Uri attack aftermath

Proposal for banking facilities for LoC trade put on hold

NL Correspondent

Srinagar: The centre government has put on hold the proposal for establishing banking facilities for cross LoC trade after the National Investigating Agency seized records pertaining to cross LoC trade from the Trade Centre at Salamabad Uri recently, official sources said.

In the backdrop of the Uri attack, the NIA sleuths headed by IG Vinod Shukla and SSP BS Negi seized record pertaining to cross LoC trade from Trade Centre at Salamabad Uri.

“The NIA raided there after got some inputs that some of the traders were misusing trade to help militant activities in Jammu and Kashmir,” a senior police official said.

The official, said the NIA has asked the Union Home Minister not to start the banking facilities and put the proposal on hold. “The investigation has not been completed but the External Affairs Ministry has been told not to proceed in the proposal for establishing banking facilities for cross LoC trade,” the official said.

Minister for Industries and Commerce Chandra Prakash, said the state cabinet has endorsed the proposed to provide banking facilities to cross LoC traders.

He said any sort of deliberations on LoC trade are discussed with Pakistan by the government of India's External Affairs ministry and Home department.

“It is under process between India and Pakistan governments. In view of Uri attack, it may now get delayed,” he added.

The cross LoC trade began in 2008 through Salamabad Uri as a confidence building measure between India and Pakistan. The trade has not flourished over the years in absence of the banking facilities. It is running through barter system where traders are only able to exchange of goods without money transactions.

An official of Industries and Commerce Department, there are 367 traders registered to do trade from Salamabad, Uri. “These traders have been demanding establishing of banking facilities.”

The official, said J&K government had recommended for opening of seven more crossing points for the trade.