Constitute panel for hill state to assess RDG loss, Himachal CM pleads to Niti Aayog
New Delhi, June 11
Himachal Pradesh Chief Minister Sukhvinder Sukhu on Thursday urged Prime Minister Narendra Modi to constitute a high-level committee for hill states to assess the losses incurred on account of discontinuation of the Revenue Deficit Grant, damages due to natural disasters, deprivation of free power in hydropower projects and revenue losses due to the GST regime.
Speaking at the 11th Governing Council Meeting of NITI Aayog here, Sukhu said the state is contributing to the country's growth despite limitations.
He added that the high-level committee may present a detailed report to the Government of India, so that the state may get its due share.
He said the discontinuation of RDG posed a major blow to the state's economy, adding that Rs 25,000 crore provided to all hill states at the request of the Chief Ministers is insufficient to compensate for the loss.
He demanded that the amount be increased to Rs 50,000 crore to ensure the smooth implementation of development activities.
The Chief Minister said Himachal Pradesh "is the green frontier of the country and requires special attention from the Government of India to translate the vision of Viksit Bharat in its true letter and spirit".
He said that Himachal Pradesh provides Rs 90,000 crore in ecological services to the country, as per a study conducted by the Indian Institute of Forest Management. However, the state is not being compensated accordingly against its contribution towards preserving ecology.
He said the state is being deprived of fair and free power for 13,000 MW of power being produced in the state, and added that arrears amounting to Rs 7,000 crore from the Bhakra Beas Management Board (BBMB) are still pending.
He also mentioned that the state bore the brunt of natural disasters and added that it still awaits the announced Rs 1,500 crore special assistance from the Centre.
Sukhu apprised that the state incurred revenue losses of Rs 25,000 crore over eight years due to the current Goods and Services Tax (GST) regime.
— IANS
Reader Comments
Interesting perspective from an American here - I had no idea hill states faced such unique financial challenges. The point about GST losses is particularly telling. Seems like a classic case of "one-size-fits-all" policy not working for diverse regions. Hope NITI Aayog takes this seriously.
Chief Minister Sukhu is right to demand fair treatment. But let's be honest - this is just political posturing. Every state blames the Centre for their problems. Instead of asking for handouts, Himachal should focus on industrial development and tourism. The real issue is that hill states rely too much on central grants.
As someone from Himachal, I can confirm the pain 😢. The 2023 floods devastated our region and we're still waiting for promised assistance. ₹1,500 crore is nothing compared to what we lost. And the BBMB arrears? They've been pending for years! Our power is being taken without fair compensation. Jai Himachal! 🙏
This is a genuine concern. Hill states face higher costs for everything - building roads, maintaining infrastructure, disaster management. The GST regime has indeed hurt states like HP that rely on tourism and agriculture. But demanding ₹50,000 crore seems excessive. Let's see what the committee recommends after proper study.
Having visited Himachal last year, I can see why they need special attention. The infrastructure challenges in mountainous terrain are real. But I wonder - would creating more special committees just add bureaucratic layers? Maybe direct GST compensation or ecological service payments would be more effective than another study.