Himachal Pradesh Secures Major NABARD Funding for Development Projects
The government of Himachal Pradesh has achieved a significant milestone by securing approval from the National Bank for Agriculture and Rural Development (NABARD) for 73 development projects with a total value exceeding Rs 713 crore for the financial year 2025-26. Chief Minister Sukhvinder Singh Sukhu made this announcement on Friday, underscoring the state's proactive approach to infrastructure and resource management.
Breakdown of Approved Projects
Of the 73 projects approved, a substantial portion—55 projects valued at Rs 512 crore—falls under the purview of the Public Works Department. These initiatives are expected to enhance road connectivity, public buildings, and other critical infrastructure across the state. Additionally, 18 projects worth Rs 201 crore have been sanctioned for the Jal Shakti Department, focusing on water supply, irrigation, and sanitation improvements to address the region's water security needs.
Focus on MLA Priority Projects and Financial Management
During a meeting with MLAs from Una, Hamirpur, and Sirmaur districts to finalize MLA priority projects for the upcoming financial year 2026-27, Chief Minister Sukhu issued directives to ensure optimal utilization of allocated funds. He emphasized the importance of submitting reimbursement claims to NABARD before the March 15 deadline to avoid delays in fund disbursement. Furthermore, Sukhu revealed that efforts are actively underway to secure approval for additional MLA priority projects by the end of March, aiming to expand developmental activities in these constituencies.
Financial Challenges and Criticism of Union Budget
In a pointed critique, Chief Minister Sukhu highlighted the financial strain imposed by the central government's discontinuation of the Revenue Deficit Grant (RDG). He estimated that this move would result in a loss of nearly Rs 50,000 crore for Himachal Pradesh over the next five years, necessitating tough decisions to boost state revenue while maintaining efficient financial management. Sukhu also lambasted the recent Union Budget, accusing it of neglecting the middle class and farmers. He noted the absence of concrete announcements regarding the expansion of key railway projects, such as Bhanupalli-Bilaspur and Chandigarh-Baddi, which are crucial for the state's connectivity and economic growth.
Sukhu argued that the Union Budget contradicts the principles of cooperative federalism, asserting that instead of fostering self-reliance in small hill states like Himachal Pradesh, it exacerbates their debt burdens. This criticism reflects broader concerns about fiscal autonomy and support for regional development in India's federal structure.
Key Attendees and Broader Implications
The meeting was attended by Deputy Chief Minister Mukesh Agnihotri, Industries Minister Harshwardhan Chauhan, senior government officers, and concerned deputy commissioners, indicating a coordinated effort to address developmental and financial priorities. The approval of these NABARD projects marks a crucial step in Himachal Pradesh's strategy to leverage external funding for local infrastructure, even as the state navigates significant fiscal challenges posed by central policy changes.
