Centre Should Make Special Financial Provisions for Hill States Like Himachal: Mukesh Agnihotri
Deputy CM Mukesh Agnihotri during the inauguration of the seminar series
Shimla, March 23, 2025: Deputy Chief Minister of Himachal Pradesh, Mukesh Agnihotri, has called on the central government to make special financial provisions for hill states like Himachal Pradesh, recognizing the unique challenges posed by their geographical conditions. Speaking at the inauguration of a three-day seminar series at the Himachal Pradesh Institute of Public Administration, Agnihotri highlighted the need for tailored financial support to help smaller states become economically self-reliant.
During the session titled Samriddh Himachal 2045, Agnihotri emphasized the importance of long-term planning for the state’s sustainable economic development. The seminar series aims to develop a 20-year roadmap for Himachal’s growth, focusing on a balance between economic progress and environmental sustainability. The Deputy Chief Minister expressed confidence that the collaborative discussions would lead to innovative solutions, fostering a prosperous future for Himachal.
Reflecting on the state’s history, Agnihotri recalled how former Prime Minister Indira Gandhi recognized the region’s challenges when granting Himachal Pradesh full statehood. He noted that despite the difficult terrain and limited resources, Gandhi prioritized the political sentiments of the people, a decision that has continued to shape the state’s development.
“Indira Gandhi understood the struggles of a small, hilly region like Himachal and granted it statehood. However, the geographical constraints mean that Himachal has faced significant challenges in achieving economic self-reliance,” Agnihotri said. “While big states like Delhi, Maharashtra, and Rajasthan have vast industrial resources, Himachal has far fewer income sources. Given this disparity, it is essential for the central government to provide special financial provisions to help us implement crucial central projects.”
The Deputy Chief Minister argued that Himachal Pradesh should have the autonomy to decide where to implement various development projects, such as housing for the poor, water, power, and railway projects, and who should benefit from housing schemes. He emphasized that the people who consider Himachal their second home should also recognize the state’s right to make decisions based on local needs.
Agnihotri also pointed out that Himachal’s natural resources—its glaciers, perennial rivers, and forest wealth—have the potential to drive the state’s self-reliance and prosperity. However, he noted that the state refrains from exploiting its resources, particularly its forests, to maintain global environmental balance and mitigate the effects of climate change.
“Himachal’s forests help protect the nation from environmental crises, but the financial losses incurred by the state due to these conservation efforts have not been compensated,” he said. Agnihotri further criticized the delayed resolution of Himachal’s water rights, citing the ongoing struggle to secure the state’s rightful share of water from rivers.
The Deputy Chief Minister also addressed a long-standing issue—the state’s unresolved share in the Union Territory of Chandigarh. Despite a favorable Supreme Court ruling in 2011, Himachal Pradesh has yet to receive its 7.19 percent share. This unresolved matter underscores the broader financial challenges faced by the state.
Reflecting on the progress made since Himachal’s statehood, Agnihotri acknowledged the state’s remarkable achievements in education, healthcare, and infrastructure. The establishment of premier institutions like AIIMS, PGI, NIT, IIM, IIT, and IIIT in Himachal demonstrates the state’s commitment to development and education. He expressed optimism that the ongoing seminar series would contribute significantly to the state’s continued growth and prosperity.
“People of Himachal, when given the right opportunities, have proven their potential to achieve great things. Our progress is a testament to the hard work and honesty of our citizens,” he concluded.
As the seminar series unfolds, the hope is that these discussions will pave the way for a more sustainable and economically robust Himachal Pradesh in the years to come.
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