Once struggling for survival following the eruption of militancy, the industries sector in north Indian state of Jammu and Kashmir is slowly shown signs of recovery, with most public sector undertakings registering profits for the first time in two decades.
State Road Transport Corporation (SRTC), Jammu and Kashmir Minerals Limited and the handicrafts sector, which were perennial loss-makers, registered profits for the first time last fiscal, according to government data.
The exports of handicrafts from Jammu and Kashmir touched an all-time high of Rs 1,004 crore during the last fiscal, marking an increase of more than Rs 340 crore compared to the previous year.
"The state's handicrafts export touched an all-time high of Rs 1,004 crore ending March, 2011, as compared to Rs 661.24 crore during the previous fiscal," Minister for Industries and Commerce S S Slathia said.
JKML, which was incurring losses right from its inception in 1962, achieved a cash surplus of Rs 104.64 crore for the first time last fiscal, marking a significant improvement in the otherwise abysmal performance.
The government-run company has set an all-time high target of 30,000 metric tonnes of coal production during the current fiscal, which is expected to generate revenue of Rs 12.60 crore.
Gypsum production registered a growth of about 80 per cent during the last fiscal vis-a-vis 2008-09.
Even State Road Transport Corporation (SRTC), which was on the verge of closure couple of years ago, has made a turnaround by increasing its revenue by almost 50 per cent last year.
The corporation generated a revenue of Rs 55 crore last fiscal, an increase of Rs 18 crore compared to the previous fiscal, when the corporation earned Rs 37 crore.
Employees of SRTC had gone on a strike for more than three months in 2009 due to non-payment of salaries, bringing an entire fleet of buses to a halt.
Boosted by its performance, the corporation is now planning to raise two "state-of-the-art" bus yard complexes in the state to expand revenue base through commercial utilisation of its assets.
The industrial sector in the valley suffered a major setback after 1990 due to the eruption of militancy. Most of the business houses operating in the valley closed down their units as security forces occupied most of the industrial estates.However, experts suggest the economic potential of the state is yet to be tapped properly.
"Very broad policy is needed to utilise the economic potential of the state. There is a need to improve the skill level of the work force, which is not happening," an Assistant Professor of Economics at the University of Kashmir, Imtiyaz-ul-Haq, told PTI.
He said there were still no specialisation courses in universities here, which would help fresh graduates to contribute to the local industries.
"Tourism is one of our major industries and we still do not have any course related to it," he said.
Haq said the revenue from Horticulture and Agriculture industries in the state can be increased if the products sent out are processed.
"We are still trading only the raw material. We need to add value to our products, we do not process the products," he said.