SRINAGAR: The Centre has sought a refund of more than ₹4.16 crore from the Jammu and Kashmir Horticultural Produce Marketing and Processing Corporation (JKHPMC) after a proposed integrated pack-house project for apple grading, packing and storage failed to materialise despite nearly two decades of deadline extensions.
Documents accessed by Kashmir News Observer (KNO) show that the Agricultural and Processed Food Products Export Development Authority (APEDA), functioning under the Union Ministry of Commerce and Industry, released ₹1.42 crore to JKHPMC on September 28, 2005, for the project, estimated to cost ₹3.88 crore.
The project was intended to establish modern post-harvest infrastructure for apple growers in Jammu and Kashmir. However, it remained incomplete despite repeated extensions granted by APEDA, the last of which was in June 2022.
According to the documents, APEDA decided to cancel the memorandum of understanding signed with JKHPMC on July 15, 2005, and the related implementation agreement dated July 22, 2005, citing prolonged delays, cost escalation and the obsolescence of the proposed technology compared with existing apple pack-house technology.
Citing Rule 231 of the General Financial Rules (GFR), 2017, the records state that interest at 10 per cent per annum was applicable to the released amount. The refund sought from JKHPMC was calculated at ₹4,16,21,680, or approximately ₹4.16 crore.
The documents also indicate that repeated communications from the Centre seeking a response on the stalled project went unanswered. These included a letter from the APEDA chairman’s office dated September 11, 2023, and another from the Additional Secretary in the Department of Commerce dated January 31, 2024.
The records state that the lack of response indicated JKHPMC’s inability to execute the project.
The development raises questions about the prolonged failure to establish the proposed post-harvest infrastructure, which was intended to support the grading, packing and storage of Kashmir’s apple produce. (With inputs from KNO)
