STATE ANNUAL PLAN 2020-21 · Minister said the Rohtang Tunnel, which will connect Manali in...

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STATE ANNUAL PLAN 2020-21 ➢ The Himachal Pradesh government has been proposed Rs 7900 crore state plan size for

financial year 2020-21, which is Rs 800 crore or 11% higher than 2019-20.

➢ The government had also succeeded in getting seven major external aided projects worth Rs.

6,900 crore approved from the Centre for tourism development, horticulture development,

augmentation of drinking water, environment preservation, forest management and state road

projects, Phase-II during last two years.

➢ Four more major external aided projects worth Rs 7,029 crore under forest, ropeways, disaster

management and power sectors were under consideration of the Union government for

approval.

➢ These projects would go a long way in improving the income of the farmers, horticulturists and

providing employment to the youth.

➢ 122 projects, worth Rs 445.49 crore, have been cleared by NABARD, which are recommended

under MLAs priorities during 2019-20.

FISCAL HEALTH OF STATE According to the CAG report, the overall debt burden of the state has increased to Rs 51,030 crore in

the last financial year, an increase of 8 per cent over last year.

➢ The fiscal liabilities of the state now stand at 37.55 per cent of the GDP and 1.86 times the total

revenue receipts.

➢ In the next 10 years till 2028-29, the state will have to repay market loans of Rs 20,874 crore

along with interest of Rs 9,483 crore.

➢ The fiscal deficit (difference between revenue receipts and spending) of Himachal Pradesh

swelled to Rs 3,870 crore during 2017-18 from Rs 2,948 crore during 2016-2017, an increase of

31.27 per cent.

➢ It points out that the state is on a fiscal correction path but it hasn’t yet amended the Fiscal

Responsibility and Budget Management (FRBM) Act, as recommended by the 14th Finance

Commission.

➢ The revenue surplus of the state has consistently declined from Rs1,137 crore during 2015-16 to

Rs 920 crore during 2016-17 and Rs 314 crore during 2017-18 despite heavy devolution of

funds from the Union Government.

➢ The state had revenue deficit during 2013-14 and 2014-15. Thereafter, it maintained revenue

surplus. However, in the last three years, revenue surplus declined consistently.

➢ The report states that during 2017-18, revenue receipts increased by just 4 per cent to Rs 27,367

crore from Rs 26,264 crore the previous financial year. Only 35 per cent of the revenue receipts

came from the state’s own resources (both tax and non-tax), while 65 per cent revenue came

from the state’s share in Central taxes.

➢ The report states that the Union Government is directly transferring funds to the tune of Rs 901

crore to the implementing agencies in spite of the decision to route it through the state budget.

➢ It says that the total expenditure (Rs 31,312) of the state has decreased by 3 per cent (Rs 821

crore) during the previous financial year primarily on account of disbursement of loans to the


tune of Rs 2,890.50 crore to discoms (distribution companies) under the UDAY Scheme during

2016-17.

➢ The revenue expenditure increased by 7 per cent (Rs 1,709 crore) from Rs 25,344 crore during

2016-17 to Rs 27,053 crore during 2017-18 and its share in the total expenditure increased to 86

per cent from 79 per cent the previous year.

Deficit up

• Debts rise to Rs51,030 cr.

• Fiscal deficit has increased to Rs3,870 cr.

• State has to repay loans to the tune of Rs20,874 cr with interest of Rs9,483 cr in next 10 years.

CAG Report, 2019

Components of Fiscal Status Increment in Percentage

1. Increase in overall Debt Burden 8%

2. Increase in Fiscal Deficit 31.27%

3. Increase in Revenue Receipts 4%

4. Increase in Total Expenditure 3%

5. Increase in Revenue Expenditure 7%


INFRASTRUCTURE:

SMART URBAN TRANSPORT PROJECT Chief Minister has reportedly written a letter to the Union Ministry of Forest and Climate Change seeking

exemption from forest and environment clearances for the ambitious 31-km electric ropeway smart

urban transport project. It is a “green and eco-friendly” project that will further reduce carbon footprint

in the hills”.

➢ Webcos, consultant of the Central Government, had carried out a pre-feasibility survey and

found the 31-km ropeways project as the only solution to decongest Shimla city for the next 50

years.

➢ The Central Government has given the go-ahead to the first phase of the project.

➢ As per the proposal, there would be 32 stations with smart parking lots. The aerial ropeway

would carry 10,000 passengers both ways at a time and each station would be linked in a five-

minute aerial journey in contrast with an hour or half an hour it otherwise takes at present for

public to reach Sanjauli from the ISBT during peak hours. The project is estimated to cost Rs

1,120 crore.

ROPEWAY PROJECT • The Union Ministry of Tribal Affairs has approved a ropeway project with an estimated cost of

about Rs. 600 crores for Pangi area.

• The ropeway will be over 21.4 km long.

• The ropeway will connect Bhanodi to Pregara on Killar side for providing round the year

connectivity .

• The union government has also provided Rs. 50 lakh more funds to the state.

• The 21.4 km ropeway in five stages will be a challenging task for Ropeway and Rapid Transport

System Development Corporation, Himachal Pradesh.

FOUR-LANING OF KIRATPUR-NERCHOWK CHOWK ➢ The Centre has released funds for remaining work of four-laning of Kiratpur to Nerchowk

national highway and the work would be completed soon,

➢ Rs. 1455.73 crore has been tendered for balance work on four laning of Kiratpur to Nerchowk

section of NH-21 greenfield alignment excluding Sundernagar bypass on Hybrid Annuity Mode

(HAM)

➢ The government of India had entrusted to the NHAI the development, maintenance and

management of National Highway No. 21. The Authority had resolved to augment balance work

for four laning of Kiratpur to Nerchowk section of NH-21 on design, build, operate and transfer

basis. It has decided to carry out the bidding process for selection of a private entity as the bidder

to whom the Project may be awarded.


RURAL INFRASTRUCTURE DEVELOPMENTAL FUND ➢ NABARD has sanctioned 44 projects including 39 road projects and five bridge projects,

amounting to Rs 161.35 crores in Himachal Pradesh under Rural Infrastructure

Development Fund (RIDF-XXV).

➢ Under these projects new road constructions of 143.13 kilometers, upgradation and metalling

tarring of 60.68 kilometers and construction of five bridges would be done.

➢ NABARD (RIDF) is playing a significant role in road connectivity in rural areas and it has a

special importance for a hill state like Himachal Pradesh where roads are the only mode of

connectivity.

➢ 115 projects including 102 roads and 13 bridges amounting to Rs 464.83 crores have been

sanctioned under RIDF-XXIV during the financial year 2019-20.

ATAL TUNNEL Cutting through the mighty Pir Panjal range, the Rohtang tunnel will reduce the distance between Manali

and Leh by 46 kilometres, and save crores of rupees in transport costs. It will also provide all-weather

connectivity to remote border areas of Himachal Pradesh and Ladakh.

On the birth anniversary of former Prime Minister Atal Bihari Vajpayee on (December 25), Prime

Minister said the Rohtang Tunnel, which will connect Manali in Himachal Pradesh with Leh, Ladakh,

and Jammu Kashmir, will be known as Atal Tunnel.

The strategic tunnel would change the fortunes of the region, and would help promote tourism.

➢ The decision to construct a strategic tunnel below the Rohtang Pass was taken by former Prime

Minister Atal Bihari Vajpayee.

➢ Vajpayee was a regular visitor to Manali and took a keen interest in the project during his

tenure. PM has been keen on the prestigious tunnel, and the work on the project is monitored by

the Prime Minister’s Office.

➢ The tunnel is expected to be ready for an official inauguration by September, 2020.

Features

➢ Upon completion, the 8.8 km-long tunnel will be the world’s longest highway tunnel at an

altitude of above 10,000 feet (3,000 metres).

➢ It is a 10.5 m-wide single tube, a bi-lane tunnel with a fireproof emergency tunnel built into the

main tunnel itself. The 10.5-m width includes a 1-metre footpath on both sides.

➢ Vehicles will travel at a maximum speed of 80 km per hour inside the tunnel. Up to 3,000 cars

and 1,500 trucks are expected to use the tunnel every day.

➢ Cutting through the mighty Pir Panjal range, the tunnel will reduce the distance between Manali

and Leh by 46 kilometres, and save crores of rupees in transport costs.

➢ It will also provide all-weather connectivity to remote border areas of Himachal Pradesh and

Ladakh, which otherwise remained cut off from the rest of the country for about six months.

➢ The project has significant strategic implications for the military. Once the tunnel is

operational, the forces will have access beyond the Rohtang Pass even in peak winter.

Present Status

➢ The breakthrough from both ends was achieved on October 15, 2017. The tunnel is now nearing

completion.

https://indianexpress.com/article/explained/explained-all-you-need-to-know-about-the-rohtang-tunnel-6135920/

https://indianexpress.com/article/india/centre-decides-to-name-tunnel-under-rohtang-pass-after-vajpayee-6183307/

https://indianexpress.com/article/india/centre-decides-to-name-tunnel-under-rohtang-pass-after-vajpayee-6183307/


➢ Some 3,000 contractual workers and 650 regular employees of the Border Roads Organisation

(BRO) have been working in shifts through 24 hours on the project.

➢ The project might have been completed at least four years earlier, but for a massive torrent of

water encountered inside the tunnel.

➢ The Seri Nullah, which flows above the tunnel, almost threatened to derail the project. It took

several years to devise ways to tackle the massive flow of water that often went up to 140 litres

per second.

➢ The feasibility study for the project had been carried out in May 1990, and the geological report

was submitted in June 1994. The design and specification report was submitted in December

1996.

➢ The project received final technical approval in 2003, and CCS approval in 2005. Tenders were

floated in 2007, and the foundation stone for the project was laid on July 28, 2010.

➢ The project was originally scheduled to be completed on February 1, 2015.

➢ More tunnels will have to be built to tackle the high passes which fall beyond Rohtang.

➢ While Rohtang Pass is at a height of 13,050 feet, the pass on the road to Leh is Baralacha La at

16,040 feet. A 13.2-km long tunnel would be required to bypass this pass.

➢ Further down the highway comes Lachung La Pass at 16,800 feet, that will require a 14.78 km-

long tunnel to provide all-weather connectivity. Thereafter falls the Tanglang La pass at 17,480

feet, which will need a 7.32 km-long tunnel.

➢ An alternative road link to Ladakh has also been developed by BRO on the Darcha-Padam-Nimu

axis, but here again, a 4.15 km-long tunnel at Sinka La Pass (16,703 feet) would be required for

all-weather access.

Services available inside the Rohtang Tunnel

❖ Telephone every 150 metres.

❖ Fire hydrant every 60 metres.

❖ Emergency exit every 500 metres.

❖ Turning cavern every 2.2. km.

❖ Air Quality monitoring every 1 km.

❖ Broadcasting system.

❖ Automatic incident detection system with CCTV every 250 metres.

SERI ENTREPRENEURSHIP DEVELOPMENT AND

INNOVATION CENTRE (SDDIC) H.P. government had opened Seri Entrepreneurship Development and Innovation Centre (SDDIC) in

Balichowki, Mandi district to provide an opportunity to the people to connect with silk industry for self

employment. Mandi district contributes 25% of silk production in Himachal state after Bilaspur

district.

➢ It is one of the industries where people can work from home and enhance their income, besides

contributing in a constructive manner towards development of their village and state as a whole.

Women would be benefited with this centre as after getting training from here, they would be

able to contribute towards family income.


➢ State government had launched ‘Silk Samagra’ project to promote sericulture and silk weaving

and a provision of Rs 50 crore had been made under this scheme to benefit farmers.

Himachal state stands 2nd in Silk Industry after J & K in the Northern region. The leading

districts in the state are: Bilaspur, Mandi, Hamirpur, Kangra, Una and Sirmour.

Silk Samagra project aims at integrated development of silk industry for 3 years ( 2017- 2020).

Key Components:

1. Research & Development

2. Seed Organisations

3. Coordination & Market Development

4. Quality Certification System

The government has decided to establish seven government sericulture centres at Dheem

Kataru, Dharot, Saroa, Bagachanogi, Murah, Sainj in Mandi district and Manglore in Kullu

district alongwith creation of seven posts of Sericulture Inspector and seven posts of Mali/Beldar to

man these centres.

112 RURAL ROAD PROJECTS FOR HIMACHAL Union ministry of Rural development has cleared the project proposals of 112 rural roads and one

bridge amounting to Rs. 964.25 crores for upgradation and improvement of 1250 kilometres length in

Himachal Pradesh.

➢ Out of these, 109 roads are covered under green and climatic resistance technology, 17 roads

would be upgraded as intermediate lane standard, six roads will be upgraded in quality of

single lane standard and 89 roads have been proposed for improvement up to single lane standard.

➢ Six roads in Bilaspur, Kullu and Chamba districts, nine in Solan, Una and Hamirpur, 24 in

Kangra, three in Kinnaur, two in Lahaul-Spiti, 20 in Mandi, 11 in Shimla and seven in

Sirmaur district have been considered for upgradation.

IMPROVING AIR CONNECTIVITY ➢ Himachal Pradesh government has stepped up efforts to improve air connectivity in the state for

which 3,490-bigha (698 acre) land has been identified in Mandi to set up international-level

airport. Acquisition of additional land will be completed soon for the expansion of Kangra

airport to ensure the landing of widebodied aircrafts.

➢ Obstacle limitation surface (OLS) survey for the proposed site for international airport has

been completed and Union ministry of civil aviation has given in-principle approval for its

construction. State government will have to bear the cost of land acquisition.

➢ Efforts are also on to expand the Kangra airport to ensure the landing of wide-bodied aircrafts.

The process to acquire the required land for the expansion of airport will be completed soon.

➢ To boost tourism, it is important to improve air connectivity. Towards this end, regular helicopter

services are being organised between Chandigarh-Shimla, Shimla-Kullu and Shimla-

Dharamshala under UDAAN-2 scheme. More destinations will be added for helicopter service

under UDAAN-3 scheme.


VICTORIA BRIDGE Built in 1877, Victoria Bridge of Mandi town in Himachal Pradesh retired at an age of 142 years, as

people of the town and the administration together gave it an emotional farewell.

➢ To historians, the Victoria bridge on Beas was built by Raja Vijay Sen at a cost of Rs 1

lakh in 1877 to connect Old Mandi with New Mandi town. The design of the bridge was

exactly like Victoria Bridge in Bath, England, built across Avon river in 1836. This 76m

bridge was built by engineers from London and Kolkata.

➢ Initially, the bridge was used by all vehicles, but as its condition deteriorated, it was closed

for heavy vehicles. The bridge, which withstood many floods in Beas, was rendered

abandoned on December 8 with the inauguthe traffic increased in the recent decades.

➢ The historical Victoria Bridge would be developed from the tourism point of view.

SMART TERMINAL FOR PETRO PRODUCTS Himachal Pradesh’s entire requirement of petroleum products would be met in the state itself, as Indian

Oil Corporation will commission a smart POL (petroleum, oils, and lubricants) terminal at Una

district having storage capacity of 85,800 kilolitres.

➢ Currently, the state’s requirement is catered to by Ambala and Jalandhar depots.

➢ Currently, the trial run is being conducted and once operational, the new terminal will prove to be

a milestone.

➢ The terminal, located nearly 200 km from Shimla, would be strategic storage point for defence to

meet annual winter fuel stocking in Leh and Ladakh and en route Pathankot to Srinagar besides

for defence posts at Karu, Nima, Upshi and Kyari via Rohtang Pass.

➢ Under advance winter stocking, approximately 50,000 kilolitres of petroleum products would be

supplied to the Ladakh region when road links open through Rohtang and Zoji La passes.

➢ In the upcoming terminal, Tank-Truck (TT) filling operation will be fully automated from its

entry to exit from the terminal.

➢ A centralised automated system takes care of all the core operations, thus enabling manpower

to focus only on the critical maintenance and safety-related support and engaging qualitatively

with customers.

➢ The deployment of technology makes these operations more efficient at reduced costs along with

intelligent data reporting.

➢ The company has successfully leveraged automation and technology in some of the existing

terminals such as Ambala, Bathinda and Jalandhar. With the adoption of latest technology, the

company aims to make all its POL storage locations operate automatically, providing comfort and

convenience to all its channel partners.

➢ The setting up of terminal will not only reduce the transient time but also the transportation cost

for the fuel pump owners. There are around 238 retail outlets in the state managed by Indian Oil

Corporation out of total 450 fuel stations.


➢ An overall sales volume of 45,000 kilolitres per annum is expected from the terminal. The total

estimated investment will be Rs 507 crore. Currently, the state has two small terminals at

Parwanoo and Kullu. Once the Una terminal is operational, the other two terminals will be

closed.

➢ During 2018-19, IndianOil had invested heavily in plants and machinery with approximately Rs

505 crore worth of investments in the depots and terminal and LPG for procuring machinery and

augmenting plant infrastructure.

VSAT FACILITY FOR LAHAUL & SPITI ➢ Remote tribal Lahaul-Spiti district got high-speed Internet service with the Department of

Information and Technology, Himachal Pradesh, setting up a satellite communications system

at Kolang panchayat to provide year-round connectivity.

➢ VSAT (very small aperture terminal) facility has been set up under Government of India’s

BharatNet project.

➢ So far, residents of the district had been devoid of quality mobile service and high-speed

connectivity. While BSNL’s broadband facility was available at Keylong, the district

headquarters, most of the Lahaul valley had no Internet. Services often remained suspended in

winter due to damage to BSNL’s optical-fiber cable (OFC).

➢ Connectivity has been provided using satellite-based VSAT link. Kolang is the first panchayat in

the district to be connected. It will allow residents to stay connected throughout the year. Because

of geographic challenges, tough terrain and extreme weather conditions, all panchayats of

Lahaul-Spiti, Kinnaur, Pangi and Bharmour would be connected via VSAT.

➢ In all, 153 gram panchayats would be covered, half within this year. Almost 1 lakh people

residing in remote areas would benefit.

HYDROPOWER:

STATE GOVERNMENT DECISIONS IN HYDROPOWER

SECTOR ➢ The state government has revised the norms for fixing the outlay of catchment area treatment

plan in respect of hydro electric projects in the state from existing 2.5% to 1.5% of the total

project cost of all the hydro electric projects having capacity above 10 MW.

➢ The state government has approved the medium-term sale of HP’s share of free power

entitlement of 65.8 MW in Chamera-I Hydro Electric Project to Noida Power Company

Limited through Arunachal Pradesh Power Corporation Private Limited for a period of 13

months @ Rs 4.02 per kWh. It also approved a trading margin of Rs 0.04 per kWh to

Arunachal Pradesh Power Corporation Private Limited for the period of agreement.

➢ The Himachal Pradesh government has approved signing of an MoU to sell water from the

Yamuna.The state government would earn Rs 21 crore per annum from this decision.


KOL DAM WATER SCHEME ➢ The Shimla Jal Prabandhan Nigam Limited (SJPNL) has set 2022 as the new deadline for

completion of the Rs315-crore Kol Dam lift drinking water scheme that will provide 24X7 supply

to residents of the capital city.

➢ The Kol Dam project aims at proving 67 MLD water daily to residents, taking care of the water

needs of the city up to 2050.

➢ At present, Shimla on an average gets supply of over 40 MLD and an additional 67 MLD water

daily from Kol Dam will make it 107 MLD, which will provide 24X7 water supply to local

residents.

➢ SJPNL, a government-run company that oversees water and the sewerage system of the Shimla

Municipal Corporation (SMC).

➢ The Kol Dam water scheme was conceived in 2016 and it took the SMC and the state

government three years to speed up the work.

➢ The best bidder would be given three years and six months to complete the work. The contractor

will maintain the project for 10 years. If all goes well, the project will be completed by 2022.

➢ The estimated cost of the project is Rs315 crore. It is being funded by the World Bank. The state

has already received Rs280 crore from the World Bank.

➢ The SJPNL would construct the main water treatment unit at Shakrori — located between Sunni

town and Chaba on the Sutlej. After the water is lifted for treatment, the main water pipeline

would pass through Devidhar and Dumin to the main Sanjauli storage tank.

RENUKAJI DAM PROJECT The technical advisory committee (TAC) of the Union ministry of water resources, river development

and Ganga rejuvenation has given its approval to the Rs 6,946.99 crore proposal for Renukaji dam

project.

➢ The TAC approval will pave the way for investment clearance by the Union Ministry of Jal

Shakti. The proposal will finally be submitted for approval before the Cabinet Committee on

Economic Affairs (CCEA).

➢ Once okayed, the Centre will release funds (Rs 577.62 crore) to the state Compensatory

Afforestation Fund Management and Planning Authority (CAMPA) and subsequently stage-

II forest clearance.

➢ Renukaji project envisages construction of 148-m high rock fill dam on Giri river at

Dadahu in Sirmaur district and a powerhouse.

➢ The project will ensure 49,800 ha meter of live water storage in its reservoir and a firm water

supply to the tune of 23 cumecs to Delhi.

➢ An agreement for Renuka Ji dam project was signed in Delhi among six states — Uttar

Pradesh, Haryana, Himachal Pradesh, Delhi, Rajasthan and Uttarakhand — in January,

2019.

➢ The total cost of the project was revised to Rs 6,946.99 crore which was Rs 4,596.76 crore in

March 2015.

➢ The project will generate 40 MW power during the peak flow.


➢ It will be executed by HPPCL.The total submergence area of the project is about 1,508

hectares.

➢ Investigation works of the project began in 1976, but its construction could not begin due to

various reasons.

➢ The 90% cost of irrigation and drinking water component will be provided by the Union

government and the rest by beneficiary states.

HYDROPOWER PROJECTS OF 520 MW IN HIMACHAL

PRADESH

State-owned power giant NTPC has signed a pact with the Himachal Pradesh government to set up two

hydropower projects totalling 520 megawatts (MW) in the state.

➢ The memorandum of understanding was signed by Himachal Pradesh Principal Secretary

(Energy) and NTPC Director (Commercial) in the presence of Chief Minister.

➢ Seli and Miyar hydroelectric projects are located in Chenab Basin at the state's Lahaul and

Spiti district.

➢ While Seli plant (400 MW) is a run-of-the-river project with pondage scheme, Miyar plant (120

MW) is a run-of-the-river project without pondage scheme, on Miyar tributary of Chenab River.

➢ NTPC already has its first hydropower project, Koldam Hydro Power Station, in Himachal

Pradesh with an installed capacity of 800 MW. The power station has been commercially

operational since July 2015 and provides 28 per cent power to the state.

HORTICULTURE:

HPMC FRUIT WINE SALE RISES 4 TIMES The government-run Horticultural Produce, Marketing and Processing Corporation (HPMC) has

produced all-time high apple juice concentrate of 1,246 MT and has netted four-time increase in its sale

of seven varieties of fruit wine this year.

➢ The wines and juices are becoming a hit among locals as well as tourists. Considering its

popularity, the HPMC has set a target to increase the production of its seven varieties of wine

from 15,000 litre to 40,000 litre this time.

It has been a good year for the corporation as it procured record 33,000 metric tonne of apple

under the Market Intervention Scheme (MIS).

➢ As far as payment of MIS fruit procured from farmers is concerned, the HPMC is procuring

different products, including tree spray oils, neem-based products, pruning tools and implements,

spray machines possibly solar-run to give to the farmers.

http://www.moneycontrol.com/india/stockpricequote/power-generation-distribution/ntpc/NTP


➢ The HPMC is enhancing the brand equity of its products, including juices, jams and pickles and

fruit wines by strengthening the market mechanism. The HPMC kiosks at key locations in and

outside the state to check fake products.

COMMERCIAL USE OF MEDICINAL HERBS Known for the production of quality potatoes, peas, hops, sea buckthorn and apples, Lahaul-Spiti is

now looking forward to cultivating medicinal herbs commercially as the state government has decided to

explore the possibilities of growing medicinal plants and herbs in the farm lands of the tribal district.

➢ A team of experts from Medicinal Plants Board will tour the district for 10 days to explore the

possibilities. A link between farmers and market would be established for good returns.

➢ At present, around 60 types of medicinal plants are found in Lahaul-Spiti district out of which

43 varieties had been in use for the past several years. In want of proper marketing facility, they

are not going for commercial cultivation of herbs.

➢ A team of officials from National Medicinal Plants Board’s regional office cum-facilitation

centre at Jogindernagar in Mandi district would visit the tribal district regarding cultivation of

sea buckthorn, locally known as ‘chharma’, and its purchase. The team would also explore the

possibility of cultivating other medicinal plants in the district.

➢ The team would start its tour of Lahaul-Spiti from Tabo to make farmers aware about the

medicinal plants and educate them about difference schemes of Government of India, which

promote such farming.

➢ Farmers will be encouraged for the cultivation of medicinal plants in their fields. National

Medicinal Plants Board would also play a key role in facilitating MoUs with companies if

farmers of Lahaul-Spiti district decide to cultivate medicinal plants and herbs.

➢ 10 companies participated in ‘Keylong Conclave-2019’, which was held on August 12, and try

to motivate farmers to cultivate medicinal plants and sign MoUs that would provide the educated

youth an employment opportunity with the cultivation of medicinal plants.

TOURISM:

NEW TOURISM POLICY, 2019 To give a new direction to tourism in the hill State, the Himachal Cabinet has approved Himachal

Pradesh Tourism Policy, 2019 aimed at holistic development of tourism.

FOCUS AREAS:

In this policy, special focus would be on ecotourism, agro organic tourism, snow tourism, lake

tourism, adventure tourism, pilgrimage tourism, cultural and heritage tourism, health and wellness


tourism, film tourism and MICE tourism (Meeting Travel, Incentive Travel, Conference Travel

and Exhibition Travel).

The main objectives of this policy are:

❖ To promote tourism diversification through theme based development.

❖ To safeguard state’s tourism destinations through sustainable interventions.

❖ To ensure that sustainable tourism primarily benefits host communities.

❖ To build capacity and develop quality human resource for the tourism industry.

❖ To provide safe, secure and unique ‘tourism for all’ and to create enabling environment for

investments for sustainable tourism.

AYUSH TOURISM ➢ Ayush policy aims at making state biggest producer of medicinal herbs.

➢ The Himachal Government will promote Ayush tourism in a big way by setting up Ayush

resorts, spas and hospitals so that naturopathy and ancient healing techniques can be

popularized among people.

➢ The government has notified its Ayush Policy, 2019 while deciding to re-name the Ayurveda

department as Ayush department. Efforts will be made to set up herbal gardens to make HP

biggest producer of medicinal herbs, much in demand world over. This, in turn, will provide

people with an additional source of income.

➢ Though the Ayurveda Department has been rendering its services since decades it has failed to

emerge as a popular choice. As per the Ayush policy, kayakalp institutes will be set up at all

popular tourist destinations. These kayakalp Institutes will provide rejuvenation from aroma

therapy, spa, panchkarma, relaxation and meditation and skin pampering treatments and

clinics.

➢ These institutes will also provide full Panchkarma services along with the prescribed diet to be

followed with regular yoga and meditation sessions to bring about the holistic well-being of the

individuals. These rejuvenation centres can become a major attraction to local and international

tourists by focusing on experiential and spiritual health.

➢ As per the policy, incentives will be given for setting up of health resorts, ayush medicity,

hospitals, multi-specialty hospitals, yoga and meditation centres, convalescence centres and

Ayush pharmaceuticals and pharmacies.

➢ The state already has 1,178 ayurvedic health centres, 34 ayurvedic hospitals, 14 homoeopathic

health centres 14 and three Unani health centres.

➢ The state also has a post graduate college of ayurveda at Paprola near Baijnath in Kangra,

besides three ayurvedic pharmacies and four herbal gardens.

➢ The policy is aimed at making Himachal a major herbal state in the country by 2025 with

recognition of the medicinal and aromatic plant resources of the state. Cultivation of herbs and

medicinal plants will help supplement income of rural population. At the same time enabling

legislations and institutional mechanism will be put in place to develop this sector and conserve

germplasm of medicinal plants diversity of the state in its natural habitat.

Rejuvenation from aroma therapy, spa

• As per the Ayush policy, kayakalp institutes will be set up at all popular tourist destinations.


• These kayakalp institutes will provide rejuvenation from aroma therapy, spa, panchkarma,

relaxation and meditation and skin-pampering treatments and clinics.

• As per the policy, incentives will be given for setting up of health resorts, ayush medicity,

hospitals, multi-specialty hospitals, yoga and meditation centres, convalescence centres and

Ayush pharmaceuticals and pharmacies.

ECO TOURISM ➢ State Government has identified 113 sites to be developed to make the state an eco-tourism

destination, besides developing nature parks and herbal gardens.

➢ Out of these sites, 5 sites have been given on PPP mode, 16 to the State Forest Department and

47 to HP the State Forest Corporation for starting eco-tourism activities at these sites.

➢ 25 new destinations would be developed by constructing log huts for stay of tourists in the lap of

nature.

➢ Three eco-tourism hubs would be developed during the current financial year. 10 places would

be developed from adventure tourism point of view with the close coordination of Eco Tourism

Society, Tourism Department and Mountaineering Institute, Manali.

➢ 31 eco-tourism circuits have been prepared and would be sent for approval to the Centre.

➢ Eco-tourism activities not only associate people with the nature but it can also prove a major

employment and self-employment generator for the youth of the state. Nature parks and herbal

gardens were being developed in the state.

➢ 50 Forest Rest Houses have been used to start eco-tourism activities in the state. Efforts would

be made to link eco-tourism with the rural life, culture and traditions.

➢ This would not only give boost to the unexplored and virgin tourist destinations of the state, but

also help in increasing economic activities in the rural areas of Himachal.

➢ Himachal Pradesh has immense potential to emerge as the best tourist destination of the world.

IGLOO TOURISM ➢ Igloo tourism is getting popular in Kullu district. For tourists staying inside a snow house is a

new and unique experience adding to fun and joy.

➢ The concept of igloo tourism (stay inside a snow house) was conceived by local youths in 2017.

➢ Inside an igloo, there is arrangement for bedding, where tourists can stay at night. To maintain

warmth inside, the tourists are provided hot water bottles and warm bedding system. Use of

electric heaters or a bonfire inside the igloo for warming is prohibited. However, to decorate the

igloo at nights with lights, power supply through power generator is provided.

➢ This year they made five igloos in the vicinity of Hamta Pass in Sainthen village.

WATER BASED TOURISM To encourage waterbased tourism, the Himachal Pradesh government has decided to start sports and

recreational fisheries in Kol dam reservoir in Bilaspur district.

➢ The state fisheries department would stock seeds of fish like mahseer to attract anglers from

India and abroad to promote high-end tourism in Kol dam.


➢ At present, common carp, silver carp, mahseer and grass carp fish species are being reared in

the man-made water body.

➢ The department has proposed to start sports fisheries in 1,302 hectares ponds falling in four

districts namely Bilaspur, Solan, Mandi and Shimla by setting up angling huts in Kol

dam.

➢ The department is conducting a preliminary survey regarding availability of land and water in

close proximity of reservoirs, so that carp hatcheries and rearing ponds can be established

near these reservoirs.

SPORT-FISH FARMING IN KOL DAM RESERVOIR ➢ To boost fish farming and encourage water-based tourism in Himachal Pradesh, the State

Government has decided to take up sports and recreational fish breeding and stocking in Kol Dam

reservoir in Bilaspur district.

➢ The State Fisheries Department would stock seeds of sport-fishes like the Mahseer to attract

anglers from India and abroad to promote high-end tourism in the reservoir.

➢ At present, the common carp, the silver carp, and the grass carp fish species are being reared in

the man-made water body.

➢ The Department proposes to start sports fisheries in 1,302 hectares pondage falling in four

districts — Bilaspur, Solan, Mandi and Shimla — by setting up angling huts in Kol Dam

reservoir.

➢ In 2018-19, the Kol Dam reservoir recorded highest 5.595 metric tonnes fish production, while in

2017-18, 3.105 metric tonnes fish production was recorded.

➢ The State Government has fixed a target of nine metric tonnes for 2019-20, and, so far, has

registered record fish production of 7.045 metric tonnes. In 2018-19, the maximum price of fish

per kg was recorded at Rs 101 in Kol dam.

➢ In order to address the problem of displacement for families who lost their lands in construction

of Kol Dam, the State has created livelihood opportunities for displaced families through

commercial fish production and has set up five cooperative societies for the commercial

production of fisheries potential.

➢ Dam oustees and erstwhile fishermen of the river and other poor families of the riparian area are

enrolled as primary members of the fish co-operative societies.

➢ At present, over 350 fishermen have been engaged in production of fish from Kol Dam to derive

their livelihood.

➢ Fish fauna of Satluj river is dominated by Schizothoracids, Mahseer, Minor carps, Cat fish

and Trout in upper reaches. Silver carp fish of Gobind Sagar has also migrated upstream for

feeding and breeding purposes where water temperature regime is almost on the same pattern as it

is in its native place.

➢ The Fisheries Department has created three fish landing centers in the reservoir at Kol in

Bilaspur district, Beral in Solan district and at Sunni in Shimla district.


➢ The three fish landing center buildings constructed are well-equipped with hi-tech facilities and

hygienic conditions, so that quality of fish caught is maintained and fishermen get a good price of

fish caught by them.

➢ The fish caught by members of fish co-operative societies, is weighed daily and handed over to

fish contractors, for its further marketing in these centers.

➢ The Department proposes to shift fishing close season from present June 1 – July 31 to June 16 -

August 15 every year shortly for better auto breeding of fish in the reservoir.

➢ The Department has done 3.876 lakh fish seed stocking up to November 2019, while in the year

2018-19, 3.747 lakh fish seed stocking was done from departmental farms as well as purchase

from outside the state through tender process.

➢ The Fisheries Department is conducting a preliminary survey regarding the availability of land

and water in close proximity of reservoirs, so that carp hatcheries and rearing ponds can be

established near these reservoirs for raising advanced fingerlings for stocking in the reservoir.

➢ As many as 24 fish cages for culture of coldwater trout fish is being installed in Kol Dam by the

Department for increasing fish production, while 28 fish cages were installed in Gobind Sagar

reservoir, which are being used for production of advanced fingerlings for stocking in the

reservoirs.

INDIA’S HIGHEST SKY CYCLING TRACK ➢ India’s highest sky cycling track has come up at the Nature Park in Gulaba, Kullu district.

➢ To promote eco-tourism in the district, the Forest Department is focusing on constructing such

parks at key locations, where tourists can sit and relax while enjoying the nature’s beauty.

➢ With the sky cycling track in place, tourists will be able to enjoy this adventurous sport from

October.

➢ It is a 350-m track with a 450-m zip line.

➢ Eight local youths have been trained by the institute to guide tourists interested in sky cycling.

HIGHEST ICE-SKATING RINK IN KAZA

➢ The highest ice-skating artificial rink at an altitude of 3,720 metre has been set up in the remote

Kaza town in Spiti by the government.

➢ State Agriculture Minister inaugurated the rink spreads over 50 metre by 35 metre on December

20.

➢ The aim of setting up the rink is to promote ice-skating and hockey among the youth. It meets

the international ice hockey standards.

➢ A training session for ice hockey was organised from December 20 to 30 in which 45 school

students participated.

➢ Caretakers sprinkle water on the ground of the open-air rink which freezes under natural

conditions in the night.


Himachal Pradesh also boasts of Asia’s oldest skating surface rink in Shimla where water on the

clay ground of the rink freezes under natural conditions in the night.

WORLD’S HIGHEST BUNGEE JUMPING IN MANALI World’s highest bungee jumping site, at an altitude of about 10,500ft, will come up at steep but

beautiful gorge near Marhi in Manali soon.

➢ This is part of the government’s effort to give its adventure activities superlative tags —

longest, tallest or located at the highest altitude in the world — in order to attract more

tourists.

➢ Recently, a 350m-long sky-cycling track was opened at Gulaba, which is the highest such

track of the world at an altitude of 9,300ft.

➢ As the site for bungee jumping has been finalized, the work on the project will start in the

near future. Manali-based Atal Bihari Vajpayee Institute of Mountaineering and Allied

Sports (ABVIMAS) will supervise the construction work.

➢ The jumping platform will be 182m (596ft) high from the ground, which is highest in Asia.

No country in the world has bungee jumping site at this altitude.

➢ Four 32mm metal cables will be fitted across the gorge and a motorized cage will take the

jumper to the jumping site. The project is based on a latest technique that only New Zealand

and the USA use till now.

➢ The purpose of setting up longest or highest adventure activities in the world is to make them

extreme and adventurous.

➢ This will be the first and the only bungee jumping site of Himachal and the second one

in North India.

WORLD RECORD : TATTAPANI TOURISM FESTIVAL ➢ A record-breaking 1,995kg of Khichdi -- made of pulses and rice-- was prepared at Tattapani in

Mandi district of Himachal Pradesh on Makar Sankranti.

➢ A team of 25 chefs from the Himachal Pradesh Tourism Department prepared the 1,995kg

khichdi in 5 hours, using 405kg rice, 190kg pulses, 90kg ghee, 55kg spices and 1,100 litres of

water.

➢ The utensil used to prepare the Khichdi was brought from Jagadhari in Haryana, and stood 5.5-ft-

tall and had a diameter of 7 ft.

➢ A modern cafeteria and e-toilets’ facility would be provided at Tattapani by spending Rs 3.50

crore as well as developing the place as a major centre of water sports.

The earlier record under this title was 918.8 kg.

➢ On the occasion of Tattapani Tourism Festival in Karsog area of Mandi district on Makar

Sakranti.


➢ The Department has broken a record set earlier with a huge margin of about 1000 kg.

➢ To construction of Koldam, the area has emerged as a major water sports destination of the State.

➢ Tattapani and Manikaran are known for hot water springs with high sulphur concentration.

➢ The natural and prominent hot springs, which disappeared after the construction of the 800 MW

Koldam hydroelectric power project executed by the National Thermal Power Corporation

(NTPC) along the Satluj in Tattapani, have been restored.Its reservoir had submerged the hot

springs.

NATIONAL PARAGLIDING INSTITUTE Decks have been cleared for national institute of paragliding at Bir-Billing in Baijnath area of

Kangra district.

➢ The Centre has approved Rs 9 crore for setting up a national paragliding school at Bir-Billing.

➢ It would start a new chapter in the adventure sport of paragliding in the state.

➢ The institute will have international standard training facilities for domestic and foreign pilots.

➢ The idea to set up the school was envisaged by the previous government in 2015 during Bir

Billing Paragliding World Cup. It was also first such event to be held in India.

SHIV DHAM A Shiv Dham would be developed in Mandi town under the ADB project which would make Mandi a

tourist destination.

➢ The proposed Shiv Dham would be developed at Kangnidhar near Mandi.

➢ Himachal has immense potential for tourism development, but it was being felt that the existing

tourist destinations of the state are becoming overcrowded.

➢ The State Government has decided to develop lesser known tourist destination from tourism point

of view.

➢ A world class heliport is coming up at Kangnidhar and the efforts would also be made to

construct an artificial lake along Beas in the town after consultation with the experts.

➢ A big multi-storey parking would be developed in Mandi town to facilitate the tourists and locals.

➢ Efforts would also be made to decongest the Mandi town.

➢ A modern auditorium would also be constructed in the Mandi town to facilitate the people of the

area.

BIRD FEST AT PONG LAKE The wildlife department organised a bird festival at the pong dam lake on February 1 and 2.

➢ During the two-day festival, bird lovers from across the country were invited.


➢ Various competitions were held, including bird race and ringing of birds. In the bird race, the

birders would be given the challenge to count and registered various varieties of migratory birds

in the lake. Whosoever registers the maximum numbers and varieties of migratory birds would be

given token awards. Experts also rang the migratory birds coming to lake to study their

behaviour patterns. Various departments, including the forest and wildlife, would organised

exhibitions.

➢ The lake, a wildlife sanctuary and international wetland site, receives a maximum number of

migratory birds in winter months. In population estimation exercise carried out by the wildlife

department this year, about 1 lakh birds were estimated to have visited the lake.

SPECIAL TRAINING FOR KULLU PARAGLIDER PILOTS ➢ Following frequent deaths of tourists in paragliding accidents in Kullu, the district

administration made it mandatory for commercial pilots wanting to run paragliding ventures in

the district to undergo special training. Pilots who do not have the training certificate would be

barred from flying.

➢ It was decided to frame strict rules to prevent accidents at the seven paragliding sites of

Kullu.

➢ Manali-based Atal Bihari Vajpayee Institute of Mountaineering and Allied Sports

(ABVIMAS) will organize the programme for pilots and issue them a certificate on

successful completion of the course. Those who do not have this certificate will not be

allowed to fly.

➢ Over 300 pilots conduct tandem flights under 24 paragliding companies registered with the

district. A small mistake may result in loss of a precious lives and harm tourism.

➢ All the paragliding sites would be developed systematically on the lines of Solang Valley

paragliding association. The paragliding technical committee has been directed to visit all the

paragliding sites of Kullu-Manali to review the safety standards.

GAINFUL EMPLOYMENT IN TOURISM SECTOR

Efforts are being made to make tourism sector employment-oriented for local residents and under which

2000 homestays and 3600 hotels have been registered in the state. In 2017, 476 new homestay units were

registered. Recently, 500 homestay owners from Solan, Shimla, Mandi, Manali, Dharamshala and

Kinnaur were provided training at the Institute of Hotel Management.

To provide employment to the unemployed youth, State Government has provided training to 939 people

in various tourism industries such as tourist guide, taxi driver, porter, dhaba owners, food and beverage

services, trekking guide, basic course of tourism, skiing course by HIMCON, Atal Bihari Vajpayee

Mountaineering Institute Manali, Nature and Life Association, Mountaineering center Bharmaur and

HPTDC.

Nai Rahein Nai Manzilein:

A provision of Rs. 50 crore has been made Under Nai Rahein Nai Manzilein scheme, develop the virgin

lands of the State. In the first phase of the scheme, development of Janjheli of District Mandi,


Chanshal of District Shimla, Bir-Biling of District Kangra, water sport activities in Largi and Pong

area will be done.

➢ To strengthen the tourism sector, Asian Development Bank has approved project worth Rs.

656.00 crore. The project will be completed in two phases/ tranches. In Tranche-I 19 sub projects

were created and have been completed.

Ropeway as an alternate transport:

State Government is constructing ropeways as an alternate transport arrangement for facilitating tourists.

The upcoming ropeway projects are Dharamshala- Mcleodganj ropeway which would be completed by

2020, where as the other ropeway projects are Shri Anandpur- Shri Naina Devi ji ropeway in District

Bilaspur, Aadi- Himani Chamunda ropeway in District Kangra, Palchan- Rohtang ropeway and Bijli

Mahadev ropeway in District Kullu, Maa Shikari Devi ropeway in District Mandi, Shahtalai- Dayotisidh

in District Bilaspur-Hamirpur and Narkanda- Hatu ropeway in District Shimla.

Strengthening air connectivity

State Government is laying special impetus to establish airports of international standards to facilitate

high-end tourists in the state. A proposal to construct international level airport at Nagchala in District

Mandi is in pipeline and land has been identified for it. The State Government has taken approval from

Union Government as per Greenfield Airport policy for setting up airport. Flight services are being

provided in Gaggal Airport in district Kangra, Bhuntar Airport in district Kullu and Jubbarhati

Airport in district Shimla and efforts are being made to expand the airstrips of these airports.

Under Centre Government's Regional Air Connectivity Scheme- UDAN II, since February 2019,

helicopter service is being provided from Jubbarhatti airport for Chandigarh-Shimla-Chandigarh and

since May 2019, helicopter service is being provided for Chandigarh-Shimla-Kullu and Chandigarh-

Shimla-Dharamshala through Pawan Hans Limited.

➢ A new tourism development project financed by the Asian Development Bank amounting to Rs

1,892 crore has been approved. In the first phase under the ‘Nai Rahein Nai Manzilien’ scheme,

Janjehli is being developed for tourism, Chanshal Valley for skiing, Beed-Billing for paragliding

and Larji and Pong Dam for water sports.

➢ A traditional arts and crafts center has been set up at Bargran near Manali, the tourist cultural

center at Janjehli in Mandi district and the process of establishing Shivdham is in progress in

Mandi.

AGRICULTURE:

➢ The Cabinet gave its consent to include 428 gram panchayats of 10 districts under the Integrated

Development Projects for Source Sustainability and Climate Resilient Rain-fed Agriculture-

IDP, a project sanctioned by the Department of Economic Affairs for strengthening and


sustainable development of natural resources available in forest touching agriculture land of the

panchayats.

CONTRACT FARMING FOR COLD DESERT Cold desert of Himachal Pradesh’s Lahaul Valley that were once known for producing a bitter taste hops

are going to experiment with exotic variety of barley that will be used for making malt whisky.

➢ For this, the State Government has signed a memorandum of understanding with the Polish

spirits producer Neilson Europe to initially involve nearly 200 farmers of Lahaul-Spiti,

Kinnaur and Chamba districts to go for contract farming of a high-yield barley variety

imported from Scotland.

➢ Once known for producing a bitter taste hops, the contract farming of barley in the remote Lahaul

Valley, which has a cultivation season for less than five months from May owing to heavy

snowfall and extreme cold climatic conditions, will usher economic prosperity.

➢ The State has signed a pact with the Polish spirits producer that proposed to invest Rs 110 crore

to produce the organic Himalayan single malt whisky.

➢ According to the producer of the award winning spirit ZOUK Vodka, world’s only single estate

rye vodka, the geographic and climatic conditions of Himachal Pradesh is on a par with the

Scotland’s and many other European regions which will lead to deriving a unique and special

terroir.

➢ Surveys by the agriculture department show that the area under cash crop potato cultivation in the

Lahaul Valley has already declined in 10 years from 2,000 hectares to about 700 hectares.

➢ Potato cultivation started in 1854 when missionary A. W. Hide from Germany established a

farm near Keylong in the Lahaul Valley.

➢ Likewise, there has been a near decline in the cultivation of hops, a key ingredient in brewing

beer, as a major cash crop in the valley owing to dumping of cheaper varieties from China, the

US and Germany.

➢ Currently, the area under vegetable cultivation in the valley is around 2,200 hectares.

➢ Currently, farmers are cultivating cauliflower, cabbage and peas.

➢ According to the Agriculture Department, the yield of cauliflower in the Lahaul Valley is as high

as 400 quintal per hectare compared to 200 to 250 quintal elsewhere in the State.

➢ The company would pay Rs 50,000 to each barley grower for its produce on one acre. The

amount is 25 per cent higher than the prevailing market rate.

➢ The company would also set up a distillery-cum-bottling plant in the State.

➢ The main ingredient for manufacturing whisky, as barley, grown in the snow line area, is disease-

free and of high quality.

➢ The plant is likely to be set up in the industrial area of Una, Kala Amb or Nalagarh. Barley

produced in the cold deserts will be brought to the site for manufacturing export-quality whisky.

➢ It will be a boon for local farmers as the investors will provide them high-breed seeds and the

barley be purchased by the company. About 100 quintals of barley seeds will be provided to

farmers for cultivation and the lease money, which is normally Rs 40,000 per bigha, will be paid

at the 25 to 30 per cent excess rate.


➢ The unit will be set up with an estimated cost of about Rs 200 crore. The monthly requirement of

barley is about 20 tonnes.

Ready to pay 30% more for land

▪ The factory is likely to be set up in the industrialarea in Una, Kala Amb or Nalagarh.

▪ The firm will provide Lahaul farmers high-breedseeds of barley.

▪ The lease money, which is normally Rs 40,000 perbigha, will be paid at 25 to 30 per cent excess

rate.

▪ The unit will be set up with an estimated cost of around Rs 200 crore.

▪ The monthly requirement of barley is about 20 tonne.

TROUT FARMING UNITS ➢ The government has proposed to construct 100 additional trout farming units besides fish

ponds in 10 hectare for production of carp fish in the state this year to increase the production

of trout to 1000 metric tonne by 2022.

➢ This will provide additional employment to about 550 persons.

➢ The government has also proposed to establish two trout hatcheries in collaboration with the

private sector to fulfill the demands of fishermen in the state.

➢ The state government has also proposed to set up a smoked trout and fillet canning centre in

Kullu district in partnership with private sector.

➢ Three retail outlets, one each in Kangra, Chamba and Shimla district, will also be established

in the private sector to ensure appropriate marketing support.

CENTER OF EXCELLENCE FOR DIARY FARMING A Center of Excellence will be established for dairy farms and training at a cost of Rs 44.12 crore in

Himachal.

➢ The dairy farms to be built under this center will have the facility of keeping 400 milch animals

along with modern machines for these farms, adding that creation of the farms will add to the

income of farmers and also help in improving the quality of livestock and milk. He said that

with the help of modern technology, conception techniques in animals will be improved. It will

also help in preventing diseases among animals.

➢ Apart from breed improvement, farmers will also be provided training in modern dairy

farming so that farmers will be able to take care and manage animals on scientific basis.

Training will also be imparted to veterinary officers and other employees to be deployed in these

farms, so that they will be able to help farmers in animal husbandry. These center of excellence

will provide new heights in field of animal husbandry in the state.

HIMACHAL STATE PERFORMANCE IN AGRI PRODUCTION Himachal Pradesh received the award for excellent performance in total food grain production.

➢ PM presented the commendation award to Himachal Pradesh under Krishi Karman Award

2016-17 of the central government for excellent performance in Total Food Grain Production

Category-2.

➢ Total food grain production in the state increased to 1,562.73 lakh MT in 2016-17.


➢ The department has done commendable job in polyhouse farming, crop diversification, micro

irrigation, natural farming, irrigation, mechanisation and soil health management.

HIMACHAL STATE: AS NATURAL FARMING HUB

Himachal is soon set to emerge as natural farming hub and as a role model for other states of the country.

➢ The Governor has inaugurated the six-day long training camp on Subhash Palekar Natural

Farming Model under Prakritik Kheti, Khushhal Kisan Yojana organised by State

Agriculture Department at CSK Agriculture University, Palampur.

➢ The concept of natural farming was introduced around three years back in the state. The State

Government has been working in mission mode to give boost to natural farming in the better

interest of the farmers.

➢ The farmers have adopted natural farming in a big way to enhance crop production and earn

better prices for their produces in the market.

➢ Natural farming is the only way out to double the income and bring prosperity to the farming

community. The State Government is laying special emphasis on promoting natural farmers and a

provision of Rs. 25 crore was made for this sector in the first budget.

➢ Various training camps and seminars had been organised across the state during last 16 months to

facilitate the farmers.

➢ A two-day National Conference on the theme “Organic and Natural Farming - A Tool for

Sustainable Agriculture and Economic Development” was held at CSK HP Agriculture

University.

➢ Himachal would be declared an organic state by 2022. 3,500 farmers had already been

motivated towards this farming.

➢ The government was providing subsidy of 50 per cent for the conservation and propagation of

medicinal plants on the verge of extinction.

PRIME MINISTER AGRICULTURE IRRIGATION SCHEME

(PMAIS)

Himachal Government has proposed projects worth Rs 896.23 crore under Prime Minister Agriculture

Irrigation Scheme for the year 2019-20.

➢ Out of this, Rs 791.95 crore would be given by the Government of India and Rs 87.99 crore

would be spent by the State Government on 90:10 basis.

➢ All the Heads of the departments are instructed to assess the timely impact assessment of all the

projects being implemented in the state so that the beneficiaries from the project could be

identified effectively implement agriculture related activities so that the crop diversification could

be promoted.

➢ The PMAIS is a major scheme for the high growth of agriculture sector in the state.

➢ This scheme endeavors to increase the agricultural area and make the sustainable use of water so

as to reduce the wastage of water.


➢ Various departments such as Agriculture, Irrigation and Public Health Department, Horticulture

Department and Panchayati Raj and Rural Development Department are implementing the

schemes in a planned manner.

HP LEADS IN PRODUCTION OF WILD MARIGOLD

ESSENTIAL OIL In these tough times for agriculture in Northern belt on account of non-remunerative returns and

increasing incidences of crop loss owing to wild animals, Himachal Pradesh is flexing its flower power.

➢ It has become the largest producer of high quality wild marigold essential oil (4 tonnes per

annum) in the country to meet the demand of perfume, flavouring, and condiment

industries.

➢ The CSIR-Institute of Himalayan Bioresource Technology (IHBT), Palampur in the

Himalayan State is doing its bit in this regard by helping and training farmers introduce high

value aromatic crops such as wild marigold, damask rose, lavender, rosemary, lemongrass and

mushkbala under CSIR Aroma mission.

➢ To promote cultivation of these aromatic crops among the farmers, a complete package of agro

and processing technologies has been developed and executed in the farmers’ fields to help them

realize the profits.

➢ In fact, in the last two years, CSIR-IHBT has brought more than 500 hectares area under these

crops. Cultivation of wild marigold has resulted in the production of 7.6 tonnes of essential oil in

Himachal Pradesh alone with revenue generation of Rs. 5.56 crores benefitting 861 farmers.

Different small societies of progressive farmers have been formed in different states by CSIR-

IHBT.

➢ Nineteen processing units have been set up for these societies to empower the farmers for

production of essential oils.

➢ Aromatic crops are widely cultivated around the world due to its high-revenue earning essential

oil which is utilized in agrochemical, food, flavoring, perfumery and pharmaceutical

industry like wound healing and treatment of eczema, diaper rash, psoriasis and for skin

ointment.

➢ Increasing demand of natural personal care products and aromatic cleansing agents is also

favouring the essential oil market.

➢ The global essential oils market demand was 226.9 thousand tons in 2018 and projected to

expand at a CAGR of 8.6% from 2019 to 2025.

➢ To promote cultivation of these aromatic crops among the farmers, a complete package of agro

and processing technologies has been developed and executed in the farmers’ fields to help them

realize the profits.

➢ The state cabinet approved the linking of 10 vegetable mandis with e-Naam (Electronic

National Agriculture Market) so that farmers can get fair prices for their products. Thus, 29

vegetable markets have been connected to this facility so far. This facility will help farmers to sell

their produce online and through transparent auction process they will get better prices and also

ensure online payment in a time bound manner.


➢ Ten more market yards across the state will be linked with the electronic national agriculture

market. This would provide the farmers a common online market platform for sale of their

produce besides providing them better price through transparent auction process alongwith timely

online payment.

INDUSTRY:

HIMACHAL PRADESH INDUSTRIAL INVESTMENT POLICY,

2019

To promote Himachal Pradesh as one of the preferred destinations for investment, the State Cabinet has

approved ‘Himachal Pradesh Industrial Investment Policy, 2019'.

➢ The Cabinet also approved enhanced incentives to Micro, Small and Medium Enterprises

(MSME).

➢ The policy aims at redressal of issues impending industrial growth and ensure simplification of

procedures, key physical and social infrastructure, human resource development, access to credit

and market.

➢ It also aimed at promoting ‘Ease of Doing Business’ by digitization of all processes and to

promote self certification.

➢ The Cabinet gave its approval for enhanced incentives to MSMEs, introduction of new concept of

Anchor Units with higher incentives than larger industries, incentives for Common Industrial

and interest subvention on the term loans to industries for three to five years with maximum limit

of Rs 20 lakh per year.

➢ It also approved increased Floor Area Ratio (FAR) for industrial units of different categories

and capital subsidy for establishment of new private industrial areas/theme parks, concession in

the electricity duty and rebate on electricity tariff to the tune of 15 percent.

➢ In order to promote the traditional handicrafts and handloom sector, the cabinet decided to

provide additional concessions for setting up such units over and above the incentives given to

the industries.

➢ The Cabinet decided to simplify the provisions of Rule 38-A of the H.P. Tenancy and Land

Reforms Rules, 1975 for issuing Essentiality Certificate for setting up of investment projects in

the State approved by the State level Single Window Clearance and Monitoring Authority so as

to attract more investments for the State.

➢ The Cabinet approved the notification of the Chief Minister's Artist Assistance Scheme for

purchasing new equipment up to Rs. 30 thousand to Himachali artisans living below the poverty


line. Under this scheme, a provision of 75 percent grant has been made for artisans to buy

equipment and tools.

➢ Himachal Pradesh Assembly passed the HP Micro, Small and Medium Enterprises (facilitation of

establishment and operation) Act, 2019, which will exempt any person bringing a MSME in the

state from taking approvals from government departments for three years.

➢ It will encourage the establishment of new enterprises, which may significantly contribute to

overall economic growth and development in the state.

➢ Mukhya Mantri Dastkar Sahayta Yojna has been notified for providing 75% grant to

Himachal artisans living below poverty line on purchase of new equipment worth Rs 30,000.

GLOBAL INVESTORS MEET:

The PM has described HP as the next big investment destination during Global Investors Meet

held in November, 2019.

703 MoUs worth Rs96,720.88 cr signed; the ruling dispensation expects 1.96 lakh jobs to be created.

➢ The highest number of Rs 34,112 crores MoUs have been signed in the power sector followed by

Rs 17,063 crore MoUs in industry, Rs 16,559. 94 crore in tourism sector, Rs 12,054 crore in the

housing sector, Rs 6,027 crores in urban development and 2,833 crores in information

technology sector.

➢ Bharti has signed MoU worth Rs 1,000 crore in IT sector for data fibre link and mobile

connectivity. Bharti requested to reduce the charges for laying data fibre as networks are

strengthening data consumption across Himachal Pradesh.

➢ The Vietnam Delegation led by Ambassador of Vietnam in India Pham Sanh Chauof showed

interest in promoting Himachal as tourist destination in Vietnam, collaboration on technology

exchange and Sister City Partnership Agreements. The Ambassador introduced all member

interested in sectors like IT, tourism, pharmaceuticals, electrical, solar and wind energy, TV

equipment, textile, food processing, Buddhist pilgrimage and Media.

➢ The CII will open a skill development centre in Dharamsala.

➢ UAE delegation envisaged keen interest in investment in fruit marketing and fruit and vegetable

processing.

➢ The state government had adopted a pro-active approach to attract investment.


➢ Due to diverse climatic conditions, the state is known as fruit bowl of the country. This offers

immense potential for setting up fruit and food processing units and controlled atmosphere store

chain in the state.

➢ UAE was the partner country in this meet and was committed to making this event a hit.

➢ The entrepreneurs from the UAE also expressed their interest in developing logistics in the state

➢ Russian business delegation apprised the Chief Minister of their interest in the agriculture sector

and culture exchange projects.

➢ Flipkart is looking forward to get thousands of local businesses, MSMEs, local artisans, women

entrepreneurs from the state to the e-commerce marketplace and Flipkart ‘Samarth’ programme

and connect them to the pan-India market with our more than 200 million & growing customer

base.

➢ Adani Agro, Oil and Gas, said his group had invested Rs 250 crore for establishing cold storages

for apple produce in Himachal. The cold storages have a capacity to store 24,000 MT apple and it

benefited 20,000 apple farmers. The group intends to invest another Rs 100 crore for creating

more apple stores and Rs 350 crore for providing natural gas and CNG stations in Shimla

district.

➢ Amazon India, online marketing company had helped small manufacturers export goods worth

Rs 1 billion from the country. Wow Shampoo, a Bangalore-based company, was sourcing about

70 per cent of its ingredients from Himachal. The group also has its manufacturing unit in the

state. The shampoo that is being sold internationally by Amazon is providing employment to

about 300 people in Himachal.

Amazon India had signed four MoUs with handicrafts and industries department to provide

platform for their produce.

➢ GMR group was already bringing up power project with an investment of Rs 2,500 crore in

Chamba district. The group was also looking for investment in aviation and transportation

sectors in the state.

Nodal Officers appointed to keep liaison with foreign investors:

Efforts should also be made on persuading the foreign investors to start their ventures in the State so that

work could be started on these projects within the stipulated time. As many as eight MoUs have been

signed with entrepreneurs from Netherlands with a proposed investment of Rs. 986 crore, one with

entrepreneurs from Germany, seven MoUs with an investment of Rs. 1900 crore with investors from

UAE and one MoU worth Rs. 100 crore with investor from Malaysia. The Nodal Officers appointed to


keep liaison with foreign investors must remain in constant touch with them so that they could be

persuaded to start their ventures at the earliest.

Big industrial houses to be given priority initially:

The officers must work with dedication and commitment besides setting targets to actually ensure

grounding of investments. Big industrial houses like Reliance, TATA, Mahendra, Godrej etc. should be

given priority for facilitating them to start their ventures at the earliest.

INVESTMENT PROMOTION AUTHORITY The Himachal Pradesh government will set up an Investment Promotion Authority to facilitate

investors looking for investment opportunities in the state.

➢ This will go a long way in providing impetus to sustainable and inclusive socio-economic

development in the state.

➢ The high-level task force will be formed Department for Promotion of Industry and Internal

Trade (DPIIT) Secretary will head the task force.

➢ The task force will study schemes of Centre and State for better implementation to accelerate the

speed of development.

➢ The task force will comprise officials from Centre’s department of Agriculture, Food Processing,

Railways and Tourism and the officials of state government. It would give its recommendations

in three month time. The task force would be accelerating the speed of schemes of the Centre and

Himachal Pradesh, and enhancing the facilities.

➢ The task force’ recommendations would help chalk out the strategy for the next investment meet.

IT/ITES AND ESDM POLICY, 2019: Recognising the enormous potential of IT/ITeS sector, the Himachal Pradesh government unveiled

IT/ITeS and ESDM Policy, 2019 at the Global Investors’ Meet.

➢ Under the policy, eligible firms taking space on lease for their operations in IT/multi-purpose

SEZs, IT parks and designated technology parks will be provided lease rental subsidy of 75% for

first year, 50% for second year and 25% for third, fourth and fifth year from the date of

commencement of commercial operations.

➢ The subsidy will be subject to a ceiling of Rs 15 lakh for first year, Rs 10 lakh for second year

and Rs 5 lakh for third, fourth and fifth year. For the Electronics System Development and

Maintenance (ESDM) enterprises and green data centres, lease rental subsidy will be up to 85%.

➢ The state will also offer capital subsidy of 25% on fixed capital investment to the eligible

industries. It will benefit startups and MSMEs which always grapple with funds to set up or

expand their ventures.

➢ The companies would also be exempted from payment of stamp duty, registration fee and change

in land use charges.

➢ The eligible companies will also be given interest subvention of 5% on term loans with a ceiling

of Rs 25 lakh per annum. The eligible enterprises will also be reimbursed 100% of net SGST paid

to the state for seven years.


➢ Currently, there are three IT parks in the state which are in various stages of development.

However, these parks would at least take 2-3 years to commence operations.

➢ Government is setting up a Centre of Excellence (CoE) for high-end information technology in

addition to the CoE in tourism and hospitality at Waknaghat in Solan. The total project cost is

Rs 70 crore. It is being developed with the assistance of Asian Development Bank. The project

is likely to be operational in a year and a half.”

➢ The Software Technology Parks of India (STPI) is also expanding its base in Shimla and

setting up another centre spread across 40,000 sq ft which will be functional in two years. It is

also setting up second centre in Kangra which will be spread across 10 bighas.

Incentives offered

➢ Exemption from stamp duty, registration, changein land-use charges

➢ 5% interest subvention on term loans

➢ Up to 75% subsidyon lease rental

➢ Capital subsidy: 25%

➢ SGST reimbursement: 100%

SKILL DEVELOPMENT Government of India has signed a $80 million (Rs 512 crore) loan agreement with Asian Development

Bank (ADB) to help improve the skills of youth in Himachal Pradesh and modernizing Technical and

Vocation Education and Training Institute (TVET).

➢ This project of estimated cost of $100 million (Rs 640 crore) is expected to be completed by the

end of 2022 and Himachal Government will get 90 per cent of the loan component as grant from

the Government of India.

➢ This project would go a long way in setting up basic institutionalized institutes at various levels in

the State.

➢ A polytechnic for women, six city livelihood centers and seven rural livelihood centers

would be set up under it besides upgrading 10 employment exchanges as model career centers.

➢ These efforts of State Government will help in creating awareness among youth about TVET

programmers, modernization of training equipments, implementation of MIS, enhance

partnership with private sector and creating market oriented training and livelihood opportunities

for the youth of Himachal Pradesh.

➢ The funds would be made available for short and long term training programmes to the youth in

automobile, electronics, pharmaceuticals, tourism and hospitality, banking and financial services

and health etc. sectors under the project.

7TH ECONOMIC CENSUS Himachal Chief Minister has launched seventh Economic Census (7th EC) being conducted by

Ministry of Statistics and Programme Implementation in 2019 to provide disaggregated information

on various operational and structural aspects of all economic establishments in the country.


➢ The Economic Census provides valuable insights into geographical spread, clusters of

economic activities, ownership pattern, persons engaged etc. of the establishments with or

without fixed premises engaged in economic activity.

➢ For the conduct of 7th EC, MoSPI has partnered with CSC e-Governance Services India Limited

Ministry of Economics and Information Technology as the implementing agency.

➢ The enumerators and supervisors engaged by CSC have been trained to collect data on mobile

application developed for data capture, validation, report generation and dissemination.

STATE ANNUAL PLAN 2020-21 · Minister said the Rohtang Tunnel, which will connect Manali in...

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