Peoples Democratic Party (PDP) has asked the Government of India to workout a compensatory mechanism for the huge recurring losses being suffered by Jammu & Kashmir because of the discriminatory Indus Water Treaty (IWT) and arbitrary exploitation of the State's water resources by the National Hydro Power Corporation (NHPC) for power generation. In a statement issued here today, PDP President Mehbooba Mufti said the negative and almost crippling fallout of the water sharing agreement with Pakistan under IWT is now acknowledged as the most serious hurdle in the State's economic development. "The fact that the State has been deprived of its major resource as a result of the Treaty is now universally accepted," she said and added that the restrictions on usage of its water resources, is a major area of concern for the State and demands adequate compensatory mechanism to tide over our economic distress. Mehbooba said the timid surrender of the State's left-over water resources by the National Conference Government to the NHPC in 2000 against a paltry royalty of 12 percent electricity, has further complicated our economic despair. "I don't think any state in the country would barter its resources in such a reckless manner as was done by the NC government," she said and added that after the IWT, NC's surrender of the State's water resources to the Center was another worst blow to its economy. She said from around 1500 MWs of power being presently generated by NHPC through its power projects in the State, we are getting a meager 180 MWs as royalty - courtesy NC. "It is the second most atrocious transgression committed by NC against the interests of the State after having traded with BJP the autonomy resolution for power," she said. Reiterating that Jammu & Kashmir is not a place to be tackled through packages and doles, the PDP President said it is to be facilitated and assisted in realizing its potential of natural resources. "We have done it in the past, and I am sure if there is a political will we can do it again," she said and added that PDP accords highest priority to economic rejuvenation of Jammu & Kashmir in proportion to the immense potential it has in the South Asian sub-continent. She said Prime Minister Dr Manmohan Singh, more than anyone else, knows that economic development in any region must begin with taking advantage of its natural location and natural resources. She said during his November 2004 visit to the State Dr Singh had invited the people of Kashmir to take advantage of the new wave of economic dynamism sweeping the region. "And I hope the Prime Minister will during his upcoming visit to the State mark the beginning of this process by announcing remedial measures for the economic excesses committed with the State, from time to time," she said and added that sufficient energy, a technological and industrial base in conformity with the natural resources of the State, increased market access, modern educational facilities and adequate jobs or the youth, will be the major icons of the Jammu & Kashmir envisioned by PDP.