Himachal Pradesh Chief Minister Sukhvinder Sukhu on Wednesday said the government has embarked on a journey to increase economic resources despite inheriting a significant loan of about Rs 75,000 crore from the previous BJP regime.
With a strong emphasis on tourism and hydropower, the state aims to bolster its economy and create employment opportunities for the youth.
Various steps have been taken by the government in the past six months in this regard. The Chief Minister has actively been advocating for the state’s rights in hydropower projects at various platforms, consistently visiting Delhi to demand an increase in royalty and the state’s share in various Central Public Sector Undertakings (CPSU)-owned power projects, an official spokesperson said.
Also due to the efforts of Sukhu the completion of the Shongtong hydropower project has been expedited, expected to be finished by July 2025.
The timely commissioning will result in savings of Rs 250 crore and generate a revenue interest of about Rs 156 crore.
To attract investments and revive stalled various Investment projects, the Chief Minister recently held a two-day meet with investors in Shimla.
This initiative not only promises to increase the state’s sources of income but also provides employment opportunities for the youth.
He also discussed various tourism-related projects, highlighting the state government’s commitment to promoting green investments.
In another effort to improve the economy, the state government decided to auction the liquor vends of the state for 2023-24, resulting in a profit of Rs 520 crore.
Additionally, the total excise policy implemented this year is expected to contribute about Rs 3,000 crore to the state exchequer, said the Chief Minister.
“In a significant move, Himachal Pradesh has decided to impose water cess on hydropower projects, estimating a revenue influx of Rs 4,000 crore. Over 130 hydropower projects have already registered under this act,” said Sukhu.
Moreover, the government is actively focusing on harnessing solar energy, with a target set to produce 500 MW of solar power in this fiscal. This initiative aims to reduce reliance on expensive purchased electricity on a banking basis, he added.
To cut down on expenditure and promote sustainability, the government plans to gradually replace 1,500 diesel buses of the Himachal Road Transport Corp (HRTC) with e-buses.
The operational cost of e-buses is significantly lower than diesel buses, potentially aiding in the revival of HRTC.
Additionally, the government aims to replace vehicles in all government departments with e-vehicles, with the transport department leading the way.
Also, the Chief Minister has secured permission for the felling of khair trees on forest land in favour of the state government.
The Supreme Court upheld the government’s stance, enabling the forest department to fell khair trees in 10 forest divisions.
Furthermore, the department is finalizing the standard operating procedure (SOP) of timely extracting and selling timber from salvage trees found in the forest land, projecting an additional income of Rs 1,000 crore per year for the government.
While creating new economic resources, the government is also focused on reducing its expenditure.
The Chief Minister has increased the rent of Himachal Sadan and Bhavan in Delhi and Chandigarh for all from Rs 200 to Rs 1,200.
Additionally, the state government has discontinued helicopter services from June 1, resulting in further savings.
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