New Delhi: The Planning Commission on May 29 approved a core annual plan of Rs 2,500 crore for the cash-strapped Jammu and Kashmir.

The plan was approved during a meeting between Planning Commission deputy chairman K C Pant and Jammu and Kashmir Chief Minister Mufti Mohammad Sayeed.

Talking to reporters later, Sayeed said he was satisfied with the amount sanctioned.

"I think a good atmosphere will be created for developmental activities on all fronts in the state. For this we are thankful to honourable Prime Minister, Finance Minister and deputy chairman of Planning Commission.

"We did not demand more, neither we should… Whatever our realistic demands were, they were met 100 per cent. We do not have any complaints," Sayeed said.

The total plan outlay is 30 per cent more than the previous year, the largest ever received by the state.

The state government would get an additional Rs one billion as seed capital for the consolidated sinking fund that the state government proposes to set up.

Sayeed refused to divulge details about the plan. "This (plan) is balanced one. We have expenditure to match our resources. Lone component is very less and is not like previous years. With this, the state's resource mobilisation will also increase. We are trying...the Finance Minister will present the budget on June 3. I think it is a very good beginning," said Sayeed.

Last year, federal government announced a financial package of Rs 61.65 billion for strengthening infrastructure and creating more jobs in the state.

Thirteen years of militancy in the Kashmir valley has completely destroyed the state's economy, which many say has alienated the region from the rest of the country.

ANI