Himachal CM Demands Increased Funds from Centre

New Delhi, May 23 (PTI) Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Friday pleaded with Chairman of the Finance Commission Arvind Panagariya for increasing the allocation of funds to the state, saying hill states with geographical challenges should get their due.

The officers of the state government made a presentation to the Commission in the presence of the chief minister and submitted an additional memorandum on behalf of the state to press upon Himachal's rights.

The chief minister later told reporters that he will press for the state's rights at the meeting of the Niti Aayog under the chairmanship of Prime Minister Narendra Modi on Saturday, where he will also raise the issue of promoting tourism and hydro projects and build a big airport at Dharamshala.

He said Himachal Pradesh harnesses 12000 MW of power, but gets only 12 per cent as free royalty out of the total power generated.

"The state's royalty should be increased as we harness the state's waters," Sukhu said, adding that public-sector units should be allowed to take over power projects in the state and Himachal should get a bigger share.

Asked about the state's finances, the chief minister said the state is focussing on fiscal discipline and fiscal prudence by cutting down on wasteful expenses.

He accused the BJP of indulging in financial indiscipline by granting freebies and subsidies just to remain in power, but people rejected their politics of allurements. Sukhu said Himachal is the only state which is giving MSP on milk and is promoting natural farming by giving subsidy to farmers.

Sukhu also said that the Kishau hydro electric project is of national importance and the financial burden of the project should be borne entirely either by the Centre or by the major beneficiary states such as Delhi, Haryana, Uttar Pradesh and Rajasthan.

"The states to be benefitting from the project should be asked to spend on setting it up and Himachal Pradesh should be paid more royalty," he said.

During the meeting with the chairman of Finance Commission, the state has asked for green bonus for the ecological and environmental services being rendered by the state to the nation by preserving its ecosystem.

The chief minister said that state has suffered losses due to reduction in goods and service tax and urged for duly compensating for the loss in GST.

He said that Revenue Deficit Grant for Himachal Pradesh should be increased and not tapered.

Panagariya assured that the Commission will consider the submissions of the state.