Indian Prime Minister Manmohan Singh on Wednesday dangled a multi-billion-dollar plan for peace before Kashmiris as he pulled an army battalion out of the insurgency-hit state and hinted at further troop cuts. "I have a dream and a firm belief that we can and we shall build a new Kashmir which will become a symbol of peace, hope, prosperity," Singh said on his first visit to the Himalayan valley since taking office in May.
"I have already given instructions to reduce troops in Kashmir and if violence goes down and if infiltration (of militants) ends it will become easier for me to reduce forces further," he told students in occupied Srinagar.
Singh repeated his peace message at a rally at the main cricket stadium at which he unveiled a 5.3 billion dollar "economic revival plan".
As the crowd chanted "Give us jobs before peace," Singh said at least 24,000 jobs would be created.
"New houses, new schools, new hospitals, new railway lines and more power needs to be generated, more phone connections, better irrigation has to be provided," Singh said.
He explained at a press conference that the plan would revitalise the state's ailing tourism industry and also focus on agriculture and education.
However, with 15 years of freedom movement leaving a trail of destruction and some 80,000 dead, the plan faces many obstacles.
"The successful implementation of the plan would require improved governance, transparent and corruption-free administration, peace, security and the rule of law, fiscal responsibility and economic pricing of public utilities," Singh said.
The package would more than double the occupied Kashmir's annual budget.
Investments in power, roads and telephones, raised in the next four years, would come from international lenders such as the World Bank and be funnelled through a new Kashmir development advisory board, an official from the prime minister's office told AFP.
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