HP CM Sukhvinder Singh Sukhu will levy charges on hydropower projects to counter the financial crisis caused by the Centre’s decision to stop the Revenue Deficit Grant. He called for all-party unity to address the ‘grave situation’.
Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu reiterated in Shimla that the state government will levy revenue charges on all hydropower projects operating in the state. The state government is preparing a detailed framework in this regard.
Centre Halts Revenue Deficit Grant
Reacting to the Centre’s decision to discontinue the Revenue Deficit Grant (RDG), the Chief Minister said that after the recent development on the 8th, where the central government stopped the Revenue Deficit Grant, a cabinet meeting has been convened to discuss the issue. Following this, a meeting of the Congress Legislature Party has also been called, and the government is considering inviting BJP MLAs as well.
He said that from 2019 to 2025, Himachal Pradesh received approximately Rs 48,000 crore in Revenue Deficit Grants. If this assistance is suddenly stopped for the next five years, from 2026 to 2031, it will have serious consequences for the state’s financial condition. To deal with this situation, all political parties must come together.
A Call for Unity Above Party Politics
“The formation of hill states was never based on revenue surplus. The Revenue Deficit Grant we were receiving under Article 275(1) was a constitutional right. Since 1952, Himachal Pradesh has continuously received RDG, and for the first time in 73 years, we are facing such a grave situation. This issue requires serious discussion,” he said. CM Sukhu stressed that this matter should be addressed above party politics, keeping the larger interest of Himachal Pradesh in mind.
“This is not a fight of governments; it is a fight for the people of Himachal Pradesh. I appeal to BJP MLAs as well to participate. On the 8th, we are ready to give them a presentation and also receive their views on how we can tackle this situation and move towards an ‘Atmanirbhar Himachal Pradesh’ by bringing policy changes,” he said.
Mounting Financial Pressures
He noted that Himachal Pradesh has incurred losses since GST was introduced in 2017. GST compensation was provided only for five years. During the BJP government, about Rs 1,600 crore was allocated as GST compensation cess, which has now also been discontinued. He said GST has benefited larger states like Bihar, Uttar Pradesh, and Maharashtra due to higher consumption, whereas Himachal Pradesh, with a population of only 75 lakh, has suffered losses.
The Chief Minister further said that reduced import duties and repeated natural disasters due to climate change have also adversely affected the state’s economy.
CM Questions Centre and State BJP
“I raised this issue four times with the Union Finance Minister and the Finance Commission. I never imagined that the Revenue Deficit Grant would be stopped altogether. My demand was that RDG should not be tapered and should continue in equal installments as it did from 2019 to 2025-26,” he said.
CM Sukhu questioned BJP leaders, including Anurag Thakur, asking whether they opposed the discontinuation of the Revenue Deficit Grant. He added that the Congress government is even ready to go to Delhi along with the BJP leadership in the interest of the state.
“This is not about my personal interest or the government’s interest; it is about the future of Himachal Pradesh. The impact of this decision will be felt over the next ten years, and we must be prepared for tough decisions and a long struggle,” he said.
Hydropower Levy as a Revenue Measure
Announcing a fresh decision, the Chief Minister said the state government will now collect land revenue and cess from all power projects operating in Himachal Pradesh.
Defending Himachal’s Special Status
Rejecting comparisons with 17 other states, CM Sukhu said Himachal Pradesh is a special hill state with 90 per cent mountainous terrain, 68 per cent forest land, and 28 per cent forest cover.
“Five rivers flow through our state. Himachal Pradesh serves the country as the water bowl and eco-shield of North India. We protect ecology worth Rs 90,000 crore for the nation. Comparing Himachal Pradesh with plains states is completely wrong,” he asserted. He concluded by urging all political parties to understand the seriousness of the issue and rise above politics to safeguard the economic future of Himachal Pradesh. (ANI)
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