Srinagar, June 12, 2025 – Jammu and Kashmir Chief Minister Omar Abdullah chaired a series of high-level departmental review meetings at the Civil Secretariat in Srinagar to assess the Capital Expenditure (CAPEX) plans for the financial year 2025–26 across the Estates, Revenue, Tourism, and Culture departments. Emphasising swift execution and effective resource use, the Chief Minister directed officials to ensure timely approvals, robust monitoring, and impactful outcomes to meet public expectations and drive inclusive development in the Union Territory. The meetings, attended by senior officials, highlighted significant progress in infrastructure projects and tourism initiatives, despite challenges like the April 22, 2025, Pahalgam terror attack impacting visitor numbers.
Overview of CAPEX Review
The review meetings focused on ensuring early approval, timely fund authorisation, and efficient project implementation to strengthen institutional capacity. CM Abdullah underscored the need for “close monitoring, effective coordination, and optimum use of resources to deliver public services efficiently.” Key departments presented their 2024–25 achievements and 2025–26 plans, with notable advancements in housing, tourism infrastructure, land record digitization, and heritage conservation. The discussions come amid efforts to revive tourism, bolstered by the Katra-Srinagar Vande Bharat Express launched on June 6, 2025, and a ₹3,773.93 crore rural sector budget announced in March 2025.
Estates Department: Modernizing Government Infrastructure
The Estates Department reported a 94.93% expenditure (₹245.23 crore of ₹258.31 crore) for 2024–25, completing 182 of 217 sanctioned works. For 2025–26, a ₹100 crore CAPEX ceiling includes funding for ongoing projects, new flats, and infrastructure upgrades. Major initiatives include:
- Ongoing Projects: 400 flats at Pampore, housing units at Sarwal, Ahata Amar Singh, and Lower Muthi, with completion expected by October 2025.
- New Developments: 300 new 2BHK/3BHK flats, twin towers at Canal Road, and new blocks at Civil Secretariats in Jammu and Srinagar.
- Upgrades: Road macadamisation, CCTV systems, and power infrastructure in government complexes.
The department aims to shift revenue expenditure (REVEX) to CAPEX and monetize assets, aligning with CM Abdullah’s call for a “one-time investment approach.”
Table 1: Estates Department CAPEX Highlights
| Aspect | 2024–25 Achievements | 2025–26 Plans |
|---|---|---|
| Expenditure | ₹245.23 crore (94.93% of ₹258.31 crore) | ₹100 crore ceiling |
| Works Completed | 182 of 217 | Ongoing + new projects |
| Key Projects | Pampore flats, Sarwal units | 300 new flats, twin towers, secretariat blocks |
| Focus Areas | Housing, infrastructure | Asset monetisation, REVEX to CAPEX shift |
Tourism Department: Reviving a Key Economic Driver
The Tourism Department, coordinating with agencies like JKTDC, SKICC, and 21 tourism development authorities, approved ₹388.20 crore for 2024–25, spending ₹247.66 crore (66.08%) and completing 871 of 1,551 works (56% completion rate). For 2025–26, 1,071 projects worth ₹191.87 crore are planned, including funds for the Shri Amarnathji Yatra. Key initiatives include:
- New Projects: 312 projects worth ₹75.5 crore reviewed, 109 projects (₹18.07 crore) pending finalisation.
- Infrastructure: Solid waste and sewerage upgrades in Gulmarg, water and winter sports facilities, and new destination master plans.
- Asset Revival: Plans to monetise under-utilised tourism properties and improve wayside amenities.
- Promotional Campaigns: Aggressive marketing to counter the tourism slump post-Pahalgam attack, which reduced Srinagar Airport passengers to 6,500–7,000 daily.
The Vande Bharat train and events like the Kashmir Marathon (1,800 global participants in 2024) support tourism revival, with a ₹390.20 crore tourism budget aiming to raise its GSDP contribution from 7% to 15% in 4–5 years.
Table 2: Tourism Department CAPEX Highlights
| Aspect | 2024–25 Achievements | 2025–26 Plans |
|---|---|---|
| Expenditure | ₹247.66 crore (66.08% of ₹388.20 crore) | ₹191.87 crore for 1,071 works |
| Works Completed | 871 of 1,551 (56%) | 312 new projects (₹75.5 crore) reviewed |
| Key Initiatives | Gulmarg upgrades, marathon events | Yatra funding, asset revival, master plans |
| Focus Areas | Infrastructure, events | Destination development, promotion |
Revenue Department: Digitizing Land Records
The Revenue Department uploaded ₹69 crore of its ₹79 crore 2024–25 CAPEX to the BEAMS portal, proposing 133 new projects for 2025–26, including SDM and Tehsil offices. Nearly 100% of land records are digitised, with the second phase focusing on Urdu record transliteration and real-time integration with spatial maps. These efforts enhance transparency and efficiency in land management, supporting economic development.
Culture Department: Preserving Heritage
The Culture Department completed 16 of 106 heritage restoration projects, with 46 more targeted for March 2026 completion. A ₹30.02 crore allocation supports the Mubarak Mandi Complex revival in Jammu, while a ₹19.80 crore DPR aims to modernize the SPS Museum. The 2025–26 budget of ₹132 crore funds archives, libraries, and cultural promotion, with 123 new projects under Phase III of the Heritage Revival Scheme.
Challenges and Regional Context
- Tourism Slump: The Pahalgam attack (April 22, 2025) reduced tourism, prompting airlines to seek user fee waivers (₹1,050 UDF + ₹200 ASF) to lower airfares.
- Fiscal Stress: High committed expenditures (70% of spending) and power sector losses strain finances, though J&K’s GSDP grew to ₹2.45 lakh crore in 2023–24.
- Darbar Move Concerns: The 2021 abolition of the Darbar Move, saving ₹200 crore annually, has hurt Jammu’s businesses, with hotel occupancy dropping to 30%.
- Weather Risks: A yellow alert for moderate rainfall in Srinagar (June 2025) may delay projects.
Government Commitment
CM Abdullah assured that his government is “committed to strengthening governance, modernising public infrastructure, and accelerating inclusive development.” The ₹1.12 lakh crore 2025–26 budget, the first in seven years, includes sops like free bus rides for women and ₹50 crore for entrepreneurship, supporting initiatives like the UMEED scheme’s artisan melas.
Conclusion
The CAPEX review meetings signal J&K’s push for economic resilience and infrastructure growth. From modernising government estates to reviving tourism and preserving cultural heritage, CM Omar Abdullah’s focus on swift execution aims to deliver tangible benefits. Despite challenges, initiatives like the Vande Bharat train and robust CAPEX planning position J&K for inclusive development, fostering hope in a region navigating complex socio-economic dynamics.
