want to maintain it, purportedly to such as cement and construction

encouraged so that Kashmiris can impede cross-border terrorism. materials, are available at cheaper

participate in the search for peace. The prices in J&K and would find a strong

W o r k i n g G r o u p R e p o r t h a s market in AJK, where reconstruction Electronic Communications: Enhanced

recommended exchanges between efforts after the 2005 earthquake are access to the Internet on both sides of

Large-sscale trade in world-famous Kashmiri products is being conducted illegally, through third-country sources and smuggling.

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still under way. Open and free trade of goods to be traded remain to be open branches of commercial banks on

between J&K and AJK would greatly negotiated. both sides of the LOC. At present,

benefit people on both sides of the LOC, however, this idea has yet to be

especially the business and trading considered by the two governments. Border trade and inspections: The community in Pakistan border districts One way to encourage cross-border possibility of border trade being such as Sialkot and Gujrat. At present, trade and commerce would be to waive permitted at the five crossing points large-scale trade in world-famous customs duties for several years, opened for earthquake relief is worth Kashmiri products such as shawls, wood thereby creating a free trade area in exploring for the convenience of people carvings, carpets, and embroidery is Kashmir.living on both sides of the LOC. The being conducted illegally, through roads that lead to these crossing points third-country sources and smuggling. could be upgraded to permit truck River Transport: The traditional export

traffic, assuming that such traffic is route for timber from the Valley before

The respondents to our survey, while found to be commercially viable and Partition was the Jhelum River, which

strongly advocating the case for trade official fears about smuggling can be flows into Pakistan. The possibilities of

were keen to point out the comparative o v e r c o m e . A d m i n i s t r a t i v e riverine transportation should be

advantage of establishing direct trade arrangements for unloading and l ooked a t a f r e sh . C ro s s - LOC

links between J&K and Pakistan through checking goods at border posts need cooperation in this area might prove

AJK. They argue that a truck takes improvement. The possibility of productive, though the river would

about thirty-six hours to reach Delhi identified goods (i.e. goods positively need considerable de-silting before it

from Srinagar but only eight to ten hours identified by the Indian and Pakistani could once again carry Significant

to reach Islamabad and thus Islamabad governments for trade between the two Traffic.

offers a very attractive market for countries) going directly o heir ultimate

Kashmiri products. destinations, rather than navigating Tourism : A radical idea for promoting web of inhibiting regulations and tourism is to enable people to visit procedures, merits consideration. One must be careful not to exaggerate Buddhist historical and religious sites in

the prospects for cross-border trade. Ladakh, Baltistan and the Federally

Hopes of creating a substantial demand Bilateral trade promotion: The Working Administered Tribal Areas region.

for Kashmiri products will be realized Group Report recommends the

only if road communications are establishment of a Joint Consultative Humanitarian Aid & Development extended deeper into India and Machinery, comprising officials and

Pakistan. One truckload of apples from representatives of commerce and In the process of making borders the Kashmir Valley, for instance, could industry from both sides, to promote irrelevant, a variety of humanitarian flood the markets in Muzaffarabad for a bilateral trade. Baroness Nicholson's measures and steps to promote week; hence the apple trade in the report also stresses the need “to move development could prove helpful.Valley can flourish only if it is allowed to rapidly to significant volumes of official

exploit the lucrative markets located trade, apart from working out the Medical Treatment: Much goodwill farther within Pakistan. modalities of road freight,” and could be engendered, as well as much suggests the “establishment of an practical help given to people who need integrated market development plan, In March 2008, Jairam Ramesh, the it, by allowing people who live on one with several agri-processing units, cold Union minister for commerce in India, side of the LOC to receive emergency chains, small-size container services announced that cross-LOC trade would treatment in hospitals on the other and bonded trucking services” on both begin in ninety days. The issue was side. Similarly, patients with particular sides of the LOC.discussed by the foreign secretaries of ailments could also be permitted to India and Pakistan in May 2008, and a cross the LOC to visit hospitals that decision in principle was taken to Bilateral trade would also be spurred if specialize in the treatment of those proceed further; however, technical both countries could agree to establish ailments.issues regarding the kinds and amounts product-specific trading houses and to

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Treaty is in reality a suboptimal government working parties could

arrangement, because t only partitions explore trade and tourism issues.Demining : A joint effort could be the rivers of he Indus River basin mounted to locate and remove between India and Pakistan and does landmines that have been planted on Combating terrorism: A Joint not address their joint exploitation. A both sides of the LOC over the years and Mechanism on Terrorism met for the holistic scheme for interlinking these that take a steady toll of farmers, first time in March 2007. Its Indian and rivers, developing riverine transport, herders, and livestock. Pakistani members agreed to exchange establishing joint irrigation and power- spec i f i c i n fo rmat ion to he lp generation projects, creating new investigations and prevent violence and Disaster Management: The two agricultural markets, and extending terrorism in both countries. In a Kashmirs could routinely share roads and communications could lead to meeting in June 2008, fresh information information on weather conditions, a c o m p r e h e n s i v e e c o n o m i c was shared by the two countries, and it seismic activity and flow of water in restructuring of the entire river basin. was agreed that they would “continue rivers information that could help to In the meantime, the Himalayan to work to identify counter-terrorism generate early warnings of floods and glaciers (the source for the rivers in the measures [and] assist in investigations other natural d isasters. Such Indus basin) continue to retreat, through exchange of spec i f ic cooperation could evolve into a long-underlining the fact that water information for preventing violence and term process of monitoring and

terrorist acts. Many skeptics predict an researching the retreat of glaciers, the early demise for this initiative, but at incidence of earthquakes, and other present the usefulness and longevity if environmental concerns. the joint mechanism on terrorism are

both difficult o predict. Forest Management : Forest wealth is Military-Military programs: Given that the common heritage of Kashmir. the militaries in India and Pakistan play Cooperation in joint management of important political roles and maintain a forests that lie across the LOC is large presence in the area of the LOC, essential to halt the large-scale illegal resources could become survival issue measures to promote friendly contact felling of trees that takes place with the for the population an India and Pakistan between the two militaries would connivance of civilian officials and in the coming ears. greatly improve the atmosphere. security forces. Such cooperation would Exchanges of military bands, the staging also enable environmental protection

Governance of sporting events involving military of the delicate ecosystems in Siachen, personnel from both countries and Saltoro, and other glacier regions.similar measures merit exploration. Just as there are many opportunities to

promote people-to-people contact, so Hydropower and Irrigation : Several there is wide scope for enhanced projects to share hydropower Liberalization of the travel coordination between local government generated on both sides of the LOC are Regimeand official institutions, especially c u r r en t l y m i r ed i n b i l a t e r a l regarding public administration, on negotiations whose glacial pace reflects

A close look at one particular aspect of both sides of the LOC. the parlous state of India-Pakistan softening the LOC —liberalizing the

relations but squanders Kashmir's travel regime —shows the kind of

Local Government Consultations: The economic and developmental promise. opportunities that exist for pragmatic

Working Group Report suggests The linking of electrical grids would be a reforms. Most of these reforms would be

establishing a Joint India-Pakistan major step forward in the process of modest and piecemeal, but their

Parliamentary Committee to foster making the LOC irrelevant. So, too, cumulative impact could be very

greater parliamentary exchanges and would mutually beneficial irrigation significant. The Srinagar-Muzaffarabad

address issues of common interest in projects that use the waters of the bus service, resumed in April 2005, has

Kashmir. For instance, joint local Indus. The much-praised Indus Waters

One way to encourage cross-border trade and commerce would be to waive customs duties for several years, thereby creating a free trade area in Kashmir.

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continued to ply between the two cities stringent conditions imposed by noted earlier, Pakistani government

despite threats from militants. There is Pakistan and India on visitors wishing to officials are totally prohibited from

near-unanimous support for the bus obtain travel documents. traveling across the LOC, which conveys

service. Many respondents to our a strongly negative message to the local

survey, especially local journalists who population. Members of Kashmiri In the first place, only members of also work for foreign agencies such as families who crossed the LOC from J&K divided families are permitted to Voice of America and the BBC, to AJK after the militancy accelerated travel. Even among such families, only commented that the bus service in the 1990s should —after due scrutiny those having near relatives (i.e. parents between Muzaffarabad and Srinagar has —also be allowed to visit their relatives or children)on the other side of the LOC done more than any other measure to or move back to India. are issued travel documents. Visits to change the mindset of people in AJK. more distantly related kin are not The opening of additional crossing allowed. Second, the processing of the Simplify permit procedures: One way to points has built upon this positive applications takes an extraordinarily simplify and shorten the process of development. One respondent, who long time because of highly complex obtaining travel documentation would traveled by the first Srinagar- procedures, including close scrutiny by be to institute a visa system, with each Muzaffarabad bus, which took a very security and intelligence agencies on traveler being issued a visa at the circuitous route, told the interviewer both sides of the LOC. Many applicants border upon production of satisfactory that the opening of the Tertiary Note are refused permission. For example, proof of identity and residence. Another crossing point had reduced his journey between April 7, 2005, and August 30, alternative would be to institute a from Muzaffarabad to his village in J&K 2007, the government of AJK sent a system in which any application not from about nine hundred miles to just total of 4,114 applications to the decided within a certain amount of time over one hundred. There is a strong government of J&K for clearance to would be deemed to be approved.demand among the local population for travel to Srinagar through the Chokothi-the opening of more crossing points. Uri crossing point, but only 1,254 were Many respondents suggested that the

approved. Similarly, the government of power to issue travel permits should However, several problems need to be AJK received a total number of 3,938 be delegated to the respective state addressed if the bus service is to be made applications from the government of governments and local officials (see really effective. After the earthquake in J&K for permission to visit AJK using the below). However, this idea —like the October 2005, the two governments had same bus route, but only 1,070 ideas advanced above—will be decided to open five more crossing passengers arrived from Srinagar in AJK. accepted only if political relations points, but only three were inaugurated During this period,6,558 applications between India and Pakistan improve to and, as of August 2008, only two are were sent to the security agencies for the extent that some degree of mutual functional. For example, the crossing clearance, but travel documents were trust develops.point at Tata Pani (in the Poonch-Kotli issued in only 4,114 cases.

sector) is officially open, but no visitor Simplify application Requirements:

has used this crossing point during the The restrictions on travel and the Applicants for a travel permit must last seven months. cumbersome and s low-mov ing submit multiple copies of several

application process have dampened documents. This procedure is so The limited number of crossing points is Kashmiris ' enthusiasm for traveling. If complex and time consuming that most not the only impediment to cross- that enthusiasm is to be rekindled, the respondents think it is easier to travel border travel, nor indeed the primary following pragmatic steps need to be on passports.one. Instead, the administrative and taken. Many respondents proposed restoring security protocols governing travel Expand Eligibility: Eligibility to travel the procedure used during the 1950s, across the LOC are largely responsible should be extended to other categories when proof of state domicile was for limiting movement. The number of of travelers such as tourists, persons considered sufficient for issuing travel passengers traveling on buses remains requiring medical treatment, traders, permits. There was no categorization of very low chiefly because of the and even dissident political leaders. As

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applicants, and anybody could cross the quickly. If the state governments were are fought, the suspicions and tensions

LOC (then the Cease-fire Line) to visit to take charge, they would be able to that exist within and between the

close relatives. Other respondents work directly with one another, which various parts of Kashmir must be

suggested that a local Kashmiri would promote greater understanding addressed and the voice of the

document should be issued to all and trust between the two parts of Kashmiris on both sides of the LOC must

Kashmiris and that this document Kashmir. These working relationships be heard and accorded due weight. As

should be sufficient to enable its holder between the administrations in AJK and all sides are coming to recognize, the

to cross from one side of the border to J&K could become the basis for present borders cannot be changed, but

the other. A small number of cooperation in trade and commerce, they can be made more porous and

respondents also suggested that J&K and could evolve further into joint larger measure of self-governance

residents be given dual citizenship, efforts to maintain security and combat evolved to J&K and AJK.

which would enable them to visit the sabotage and terrorism.

other side without any special travel Some respondents to the survey said This report has offered a wide range of documents. that they would prefer a system in recommendations for softening the LOC

which visas are issued by local police at that presently divides Kashmir. It is border posts, as opposed to the current Liberalize Permit Characteristics: important, however, to prioritize these

Granting longer-term, multiple-entry recommendations and to first pursue

permits to traders and businessmen, those short-term measures that have a

while exempting them from the prospect of immediate success, such as

obligation to report to the police after a relaxation in travel arrangements. An

entering India or Pakistan, would incremental approach must be

greatly facilitate trade and commerce adopted, one that dovetails the

across he LOC. Issuing group visas to introduction of individual measures into

traders, tourists and cultural the larger process of confidence system of lengthy and elaborate visa delegations would ease the burden on building between the two countries. A applications that are decided by the both sides ' bureaucracies. A scheme for series of initial successes would give militaries on both sides.issuing travel documents on a priority momentum to the peace process and set

basis in emergency cases (e.g., for the stage for longer-term measures, Conclusions

medical reasons or in case of family such as cross-border development

emergencies should be instituted on projects. The emphasis has to be on The conflict in Kashmir is complex and humanitarian rounds. implementing decisions taken, rather multifaceted. As Praveen Swami, an than on adding to these decisions.Indian journalist, has noted, “What we

Localize Permit Processing: Permits call the Kashmir problem is in fact

normally take three to four months to No steps, whether short term or long several problems, for which Jammu and

be processed, because each case has term, can be taken until the tensions Kashmir is only a stage. Among other

to be cleared by the intelligence and between India and Pakistan erode. This th ings , the prob lem invo lves

security agencies of the two will not happen suddenly. The reality is irreconcilable ideas about the basis of

countries. In some cases, the process that India-Pakistan relations cannot be nationhood, a crisis of religious and

can stretch on beyond a year. Such dramatically improved over the short ethnic identity, and the still-far-from-

delays and the prospect of intrusive run, nor can all their outstanding spent forces that led to the partition of

investigations by the intelligence problems be resolved quickly. India. For jihadi groups and their

agencies discourage many eligible Unrealistic expectations that progress supporters in Pakistan's establishment,

people from applying. in making borders irrelevant in Kashmir the war in Kashmir is merely part of an

will be swift and that India-Pakistan Respondents said they resented this even-larger war, one between Islam and

relations will rapidly improve could lead system and wanted the procedure unbelief. If Kashmir is to stop being an

to frustrations. Moreover, the task of entrusted to the state authorities, arena within which these larger battles

making borders irrelevant in Kashmir which could handle cases much more

As all sides are coming to recognize, the present borders cannot be changed, but they can be made more porous.

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cannot be considered in isolation from problem. They are also not in favor of Washington is generally supportive of

ongoing efforts to do the same thing playing the “jihadi card” in Kashmir at a the bilateral India-Pakistan peace

elsewhere along the international time when fundamentalist militancy has efforts but has not sought to involve

border between India and Pakistan (for become the target of almost universal itself in the nitty-gritty of negotiations

instance, road and rail links are being disapprobation. and thus has not focused on measures

reestablished in the Rajasthan area). such as making borders irrelevant.The general political mood in India since

the recent elections in Pakistan has

been one of cautious optimism Yet while the glacial progress of the Over the past few years, China's tempered with watchfulness regarding peace process to date has disheartened attitude toward India and Pakistan's Pakistan's unfolding policy toward even inveterate optimists, there is rivalry and their dispute over Kashmir Kashmir. Initial statements from reason to believe that a brighter future has changed; where once China favored Pakistan's new government regarding is within reach. In the first place, the Pakistan, now it seeks to maintain Kashmir and the India-Pakistan peace process could certainly be accelerated equidistance from both countries. process were generally supportive; the if the leaderships of the two countries China's motives for this shift can be key issue remains whether the Pakistan were to summon the necessary political found in its need to prevent tensions Army or the civilian leadership will will. In the second place, as noted and instabilities in Kashmir and dominate policymaking on Kashmir and earlier in this report, the belief has Afghanistan from spilling over into Tibet India-Pakistan relations. An increase in seeped into the governing elites of both and Sinkiang, and in its concern to border incidents along the LOC and India and Pakistan that the Kashmir ensure peace and tranquility on its militant attacks within J&K has been issue can be resolved only by southern periphery. noticed but has been attributed to the negotiation, not by armed conflict and usual seasonal variations in the level of not by the use of insurgents. S ino -Amer ican re la t ions have violence and the proximity of state transformed themselves since the end elections in J&K.Despite the domestic problems of the Cold War into a partly

confronting Pakistan since elections in collaborative and partly competitive If the political climate in India and March 2008 brought an uneasy coalition pattern—a pattern that seems likely to Pakistan offers some reason for into power, the dialogue aimed at crystallize in the evolving international optimism about the peace process, improving India-Pakistan relations and system. For the first time, however, all developments on the international resolving the Kashmir problem has the major world powers —the United stage are decidedly encouraging. The continued on track, including efforts to States, China, Russia, Japan and the United States is greatly interested in improve relations across the LOC. The European Union —have individual and the success of the peace process overall top brass of the Pakistan Army, who will collective economic and strategic and in efforts to make borders continue to shape Pakistan policy i n t e r e s t s i n p r o m o t i n g t h e irrelevant in Kashmir, because renewed toward Kashmir and India, seem to have normalization of India-Pakistan confrontation along the LOC would realized that the normalization of relations. None of them wishes to distract both countries, particularly relations with India is in their own foment the Kashmir dispute, although Pakistan, from supporting the U.S.-led interests. More specifically, the they might not find it possible to war on terror. The United States also Pakistan Army needs to stabilize the mediate or promote its resolution. This now has a physical military presence in deteriorating situation in the tribal is, therefore, a propitious time for India Afghanistan and Pakistan. The United areas along the Pakistan-Afghanistan and Pakistan to explore the ideas States is strengthening its strategic border; if it were to revive its usual discussed in this report for making partnership with India and has confrontation with India, it would get borders irrelevant in Kashmir. While designated Pakistan as its most-favored caught in a two-front conflict. The international actors can help to non-NNATO ally. Both countries, major opposition parties in Pakistan, maintain a positive climate for the therefore, might well appreciate U.S. except for some Islamic fundamentalist peace process, the main responsibility facilitation of their peace process and groups, are not opposed to exploring an for making that process succeed rests of a resolution of the Kashmir dispute. amicable solution to the Kashmir with India and Pakistan themselves.

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Poonch-Rawlakote

The Road Much Traveled, Less Visited

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arrangements of truck service on terminal station at Rangar Poonch is yet f t e r t he cea se f i r e o f Srinagar-Muzafrabad road. The high to start. Therefore lot of dissatisfaction November 23, 2003 on the level team was also scheduled to visit is emerging among the public because it Line of Control, the beginning A Chakkan Da Bagh Tetrinote crossing was expected that cross LOC truck of fortnightly bus service on point in Poonch on September 7. service shall start simultaneously from April 7, 2005 on the Jehlum Valley road However due to bad weather the team Poonch and Srinagar. As per ground and on June 20, 2006 on the Poonch could not land at Poonch but discussed realities Poonch Rawlakote Road is more Rawlakote road, the duty free cross LoC the proposal of cross LoC trade via 46 suitable most appropriate and the trade between the two parts of Jammu kilometer long Poonch Rawlakote Road shortest route between the two parts of and Kashmir shall be the third most with the state authorities and accorded Kashmir as compare to Srinagar important Confidence Building Measure clearance for creation of infrastructure Muzafrabad route, because this route is of the recent history of conflict. facilities for truck service. passing from the heart of Pakistan

Administered Kashmir (PAK) and Trade, as keenly desired on both sides, directly linking six districts the LOC. Accordingly Poonch district authorities will not only help in creating peaceful

identified 45 Kanal piece of land near atmosphere, restoring the trust and Rangar nallha for truck terminal Originally Poonch Rawlakote Road was confidence in each other but also open station. This terminal will have the conceived by Raja Jagat Dayal Singh of the doors of economic development and capacity of stationing, loading and Poonch Principality in 1938 who had prosperity of the people living in both unloading of 40 trucks at a time. The passed orders for the construction of parts of Jammu and Kashmir. After the site is located exactly on Poonch this road. However the Raja died in 1940 Amarnath Shrine land row and the Rawlakote Road at a distance of 9 and Poonch came directly under the happenings of August 11, in Kashmir in Kilometer from Poonch town and 3 control of Kashmir Darbar. Therefore which a prominent Hurriyat leader Kilometer ahead of crossing Point on the the construction of this road was along with number of persons was killed LOC. The complex shall comprise of delayed till 1943 when fair weather while leading a symbolic march towards export examination hall, godown, road was opened for traffic. From 1943 Muzzafrabad, the Indian External strong room, cargo X ray machine room, to 1947 Poonch Rawlakote Road was Affairs Minister Pranab Mukherjee had custom office and Ancillary rooms for used more for trade than passenger stated that India had already forwarded loaders, drivers, staff personals etc. traffic. In those days Rice, Maize, a proposal to Pakistan for opening the This project shall cost Rs. 15.04 crores. Garlic, Chilies and other eatable items cross LoC trade to begin from October 1,

were transported from Poonch to 2008. In the light of the statement of Rawlakote which was the main the foreign minister, a high level central It is astonishing that 90% work of marketing centre of these items. During team headed by Chief Secretary S.S temporary terminal station at the turmoil of 1947 most part of Poonch Kapur visited Salamabad and Kaman Salamabad in Uri Muzzafrabad road has principality had fallen into the hands of Post on 6 September to review the been completed but the work on Truck

Mired in controversies and bogged down with suspicion, as the cross-LoC trade is finally okayed,

the road which connects 63 per cent of the all divided families between two parts of Jammu and

Kashmir is eagerly awaiting a truck terminal.

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Epilogue Ø 39 × October 2008

I N F O C U S

LOC TRADE

rebels and tribesmen who were November 2005 for exchange of relief

operating under the supervision of material and meeting of divided

Pa k i s t a n a r m y. U n d e r t h e s e families on humanitarian grounds. Later

circumstances Rawlakote town was on this route was replaced by Poonch

vacated on 14 November 1947 by Rawlakote Road on 2th June 2006. At

Colonel Hiranand Dubey of State forces the time of inauguration of fortnightly

when he along with a contingent of bus service from Poonch the UPA

force and a caravan of 10 thousand Chairperson Sonia Gandhi had offered

refugees had left Rawlakote for Poonch. Pakistan for more CBM's on the LOC

from November 1947 till 7 November including trade and tourism but

2005 there was no people to people Pakistan government was reluctant and

contact between both the parts of non cooperative for cross LOC trade due

Kashmir in Pocnch area. to certain reasons.

The Poonch Rawlakote Road remained Therefore during last 28 months only

suspended for about 58 years; it was divided families could travel across the

only after the earthquake of 2005 when LOC, even than this CBM has created

relief and rehabilitation centre was very congenial atmosphere in both the th parts of Kashmir.established at Kanchàman Post on 7

The Poonch Rawlakote Road

remained suspended for about 58

years; it was only after the

earthquake of 2005 when relief

and rehabilitation centre was

established at Kanchàman Post th

on 7 November 2005 for

exchange of relief material and

meeting of divided families on

humanitarian grounds. Later on

this route was replaced by

Poonch Rawlakote Road on 2th

June 2006.

THANK YOU - WE CHERISHED YOUR VISITTHANK YOU - WE CHERISHED YOUR VISIT

jkoykdksVjkoykdksV

/kU;okn/kU;okn

RAWALAKOTRAWALAKOT

LoC crossing point at Chakkan Da Bagh, Poonch

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As per the experience of two and half per litre. The guests of PAK after visiting shall prefer to transport the go6ds from

years, Poonch Rawlakote Road have Poonch and Rajouri carries bundles and Poonch Rawlakote Road which is only 46

become the prime route between the bags of umbrellas, torches, clothes, kilometer long rather than Srinagar

two parts of Kashmir because it is electronic goods and eatable items. Muzzafrabad road which is 173

centrally located and 63% divided These items can be exported to PAK kilometre long upto Muzaffarabad,

families belongs to the regions from from Poonch and Jammu, Since Jammu is industrious city and

where this road is passing. The fact is producing most of electronics and steel

revealed from the passengers who items, which can directly be supplied Basmati rice of Jammu Maize of Poonch traveled during this period. As per the through Poonch Rawlakote Road. and Rajouri electronic goods, official figures 4836 persons had crossed Because the traders of PAK all prefer to readymade garments toys and steel the LOC from Poonch Rawlakote React buy these items from Jammu instead of items manufactured in Jammu can be during last 28 months while only 3674 Kashmir and carry these goods through exported to the other part of Kashmir persons cross the LOC via Srinagar Poonch Rawlakote Road except fruits very easily from this road. There is a Muzaffrabad road in 41 months. Even in arid Handicrafts items.great demand of cotton cloth Khan this figure of 3674, a significant Suits, Pashawri chappal, Karakulli Cap percentage of passengers have been and crockery items in Poonch Rajouri After the opening of 169 Kilometer f r o m J a m m u p r o v i n c e , Poonch-Srinagar Mughal road, particularly from districts of the traders of Kashmir valley Rajouri and Poonch. Therefore shall also prefer their business the frequency of bus service from Poonch-Rawlakote road across LOC from Poonch instead of Jhelum Valley road Rawlakote road have been because by this way they will increased and fixed at weekly be able to supply fruit directly basis from September 2008 to six districts of PaK. The other keeping in view the more factor of trade is the similarity pressure of passengers on this of language between the road. people of PaK and Pir Panchal

region. Since 90% people on the

In the modern world trade is other sides speak Pahari and and Kashmir valley which are available considered the father of all the Gojri languages therefore the traders on the other side of LOC. The people of relations. The opening of Poonch of PaK shall like to have their links with this side are fond of natural salt of Rawlakote road for trade shall further predominant Pahari and Gojri speaking Pakistan which can also be imported via strengthen the relations between the traders of this side.Poonch Rawlakote Road on very cheap people and boost the economy on both fright charges. the sides. More avenues shall be There is a need of completion of truck

available for commercial ventures. The terminal station on Poonch Rawlakote These items can be sold in the markets persons visiting Poonch from across the Road at earliest; restoration of telephone of Jammu province. The cross LOC trade LOC tells that the rates of essential link with the marketing centers on other is beneficial only if there items are commodities in Pakistan Administered side and inclusion of the representatives transported through Poonch Rawlakote Kashmir are far higher than this side. of Poonch and Rajouri based Beopar Road , because this route is directly The rate list of Rawlakote bazaar Mandals in the delegations because linking six districts on the other side of indicates that sugar is sold at the rate & ultimately at grass root level these LOG namely, Mirpur Bhimber, Koli, 65 per Kg, Basmati rice at the rate of traders have to deal with their Plandri Bagh and Rawlakote. On 130 per Kg, cement bag at the rate of Rs counterparts on the other side. The contrary to this Srinagar — Muzzafrabad 475, Mutton at the rate of Rs 275 per Kg. prospect of Poonch, Rawlakote Road for road is linking only Muzzafrabad Mustard oil at the rate of Rs. 195 per Kg, cross LoC trade is appearing brighter than district. The traders of PAK districts and Kerosene Oil at the rate of Rs. 70 the other routes.

COMMODITY PRICE

Poonch Rawalkote

Sugar Rs. 21 Rs. 65

Cement Bag Rs. 298 Rs. 475

Mutton Rs. 150 Rs. 275

Mustard Oil Rs. 85 Rs. 195

Chicken Rs. 70 Rs. 120

Tomato Rs. 20 Rs. 45

Onion Rs. 12 Rs. 33

Desi Ghee Rs. 170 Rs. 260

Refined Oil Rs. 80 Rs. 145