'Roads, health, jobs key to fiscal stability'

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Gold the most preferred investment

: 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.