'Roads, health, jobs key to fiscal stability'

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The hill state of Himachal Pradesh has had an indifferent rate of economic growth, with no major investment proposals fructifying in the past two years. The state has a debt overhang of Rs 22,930 crore as on March 2008, against a current revenue of Rs 9,397 crore (2008-09), which has posed major fiscal challenges before the current BJP government. Chief minister Prem Kumar Dhumal talks with FE’s Swarleen Kaur on the outlook for the state.

What is the trend in tax collection?

There is certainly buoyancy in the tax collection but our major resource remains the power sector. Excise duty collection stood at Rs 390 crore, sales tax, including VAT, at Rs 1,092 crore and personal goods transport tax collection was recorded at Rs 55 crore. Other tax deposits stood at Rs 1,37 crore, making a total of Rs 1,970 crore.

The hydel sector has become the main focus of any government in Himachal.

Around 50% of our revenue is being generated through power sector. We earned around Rs 1,200 crore by selling power last year. Currently 6,515 mw is being generated in the state and we have target to produce another 5,700 mw by 2012. For this, various hydel projects are underway in the state. It was from our tenure from 1998, that the hydel sector got a boost in the hill state. We are able to generate more power, more employment and resources for the state’s development.

Shimla and the state have become synonymous. What is the progress on developing an alternative major township in the state?

Though there are plans to build the townships but there is a major problem of water scarcity, which needs immediate attention. We are chalking out a detailed strategy to implement rainwater harvesting management system in the villages. Only after solving the problem of water we can think of having townships.

What is the progress on setting up the proposed IIT?

IIT Roorkee has been assigned the task of assisting in setting up the IIT in Himachal. We have identified 530 bighas land in Mandi for setting up the state-of- art building for IIT. Meanwhile, we have requested the central government to allow us to begin the classes from NIIT in Hamirpur or from Roorkee itself in the name of HP IIT.

How do you expect to pull Himachal Pradesh out of the present fiscal difficulties?

There is no question of creating a surplus at this point of time as we are just concentrating on reducing the deficit. To begin with, I have also told government employees to reduce the official expenditure and to curb the wastage. Meanwhile, it is very important to strengthen the rural areas to develop the state. Our slogan this time is Sadak, Shiksha, Swasthaya, Swarojgar to make people of the state financially strong. There are various villages which sans connectivity and face various hurdles in commuting. We are aiming at connecting each and every village by providing better connectivity.

How do you intend to do that—provide better connectivity?

Being a hill state, the road transportation sector is very important. In a project with the World Bank we are usig a loan of Rs 1365 crore to upgrade the various roads. Under this scheme modern district roads are being constructed in a move to connect various villages. Efforts are being put in to improve the air connectivity and more flights are being added connecting Kullu, Kangra and Shimla. There is also a move to expand the domestic airport at Kullu. The aim is to reduce the distances and have more tunnels. Though there is less scope having effective rail system but there are proposals to have rail link between Chandigarh and Baddi. Besides Mandi, Kullu and Manali could be linked. Then Leh and Ladakh can also get connected. This will boost the tourism in state as well.

What is being done to accelerate the growth of the tourism sector?

Our government is focusing on strengthening sports, trekking and adventurous activities. Religious and farm tourism is also being promoted. Interestingly we are approaching education institutions across the country to have tourists groups of students, who could be sent to apple orchards or villages in Himachal to have a feel of the ground situation. This would increase their knowledge, exposure and will bring in more tourism for Himachal. HP can use the hydel projects for tourist attraction as the power projects also raise much curiosity among school and college students.

Recently, Swami Ramdev has proposed to set up a Patanjali Yog peeth in HP which will give further boost to religious tourism in Himachal. We also plan to encourage adventure sports like para gliding, skiing, river rafting, hang gliding etc to promote tourism. We are also thinking of introducing golf courses in Nalagarh. Those who are not able to get membership of Chandigarh golf club will definitely would come to Nalagarh.

Despite efforts by the government, the growth of IT sector has failed to pick up the momentum. What is your take on it?

We are the first state to get the IT University in the state. There are proposals of setting up the IT parks. Moreover, recently a NRI has shown interest to invest in the IT project, which is under consideration. However, still the state has not been able to attract IT professionals here.

What is latest in the bio-technology sector and why there is delay in the science city project?

We would strive for creating biotechnology infrastructure in the state, promote bio-business for entrepreneurship development and employment generation with promotion of valuable herbs, medical and cosmetic plants.

Biotechnology initiatives of my Government also envisage extending forays into application of futuristic nano-technology in the health care and medical diagnostics by encouraging private entrepreneurs. The science city project is expected to come up in Shoghi, 20 km away from Shimla. We have not received proposals from the companies for the projects which has delayed the process.

What is being done to save the environment of the hill state?

To protect the Himalayan ecology and environment, there is a complete ban on felling the green, ban on recycling the polythene and ban on smoking in the public places. Besides, we are educating people on how to save environment though various awareness campaigns.