Himachal Pradesh Chief Minister Sukhvinder Sukhu has urged Prime Minister Narendra Modi to establish a high-level committee for hill states to evaluate the impacts of discontinuing the Revenue Deficit Grant (RDG), damages from natural disasters, loss of free power in hydropower projects, and revenue reductions due to the GST regime. At the 11th Governing Council Meeting of NITI Aayog, Sukhu emphasized the state’s contributions to the nation’s growth despite constraints. He stressed the need for the committee to compile a comprehensive report for the Government of India to ensure the state receives its rightful share.
Sukhu highlighted that the cessation of RDG has significantly affected the state’s economy, noting that the Rs 25,000 crore allocated to all hill states upon Chief Ministers’ request is inadequate to offset the losses. He called for an increase in this amount to Rs 50,000 crore to facilitate the smooth execution of development projects. The Chief Minister underscored Himachal Pradesh’s importance as the ecological backbone of the country, urging special attention from the central government to actualize the vision of a developed India. According to a study by the Indian Institute of Forest Management, the state provides ecological services worth Rs 90,000 crore to the nation, yet it is not adequately compensated for its environmental conservation efforts.
Moreover, Sukhu pointed out that despite generating 13,000 MW of power, Himachal Pradesh is denied fair and free electricity, with pending arrears of Rs 7,000 crore from the Bhakra Beas Management Board (BBMB). He also highlighted the state’s vulnerability to natural calamities and the awaited Rs 1,500 crore special assistance promised by the Centre. The Chief Minister further disclosed that the state has suffered revenue losses amounting to Rs 25,000 crore over eight years under the current GST system.
