Centre Must Provide Special Financial Provisions for Hilly States Like Himachal: Deputy CM

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Centre Must Provide Special Financial Provisions for Hilly States Like Himachal: Deputy CM

Monday, 24 March 2025 | PNS | Shimla

Himachal Pradesh Deputy Chief Minister Mukesh Agnihotri on Sunday urged the Central Government to introduce special financial provisions for hilly states, highlighting the economic challenges posed by the region’s difficult terrain and limited revenue sources.

 

Agnihotri, addressing the inaugural session of the three-day brainstorming exercise ‘Samriddh Himachal 2045’ at the Dr Manmohan Singh Himachal Pradesh Institute of Public Administration (HIPA) in Shimla, underscored the need for state-specific policies to ensure sustainable economic growth. 

 

The Deputy CM recalled the pivotal role played by former Prime Minister Indira Gandhi in granting full statehood to Himachal Pradesh despite its economic vulnerabilities. “Indira Gandhi understood that Himachal Pradesh, being a small hilly state, faced immense challenges in achieving economic self-reliance. Despite these hurdles, she prioritized the political aspirations of the people and announced full statehood from the historic Ridge,” he said. 

 

Agnihotri stressed that national policies cannot be applied uniformly to all states, as geographical and economic conditions vary significantly. He pointed out that while larger states such as Maharashtra, Rajasthan, and Madhya Pradesh have extensive industrial bases and multiple revenue streams, Himachal Pradesh relies on limited resources such as tourism, hydropower, and agriculture. 

 

“If the Central Government issues directives that states must implement, then Himachal Pradesh should not be assessed on the same parameters as larger states. We have distinct challenges that require customized solutions,” he asserted.

 

He urged the Centre to consider Himachal’s unique constraints while allocating funds for central projects, including housing schemes, water conservation initiatives, power projects, and infrastructure development. 

 

Further, he argued that crucial decisions such as the construction of tunnels, railway routes, and the distribution of housing scheme benefits should be made by the state rather than dictated by New Delhi. “Those who consider Himachal as their second home should seriously reflect on these matters,” he added. 

 

The Deputy CM highlighted the untapped economic potential of Himachal Pradesh’s natural resources, including glaciers, perennial rivers, and vast forest wealth. He emphasized that these resources could be harnessed strategically to drive self-reliance and prosperity. However, he noted that the state has deliberately refrained from excessive deforestation in the interest of global environmental balance. 

 

“Himachal plays a crucial role in climate conservation. Our glaciers are the lifeline of India’s rivers, and if they continue to melt at the current rate, the country will face a severe drinking water crisis. Yet, while we bear the economic cost of preserving our forests and natural resources, we receive no financial compensation for these sacrifices,” Agnihotri stated. 

 

The three-day ‘Samriddh Himachal 2045’ conclave aims to formulate a 20-year roadmap for the state's sustainable economic growth. The Deputy CM assured that recommendations from the discussions would be implemented to make Himachal self-reliant and prosperous.

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