Himachal Pradesh Secures Major NABARD Funding for Development Projects
Chief Minister Sukhvinder Singh Sukhu has announced a significant financial boost for Himachal Pradesh, revealing that the state government has secured approval from the National Bank for Agriculture and Rural Development (NABARD) for a total of 73 development projects. The cumulative value of these approved initiatives stands at an impressive Rs 713.87 crore for the fiscal year 2025-26.
Project Distribution and Departmental Focus
The approved projects demonstrate a clear prioritization of infrastructure and water resource development. Out of the 73 projects, a substantial 55 projects valued at Rs 512.31 crore have been designated for the Public Works Department. These are specifically categorized as MLA-priority projects, reflecting local legislative priorities. Concurrently, the Jal Shakti Department has received approval for 18 projects with a total worth of Rs 201.56 crore, underscoring the government's focus on water management and security.
The Chief Minister emphasized the critical importance of efficient fund utilization, directing that the allocated budget must be fully expended and all reimbursement claims submitted to NABARD offices before the strict deadline of March 15, 2026. He further stated that the state administration is actively working to secure approval for additional MLA-priority projects from NABARD by March 2026.
Concerns Over Discontinued Central Grants
During discussions, CM Sukhu expressed serious apprehension regarding the 16th Finance Commission's decision to halt the Revenue Deficit Grant (RDG) provided to states under Article 275(1) of the Constitution. He argued that this discontinuation is particularly unjust for hill states like Himachal Pradesh, which face challenging geographical terrains and higher costs of service delivery.
The CM highlighted Himachal's environmental contributions, noting the state's complete ban on tree felling and its role in supplying water to other regions through its river systems. He stated that stopping the RDG contradicts the state's interests. According to Sukhu, the 15th Finance Commission had recommended an RDG of Rs 37,199 crore for Himachal. Additionally, during the COVID-19 pandemic, the previous state government received Rs 11,431 crore as RDG based on an interim commission report. The cessation of this grant could potentially result in a financial loss approaching Rs. 50,000 crore for the state.
Fiscal Management and Policy Direction
In light of these financial challenges, CM Sukhu indicated that the state government will need to implement tough decisions to enhance revenue generation while ensuring meticulous financial management. He also critiqued the recent Union Budget, stating it overlooks the needs of the middle class and the agricultural sector. He pointed out that despite agriculture and horticulture being the backbone of Himachal's economy, the budget failed to provide subsidies for orchardists or mention infrastructure development specifically for them.
Furthermore, he noted the absence of concrete announcements regarding the expansion of key railway projects, including the Bhanupalli-Bilaspur and Chandigarh-Baddi lines.
MLA Demands and District-Specific Priorities
The meeting, which included MLAs from Una, Hamirpur, and Sirmaur districts, served as a platform for legislators to outline their constituency-specific demands for the 2026-27 financial year. Key requests included:
- Una District: Completion of the Stothar Bridge and Chowki-Manyar college, construction of a sub fire station at Jol, sewerage schemes, and infrastructure strengthening.
- Hamirpur District: Early construction of the Ladraur-Patta drinking water scheme, infrastructure in Bhoranj Nagar Panchayat, new court buildings, and healthcare facility upgrades.
- Sirmaur District: Tourism promotion, completion of school and college buildings, establishment of a cardiology department at Nahan Medical College, de-silting of Shree Renukaji Lake, and improvements to industrial power supply.
CM Sukhu concluded by reaffirming his government's commitment to rapid, inclusive, and sustainable development across all sectors, aiming to establish Himachal Pradesh as a prosperous, green-energy, and economically self-reliant state.
