The Government of India has sought a refund of over ₹4.16 crore from Jammu and Kashmir over a long-delayed project to establish modern infrastructure for grading, packing and storage of apples, after the initiative failed to take off nearly two decades after funds were released.
The Agricultural and Processed Food Products Export Development Authority (APEDA), functioning under the Union Ministry of Commerce and Industry, had released ₹1.42 crore to the Jammu and Kashmir Horticultural Produce Marketing and Processing Corporation (JKHPMC) in September 2005 for developing an integrated pack-house.
According to documents available with the news agency KNO, the project had an estimated cost of ₹3.88 crore. However, it remained unexecuted despite repeated extensions granted by APEDA to accommodate constraints cited by JKHPMC.
The last extension was granted in June 2022, but the project failed to materialise.
Citing prolonged delays, cost escalation and the obsolescence of the technology envisaged for the pack-house compared with existing apple-packaging technology, APEDA decided to cancel the memorandum of understanding signed with JKHPMC on July 15, 2005, and the related agreement dated July 22, 2005.
The cancellation has left JKHPMC facing a refund demand of ₹4,16,21,680, including interest on the amount released nearly 21 years ago.
Citing Rule 231 of the General Financial Rules (GFR), 2017, the documents state that interest at the rate of 10 per cent per annum is applicable to the released amount of ₹1.42 crore, taking the total amount sought to over ₹4.16 crore.
The records also indicate that repeated communications from the Centre regarding the stalled project went unanswered.
According to the documents, reminders were sent on September 11, 2023, from the APEDA Chairman’s office and on January 31, 2024, by the Additional Secretary in the Department of Commerce. Neither communication received a response, the records state.
The documents said the lack of response indicated that JKHPMC was unable to execute the project.
The failure to establish the proposed pack-house raises questions about the implementation of the project, which was intended to strengthen post-harvest infrastructure for Kashmir’s apple industry.
The proposed facility was aimed at providing modern grading, packing and storage infrastructure, which is considered important for improving the handling and marketing of the region’s apple produce.
