The State of J&K was receiving Central assistance in the form of 70% loan and 30% grant until 1991-92, when NDC allowed the pattern of 90% grant and 10% loan to the State. Meanwhile, Rangrajan Committee which was set up with a view to finding a durable solution to the financial problems of the Special Category States, recommended that the pattern of 90% grant and 10% loan should be extended to the State of J&K and Assam from the.year 1990-91. The recommendation was accepted and implemented by the Government of India.

The State Government had asked for the waiver of Rs.1275 crores from their outstanding liability by applying the revised pattern of Central assistance ... from 1969-70 onwards. The Government has not, in principle, agreed to the request. (Source: LSUQ No. 671/26.2.1999 by M.M. Sayeed)

J&K National Panthers Party: Plenary Resolution, Jammu, 23 Mar., 1999

Keeping in view the history and the events of the past 50 years followed by untold miseries, suffering, woes caused by militancy, poll rigging, corrupt and authoritarian rule of a chosen family by New Delhi, this Plenary Session of J&K National Panthers Party hereby resolves to ensure full equality, political, economic and social justice to the people of each region of the state.

To achieve this solemn goal in the interest of unity, integrity and communal harmony, the'Party demands the re-organisation of the structure of J&K State by granting Statehood to Jammu Province as well as to the Province of Kashmir.

This shall enable the people of each Province to liberate themselves from 50 years old feudal, corrupt, dictatorial and dynastic rule and strengthen the bonds of communal harmony, brotherhood and cooperation among the people of the two states. This shall further strengthen the cultural, linguistic and political identity of the people of each region.

Shahabuddin's Letter to Panthers Party, 10 April, 1999

I have long been in favour of trifurcation of the State into Kashmir, Jammu and Ladakh but I do not think that the old administrative lines can serve as boundaries. Each unit must be demarcated on linguistic contiguity and village as the unit, but it should also take into account natural barriers like mountain ranges and rivers.

Recycling of Militants

2916 militants had so far surrendered formally in J&K. Of these, 2030 had been appointed as Special Police Officers and were working with security agencies. 812 had been recruited into the Central Reserve Police Force and Border Security Force. Besides, the surrendered militants were also being trained in various trades and provided loans to start their businesses.