Grappling with a sharp decline in tourist arrivals in the aftermath of the Pahalgam terror attack, various delegations, including tourism stakeholders, met visiting Finance Minister Nirmala Sitharaman in Leh and advocated for special relief measures for the tourism and allied sectors in the Union Territory of Ladakh, an official said on Sunday.
The delegations also demanded the restoration of budget allocations for the financial year 2025–26 and requested that Budget Estimates and Revised Estimates be finalised based on expenditure up to December, rather than September–October, to better reflect the region’s actual spending capacity.
Sitharaman arrived in Leh on Saturday for a four-day official visit. During her trip, she attended the light and sound show at Leh Palace, visited Shanti Stupa, and met with various delegations led by the Chairman-cum-Chief Executive Councillor of the Ladakh Autonomous Hill Development Council (LAHDC), Leh, Tashi Gyalson, the official said.
The delegation also included key stakeholders from the All Ladakh Travel and Trade Alliance, All Ladakh Hotel and Guest House Association (ALGHA), All Ladakh Tour Operators Association (ALTOA), All Ladakh Transport Association (ALTA), Merchant Associations, Biker Associations, Taxi Unions, and other tourism-related bodies.
The collective representation highlighted the widespread impact of the current situation on all segments of Ladakh’s economy, which remains heavily dependent on tourism.
Submitting a memorandum to the Finance Minister, Gyalson, who led the high-level delegation of LAHDC Leh, requested a special relief package for the tourism and allied sectors. This includes the rescheduling of existing bank loans, extension of moratorium periods, and recognition of tourism as a distressed sector, the official said.
The memorandum also urged the minister to restore Ladakh’s budget for FY 2025–26 and reiterated the request that budget estimates and revised estimates be based on expenditure up to December. This would reflect the region’s true financial needs, given its short working season due to extreme geographical and climatic conditions.
Expressing appreciation for the Centre’s continued support to Ladakh through various budgetary allocations and centrally sponsored schemes, the delegation acknowledged the positive impact of flagship programmes such as the Vibrant Villages Programme, which has significantly contributed to the upliftment of remote border areas in the Union Territory.
The delegation also requested enhancement of the financial powers of the Chief Executive Officer and Deputy Commissioner, Leh, allowing them to approve administrative sanctions up to ₹10 crore—at par with Chief Engineers.
They sought the Finance Ministry’s intervention to expedite the apportionment of J&K Grameen Bank’s assets and staff between Jammu & Kashmir and Ladakh. They also proposed the creation of a dedicated Regional Rural Bank for Ladakh to improve financial inclusion.
Additionally, the delegation proposed the establishment of a Ladakh Development Finance Corporation (LDFC) to support region-specific industries, along with setting up an RBI office in Leh to enhance banking supervision, address public grievances, and promote financial literacy.
The representatives from various tourism and trade sectors of Ladakh expressed growing concern over the significant decline in tourist footfall following the April 22 Pahalgam terror attack, in which 26 people were killed.
Another delegation comprising councillors submitted a separate memorandum highlighting key financial and developmental concerns of the region. A major request was the restoration of Ladakh’s budget allocation for FY 2025–26 to ensure uninterrupted execution of ongoing and proposed developmental projects crucial to the socio-economic progress of the Union Territory.
The Finance Minister assured the delegations that the issues raised would be examined for suitable consideration.
Read more