Himachal Pradesh Government Secures Nabard Approval for 73 Projects Valued at Rs 713.87 Crore
Chief Minister Sukhvinder Singh Sukhu has announced that the state government of Himachal Pradesh has successfully obtained approval from the National Bank for Agriculture and Rural Development (Nabard) for a total of 73 projects, with a combined worth of Rs 713.87 crore. This significant development was disclosed during a meeting chaired by Sukhu in Shimla, which included MLAs from multiple districts such as Una, Hamirpur, Sirmaur, Solan, Chamba, Bilaspur, Lahaul-Spiti, Kinnaur, and Shimla. The meeting aimed to finalize legislative priorities for the upcoming financial year 2026-27.
Project Details and Departmental Allocation
Out of the approved projects, 55 are designated as MLA priority initiatives under the Public Works Department, amounting to Rs 512.31 crore. Additionally, 18 projects fall under the Jal Shakti Department, with a value of Rs 201.56 crore. Chief Minister Sukhu emphasized the importance of fully utilizing the allocated budget and directed officials to submit reimbursement claims to Nabard before the March 15 deadline. He also highlighted ongoing efforts to secure approval for more MLA priority projects from Nabard by the end of March, underscoring the government's commitment to infrastructure and rural development.
Financial Challenges and Revenue Deficit Grant Concerns
In a related development, Sukhu expressed serious concerns over the 16th Finance Commission's recommendation to discontinue the Revenue Deficit Grant (RDG) to 17 states, including Himachal Pradesh. He described this decision as unjust, particularly for hill states facing difficult geographical conditions. The RDG, provided under Article 275(1) of the Constitution since 1952, has been crucial for ensuring financial stability. Sukhu noted that the 15th Finance Commission had recommended a revenue deficit grant of Rs 37,199 crore for Himachal, and during the Covid-19 pandemic, the previous BJP government received an additional Rs 11,431 crore based on an interim report. The discontinuation of this grant is projected to cause a loss of nearly Rs 50,000 crore to the state.
Sukhu argued that Himachal Pradesh contributes significantly to environmental protection through measures like a complete ban on tree-felling and by supplying water to other states via its rivers. In light of these contributions, he stated that stopping the RDG is against the state's interests. To address this financial shortfall, the Chief Minister hinted that the state government may be compelled to take tough decisions to generate revenue as part of efficient financial management strategies.
Government's Vision and Meeting Attendees
Over the past three years, the state government has focused on implementing public welfare policies, promoting transparent governance, and enacting wide-ranging reforms. The overarching aim is to strengthen Himachal's economy, empower youth and women, provide security to weaker sections, and establish the state as a prosperous, green-energy, and economically self-reliant entity. The meeting was attended by key figures including Deputy Chief Minister Mukesh Agnihotri, Industries Minister Harshwardhan Chauhan, administrative secretaries, department heads, concerned Deputy Commissioners, and other senior officers, reflecting a collaborative approach to governance and development planning.
