New Delhi, Jul 22 (IANS): To boost socio-economic development in Ladakh, the cabinet headed by Prime Minister Narendra Modi on Thursday approved the establishment of an integrated multi-purpose infrastructure development corporation for the newly created Union Territory.

The Corporation will work as the main agency for infrastructure development in Ladakh.

The authorized share capital of the Corporation will be Rs 25 crore and recurring expenditure will be around Rs 2.42 crore per year. "It is a new establishment. Presently, there is no such similar organization within the newly formed UT of Ladakh," the government said.

The cabinet also approved the creation of one post of Managing Director for the corporation in the pay scale of Rs 1,44,200-Rs 2,18,200.

The approval has an inherent potential for employment generation as the Corporation will be undertaking various kinds of developmental activities. The Corporation will work for industry, tourism, transport and marketing of local products and handicrafts.

The establishment of the Corporation will result in inclusive and integrated development of Ladakh.

This will, in turn, ensure socio-economic development of the entire region and population of the Union Territory.

The impact of development will be multi-dimensional. It will help in further development of human resources and better utilization thereof. It increases domestic production of goods and services and will facilitate their smooth supply. Thus, the approval will help in realizing the goal of "Atmanirbhar Bharat" (Self reliant India).

Consequent upon the reorganisation of the erstwhile state of Jammu and Kashmir as per the Jammu and Kashmir Reorganisation Act, 2019, Ladakh had sent a proposal to the Union Home Ministry for the establishment of the Corporation.

It was recommended by the Committee on Establishment Expenditure (CEE), Ministry of Finance, in April 2021.

Back in 2019 an Advisory Committee was constituted under Section 85 of the Jammu and Kashmir Reorganization Act, 2019 for making recommendations regarding the apportionment of the assets and liabilities of the erstwhile state of Jammu and Kashmir between the Union Territory of Jammu and Kashmir, and the Union Territory of Ladakh.

The committee had recommended the establishment of an Integrated Infrastructure Development Corporation Limited on the lines of the Andaman and Nicobar Islands Integrated Development Corporation Limited, with an appropriate mandate to take up various developmental activities as per the specific needs of Ladakh.