Jammu and Kashmir's SASCI Loan: Opportunity or Debt Trap?

Jammu and Kashmir Chief Minister Omar Abdullah staunchly defended the Special Assistance to States for Capital Investment (SASCI) scheme amid mounting criticism, labeling it a significant financial achievement for the region. Speaking during Assembly discussions, Abdullah highlighted the advantages of securing a Rs. 3,000 crore loan through the initiative, suggesting that critiques arise from misunderstandings about the scheme's structure and financial implications.

Abdullah clarified that the SASCI loan offers Jammu and Kashmir an interest-free borrowing facility for 50 years, stressing the long-term financial foresight involved. He contested claims of fiscal irresponsibility by illustrating the diminishing value of the borrowed amount over time. Despite assertions that this loan signifies a debt trap, Abdullah argued that it represents a sound financial strategy.

Amid the chief minister's advocacy, opposition members, including Congress MLA Tariq Hameed Karra and PDP MLA Wahid-ur-Rehman Para, expressed reservations. They called for a committee to scrutinize the scheme's implications, cautioning against unexamined financial commitments that might entrench the state in debt.