The BJP-led Maharashtra government has earmarked funds to buy land and set up a resort in Kashmir on a day the Union home ministry sought to calm fears over Tibetisation of the Valley.

Maharashtra tourism minister Jaykumar Rawal on Tuesday said the state government planned to build a tourist resort in Srinagar and another in Ladakh.

The Maharashtra Tourism Development Board had in its August 28 meeting decided to allot Rs 1 crore each for setting up the resorts, he said.

“We are going to write to the governor there through our governor and chief minister seeking land. We have decided to buy either government or private land,” Rawal said.

The state government’s decision comes in the wake of the Centre’s move last month abrogating the special status of Jammu and Kashmir, which also included a bar on outsiders buying land in the state.

The state government announced the decision on a day the Union home ministry issued a statement after Shah met Kashmiri delegations.

The ministry statement said: “Shah clarified that the statehood of Jammu and Kashmir would be restored as soon as the situation warrants, and asked the representatives to not believe any rumours. Shah reassured the representatives that nobody’s land would be taken away and government land would be used for the establishment of industries, hospitals and educational institutions. This would not only create employment opportunities for the locals but also enhance tax revenues for the state, which in turn would be used for the welfare of the people.”

The delegation Shah met included village heads from the Valley brought to Delhi as part of the Centre’s outreach.

Zuber Nishad Bhat, a sarpanch from Harvan in Srinagar district who was part of the delegation, told reporters after the meeting on Tuesday the minister had told them “mobile phone services in Jammu and Kashmir will be restored in the next 20-25 days”.

At the 40-minute interaction, the home minister also assured the delegation that sarpanches and panchayat members would get police security.

Home ministry spokesperson Vasudha Gupta said Shah met three different groups of representatives from Jammu and Kashmir on Tuesday.

Shah also met representatives of fruit growers, agricultural markets, members of local horticulture associations and representatives of people displaced by the Partition.

On the issue of mobile connectivity and restoration of communications, the minister said “the issue would be expedited and that a solution would be found as quickly as possible”, the spokesperson said.