For India, 2022 was special. It marked the 75th year of India‟s Independence. India became the world‟s fifth largest economy, measured in current dollars. By March 2023, the nominal GDP of India will be around US$ 3.5 trillion. In real terms, the economy is expected to grow at 7.0 per cent for the year ending March, 2023. This follows an 8.7 per cent growth in the previous financial year. The rise in consumer prices has slowed considerably. The annual rate of inflation is below 6.0 per cent. Wholesale prices are rising at a rate below 5 per cent. The export of goods and services in the first nine months of the financial year (April–December) is up 16.0 per cent compared to the same period in FY2021-22. Although high oil prices inflated India‟s import bill and caused merchandise trade deficit to balloon, concerns over the current account deficit and its financing have ebbed as the year rolled on. Foreign exchange reserve levels are comfortable and external debt is low.
The Indian economy, has witnessed a “V” shape recovery after the economic slowdown. This recovery was inevitable as various restrictions were lifted on the movement of people and goods. Lifting of restrictions combined with governance through major domestic initiating as well as foreign policies helped to boost the economy. Initiation of various reforms has stimulated Indian economy that registered a fast recovery. Sector wise, the Indian economy showed a contraction of 2.7, 3.8 and 7.8 per cent in primary, secondary and tertiary sectors for FY2020-21 due to COVID-19 pandemic, experienced negative growth in mining and quarrying, manufacturing, electricity, gas, water supply and other utility services, construction, trade, hotels, and restaurants, transport, storage, communication and services related to broadcasting and other services when compared to the previous year FY2019-20.
GDP of India at constant (2011-12) prices or real GDP for the year FY2022-23 is estimated at ₹157.60 lakh crore as against ₹147.35 lakh crore in FY2021-22 with a growth rate of 7.0 per cent. The Gross Value Added (GVA) at constant basic prices witnessed highest contraction of 20.2 per cent in trade, hotels and transport sector during the FY2020-21, followed by mining and quarrying and construction sector. This was due to restrictions on movement of people. Tourism industry was the worst hit by COVID-19 as lockdown resulting in restrictions on the movement of people. The same case is for mining and quarrying and construction sector as these sectors heavily relied on the availability of human resources for better performance. After lifting of the restrictions, these sectors witnessed high growth rate compared to other sectors of the economy. In fact highest growth rate is expected in trade, hotels and transport sector for the year FY2022-23 (AE).
Agriculture and allied sectors were the least impacted by the pandemic and have registered growth rate of 3.3 per cent in FY2020-21, 3.0 per cent in FY2021-22 and is expected to grow by 3.5 per cent in FY2022-23 (AE).
A comparative position of National as well as State economic performance in terms of growth rate of GDP and GSDP is presented in figure 1.3 “V” Shape recovery is seen in the growth rate at both national as well as State level GSDP. There was a sharp dip in the growth rates in FY2020-21, whereas a sharp recovery in the growth rate can be seen in the year FY2021-22. This is due to the fact that upliftment of restrictions on the movement of people and goods had a positive impact on the growth of the economy. There is similar dip in the per capita income at both national as well as at the State level. The dip was more at national level than at the State level. The growth rate in per capita income after recovery was more at the national level than the State figure 1.4 above. Per Capita Net National Income at current prices was ₹1,26,855 in FY2020-21 against ₹1,32,115 for the previous FY2019-20 recording a decrease of 4.0 per cent. Per Capita Net National Income at current prices is estimated at ₹1,50,007 for the FY2021-22 (Provisional Estimates) at national level. In absolute terms Himachal Pradesh had an estimated Per Capita Income (PCI) of ₹2,01,271 for the FY2021-22 First Revised (FR) compared to ₹1,50,007 at the national level for the same year which resulted in income gap of ₹51,264.
Inflation management is the key priority of the Government. The inflation rate, as measured to the Wholesale Price Index (WPI) on year–on-year (YoY) basis has reappeared as a global issue in both advanced and emerging economies. The surge in energy prices, non-food commodities, input prices, disruption of global supply chains and rising freight costs stoked global inflation. Wholesale inflation, based on WPI for food articles, remained at 1.7 per cent, for minerals it was 17.6 per cent, for all commodities it was 12.5 per cent during 2021-22, whereas it is estimated for food articles to be 9.6 per cent, for minerals 6.7 per cent and for all commodities it is estimated to be 12.3 per cent for FY2022-23 (data available up to November).

Himachal has progressive due to steady efforts of the hardworking people of the State and by the implementation of progressive policies. Himachal Pradesh has become a fast growing economy. During FY2021-22 the state economy grew by 7.6 per cent and is expected to grow by 6.4 per cent during FY2022-23 (Figure 1.3).
The Gross State Domestic Product (GSDP) at current prices, is estimated at ₹1,76,269 crore in FY2021-22 (FR) as against ₹1,55,251 crore in Second Revised (SR) estimate in FY2020-21, showing an increase of 13.5 per cent during the year.
GSDP at constant (2011-12) prices in FY2021-22 (FR) is estimated at ₹1,26,433 crore against ₹1,17,555 crore in FY2020-21 (SR) registering a growth of 7.6 per cent during the year as against the negative growth rate of 3.0 per cent for the previous year.
The growth of 7.6 per cent is mainly attributed due to 4.6 per cent increase in primary sector, 7.8 per cent increase in secondary sector, 15.6 per cent increase in transport, communication, trade hotel and restaurants sector and 7.9 per cent increase in Community and personal services sector of the economy. Finance and real estate sector saw a marginal growth of 1.0 per cent only. Food grain production, which was 15.21 lakh metric tonnes (MT) during FY2020-21 increased to 16.92 lakh MT in FY2021-22 and is anticipated to be 15.94 lakh MT in FY2022-23. Fruit production increased to 7.54 lakh MT in FY2021-22 as against 6.24 lakh MT in FY2020-21, showing an increase of 20.83 per cent in FY2021-22 table 1.2. Fruit production during FY2022-23 (up to December, 2022) is expected to be 7.93 lakh MT.
The PCI at current prices as per first revised estimates for the year FY2021-22 is ₹2,01,271 as compared to ₹1,77,924 in the FY2020-21 which is a increase of 13.1 per cent.
As per current estimates on the basis of economic conditions up to December, 2022, the economy of the State for FY2022-23 is expected to grow by 6.4 per cent.
The economy of the State has shown a shift from agriculture sector to industries and services as the percentage contribution of agriculture in total Gross State Domestic Product has declined from 57.9 per cent in 1950-51 to 55.5 per cent in 1967-68, 26.5 per cent in 1990-91 and 9.50 per cent in FY2021-22. The shares of secondary and services sectors which were 1.1 and 5.9 per cent respectively in 1950-51 increased to 5.6 and 12.4 per cent in 1967-68, 9.4 and 19.8 per cent in 1990-91 and to 43.10 and 43.50 per cent in FY2021-22.
The declining share of agriculture sector does not affect the importance of this sector in the State economy as the growth in primary sector of the State economy is still determined by the trend in agriculture and horticulture production. It is one of the major contributors to the total domestic product and has overall impact on other sectors via input linkages, employment, trade and transportation etc. Due to lack of irrigation facilities, agricultural production to a large extent still depends on timely rainfall and weather conditions.
The State has made significant progress in the development of horticulture. The topographical variations and altitudinal differences coupled with fertile, deep and well drained soils favour the cultivation of temperate to sub-tropical fruits. The region is also suitable for cultivation of ancillary horticultural produce like flowers, mushroom, honey and hops.
Growing of off-season vegetables has also picked up in the State. During FY2021-22, 18.04 lakh tonnes of vegetables were produced as against 18.67 lakh tonnes in 2020-21. The production of vegetables will be about 17.59 lakh tonnes in FY2022-23.
For climate change mitigation, Himachal Pradesh continued to take various steps to achieve its targets. The State action plans on climate change aim to create institutional capacities and implement sectoral activities to address climate change.
In over the years State Government has taken several steps to provide uninterrupted power supply in the State. Several steps have been taken for increasing power generation, transmission and distribution. As a source of energy, hydro power is economically viable since it is non-polluting and is environmentally sustainable. To restructure this sector, the Power Policy of the State attempts to address all aspects like capacity addition, energy security, access and availability of power, affordability, environment and assured employment to the people of Himachal. Private sector participation in terms of investments in this sector has been encouraging. Smaller projects (up to 2 MW) have been reserved for investors from Himachal Pradesh and preference is given to them for projects up to 5 MW.
Focused Welfare Initiatives in addition to facilitating the overall economic growth, the Government has consistently undertaken initiatives to improve socio-economic outcomes of the marginalized and vulnerable groups across caste, gender, occupational and other categories. The success of the welfare agenda rests on ensuring that the schemes are properly implemented, with their outcomes aligning with the vision of the Government decisions.
Himachal Government has set up Sukh-Ashray Sahayata Kosh of ₹101 crore for the needy. The Government has taken this step not out of compassion, but to help the children and youth, who have little or no family support.
Himachal Pradesh will bear the entire cost of education of needy children who get admission in institutes like IIT, AIIMS, IIM, IIIT, Polytechnic and ITI and they will also be given pocket money.
Under Sukh-Ashray Yojana, the State Government will play the role of guardians for the children living in old age homes and shelter homes. The government will provide clothing subsidy to single women and special children.
Himachal government has also provided a festival allowance of ₹500 per person to the residents of Child Care Institution, Old Age Homes, Nari Seva Sadan, Shakti Sadan and Special Homes for celebrating Lohri, Makar Sakranti, Holi and other festivals.
To help poor children,steps will be taken to change education policy. They will be given equal opportunities to study and Rajiv Gandhi Model Day-Boarding Schools will be opened in the State.
New technical courses such as robotics, block chain technology, cyber security, cloud computing, data science, artificial intelligence and machine learning courses will be started in polytechnics and engineering colleges to promote employment to the youth.
To Promote tourism up to the village level Himachal Pradesh Government will give special attention to natural, rural, horticulture, adventure and religious tourism. This will provide employment opportunities to the local people on a large scale. To increase participation of youth, tourism projects will be linked to the start-up scheme.
For providing employment opportunities, State Government is making efforts to promote investment so that youth of Himachal Pradesh get employment in the private sector. Government will bring a new investment policy in which formalities will be reduced for the convenience of investors.

Gross State Domestic Product (GSDP) is an estimate representing the value of all final goods and services produced within the geographical boundaries of the state, counted without duplication during a specified period of time, usually a year. These estimates of economy, over a period of time, reveal the extent and direction of changes in the level of economic development and also the performance exhibited by various sectors towards the overall economy. In a nutshell, these State Domestic Product estimates provide a broader picture of outcomes achieved because of various interventions, investments made and opportunities opened-up in the state towards economic development. The growth rate of State Domestic Product is said to be the performance level and magnitude of the state economy, over a period of time. GSDP commonly known as State Income is one of the important indicators to measure the economic development of the state. In the context of planned economic development of the state, State income and Per Capita Income (PCI) play a vital role in formulation of policies by administrators, policy makers and planners.

GSDP at Current and Constant (2011-12) Prices: According to the Advance Estimates (AE), the Gross State Domestic Product at current prices or nominal GSDP for the Financial Year (FY) 2022-23 is estimated to be ₹1,95,404 crore, as against ₹1,76,269 crore in the FY2021-22, exhibiting an impressive growth rate of 10.9 per cent as against 13.5 per cent. As per the AE, the GSDP at constant (2011-12) prices or real GSDP for the FY2022-23 is estimated at ₹1,34,576 crore, as against ₹1,26,433 crore in FY2021-22, exhibiting a growth rate of 6.4 per cent for the FY2022-23 as against 7.6 per cent of FY2021-22(FR). The year wise details are shown in figure 2.1 and 2.2.

The State Domestic Product estimates, when studied in relation to the totalpopulation of the State, indicate the level of per capita net output of goods andservices available. The PCI is obtained by dividing the Net State Domestic Product by midyear population of the State in the respective year. According to advance estimates, the PCI at current prices for FY2022-23 is estimated at ₹2,22,227 against ₹2,01,271 in FY2021-22 showing a growth of 10.4 per cent as against 13.1 per cent in FY2021-22(FR).
The PCI of State is higher than the All India figures over the years. There is a steep rise in the PCI of the State from ₹87,721 in the FY2011-12 to ₹2,22,227 in FY2022-23, registering a growth rate of 153 per cent over 2011-12. The PCI of All India was ₹63,462 in the FY2011-12, has increased to ₹1,70,620 in the FY2022-23, registering a growth of 169 per cent compared to 2011-12. This implies that the PCI of the State grew lesser than the All-India PCI. The PCI of Himachal Pradesh vis-àvis All India and their growth trends at current prices, are illustrated in Figures 2.3 and 2.4 respectively.

The economy is classified into three broad sectors, viz., Primary, Secondary and Tertiary. The growth rates of each of these sectors is measured in terms of GVA at basic prices. The basic price can be understood as producer’s price. The constituent of these sectors are
(i) The Primary Sector: This sector consists of sectors like Crops; Livestock; Forestry and Logging; Fisheries; and Mining and Quarrying.
(ii) The Secondary Sector: This sector constitutes sectors such as Manufacturing; Electricity, Gas, Water Supply and Other Utility Services; and Construction.
(iii) The Tertiary Sector: This sector include sectors, namely, Trade and Repair Services; Hotels and Restaurants; Transport, including Railways, Road, Water, Air and Services incidental to Transport; Storages; Communication and Services relating to Broadcasting; Financial services; Real Estate, Ownership of Dwellings & Professional Services; Public Administration; and Other Services.
Primary Sector: As per advance estimates for FY2022-23, the Gross Value Added (GVA) from primary sector is likely to grow at a pace of 2.0 per cent at constant prices. During FY2022-23(AE) the GVA of Primary sector moved up to ₹16,717 crore as against ₹16,395 crore in FY2021-22 (FR) at constant prices (see Figure 2.5).
Agriculture and allied sectors registered a growth in constant price GVA, of -6.7 per cent, 4.9 per cent and 2.0 per cent in FY2020-21, FY2021-22 and FY2022-23, respectively. It is noteworthy that ‘Agriculture and Allied Sectors’, which are the backbone of State economy, employ 57.03 per cent of the population of the State. Therefore, its economic success is crucial to improving the living standards in Himachal Pradesh.
Crop sector GVA for FY2022-23(AE) in real terms is estimated at ₹8,598 crore as against ₹8,531crore in FY2021-22(FR) with a growth rate of 0.8 per cent. Forestry and lodgging sector GVA for FY2022-23(AE) in real terms is estimated at ₹5,159 crore as against ₹5,023 crore in FY2021-22(FR) with a growth rate of 2.7 per cent. Livestock Sector grew by 4.3 per cent, Fishing Sector grew at 7.0 per cent and mining and quarrying sector grew by 2.2 per cent. The primary sector and its sub-sector’s growth trends and GVA at constant prices are depicted below in Table 2.1.
Secondary Sector: The Secondary sector broadly comprises manufacturing (organised and unorganised), electricity, gas and water supply and construction. As per advance estimates for FY2022-23 the GVA of the secondary sector is estimated at ₹60,444 crore against ₹56,408 crore for FY2021-22(FR) at constant (2011-12) prices, expected to register a growth rate of 7.2 per cent over the previous year (Figure 2.6).
Industry Sector (manufacturing) at Constant (2011-12) prices as per the advance estimates for the FY2022-23 is expected to register a growth rate of 6.7 per cent and is estimated at ₹43,625 crore as against ₹40,898 crore in FY2021-22(FR). Electricity, Gas, Water and water supply Sector, have registered impressive growth rates of 7.2 per cent. Construction sector is expected to register a growth rate of 9.5 per cent and is estimated at ₹9,124 crore as against ₹8,335 crore in FY2021-22 (FR) Table 2.2.
Tertiary or Services Sector: The Services sector has a significant and fast growing share in the State GVA. Service sector comprises of Trade, Hotels and Restaurants, Transport by Other Means and Storage, Supra Regional sectors (Railways, Communications and Banking and Insurance), Real Estate, Ownership of Dwellings & Professional Services, Public Administration and Other Services sectors. The advance estimates for the FY2022-23 at Constant (2011-12) prices for Services Sector is estimated at ₹49,527 crore as against ₹46,350 crore in FY2021-22(FR) with a growth rate of 6.9 per cent over last year (Figure 2.7).
Trade and Repair services (2.3 per cent), Hotels and Restaurants (26.8 per cent) jointly registered a growth rate of 6.7 per cent, Transport, Storage, and Communications registered a growth rate of 10.3 per cent, Banking, Real Estate & Ownership of Dwellings and Public Administration registered a growth rate of 4.5 per cent, 3.4 per cent respectively.

Accounted for 43.6 per cent of State’s GVA at current prices, followed by the secondary sector 42.7 per cent and the Primary sector 13.7 per cent. The trend in the share of each sector towards the State’s GVA is shown in Figure 2.9. The share of the Primary sector in the total GVA of the State remained largely constant from 2018-19 to 2022-23. As reflected in Figures 2.9, the Secondary sector in the State is very vibrant. The Government of Himachal Pradesh recognizes that industrial development is crucial to job creation and increasing productivity in other sectors. It has taken up several measures to ensure sustained growth of the Industry sector. The positive impact of the investments being made by the Government towards strengthening the Industrial sector will start manifesting in the coming few years, and the benefits will continue to accrue for many years to come. The tertiary sector share of State’s value added is continuously increasing and is therefore, one of the most important sectors in State’s economy. Its share in the State’s nominal GVA increased from 42.0 per cent in 2018-19 to 43.6 per cent in the FY2022-23 (Figure 2.9). As per advance estimates for FY2022-23, the GVA from the primary sector in absolute terms is estimated at ₹25,284 crore at current prices, secondary sector stood at ₹78,848 crore, while service sector is estimated at ₹80,379 crore (Table 2.4).

The structure of the economy and workforce in Himachal Pradesh are perceptibly different from the structure of the economy and workforce in the rest of India. Agriculture and allied activities employed 57.03 per cent of total workforce of Himachal Pradesh as compared to 45.46 per cent for India. The share in GVA is 13.14 per cent as compared to 18.64 per cent in India.
The sector- wise comparison of distribution of value added and employment is given below in the Table 2.5. The estimates of GDP of Himachal Pradesh and India from 2011-12 to 2022- 23 at current and constant (2011-12) prices are given below in Table 2.6.

A brief analysis of the economic growth in Himachal Pradesh reveals that the State has kept pace with the India growth rate as shown in Table-2.7 below:

Public finance relates to the collection of taxes by the Government from taxable entities under the jurisdiction of the State and use of the tax receipts towards production and distribution of public goods and services. Resource generation, Resource allocation and expenditure management are essential components of public financial management system.
Developmental challenges like healthy housing conditions, safe water supply and waste management are best understood at the ground level. For this purpose, various developmental functions are devolved to local bodies to take care of region-specific developmental needs. However, with low revenue mobilization capacity, local bodies are heavily dependent on transfers from the State Government to fund their various needs.
State’s funds play an important role in the growth of an economy. Expenditure on physical and human capital formation is a prerequisite for sustained development. Despite geographical disadvantages, the state has been orienting its limited fiscal resources on developmental needs of the economy.

Fiscal Profile of Himachal Pradesh: Fiscal profile broadly comprises receipts, expenditure and debt of the State. The State Government’s receipts comprise revenue receipts and capital receipts from various sources, whereas public expenditure comprises revenue and capital outlays.
Fiscal Indicators of the State: The State Government mobilizes financial resources through direct and indirect taxes, non-tax revenue, share of central taxes and grants-in-aid from Central Government to meet the expenditure for administrative and developmental activities. The major fiscal indicators for the State for the FY2021-22 (RE) and 2022-23 (BE) are given below:

a) Tax Revenue: According to Budget Estimates (BE) of FY2022-23 shown in Table 3.1, the tax revenue (including central taxes) was estimated at ₹17,660 crore as against ₹15,933 crore in FY2021-22 Revised Estimates (RE).
Figure 3.1 shows the components of tax revenue as percentage of total receipts. Grant from the Centre is the highest percentage of revenue receipts, followed by State-owned tax revenue. According to financial projections, the grant from the centre will be around 4 percentage points lower in FY2022-23 (BE) compared to FY2020-21.
b) Non-Tax Revenue: Non-Tax Revenue consists, mainly interest receipts on loans, receipts from sale of power, dividends and profits from public sector undertakings and receipts from services provided by the Government including those provided by the Public Service Commission, social services as health and education and economic services. Non-tax revenue is likely to increase to ₹2,769 crore in FY2022-23 (BE) as against ₹2,625 crore in FY2021-22 (RE) which is increase of 5.49 per cent. This is estimated to be 1.42 per cent of State Gross State Domestic Product (GSDP).
Figure 3.2 shows the components of non-tax revenue as percentage of total receipts.
Economic services which include electricity, gas and water supply have consistently highest percentage 59.9 of non-tax revenue of the State.
c) Non-Debt Capital Receipts: Non-Debt capital receipts consist of recovery of loans and advances and disinvestment receipts. The budget estimate for FY2022-23 (BE) envisages ₹45.00 crore as recovery of loans and no income from disinvestment.
As per the budget estimates the revenue receipts of the Government for the FY2022-23 (BE) were estimated at 18.62 per cent of the GSDP as against 21.17 per cent in FY2021-22 (RE). Similarly, the tax revenue for FY2022-23 (BE) was estimated at 9.04 per cent of GSDP which remained same as 9.04 per cent during FY2021-22 (RE). Non-tax revenue is 1.42 per cent of the GSDP in FY2022-23 (BE) as compared to 1.49 per cent during FY2021-22 (RE). In FY2022-23 (BE), the total expenditure of the State is estimated to be 26.29 per cent of GSDP. Revenue expenditure is 20.61 per cent while capital expenditure will be 2.89 per cent of the GSDP.

Table 3.2 shows that in FY2022-23(BE), the tax revenue growth rate is estimated at 10.84 per cent, while growth of total expenditure, revenue expenditure and capital expenditure for the State is estimated to be 5.18, 8.76 and -20.45 per cent, respectively.
Government Expenditure: There are mainly revenue and capital expenditure of the Government which are given in detail in table 3.1, 3.2 and 3.3 respectively. As per budget estimates of FY2022- 23 (BE), total expenditure of the State Government was estimated to be ₹51,365 crore out of which ₹40,279 crore (78.42 per cent) was earmarked for revenue expenditure.
a) Revenue Expenditure
Budget estimates revenue expenditure for FY2022-23 (BE) to be ₹ 40,279 compared to ₹ 37,034 for the FY2021-22 (RE) showing a growth rate of 8.76 per cent. Revenue expenditure is estimated to be 20.61 per cent of GSDP for FY2022-23(BE).
b) Capital Expenditure
Budget estimates capital expenditure to be ₹5,647 crore for FY2022-23 (BE) compared to ₹7,099 crore for FY2021-22 (RE) showing a negative growth of -20.45 per cent and it is 10.99 per cent of total expenditure during 2022-23 (BE). The other components i.e. debt expenditure is 10.59 per cent of total expenditure.
Composition of Revenue Expenditure: The Government spends major chunk of its expenditure on revenue expenditure. During FY2022-23 (BE) it is estimated that 78 per cent of the total budget spending will be on Revenue Expenditure.
The composition of revenue expenditure is given in Table 3.4 below which shows that 57 per cent of total expenditure is likely to be spent on salary, pension, interest payment and subsidies in FY2022-23 (BE). Expenditure on salary, pension and interest payments is committed expenditure in nature and that is limited headroom for creation of additional fiscal space. The total committed expenditure is ₹28,059 crore which is 54.63 per cent of total expenditure and 14.36 per cent of the GSDP for the FY 2022-23 (BE). Table 3.5 shows that salary increases significantly year on year. The growth in Salary expenditure over the previous year was 14.25 per cent in FY2022-23 (BE) compared to previous year’s 9.23 per cent. Pension expenditure is expected to increase by 19.85 per cent in FY2022-23 (BE), compared to previous year’s 6.77 per cent. Growth in interest payments was 7.45 per cent in FY2021-22 (RE) and budget estimates was 6.24 per cent in FY2022-23 (BE). Growth of subsidy expenditure is estimated to be 2.44 per cent in FY2022-23 (BE) compared to -1.10 per cent in the previous year.

Debt of the State is an important indicator of its financial health. Financial prudence of the State depends on its debt and its repaying capacity. Table 3.6 shows that debt as percentage to GSDP was 39.29 per cent in FY2020-21 as against 35.25 per cent in FY2019-20.

It entails analysing budgets from a gender perspective, integrating a gender viewpoint at every stage of the budgeting process, and reorganising revenues and expenditures to advance gender equality. Gender budgeting, in essence, is a plan of action and a procedure with the long-term objective of attaining gender equality. Women are the prime stakeholders of gender budget. The Nodal Department, which is in charge of advancing gender equality is the Women and Child Development Department. The issue relating to health, education, labour and employment and gender-sensitive programme are undertake by department of Empowerment of SCs, OBCs, Minorities and Specially Abled.
The gender budget expenditures are shown in Table 3.7 below, with category-I showing that 100 per cent of the budget was spent on women-specific programmes and category-II showing that less than 100 per cent was spent on women.

The pandemic has highlighted the need of Research and Development (R&D) in resolving the problem of the threat posed by newly developing infectious pathogens. Indian vaccine companies were at the vanguard of this battle against the new corona virus, cooperating with publicly supported research institutes. Indian vaccines, produced and distributed under Covid-19 were made possible by decades of consistent expenditure in R&D, high-tech production, and supportive governmental policy. India's quick adoption of digital technology is the result of government expenditure in top-notch technical education, long-standing incentives for software and service providers and focus on promoting startups.
India's Science, Technology and Innovation (STI) landscape consists of national laboratories, research councils (agriculture, medical), public and private universities, higher education institutions engaged in research like Indian Institute of Technology (IITs), specialised agencies (space, atomic energy, defence R&D), public sector units engaged in high-tech production, private R&D-led companies and other nongovernmental organisations. Investments made in the early decades after Independence and subsequent developments have helped in creating and nurturing this infrastructure.
Even after the liberalisation era began in 1991, the state's role in supporting R&D and providing incentives for technology-based enterprises remained crucial. Since then, has it changed? Are government investments in R&D declining? Government financing for research has decreased as a result of several recent policy changes permitting private actors in the space industry and allowing the use of corporate social responsibility (CSR) money for R&D. While actual R&D spending in India has increased over the past ten years, R&D spending as a proportion of GDP—the widely used criterion for assessing STI competitiveness-has long been stuck at or below 1 per cent. China spends 2.14 per cent of GDP on R&D compared to India's 0.7 per cent, Israel’s 4.94 per cent and 2.83 per cent in the United States. Brazil and South Africa spend more than India, as shown in table 4.1. Over 63 per cent of the 0.7 per cent of GDP that India spends on research is funded by government. India has 3.42 lakh researchers, compared to 17.4 lakh in China and 13.7 lakh in the US, in terms of absolute numbers.
Successive governments have recognised the need for increased R&D funding, setting the goal of at least doubling it from 0.7 per cent of GDP. The draft of the new STI Policy reiterates this goal and sets the timeline for doing so in the next five years.
Investment in STI: STI is crucial for the State's and the Nation's economic and social advancement.By constructing greener, more inclusive communities, R&D may promote sustainable development. However, for new technologies to be successful, public and private R&D, technology transfer, and infrastructure development need to be supported by efficient ecosystem.
Research: Research is a process of systematic inquiry that entails collection of data; documentation of critical information and analysis and interpretation of that data/information, in accordance with suitable methodologies. It involves gathering new knowledge or data from primary or first-hand sources. It places emphasis upon discovery of general principles. It is an exact systematic and accurate investigation. It uses certain valid data gathering devices.

R&D and Innovation is the process of developing and commercializing new ideas, implementing new processes or changing the way your business makes money. It helps keeping businesses competitive and sustainable for the long term. In the State, state’s government institutions namely Himachal Pradesh University (Shimla), Indira Gandhi Medical College (Shimla), Dental College (Shimla), Institute of Himalayan Bioresource Technology (Palampur), Himalayan Forest Research Institute (Shimla), Govind Ballab Pant Institute of Himalayan Environment and Development (Kullu), National Bureau of Plant Genetic Resource (Shimla), Central Potato Research Institute (Shimla), Indian Institute of Himalayan Studies (Shimla), Institute of Biotechnology and Environmental Science (Hamirpur), Energy and Resources Institute (New Delhi), Centre Research Institute (Solan), Himachal Research Institute (Hamirpur), etc., and Central Government Institutions namely, Indian Institute of Technology(Mandi), National Institute of Technology (Hamirpur), Indian Institute of Management (Sirmour), Indian Council of Agricultural Research (New Delhi), Indian Council Medical Research(New Delhi), Council of Scientific and Industrial Research (New Delhi), Central Institute of Petrochemicals Engineering and Technology (Chennai), etc., are contributing significantly towards R&D and Innovation.
As per Reserve Bank of India’s Study Report, regarding Research and R&D expenditure of States and UTs, in FY2018-19 the expenditure incurred towards Scientific Research of the Himachal as a percentage of GSDP is 0.6 per cent, one of the highest in the Country (shown in figure 4.1).

The department wise R&D expenditure in Himachal for the FY2020-21(A), 2021- 22 (RE) and 2022-23 (BE) is presented in Table 4.3. It is evident from the chart that R&D is greatly influenced by investment in the sectors of education, health, and agriculture.
Head-wise R&D Expenditure:Head wise expenditure on R&D is presented in table 4.4 which shows that heads 2210 and 2415 are most prioritized heads in which expenditure of ₹67,896 lakh and ₹24,341 lakh is purposed in FY2022-23.
Purpose-wise R&D Expenditure:The Purpose wise R&D expenditure in Himachal is presented in table 4.5 which shows that R&D expenditure on higher education and university education is expected to be highest which is 77,647 lakh, 85,251 lakh and 88,944 lakh in FY2020-21(A), 2021-22(RE) and 2022-23(BE) respectively.

Expenditure is classified either as Revenue Expenditure or as Capital Expenditure. Revenue expenditure is usually imminent and committed. Large part of the revenue expenditure is incurred on salaries, pensions, interest payments, maintenance and subsidies etc. Capital Expenditure is incurred for creation of capital assets. Expenditure is also incurred on Centrally Sponsored Schemes. R&D on revenue account is ₹94,331 lakh in FY2022-23 and on capital account is ₹284 lakh which is illustrated in figure 4.2.

R&D expenditure as per cent of GSDP and total expenditure is shown in figure 4.3 which shows that R&D as percentage of GSDP and total expenditure is 0.5 per cent and 1.8 per cent respectively in FY2022-23.
Mukhya Mantri Shodh Protsahan Yojana:Some research scholars in the State Universities did not get any financial assistant. This issue was resolved by “Mukhya Mantri Shodh Protsahan Yojana”, which provides monthly fellowship of ₹3 thousand to research scholars. This fellowship is available for 3 years from the date of registration.
Way Forward:
State should earmark a percentage of a state allocation for STI-related activities under separate budget head, and should work in tandem with Central agencies to boost resource mobilisation and budget sharing.
1) Private companies should be encouraged to contribute and collaborate with knowledge institutions' to pursue market-relevant research.
2) Industry clusters could engage in collaborative R&D with a special focus on certain high-priority areas.
3) In addition, CSR funds and voluntary financing by big corporate will have to be sought.
4) Steps should also be taken to enhance research output, quality of research and its relevance to society and industry, besides encouraging the private sector to increase its share in research and build partnerships with research labs as well as academia.
5) The startup ecosystem in the private sector will also benefit from public investments in R&D.

The Sustainable Development Goals (SDGs) is the framework for development till2030 for our prosperity and is a symbol of global ambitions for a brighter future. The SDG Report, 2022 examines global and regional SDG development. The SDGs cover Education, Health, Sanitation, Employment, Infrastructure, Energy, and Environment, with time-bound objectives. The 2030 Agenda for Sustainable Development, adopted by all United Nations Member States in 2015, provides a shared blueprint for peace and prosperity for people and the planet. At its heart are 17 SDGs with 169 targets and more than 300 indicators which are call for action by all countries - developed and developing - in a global partnership. They recognize that ending poverty and other deprivations must go hand-inhand with strategies that improve health and education, reduce inequality, and spur economic growth, tackling climate change and working to preserve our oceans and forests. SDGs have been developed upon the Millennium Development Goals (MDGs). The later were agreed to by the countries in 2001 for a period upto 2015. The SDGs framework was adopted on 01st January, 2016 and will end by 31st December, 2030.
The agenda for Sustainable Development-2030, aims at ‘Leaving No One Behind’ in sharing the benefit of development. The SDGs have been designed to integrate global ambitions on tackling poverty, reducing inequality, combating climate change and protecting ecosystem including forest and biodiversity.
State has shortlisted 138 key indicators and targets for monitoring progress on SDGs, of which 12 have been achieved, 39 were to be achieved by 2021 and 87 are planned to be achieved by 2030. The State is also considering development of a dashboard for monitoring progress on the indicators. SDGs goals-wise Nodal departments in Himachal Pradesh are described at Table 5.1.

Localization of SDGs in rural India is to take root with the Local SelfGovernments, the Panchayati Raj Institutions (PRIs). Localization of SDGs assumes even more important role to achieve the goals for the rural areas, to ensure No one is left behind and no village is left behind.
Background: India is a signatory of SDGs 2030. Ministry of Panchayati Raj (MoPR), Government of India (GoI) is committed to the achievement of SDGs through the Rashtriya Gram Swaraj Abhiyan (RGSA) Scheme. The RGSA scheme mandates to improve capacity of elected representatives for good governance through attainment of SDGs through participatory local planning at Gram Panchayat (GP) level.
Lead Role of NITI Aayog: NITI Aayog has brought out the Document ‘Localizing SDGs - Early lessons from India’ - in year 2019. Annual Progress Reports on Localizing SDGs in PRIs in future will provide direction and value.
Whole of Government Approach: Localizing SDGs in PRIs is recognized as the responsibility of all Central Ministries. Role of State Governments and Panchayats is very important. Flagship schemes of Ministries address various SDGs. Hence pro-active participation of Ministries/Departments along with PRIs is necessary to achieve SDG goals.
The following themes, targets, indicators and timeline are recommended: More than 340 GP Level Indicators have been identified and allotted to respective line departments by Department of Panchayati Raj, Government of Himachal Pradesh (DoPR, GoHP).

This is collaborative effort of Science and Technology (S&T) Vertical of NITI Aayog, relevant Ministries and Departments, and the knowledge partner — the Institute for Competitiveness. The index tries to understand the prospects and potential of innovation in each Indian state and union territory through its rankings.
Geographical Coverage: The India Innovation Index covers all the twenty-eight states and eight union territories. The states and union territories have been classified into three categories: Major States, North-Eastern and Hill States and UT and City States. Himachal Pradesh falls under North Eastern and Hill States category.
Conceptual Framework: The following criteria have been used to rank the States:
Enablers’ Score: These input pillars measure the elements of the state that enable innovative activities with the support of the five pillars.
Performance Score: The performance pillar indicates the output of the innovation activities undertaken by the states. Even though this dimension only has two pillars, it has the same weightage in the calculation of the overall innovation scores as the Enablers’ dimension.
The Overall Innovation Score: The overall innovation score is the simple average of the two dimensions.
Innovation Efficiency Ratio: This is the ratio of the two scores. It indicates the state’s ability to efficiently leverage its investments and infrastructure to produce successful innovation outputs. There are 2 dimensions, 7 pillars and 66 indicators in India Innovation Index 2021 and score of Himachal Pradesh in respective pillars is given below:

In collaboration with Social Progress Initiative, the Institute for Competitiveness has released the Social Progress Index: States and Districts in India report, mandated by the Economic Advisory Council, to the Prime Minister of India.
It is a tool focused on providing a robust and comprehensive measure of social progress based on social and environmental indicators that can complement Gross Domestic Product (GDP) as a measure of wellbeing. The index is the first holistic tool that is designed to measure social progress independent of GDP. A better understanding of this relationship can help policymakers make strategic choices that can lead to inclusive growth.
The SPI is composed of three dimensions:
Basic Human Needs, Foundations of Wellbeing, and Opportunity: The index uses an extensive framework comprising 89 indicators at the state level and 49 at the district level.
Basic Human Needs assess the performance of states and districts in terms of Nutrition and Basic Medical Care, Water and Sanitation, Personal Safety and Shelter.
Foundations of Wellbeing evaluates the progress made by the country across the components of Access to Basic Knowledge, Access to Information and Communication, Health and Wellness, and Environmental Quality.
Opportunity focuses on Personal Rights, Personal Freedom and Choice, Inclusiveness, and Access to Advanced Education.

Tier-Wise Analysis: The States, Union Territories (UTs) and Districts have been categorized into six tiers with their respective score range:
State-level tiers of Social Progress: Tier-I: Very High Social Progress: Himachal Pradesh has been ranked 7th with 8 other States/UTs and has achieved high SPI score due to remarkably well performance across components like Water and Sanitation, Shelter, Personal Safety, Personal Freedom and Choice, Personal Rights, Environment Quality, consequently scoring well across the dimension of Basic Human Needs.
District-level tiers of Social Progress: Out of 707 districts in India, Aizawl (Mizoram), Solan and Shimla are the top 3 best-performing Districts.
Tier 1: Very High Social Progress- With a total of 7 districts out of 12 in Himachal Pradesh, Tier-1 comprises districts that have attained near-to-perfect scores in terms of social progress. The districts under this tier have performed exceptionally well regarding Shelter, Inclusiveness, Water and Sanitation, and Personal Safety. Solan has topped the list with a score of 72.0 in SPI followed by Shimla (71.0), Sirmaur (67.2), Mandi (66.2), Hamirpur (65.4), Kullu (65.0) and Kangra (64.4). Tier 2: High Social Progress- The High Social Progress tier comprises of remaining 5 districts that have witnessed a streak of high scores across various components namely; Shelter, Water and Sanitation, Personal Safety, Personal Rights, Personal Freedom and Choice and Inclusivity.
Aspirational District Programme (ADP) District Insights In this section, we explore deep into the areas within SPI’s three components: Basic Human Needs, Foundations of Well-being and Opportunity. ADP districts need more focus in order to achieve higher levels of social progress. By analysing the performance of the aspirational districts in terms of social progress, it will become possible to highlight interventions that can uplift such districts to the level of mainstream development.
Only 27 out of 112 ADP districts have scored above national average on social progress index. Among these 27 districts, only 5 have ranked in top 100 districts. One of them is Chamba having a National Rank 77 with SPI of 63.38 lying in Tier 2.
Figure 5.4 Scorecard of Himachal Pradesh in Social Progress Index
Findings There is a correlation that may be described as both positive and strong between the per capita Gross Domestic Product and the Social Progress Index. In general, states with greater incomes tend to have more social progress. For instance, Goa and Sikkim rank high on social progress, but Bihar ranks the lowest of all states. In Himachal Pradesh, the relationship between SPI and GSDP is in some way beneficial, as the state's high per capita GSDP is causing the State to make significant strides in the area of social advancement. On the other hand, there are some states and UTs, like Delhi, that have a high per capita GSDP but relatively low social advancement, and vice versa.

EPI examines state and union territory export performance and export readiness. The index's goal is to create a benchmark to rank these states and UTs in order to enable them individually foster a favourable export environment in the area.
The country's think tank, NITI Aayog, took a significant stride forward by establishing the first-ever EPI 2020 for Indian states and UTs, followed by its second and most recent edition, EPI 2021. The report was developed in collaboration with the Institute of Competitiveness.
The Index ranks States and UT on critical parameters required for promoting the country’s exports. The structure of the EPI includes four pillars – Policy, Business Ecosystem, Export Ecosystem, and Export performance and 11 subpillars – Export Promotion Policy, Institutional Framework, Business Environment,Infrastructure, Transport Connectivity, Access to finance, Export Infrastructure, Trade Support, R&D infrastructure, Export Diversification, and Growth Orientation. Indicators Selection: Given the rationale and conceptual relationship between the two, 60 indicators for the Index were carefully picked under their respective pillar and subpillar.
Categorization of States: The states have been classified into two stages and four groups:
Ranking: Himachal Pradesh was ranked 18th out of 36 States/UTs/Cities in EPI 2021, with a composite score of 40.43. Himachal was ranked 19th in EPI 2020, with a composite score of 38.8. The comparison shows that Himachal has improved in Policy pillar of EPI. Its Export Promotion Policy has improved over a year, resulting in improvement in overall ranking of Himachal Pradesh.
Himachal Pradesh was ranked 2nd under Himalayan States category in EPI 2021. In EPI 2020, Himachal Pradesh stood 3rd. Himachal Pradesh’s score has improved in policy measures, access to finance and trade support to exporters and infrastructure which resulted in improvement in its ranking.

Good governance may be described as the process of evaluating how public institutions conduct public affairs, manage public resources, and ensure the achievement of human rights in a way that is fundamentally free of abuse and corruption and respects the rule of law.
To promote good governance, the DGGI-2021 has been developed in the State with modified parameters to increase inclusion in policymaking. Ranking of districts is being done to foster healthy competition amongst districts. The DGGI-2020 had 7 themes, 19 focus topics, 75 governance indicators, and 21 sub-indicators, whereas the DGGI-2021 has been altered to include 8 themes, 19 focus subjects, 76 indicators and 13 sub-indicators. The comparative performance of various districts in DGGI is presented in table 5.15.
Some interesting features of the scoring from Table 5.16
Only a score of 0.216 separates the topper, Kangra from Lahaul-Spiti, the lowest rank holder.
Kangra, though at the top in the overall rankings, stands first in two themes i.e.
i) Crime, Law & Order and
ii) Transparency & Accountability.
It has ranked 2nd in Essential Infrastructure and 3rd in Social Protection and Environment and 5th in Support to Human Development Index.
Bilaspur district ranked 2nd in overall DGGI ranking and has a difference of 0.010 from top ranked Kangra. Bilaspur stands first in two themes i.e.
i) Support to Human Development Index and
ii) Environment Index and has ranked 3rd in Economic Performance Index.
District Chamba improved its position from 11th (2020) to 6th position in overall ranking. Only a difference of score of 0.132 separates Chamba from top rank holder Kangra.
Lahaul-Spiti is at the bottom of the rankings in District Good Governance Index. However, it has ranked 2nd in Women & Children Index.
The gap between State’s average score and lowest performer district LahulSpiti in DGGI-2021 is 0.093 points only.

The Lead Bank responsibility for Himachal Pradesh has been divided between three banks: Punjab National Bank (PNB) in six districts (Hamirpur, Kangra, Kinnaur, Kullu, Mandi, and Una); United Commercial Bank (UCO) in four districts (Bilaspur, Shimla, Solan, and Sirmour); and State Bank of India (SBI) in two districts (Chamba and Lahaul-Spiti). UCO bank is the State Level Bankers Committee's convener bank (SLBC).
More than 76 per cent of the State's network of 2,234 bank branches are located in rural regions. From October, 2021 to September, 2022, the opening of 20 new branches occurred. Currently, 1,708 branches are located in rural regions, 426 in semi-urban areas, and 100 in Shimla, the sole urban centre designated by the Reserve Bank of India for the state. According to the 2011 census, the average population per branch in the state was 3,073, compared to national average of 11,000. Public Sector Banks (PSBs) have 1,157 branches as of September, 2022, representing more than 51 per cent of the overall branch network of the banking sector in the State. The PNB has the most branches with 350, followed by SBI with 348 and UCO with 174. Private Sector Banks have 210 branches, with Housing Development Finance Corporation (HDFC) having the most with 84, followed by Industrial Credit and Investment Corporation of India (ICICI) with 48 branches. In the State, there are four small finance banks with a network of 21 branches. With a total of thirteen outlets, India Post Payments Bank, Financial Inclusion Network and Operations (Fino) Payments Bank, Airtel Payment Banks and Paytm Payment Banks are the four Payment Banks operating in the State.
As of September, 2022, Himachal Pradesh Gramin Bank (HPGB), a Regional Rural Bank (RRB) sponsored by PNB, has a branch network of 266 locations. There are 541 Cooperative Sector Banks branches.
Kangra Central Co-operative Bank (KCCB) has 217 branches. Five Urban Co-operative Banks with 26 branches are also operating in the State. In terms of district-wise spread of bank branches, Kangra district has the highest number of 411 bank branches and Lahaul-Spiti has the lowest number of 25 branches. The outreach of bank services has further increased by installation of 2,127 Automated Teller Machines ( ATMs) by various banks.
Banks have deployed Business Correspondent Agents (known as “Bank Mitras”) in sub service areas to provide Banking services to the far-flung areas, where Brick and Mortar Branches are not financially viable. At present 14,848 Bank Mitras are deployed in the State by various banks for providing basic Banking services in villages. The Public sector Banks in the State namely, PNB, SBI, UCO, Canara Bank, Central Bank of India, Union Bank of India and Bank of Baroda have full-fledged Regional Zonal and Circle Offices in the State. Reserve Bank of India (RBI) has its Regional Office headed by a Regional Director and National Bank for Agriculture and Rural Development (NABARD) has its Regional Office headed by a Chief General Manager at Shimla.
The role and responsibility of banks is well recognized as a partner for accelerating the socio-economic growth of the State. The flow of credit in all priority areas has been enhanced. As of September, 2022 banks in the State have achieved 6 out of the 7 National Parameters by the RBI for Lending to Priority Sectors, which include Agriculture Sector, Small and Marginal Farmers, Micro Enterprises, Weaker Sections and Women. At present, banks have extended 57.68 per cent of their total loans to the Priority Sector Activities.
Agriculture loans account for 18.69 per cent of total loans given by banks as of September, 2022, compared to the RBI's national threshold of 18 per cent. Advances to Weaker Sections and Women account for 20.30 and 11.95 per cent of total lending, respectively, compared to national targets of 11 and 5 per cent. Banks in the state have a Credit Deposit Ratio (CDR) of 39.34 per cent till September, 2022. The National Parameters are given in Table-6.1 below:

Financial inclusion refers to the provision of financial services and goods at a cheap cost to excluded members of our society and low-income groups. The Government of India Financial Inclusion Campaign-"Pradhan Mantri Jan-Dhan Yojana" (PMJDY) has been running for more than seven years, and numerous measures are being implemented to strengthen the society's weakest segments, including women, small and marginal farmers, and labourers in both rural and urban regions.
Pradhan Mantri Jan Dhan Yojana (PMJDY): Banks in the state have provided each family with at least one Basic Saving Bank Deposit Account (BSBDA). As of September, 2022, banks have 17.33 lakh accounts under the initiative, 15.40 lakh of these accounts are in rural regions, while 1.93 lakh are in urban areas. Banks supplied RuPay Debit Cards to 12.28 lakh PMJDY account holders, accounting for more than 70 per cent of these accounts. Banks have taken the initiative to link bank accounts with Aadhaar and mobile numbers, and 81 per cent of PMJDY accounts have been linked as on September, 2022.
Universal Social Security Initiatives under PMJDY Scheme:The Government of India has introduced three Social Security Schemes. The following describes the current Status of social security schemes:
i) Pradhan Mantri Suraksha Bima Yojana (PMSBY): This scheme offers a renewable one-year accidental death cum special ability cover of ₹2.00 lakh (₹1.00 lakh for partial and permanent special ability) to all saving bank account holders between the ages of 18 and 70 for a premium of ₹20.00 per annum per subscriber, renewable on 1st June of each year. Banks have 19.35 lakh PMSBY subscribers by September, 2022 and Upto 23rd November, 2022 the Insurance Companies had resolved 1215 insurance claims under this yojna.
ii) Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): This policy offers a renewable one-year life cover of ₹2.00 lakh to all saving bank account holders aged 18 to 50 years, covering death due to any cause at a premium of ₹436.00 per annum per subscriber, renewable on 1st June of each year. As of September, 2022 banks have 6.25 lakh customers through this plan. Since its establishment, the insurance companies have settled 2,953 insurance claims as of 30th November, 2022.
iii) Atal Pension Yojana (APY): Atal Pension Yojana focuses on the unorganized sector and provides subscribers with a minimum fixed pension of ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000 per month starting at the age of 60 years, depending contribution exercised on entering the age between 18 and 40 years. The government guarantees the minimum fixed pension provided 20 years of consistent contributions are paid. The State Government is emphasizing the adoption of the APY among MGNREGA employees, Mid Day Meal workers, Agriculture and Horticulture labourers, and Anganwari workers. Banks have prioritized an active awareness effort for the programme via camps, press, and other media. Upto September, 2022 banks have registered 3,44,815 subscribers in the APY. Additionally, the Department of Posts and Telegraph participates in the APY Scheme.
Pradhan Mantri MUDRA Yojana (PMMY): Trading and Services with credit demands of less than ₹10.00 lakh; all loans made to these sectors for income creation are known as MUDRA loans. Under this scheme, any advances given on or after 8th April, 2015 that fall into this category are classified as MUDRA loans.
Banks in Himachal Pradesh have sanctioned new loans totaling ₹929.04 crore to 37,837 new micro entrepreneurs under the Scheme, during this FY2022-23 upto September 2022. Including this time period, the total amount of disbursed loans is ₹2,842.37 crore, covering 1,71,110 entrepreneurs.
Stand-Up India Scheme (SUIS): Stand up India scheme has been formally launched throughout the Country that aims to encourage entrepreneurial culture among unserved and underserved segments of the society represented by SC, ST and Women.
The Scheme facilitates loans of ₹10.00 lakh to ₹1.00 crore from Banks to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one women borrower per bank branch for setting up of a new enterprise in the field of construction, business or service sector (also termed as green field enterprise). Banks have sanctioned ₹43.46 crore to 276 new enterprises set up by SC/ST and Women entrepreneurs under the scheme during this financial year upto September, 2022.
Financial Awareness and Literacy Campaigns:The Financial Literacy and Awareness campaign is very important in reaching to the target populations. Banks in Himachal Pradesh are implementing financial literacy campaigns through Financial Literacy Centers (FLCs) and bank branches.

The total deposits of all banks in the state surged from ₹1,50,088 crore in September, 2021 to ₹1,61,995 crore in September, 2022. Bank deposits increased by 7.93 per cent year on year. Aggregate advances increased from ₹54,423 crore in September, 2021 to ₹60,601 crore in September, 2022 indicating an 11.35 per cent year-on-year growth. The overall banking business has increased by 8.84 per cent to ₹2,22,595 crore as of September, 2022 from ₹2,04,511 crore in September, 2021.
Public Sector Banks (PSBs) have the biggest market share of 63 per cent, followed by RRBs at 5 per cent, Private Banks at 12 per cent, and Co-operative Sector Banks at 20 per cent. Table-6.2 contains the comparative statistics.

Banks have prepared Annual Credit Plan for 2022-23 for disbursement of fresh loan on the basis of potentials worked out for various priority sector activities by NABARD. The financial targets under Annual Credit Plan 2022-23 have been increased by 9.72 per cent over the last plan outlay and fixed at `33,507 crore. Banks have disbursed fresh loans to the tune of `17,218 crore upto September, 2022 and achieved 51.39 per cent of the annual commitment. The Sector-wise target viz-a-viz achievement upto 30th September, 2022 is given in Table 6.3.

i) National Rural Livelihoods Mission (NRLM): The Ministry of Rural Development, launched flagship programme of Government of India for promoting poverty reduction through building strong institutions of the poor, particularly women enabling these institutions to access a range of financial services and livelihoods services. This scheme is implemented in the State through HP State Rural Livelihoods Mission (HPSRLM), Rural Development Department, Government of Himachal Pradesh. Banks in the Himachal have been allocated the annual target of ₹110.00 crore covering 8,000 beneficiaries under this Scheme. Banks have sanctioned 1,980 loan to the tune of ₹44.18 crore upto September, 2022 under NRLM scheme.
ii) National Urban Livelihoods Mission (NULM): The Ministry of Housing and Urban Poverty Alleviation (MoHUPA) of the Government of India reformed the existing Swarna Jayanti Shahari Rozgar Yojana (SJSRY) and created the National Urban Livelihoods Mission (NULM). The Self Employment Programme (SEP) is one of the NULM components (Component 4) that focuses on providing financial assistance in the form of interest subsidies on loans to encourage the formation of Individual and Group Enterprises (IGEs) and Self-Help Groups (SHGs) of the urban poor. Himachal Pradesh's Urban Development Department and several banks have disbursed ₹6.10 crore in NULM loans to September, 2022.
iii) Pradhan Mantri Employment Generation Programme (PMEGP): PMEGP is a credit-linked subsidy programme run by the Government of India's Ministry of Micro, Small, and Medium Enterprises. The Khadi and Village Industries Commission (KVIC) is the national nodal agency for scheme implementation of the scheme. The scheme is implemented at the state level by KVIC, Khadi and Village Industries Board (KVIB), and District Industries Centre. Banks were given a target of funding 1,359 additional units under the plan in 2022-23. Under the scheme, the implementing agencies are expected to offer margin money disbursements totaling ₹42.85 crore. Banks have approved ₹26.49 crore as margin money for 819 units till September, 2022.
Kisan Credit Cards (KCC): Banks are implementing the KCC programme through their rural branches to offer appropriate and timely credit support from the banking system to farmers through a single window to address short-term credit requirements for agricultural production and other needs. Banks have issued new KCCs to 1,26,079 farmers totaling ₹1,624.17 crore till September, 2022. Banks have funded 4,43,988 farmers through KCC for a total of ₹7,835.57 crore till September, 2022.
Rural Self Employment Training Institutes (RSETIs): Rural Self Employment Training Institutes (RSETIs) are an initiative of Ministry of Rural Development (MoRD) to build dedicated infrastructure at the district level to provide training and skill development to rural youth interested in entrepreneurship.
The State's lead banks i.e. UCO Bank, PNB, and SBI, have established RSETIs in ten districts (except Kinnaur and Lahaul-Spiti). These RSETIs are carrying out Electronic Data Processing (EDPs) under different government-sponsored programmes for poverty reduction and enterprise development under the PMEGP. RSETIs have set a target of arranging 226 training programmes during 2022-23, and trained 6,022 youths.
Special drive for Aadhaar linkages with Bank account and verification of Aadhaar in all existing Bank Accounts: Various banks in Himachal Pradesh have selected 65 Aadhaar Enrolment and Updation Centers to provide Aadhaar enrollment and updation services.

In recent years, NABARD has significantly strengthened its association with the developmental process for Integrated Rural Development through initiatives encompassing a wide range of activities such as Rural Infrastructure Development, Micro Credit, Farmer Producer Organizations, Rural Farm and Non-Farm Sector, Skill Development, Refinance, and strengthening the rural credit delivery system in the State. Furthermore, NABARD is also implementing or is associated with certain Centrally Sponsored Schemes of Government of India.
Rural Infrastructure: Since its inception in 1995-96, the development of infrastructure in rural areas through Rural Infrastructure Development Fund (RIDF), has emerged as NABARD’s major intervention in partnership with the State Governments. Under this scheme, concessional loans are given to State Government and State owned Corporations for completion of ongoing projects and also to start new projects in certain selected sectors. Financing over the years has become broad based covering 39 eligible activities classified into agriculture and related sectors, social sector and rural connectivity.
From an initial allocation of ₹15.00 crore under RIDF-I in 1995-96, the State has recently received an allocation of ₹800.00 crore under RIDF-XXVIII (2022-23). RIDF has contributed significantly to the development of several sectors such as irrigation, roads and bridges, flood protection, drinking water supply, primary education, veterinary services, watershed development, IT infrastructure etc. In recent years, innovative projects for the development of Poly-Houses, Micro Irrigation Systems, and Solar Irrigation have been supported, which would aid in the commercialization of agri-business and sustainable farming.
A ₹10,026.09 crore has been sanctioned to the state under the RIDF as on 31st March, 2022, for projects of rural roads/bridges, irrigation, rural drinking water, education, animal husbandry etc. ₹809 crore has been sanctioned under RIDF-XXVIII, and ₹429.35 crore has been disbursed to the state govt. upto 31st December, 2022.
Following the implementation/completion of the sanctioned projects, 13,535 kilometer of roads will be made motorable, 26,547 metre of bridges will be constructed, and irrigation projects will benefit 1,75,344 hectares of land(both new and improvement of existing projects). Furthermore, 2,921 primary school rooms, 64 Secondary School Science Laboratories, 25 Information Technology Centres, and 397 Veterinary Hospitals /Artificial Insemination Centres have already been constructed.
Warehouse Infrastructure Fund (WIF): As on 31st December, 2022, NABARD has sanctioned a total assistance of ₹12.73 crore to the State. Under WIF, the Government of Himachal Pradesh would get ₹855.00 lakh for the modernization and upgradation of three cold stores into CA stores at Rohru, Oddi, and Patlikuhal, with a total capacity of 3,480 MT.
Food Processing Fund (FPF): NABARD has established a Food Processing Fund (FPF) with a corpus of ₹2,000 crore in 2014-15 for providing financial assistance for establishing the designated food parks and also for setting up of individual food/agro processing units. M/s Cremica Mega Food Park has been extended financial assistance of ₹37.94 crore out of total project cost of ₹103.85 crore in the State. NABARD has also sanctioned a loan of ₹11.70 crore under FPF to M/s Agriva Naturals for establishment of “Ready to cook frozen snacks” processing plant in Cremica Mega Food Park Pvt. Ltd., Una. The farmers of the state are expected to benefit from the hub and spoke model of this and it is expected to create employment opportunities in the State.
Re-finance Support: NABARD extends Long Term Refinance for diverse activities viz. rural housing, small road transport operators, land development, minor irrigation, dairy development, self-help group, farm mechanization, poultry, plantation and horticulture, sheep/ goat/ piggery rearing, packing and grading house activity and other sectors. Out of the long term refinance of ₹890.00 crore available for disbursement during 2022-23 to Himachal Pradesh Gramin Bank and Cooperative Banks including Land Development Banks (LDB), ₹318.88 crore has been released as on 30th December,2022. Out of this ₹84.88 crore has been provided to Himachal Pradesh State Cooperative Agriculture and Rural Development Bank Ltd. (HPSCARDB). Further, in addition to above, out of ₹212.00 crore available for Commercial Banks/ SFBs (Small Finance Banks) in the state for long term refinancing, ₹13.62 crore has been released as on 30th December,2022.
During 2021-22, banks (including commercial banks) received ₹628.92 crore in long-term refinancing, including a special liquidity facility of ₹20.00 crore provided by HPSCARDB to ameliorate the impact of Covid-19.
NABARD has supplemented the efforts of Cooperative Banks and RRBs for crop loan disbursement in the State by providing a Short Term (ST) credit limit of ₹2,250 crore for the FY2022-23, against which the banks have drawn refinancing assistance of ₹1,091.33 crore as on 30th December, 2022.
During 2021-22, Cooperative Banks and RRBs in the state availed ₹1,889.00 crore in short-term refinancing. This includes a Special Liquidity Facility of ₹660.00 crore granted by NABARD to Cooperative and Regional Rural Banks in Himachal Pradesh for 2021-22 to offset the impact of Covid-19.
Special Refinance Schemes: To give boost to the agriculture and rural sector in the post Covid era, NABARD launched 4 new schemes:
a) Transformation of Primary Agricultural Cooperative Societies (PACS) as Multi Service Centres (MSCs): This scheme seeks to convert around 35,000 PACS to MSCs across the country in a structure manner over the next two years. ₹14.00 crore has been sanctioned under this scheme to 52 PACS for conversion to MSCs in the State as on 30th December, 2022.
b) Special Refinance Scheme in NABARD watershed and WADI Project areas: The scheme aims to promote sustainable economic activities, livelihood and employment opportunities in watershed and WADI areas by providing concessional refinance facility @ 3 per cent to the banks for extending cheaper credit to the ultimate beneficiaries.
c) Special Refinance Scheme for Promoting Micro Food Processing Enterprises: The scheme aims to provide a fillip to the Pradhan Mantri Formalization of Micro Food Processing Enterprise Scheme. NABARD will extend concessional long term refinance to all eligible banks/ Financial Institutions (FIs) at 4.0 per cent to accelerate capital formation in Micro Food processing enterprises.
d) Schematic Refinance for Water Sanitation and Hygiene Activities: The Scheme aims to meet credit requirement of banks/FIs to enable them to provide timely and hassle free credit to eligible beneficiaries /entrepreneurs to facilitate Water Sanitation and Hygiene activities.
Government Sponsored Schemes:
a) New Agricultural Marketing Infrastructure (AMI) Scheme: The Ministry of Agriculture and Farmers' Welfare, Government of India, is implementing the new Agricultural Marketing Infrastructure (AMI), a sub-scheme of the Integrated Scheme for Agricultural Marketing (ISAM). The scheme has been extended for term loans sanctioned upto 31st March, 2023.
b) Special Refinance Scheme for financing under Agricultural Infrastructure Fund (AIF)
The scheme has been developed by the Government of India to mobilize a medium-long term debt financing facility for investment in feasible projects linked to post-harvest management infrastructure and community farming assets through incentives and financial assistance.
The scheme envisages to boost lending by rural financial institutions for funding projects under AIF by providing concessional refinance by NABARD. The interest rate as on 30th December, 2022 is 6 per cent which is subject to change from time to time. However, the interest rate to be charged from ultimate borrowers should not be more than 9 per cent. All loans under this financing facility will have Government of India interest subvention of 3 per cent per annum up to a limit of ₹2.00 crore. This subvention will be available for a maximum period of 7 years. The Scheme will be operational from 2020-21 to 2032-33.
NABARD-Open Network for Digital Commerce (ONDC) Grand Hackathon: NABARD, in collaboration with ONDC, conducted a large hackathon to develop ideas for offering e-commerce for Producer Organizations' products via the ONDC platform. Over 700 Startups registered, with over 300 Startups participating. The hackathon was held for three days, from 1st July to 3rd July, 2022, and due to the active participation of the Startups in delivering the best of the best solutions, it was later extended by one day. The startups competed to solve nine significant issue statements in the FPO industry in order to get access to the ONDC platform. Six problem statements were from the innovation challenge, and three scenarios were to be carried out as part of the integration challenge.
New Agricultural Marketing Infrastructure (AMI) Sub-Scheme of Integrated Scheme for Agricultural Marketing (ISAM): The Agricultural Marketing Infrastructure (AMI) sub-scheme of ISAM is being implemented by the Ministry of Agriculture and Farmers’ Welfare, Government of India. The AMI sub-scheme of ISAM is applicable for new credit linked projects, where term loan has been sanctioned by eligible financial institutions from 22.10.2018 onwards. NABARD is the channelizing agency for release of subsidy @ 25 per cent to 33.33 per cent of the capital cost for institutions eligible for refinance by NABARD or any other FI such as State Financial Corporations (SFCs) approved by Department of Agriculture, Cooperation and Farmers’ Welfare (DAC and FW), Ministry of Agriculture and Farmers’ Welfare, Government of India. The Ministry of Agriculture and Farmers’ Welfare, Government of India, have approved the continuation of AMI sub-scheme of ISAM up to 31st March, 2023.
Agri Clinic and Agri Business Centres Schemes (ACABC Scheme: The ACABC scheme is being implemented by Ministry of Agriculture and Farmers’ Welfare, Government of India, with NABARD acting as subsidy channelizing agency.
The objectives of the scheme are:
To supplement efforts of public extension by providing extension and other services to farmers either on payment basis or free of cost as per business model of agri-preneur, local needs and affordability of target group of farmers.
To support agricultural development.
To create gainful self-employment opportunities to unemployed agricultural graduates, agricultural diploma holders, intermediate in agriculture and biological science graduates with PG in agri-related courses.
Agri-Clinics: Agri-Clinics are envisaged to provide expert advice and services to farmers on various aspects to enhance productivity of crops/animals and increase the incomes of farmers. Agri-Clinics provide support in the following areas:
Soil health
Cropping practices
Plant protection
Crop insurance, Clinical services for animals, feed and fodder management
Post-harvest technology
Clinical services for animals, feed and fodder management
Prices of various crops in the market, etc.
Agri-Business Centres: Agri-Business Centres are commercial agri-venture units founded by qualified agricultural specialists. These businesses might include farm equipment repair and custom hiring, the selling of supplies and other services in agricultural and related fields, such as post-harvest management, and market connections for revenue creation and entrepreneurial growth. The plan includes complete financial assistance for training and mentoring, as well as the granting of a loan and a credit-linked back-end composite subsidy.
Micro Credit: The Self Help Group (SHG) movement has grown throughout Himachal Pradesh and is now firmly established. The movement has provided additional assistance in human resources and financial items. As on 31st March, 2022, the total number of credit-linked SHGs were 49,636 and 11,990 credit-linked SHGs with loans outstanding of ₹14,092 lakh.
The announcement in the Union Budget 2014-15 of finance for Joint Farming Groups "Bhoomi Heen Kissan" (landless farmers) lends validity to NABARD's efforts to innovate and reach out to landless farmers through Joint Liability Groups (JLGs) form of financing. Upto 31st March, 2022, 13,682 Joint Liability Groups have received loan disbursements totaling ₹16,586.70 lakh.
NABARD is collaborating with more than 60 Self Help Promoting Institutions/Joint Liability Promoting Institutions in the state to spread the "Self Help Groups Bank Linkage Programme" and "Joint Liability Group" scheme. NABARD sanctioned ₹40.00 lakh each to Himachal Pradesh Gramin Bank (HPGB), State Bank of India, and UCO Bank during 2020-21 for the promotion and credit linkage of 1,000 JLGs over a period of three-years.
Promotion of Farmers’ Producer Organization: NABARD has sanctioned a grant of ₹11.42 crore in Himachal Pradesh for the formation/promotion of 113 FPOs across all 12 districts. On an aggregate basis, these FPOs will produce process and market vegetables, medicinal and aromatic plants, milk and flowers. As of 31st December, 2022, ₹8.23 crore have been made available for these FPOs. These FPOs cover about 21,994 farmers across the State with an annual turnover of ₹36.00 crore. In another Central Sector Scheme, NABARD will be the implementing agency for the establishment and promotion of 10,000 FPOs under the "One District, One Product" idea. FPOs would be fostered and supported in the state through Cluster Based Business Organizations (CBBOs). Under the initiative, NABARD has established 26 FPOs with a total grant of ₹4.68 crore.
Watershed Development: NABARD has approved 50 Watershed Development Projects (Watershed and Spring Shed Projects) across the state's 10 districts. As of 31st December, 2022, a total of 26.69 crore had been given under these projects, which covered 38,732 hectares and benefited 300 villages in ten districts. These initiatives will improve water availability, safeguard the environment, raise farmer production and income, conserve decreasing grasslands, and promote animal husbandry. The remaining two districts, Kinnaur and Lahaul-Spiti, will be covered in the next financial year.
Tribal Development through the Tribal Development Fund (TDF): NABARD has approved 13 tribal development projects with a total grant of ₹19.76 crore benefiting 3,555 families upto 31st December, 2022. These initiatives intend to establish WADIs (small orchards) and dairy units in selective villages covering around 2,506 acres of land for Mango, Kinnow, Lemon, Apple, Walnut, Pear, and Wild Apricot planting.
Support through the Farm Sector Promotion Fund (FSPF): NABARD has sanctioned 39 projects totalling ₹33.02 crore under the FSPF, benefiting about 26,087 farmers. During the FY2022-23, 9 projects in Kangra, Lahaul-Spiti, Kinnaur, Solan, Sirmaur, and Mandi have been sanctioned with a grant assistance of ₹89.12 crore.
Financial Inculsion: NABARD has sanctioned a support of ₹3.41 crore in FY2022-23 upto 31st December, 2022 to various banks throughout the State for spreading Financial Literacy through Financial and Digital Literacy Camps. NABARD has sanctioned ₹1.95 crore to UCO Bank and ₹ 2.34 crore to Punjab National Bank for establishing 5 and 6 Centres for Financial Literacy (CFL), respectively. Besides this, NABARD has also initiated to spread Financial Awareness through Media.

NABARD Consultancy Services (NABCONS) is a completely owned subsidiary of NABARD that provides consulting services in various areas of agriculture, rural development and allied areas. During the current fiscal year, NABCONS is participating in the following main assignments:
Project Management Consultancy for Integrated Cold Chain Project at Parala and Kharapathar to Himachal Pradesh State Agricultural Marketing Board.
Setting up PMU (Project Management Unit) under Agri-Infrastructure Fund (AIF) at State Level in Himachal Pradesh.
Third party Impact Assessment of Pradhan Mantri Adarsh Gram Yojana.
Impact Evaluation Study of Micro Irrigation in Himachal Pradesh.
Comprehensive Study of Handloom Sector in Himachal Pradesh.
NABCONS is Central Technical Support Agency for DDU-GKY in Himachal Pradesh.
Third Party Inspection of Border Area Development Programme.
Study to assess the effectiveness of NFSM scheme in Himachal Pradesh.
Impact Evaluation study of FPOs in Himachal Pradesh.
NABARD’s Initiatives for Climate Change in H.P. : NABARD has been approved as a National Implementing Entity (NIE) for the Adaptation Fund (AF), Green Climate Fund (GCF), and National Adaptation Fund for Climate Change (NAFCC) established under the United Nations Framework Convention on Climate Change (UNFCCC) set up by Ministry of Environment, Forest and Climate Change (MoEF & CC). To meet the future challenges of climate change, NABARD facilitated the preparation, development, and sanction of a projection titled 'Sustained Livelihoods of Agriculture Dependent Communities in Drought-Prone Districts of Himachal Pradesh through Climate Smart Solutions' in Sirmour district from the executing entity, namely the Department of Environment, Science, and Technology of the Government of Himachal Pradesh. The project has been allocated a budget of ₹ 20.00 crore by the MoEF and CC. NABARD has since released ₹19.12 crore upto 31st December, 2022. In addition department has also submitted the Detailed Project Report (DPR) for another NAFCC project titled "Reducing Glacial Lake Outburst Flood and Flood Risk in Parvati Valley in Kullu District" to MoEF & CC.

COVID-19 had unprecedentedly hit Himachal Pradesh's population badly. Following the end of the epidemic, the war between Russia and Ukraine erupted, sparking price increases around the globe due in large part to the rising cost of crude oil and other commodities. As a result, central banks were pressured to tighten monetary policy as prices hit a decade high and hit home budgets hard. Stagflation was a very real possibility that needed to be addressed. Since there was no other choice, industrialised economies increased their interest rates.
As the US Federal Reserve raised rates, the United States (US) dollar appreciated, making dollar-denominated fuel imports even dearer. Rising prices are always a cause of concern for policymakers as they hurt the common man the most. The perils of inflation are felt more in developing economies, where necessities have a higher share in the consumption basket than in developed countries. Himachal Pradesh's inflation rate has been somewhat subdued as of late, falling below the RBI's target rate of 4 per cent from 2017 to 2019.
Supply-side interruptions drove inflation over the RBI's maximum tolerance range of 6 per cent in 2020. The pandemic had a greater impact on supply than demand, causing supply-chain disruptions in the case of vital items such as food, medicine, and industrial goods. As a result, cost-push inflation in the state was exacerbated.

From April through December of the current Financial Year (FY) 2022-23, the Wholesale Price Inflation (WPI) at the State level fell from 15.4 per cent to 5 per cent. However, retail price follow the pattern established by wholesale price. The Consumer Price Index (CPI) fluctuated between 3.2 and 7.2 per cent. There were two primary forces at work during the convergence of the WPI and CPI indexes. First, the WPI fell because of a slowdown in the inflation of key commodities such as crude oil, iron, aluminium, and cotton. When compared to the CPI, these goods have a far bigger share of the WPI's weight. Furthermore, these commodities are utilised extensively by enterprises manufacturing wholesale products, making them very sensitive to swings in worldwide pricing. As commodity prices levelled down, the two indicators of inflation started to converge. The second reason for the higher CPI is that service costs have been rising. Services form a part of the core component of the CPI-C but are not included in the WPI basket The divergence between a relatively high WPI inflation and lower CPI inflation widened in May, 2022 (Figure:7.1) As a result of the different weights assigned to the two indexes and the lag time inherent in the impact of rising import costs on consumer prices, the former has been more volatile. Since then, however, there has been a narrowing of the gap between the two inflation gauges, suggesting a trend towards convergence. Core inflation, an indicator of demand-pull inflation, has seen little movement recently. As such, the Government places a high premium on controlling inflation.
Since personal income is not tied to prices, ordinary people suffer disproportionately when inflation occurs. The ups and downs of inflation are measured by various indices, including the Wholesale Price Index, the Consumer Price Index-Rural (CPI-R), the Consumer Price Index-Urban (CPI-U), the Consumer Price Index-Combined (CPI-C), the Consumer Price Index-Industrial Worker (CPIIW), the Consumer Price Index-Agriculture Labourers (CPI-AL), and the Consumer Price Index-Rural Labourers (CPI-RL), are used to track inflationary trends.
Consumer Price Index-Combined (CPI-C) inflation among Neighbouring, Other State:Himachal Pradesh has moderate inflation in the current financial year, with the CPI-C at 6.5 per cent in April-2022, compared to 3.9 per cent in December-2022 (P). This inflation was mostly caused by a spike in food inflation,which persisted throughout the economy's interest rate hike, but there has been some decrease since November.
The comparative analysis of inflation among different States is shown below (Figure-7.2). The lowest CPI-C inflation rate after Chattisgarh in December, 2022 is 3.9 per cent in Himachal Pradesh, where as Chattisgarh it was 2.7 per cent in December, 2022. In the remaining States, inflation in December, 2022 varied from 6.0 per cent to 6.7 per cent. In comparison to Himachal Pradesh, this is substantially higher.
Drivers and contributors to Consumer Price Index inflation (Combined) 2022 vs 2017 Figure 7.3 :

i) Retail Inflation Driven by Food Commodities The three categories that made up the bulk of the CPI-C inflation in the year 2022 were "food and beverages," "clothing and footwear," and "other." Clothing and footwear accounted for 44.1 per cent of the overall inflation in the year 2022, making it the main driver of CPI-C inflation. With a 30 per cent contribution, food and drinks are the second-largest contributor to overall inflation, pan, cigarettes, and other intoxicants make up (-) 11.9 per cent of the total negative contribution (Figure 7.3)
ii) Food Inflation Caused by Vegetables and Cereals in 2022 Food inflation based on Consumer Food Price Index (CFPI) climbed to 6.0 per cent in FY2022 from 5.2 per cent in FY2021. CPI-R inflation climbed to 6.1 per cent in FY2022 from 4.7 per cent in FY2021. CPI-AL inflation climbed to 5.2 per cent in FY2022 from 4.2 per cent in FY2021. CPI-RL inflation climbed to 5.3 per cent in FY22 from 4.2 per cent in FY2021 (Table 7.1).Though the increase in food inflation is broad-based, the major contributors are vegetables, cereals, milk and spices. The RBI forecasts elevated domestic prices for cereals and spices in the near term, owing to supply shortages. Milk prices are also expected to spike reflecting high feed costs. Since September 2022, double-digit inflation was observed in WPI and cereals. To check the soaring prices of wheat and rice, the government has prohibited the export of wheat products. High inflation in vegetables was mainly due to a spike in prices of tomatoes owing to crop damage and supply disruption due to the unseasonal heavy rains in the major producing Districts. Consumer Price Index Industrial Worker (CPI-IW): CPI-IW is a price index released by the Labour Bureau to assess the effect of price increases on the cost of living for working-class families in certain sectors. In September 2020, the base year has been changed from 2001 to 2016. The new CPI-IW series includes industrial employees from the traditional seven industries: factories, mines, plantations, railroads, public motor transport undertakings, energy generating and distributing enterprises, and ports and docks. As demonstrated in Tables 7.2, 7.3, and Figure 7.4, CPI-IW inflation in Himachal Pradesh was lower than the national average in December, 2022.

WPI-based inflation remained low throughout the Covid-19 era, but it began to gain momentum after the epidemic as economic activity restarted. The Russia-Ukraine war added to the burden by disrupting global supply networks and the free flow of key goods. As a consequence, the wholesale inflation rate rose to almost 13.0 per cent in FY 2022.
Food inflation, which remained at 7.5 per cent in FY2023 vs 6.8 per cent in FY2022, might account for some of the double-digit WPI inflation in the first half of FY2023. Due to variable meteorological circumstances, cereals and vegetables were the biggest drivers to food inflation. Inflation in the 'manufactured goods' subgroup fell significantly in FY2023 compared to the previous year, owing to the rationalisation of tariffs on important inputs and the stabilisation of global commodity prices. Core inflation in FY2023 remained lower than in FY2022 (Table 7.4)
Overall, the monthly trend of inflation rates based on wholesale prices has been sliding downwards from its peak of 16.6 per cent in May, 2022 to 10.6 per cent in September, 2022 and further to 5.0 per cent in December, 2022. (Figure: 7.1).
As previously stated, imported inflation contributes to WPI inflation. Because edible oils are heavily imported, the temporary impacts of higher worldwide costs for these items are also reflected in local pricing. According to an RBI study, one per cent increase in prices across all countries and sectors due to global inflation shock could raise inflation in India by around 63 basis points via second-round effects that include domestic indirect effects (46 basis points) and global spillovers (17 basis points), in addition to the direct impact of 100 basis points. The influence of global market prices on WPI (manufactured goods component) was clearly noticeable, particularly in the prices of oil and basic metals. Global prices for edible oils, rubber, cotton, crude oil, and metals have fallen in the current fiscal year. Capital outflows had a negative influence on India's currency rate in the first half of FY2023, contributing to the high costs of imported inputs, which are largely denominated in dollars.
Monthly Wholesale Price Index (WPI): Through a network of District Statistical Offices, the Department of Economic and Statistics gathers, compiles, and analyses data on 104 commodities. Every first Friday of the month, the prices are gathered from the district's designated stores. These rates are made accessible to stakeholders after being scrutinised at headquarters. Figures 7.6 and 7.7 depict the volatility in various commodities from April to December 2017 and April to December, 2022.
The Wholesale Price Index, at National level during December, 2021 was 143.3 which increased to 150.4 (P) in December, 2022 showing an inflation rate of 5.0 per cent. The month-wise average WPI for the year 2022-23 is given in Figure: 7.1 and 7.5. Figure 7.5 compares monthly WPI inflation from April to December 2022 vs April to December 2017. From April to December 2017, WPI inflation ranged between 0.9 and 4.0 per cent. WPI inflation fell from 16.6 to 5.0 per cent from April to December 2022. This is a significant decline in WPI inflation and suggests that retail prices in India will stay steady or fall in the next months.
The statistical tools of co-efficient of variation are used to analyse the fat grain wholesale prices co-efficient of variation in 2017 (April to December) and 2022 (April to December), and it is revealed that commodities barley, wheat flour, rice parmal, rice basmati, and corn flour are highly volatile during 2022-23 (Figure 7.6).
Due to increased production, government initiatives to maintain a buffer stock and lower import taxes and cess on pulses, and greater production levels, the coefficient of variation in pulses remained subdued. The commodities soyabean and kabuli channa are highly volatile, as is evident from the pulses wholesale prices co-efficient of variation calculations for 2017 (April to December) and 2022 (April to December), which also revealed the commodities malka, masur dal, rajmah, moong, and kulth to be less volatile. Because Chane dal, Arhar dal, and Urd prices are less unpredictable, they stay stable throughout the year (Figure 7.7).

Wholesale Price Inflation Caused by Global Supply Chain Disruption: Prices of items like petroleum products, basic metals, chemicals and chemical products, and edible oils, with maximum exposure to international pricing translated into a rise in the domestic WPI inflation.
Fuel Price Inflation: Declining Global Crude Oil Prices: In FY2021-22 and FY2022-23, inflation in WPI ‘fuel and power’ was mostly driven by high international crude oil prices. In response to subdued global demand because of Covid-19 induced restrictions, the price of the Indian basket of crude oil during FY2020-21 stayed in the range of 20-65 United State’s dollar/ billion barrels liquids (US$20-65/bbl) Thereafter, prices started surging on account of unprecedented cuts in crude oil supply by the Organisation of the Petroleum Exporting Countries (OPEC) and other oil producing countries. The upward trend continued in FY2021-22 and FY2022-23, as demand picked up with the easing of COVID-19 restrictions in most regions of the world. Also, owing to supply disruption amid rising tensions in Eastern Europe and the Middle East in June 2022, the Indian basket of crude oil peaked at US$116/bbl. Subsequently, the price declined to US$ 78/bbl in December 2022. Further, a cut in central excise duty on petrol and diesel in November 2021 and May 2022, followed by a reduction in Value Added Tax (VAT) by the State Governments helped moderate petroleum prices for consumers.
Wholesale Price Inflation of Primary Articles Inflation in primary articles climbed to 10.3 per cent in FY2021-22 from 1.7 per cent in FY2020-21. It further increased to 12.3 per cent in FY2022-23 from 10.3 per cent in FY2021-22. There can be many reasons that could have contributed to the volatility in inflation in the emerging market economies such as the adoption of more resilient Monetary and Fiscal Policy framework, structural reforms of labour and product markets that strengthen competition, and adoption of Monetary Policy framework for targeting inflation. Twenty-four emerging markets and developing economies have been witnessing moderation in inflation since 2014 backed by low food inflation. But this time food article inflation almost doubled climbed to 8.3 per cent in FY2022-23 from 4.1 per cent in FY2021-22.
Inflation CPI (IW) vs repurchasing option rate (Repo Rate): Most economies had difficulties in 2022. Many nations were able to put Covid-19 behind them. The majority of nations have entered another problematic zone, marked by unmanageably high rates of inflation; the repo rate is an effective method for mitigating inflation. When we encounter a financial crisis, we all turn to banks for help. Similarly, banks in our nation contact the central bank, which is known as the Reserve Bank of India. The repo rate, also known as the repurchase rate, is the interest rate at which the RBI loans cash to commercial banks and other financial institutions in the nation.
Figure 7.8 depicts how retail inflation has exceeded the RBI's tolerance limit. The MPC calls for a rise in the repo rate as soon as feasible, so that inflation rate falls. CPI (IW) inflation reached a high of 7.89 per cent in May, above the RBI's tolerance rate of 6 per cent. From May to December 2022, the RBI's Monetary Policy Committee raised the policy repo rate under the Liquidity Adjustment Facility (LAF) by 225 basis points, from 4.0 per cent to 6.25 per cent. The inflation rate is now decreasing.
The Central Government has implemented fiscal measures such as lowering the excise duty on gasoline and diesel, prohibiting the export of wheat products, imposing export duty on rice, lowering import duties and cess on pulses, rationalising tariffs and imposing stock limits on edible oils and oil seeds, maintaining buffer stock for onions and pulses, and rationalising import duties on raw materials used in manufactured products.

Falling Inflationary Expectations: Inflationary expectations are decisive in charting the course of inflation. The RBI’s anchoring of inflationary expectations through forward guidance and responsive monetary policy has helped guide the trajectory of inflation in the country. The one-year-ahead inflationary expectations by businesses have shown a decreasing trend in the current fiscal. As businesses are price-setters, their perceptions on inflation are significant in making sense of whether costs would be passed on, resulting in higher prices in the near future. Similarly, inflationary expectations by households, the economy's price takers, influence their spending decisions in the near future. Household inflation expectations, like those of corporations, have eased.
Monetary Policy Measures for Price Stability: Reserve Bank of India's Monetary Policy Committee (MPC) increased the policy repo rate under the liquidity adjustment facility (LAF) by 2.25 per cent (225 basis points) from 4.0 per cent to 6.25 per cent between May and December 2022. The RBI increased the REPO rate 25 basis points from 8th February, 2023.

Weekly Retail Price: The District Statistical Offices in Himachal Pradesh are a component of the Department of Economic and Statistics system for gathering and analysing data on basic goods. Every Friday, prices are gathered from participating stores in the district and, after being verified, posted at www.weeklyprices.hp.gov.in. The Director of the Department of Food Supplies and Consumer Affairs, as well as the Economics and Statistics Department, Government of Himachal Pradesh receives report every week detailing the previous week's pricing changes. (Volatility in essential commodities Figure 7.9)
Volatility in Essential Commodity Prices: It is possible that a scarcity of available workers contributed to the subsequent increase in retail prices after the implementation of COVID-19 regulations. Different important commodities' price fluctuations between April to December, 2017 and April to December, 2022 were analysed. Due to adequate supply resulting from adequate domestic production and also due to maintaining adequate buffer stock of rice and wheat for meeting the food security requirements (the prices of rice parmal, wheat kalyan, wheat atta, urd, Channa dal, gur, onion, potato, and sugar packets) have remained stable since April, 2022. Kerosene oil, cement, tea brooke bond, vanspati ghee, mustard oil, sugar, and ground nut oil all saw volatility between April to December of 2022.

One of the main constituents of the Government strategy for poverty alleviation is Targeted Public Distribution System (TPDS) which ensures availability of essential commodities like Wheat, Wheat Atta, Rice, Sugar etc. through a network of 5,163 Fair Price Shops. The total families for distribution of essential items have been divided in two categories viz:
1. National Food Security Act (NFSA)
i) Antyodaya Anna Yojna (AAY)
ii) Priority Households
2. Other than National Food Security Act (OTNFSA) (Above Poverty Line (APL) According to available data, the Targeted Public Distribution System in the state has issued 19,64,944 ration cards covering 74,52,484 card holders. These cardholders have access to necessary goods through 5,163 Fair Price Shops, which include 3,324 Cooperative Societies, 20 Panchayats, 53 Himachal Pradesh State Civil Supplies Corporation (HPSCSC), 1,732 Individuals, 10 Self-Help Groups, and 24 Mahila Mandals. Table 7.6 displays the distribution of necessary goods throughout the FY2022-23 (as of December, 2022).
Presently, following food items are being distributed through TPDS and Himachal Pradesh State Specially Subsidized Scheme which is as per Table 7.7

Government SuppliesThe Himachal Pradesh State Civil Supplies Corporation is the “Central Procurement Agency” for all controlled and non- controlled essential commodities in the state and also the agency for procuring and distributing food grains and other essential commodities under the Targeted Public Distribution System (TPDS) and NFSA. During the current financial year, upto December, 2022 the Corporation procured and distributed various commodities under TPDS to the tune of ₹1,574.63 crore as compared to ₹1,442.12 crore during the corresponding period of last year.
Presently, the Corporation is also providing other essential items like Liquefied Petroleum Gas (LPG), Diesel/ Petrol/ Kerosene Oil and lifesaving drugs/ medicines at reasonable rates to the consumers of the State through its 121 wholesale godowns, 50 retail shops, 54 LPG agencies, 4 petrol pumps and 40 medicine shops. In addition to this, the procurement and distribution of non- controlled commodities like sugar, pulses, rice, atta, detergents, tea leaves, exercise note books, cement, CGI sheets, medicines, furniture. Items under supplementary nutritional programme, MGNREGA cement and petroleum products etc. through wholesale godowns and retail shops of the Corporation which played an important role in stabilising prices of these commodities prevailing in the open market. During the current financial year, upto December, 2022, the Corporation purchased and distributed different goods under the subsidised plan to the tune of ₹792.05 crore, compared to ₹746.00 crore during the equivalent time of the previous Financial Year.
According to the allocation made by the respective Deputy Commissioners, the Corporation is coordinating the distribution of rice and other additional commodities to primary and upper primary schools under the midday meal programme. During FY2022-23 (until December 2022), the Corporation coordinated the distribution of 11,765.31 metric tonnes (MT) of rice under this programme, compared to 10,724.42 MT during the same time previous year.
The Corporation also arranges the supplies of specially subsidized items (pulses of various kinds, fortified mustard and refined oil and iodised salt) under the State Sponsored Scheme as per the decisions of the purchase committee constituted by the Government. During FY2022-23, (up to December, 2022) the Corporation has distributed these commodities under the said scheme to the tune of ₹604.92 crore as compared to ₹655.80 crore during corresponding period of last year to the ration card holders as per the scale fixed by the State Government. During the FY2022-23 for the implementation of this scheme, a budget provision of ₹215 crore has been made as State subsidy. During the FY2022-23 the corporation is likely to achieve a total turnover of about ₹2100 crore as compared to ₹1,550 crore during the FY2020-21.

The Himachal Pradesh State Civil Supplies Corporation (HPSCSC) manages the procurement and supply of ayurvedic medicines to government hospitals, cement to government departments/boards/corporations and other government institutions, and galvanised iron (GI)/ductile iron (DI)/cast iron (CI) pipes to the Jal Shakti Department, as well as school uniforms to the Education Department of the Himachal Pradesh government. During FY2022-23, the following is the anticipated status of government supply:
Mahatma Gandhi National Rural Employment Guarantee Act, (MGNREGA) Cement Supplies:During FY2022-23, (upto December, 2022), the Corporation managed the procurement and distribution of 38,88,780 bags cement amounting to ₹117.09 crore to various panchayats for developmental work in the State.
Food Security in Tribal and inaccessible Areas of the State:The Corporation provides all essential commodities, petroleum products including kerosene oil and Liquefied Petroleum Gas (LPG) in tribal and inaccessible areas. During FY2022-23 the supplies of essential items and Petroleum products to tribal and snow bound area were arranged as per the tribal Action Plan of the Government.
Implementation of National Food Security Act, 2013 (NFSA-2013): Under the NFSA plan, the State Government is allocating funding to build godowns for the Civil Supplies Corporation in order to increase food grain storage capacity. Under this scheme the food storage godown having capacity of 550 metric tonne (MT) at Nerwa, District Shimla, 1000 MT at Siddhpur Sarkari, District Kangra and 300 MT at Rajgarh, District Sirmaur, 550 MT Block A at Bilaspur, District Kangra, 500 MT at Sandhole, District Mandi, 907.47 MT at Chamba, District Chamba, 500 MT at Chetru, District Kangra and 500 MT at Thunag, District Mandi has been completed and possession taken over from the executing agency. Further, In order to enhance the storage capacity for Public Distribution System, a budget proposal of ₹17 crore to construct new godowns (about 8500 MT Net capacity) at various places in the state and ₹ 7 crore to repair and maintain the existing godowns has been submitted under Government of India’s (GOI’s) Prime Minister (PM) Gati Shakti Scheme.
Medicines Shops: Four New medicine shops at Bhoranj, Tauni Devi, Sujanpur and Sunni have been opened during this year and some more medicine shops are proposed to be opened in near future.
Mukhyamantri Grihani Suvidha Yojna: The Himachal Pradesh Government has implemented the Himachal Mukhya mantra Grihani Suvidha Yojana to reduce household smoke and conserve important forests. Permanent residents of Himachal Pradesh would get free LPG connections under this plan (those who do not have gas connection under the scheme of Himachal Pradesh Government and Central Government). Under the Himachal Mukhya mantri Grihani Suvidha Yojana initiative, the Corporation has supplied 1,18,700 LPG connections to beneficiaries via its 54 gas agencies to far flung areas.

Agriculture and its allied activities are integral to the lives and livelihoods of most of the people in the State. Besides the fact that the sector helps in ensuring food security, it also provides livelihoods to more than half of the state’s workforce i.e. 57.03 per cent. Agriculture and its allied industries account for around 13.47 per cent of the total Gross State Value Added (GSVA).
To achieve food and income security, the State Government has given priority to the agriculture sector and has implemented several farmer welfare oriented schemes. Budget allocation for agriculture also improved markedly from ₹1,294.96 crore in 2017-18 to ₹1,872.33 crore in FY2021-22. In FY2022-23 budget, the state has allocated 4.31 per cent of its net revenue expenditure towards agriculture.
Contribution of Agriculture and its sub-sectors: There has been a sustained growth of primary sector contribution to the State economy over the years. The contribution of the agriculture sector to GSVA at Current Prices has increased 40 per cent from ₹17,767 crore in 2018-19 to ₹24,847 crore in 2022-23 (Advance Estimates (AE)). There is a marked improvement in GSVA of crops at current prices between 2018-19 to 2022-23 (from ₹10,286 crore in 2018-19 to ₹15,561 crore in 2022-23).
Between 2018-19 to 2022-23 (AE), GSVA (at current prices) of Agriculture, forestry, livestock and fisheries has seen a compound annual growth rate (CAGR) of 6.9 per cent in Himachal Pradesh. Crop sector was a major driver of this growth with a CAGR of 8.6 per cent, the sector’s contribution to the GSVA of Agriculture and Allied activities has improved from 12.78 per cent in 2018-19 to 13.47 per cent in 2022-23. The share of agriculture and allied sector in total GSVA in the State has remained between 12-15 per cent in the last five years.
Growth of Agriculture and its sub-sectors: As per the advance estimate, agriculture and allied sector GSVA is estimated to decrease by 2.9 per cent at constant prices in FY2022-23 against a growth rate of 4.9 per cent realised in FY2021-22. The contraction in agriculture sector was mainly due to sharp contraction in the crop sub-sector (Figure 8.2). The agriculture and allied sectors growth rate in Himachal Pradesh have been more volatile as compared to national level agriculture and allied sectors growth rate.
i) Crop sub-sector: constitutes major sub-sector within agriculture in Himachal Pradesh accounting for 62.6 per cent of agriculture and allied sector GSVA and 8.43 per cent of total GSVA in FY2022-23. During FY2022-23, the contribution of livestock, fishery, and forestry in agriculture and allied sector GSVA stood at 1.61 per cent, 3.28 per cent and 0.14 per cent respectively.

ii) Livestock Growth of livestock sub-sector is critical for increasing income of farmers especially small and marginal farmers and for reduction of poverty. Research indicates growth of livestock sector especially dairy has huge potential for reducing poverty. Livestock subsector accounts for 1.61 per cent of total GSVA and 12 per cent of agriculture and allied sector GSVA in FY2022-23. The livestock sub-sector growth plummeted to 4.3 per cent in 2022-23 against 16.3 per cent growth rate in 2018-19 and 9.9 per cent in FY2019-20.
iii) Forestry:Forestry accounted for 3.28 per cent of total GSVA and 24.4 per cent of agriculture and allied sector GSVA at current prices in 2022-23. Forestry sub-sector is estimated to grow at 2.7 per cent in FY2022-23 against contraction of -1.4 per cent in FY2021-22.
Fishery: Fishery subsector constitutes only 0.14 per cent of total GSVA and 1.0 per cent of agriculture and allied sector GSVA at current prices in FY2022-23. The growth of fishery sector has been encouraging over the last five years. The Fishery sub-sector is estimated to grow at 7 per cent in FY2022-23 against 7.8 per cent in FY2021-22.

Himachal Pradesh ranked 17th State in India and 126th in world with a geographical area of 55,673 square kilometers (Sq Km). Out of the total geographical area, 9.75 per cent of area comes under Net Sown Area and around 20.19 per cent is under forest coverage. Land put to non-agriculture uses is around 20.41 per cent, fallow lands (1.53 per cent), Barren and uncultivable land (13.96 per cent) and the remaining is under permanent pastures and other grazing lands.
Land holding pattern: The total number of operational holdings in the State is 9.97 lakh covering an area of 9.44 lakh hectares and average size of land holding is 0.95 hectares. Size of holdings, area operated and percentage of each category of land holding pattern and area operated is indicated in Table 8.1 and Fig 8.3.

Rainfall: Himachal Pradesh received 734 millimeters (mm) of rainfall from June to September, 2022, which is 18 per cent in deficient of normal rainfall of 717 mm. Similarly from October to December, 2022 state received 64 mm of rainfall which is 19 per cent less than normal rainfall of 76 mm (Fig 8.4). Himachal Pradesh received normal rains in the years 2019, 2020 and 2021. Rainfed agriculture accounts for approximately 80 per cent of the farmed land in the state. Rice, maize, and wheat are the state's main cereal crops. Soyabean and Sunflower are major oilseed crops in Kharif, and Rapeseed/Mustard and Toria are key oilseed crops in Rabi. The state's key pulse crops include mash, moong, and rajmash in the Kharif season and gram and lentil in the Rabi season. Agro-climatically, the state is divided into four zones:
(i) Sub Tropical, Sub Mountain and low hills,
(ii) Sub Temperate, sub humid mid hills,
(iii) Wet temperate high hills, and
(iv) cold deserts. The state's agro-climatic characteristics are favourable for the development of cash crops such as seed potatoes, off-season vegetables, and ginger. The State Government is focusing on off-season vegetable production, potato, ginger, pulses, and oilseeds, as well as increasing cereal crop productivity, through timely and adequate input supply, demonstration and effective dissemination of improved farm technology, seed replacement, promoting integrated pest management, bringing more area under efficient use of water resources, and implementation of Wasteland Development Projects. In terms of rainfall, there are four different seasons. Almost half of the rainfall falls during the monsoon season, with the remainder falling during other seasons. The average rainfall in the State is 1,251 mm. Kangra has the highest rainfall, followed by Chamba, Sirmour, and Mandi.

Sown Area: The Net Sown Area (NSA) has marginally increased from 539 thousand hectares in 2008-09 to 543 thousand hectares in 2017-18. During this period, thousand hectares were brought under cultivation. Wheat, Maize, Rice, Barley, and Pulses are the major crops grown in State. Cumulatively, the area under these crops constitutes nearly 82 per cent of the total area under cultivation. Currently, cultivated area under Wheat (35.78 per cent) and Maize (32.23 per cent) constitutes 68 per cent of the total.
Cropping Intensity:The ratio of gross cropped area to net cropped area, is an indicator useful for assessing efficiency of the agriculture sector. Cropping intensity refers to the raising of a number of crops from the same field during one agricultural year. Thus, higher cropping intensity means that a higher proportion of the net sown area is being cropped more than once during one agricultural year. Figure 8.6 indicates the cropping intensity index across the districts. With an overall index of 168, the State has an opportunity in improving cropping intensity by utilising technology and improved agricultural practices. The cropping intensity in Himachal Pradesh is higher than that of national average.
Variability in cropping intensity has been noticed among districts. Figure 8.6 provides cropping intensity map by districts in FY2020-21. Districts like Una, Hamirpur, Sirmour, Kangra, Solan, Mandi and Chamba have higher cropping intensity and above state average which could be linked to better infrastructure.
Production of Major Crops: Production of major crops in Himachal Pradesh from 2019-20 to 2022-23 is presented in Table 8.2. During FY2020-21, food grains contributed around 43.0 per cent and commercial contributed 57.0 per cent of the total crop production of the state. As shown in Table 8.2 rice production is estimated to decrease by about 28.2 per cent in 2022-23 over previous year whereas the same was 5.8 per cent for food grains, 4.2 per cent for wheat and 2.4 per cent for maize. There is a marginal increase in vegetable production. As per targeted production the production of Ragi will increase significantly by about 310 per cent in FY2022-23 over the previous year.
Trends in Productivity: Agricultural productivity is driven by a host of factors such as irrigation, use of quality seeds, fertilizers and pesticides, extension services, rural infrastructure etc. The potential for expanding output through area expansion is relatively limited. In terms of cultivable land, Himachal has already reached a plateau similar to the rest of the nation. As a result, increasing productivity levels and diversifying into high-value crops are both priorities. The area used for food grain production is gradually shrinking due to a shift toward commercial crops; it was 853.88 thousand hectares in 1997–98 but will only be 755.93 thousand hectares in FY2021–22.
High Yielding Varieties Programme (HYVP): The use of quality seeds plays a very important role in raising the production and productivity of Agriculture and Horticulture crops. Emphasis has been placed on the distribution of high yielding varieties seeds (HYVS) to farmers in an effort to enhance foodgrain output. Area under high yielding varieties of principal crops, namely Maize, Paddy, and Wheat is shown in Table 8.3 below.
Farms / Development Stations of Agriculture Department: In the State, the Department of Agriculture has developed twenty Seed Multiplication Farms (SMF), three Vegetable Development Stations (VDS), twelve Potato Development Stations (PDS), and one Ginger Development Stations (GDS). These Government farms are used to multiply breeder seed acquired from the Indian Council of Agriculture Research (ICAR) or State Agriculture Universities into foundation seed. Breeder Seed must be propagated at government farms under the close supervision of agriculture experts, per policy. The foundation seed generated on the Farms is sent to registered seed growers for multiplication, which is then acquired by the Department to satisfy the State's seed requirements.
Consumption of Fertilizers and Subsidy: Consumption of fertilizers and pesticides is determined by multiple factors such as area of land under cultivation, the type of crop, cropping pattern and cropping intensity, soil type and its condition, agro-climatic conditions, the ability of farmers to purchase, irrigation, and others. The consumption of major fertilizers in the state increased from 23,664 MT in 1985-86 to 57,894 MT in FY2021–22.
As the use of chemical fertilisers and pesticides is gradually discouraged, a decline in consumption was seen throughout the year 2021–22, as shown in the table 8.4. A subsidy of ₹1000 per MT for complex fertilisers has been allowed in order to encourage the balanced use of chemical fertilisers. The following is a breakdown of fertiliser use by year:
Plant Protection Programme: Insect-Pest and disease outbreaks are a hindrance to reaching targeted output. To reduce losses, appropriate measures must be implemented to maintain insect-pest and disease concentrations below economic thresholds. The State Government has chosen not to promote chemical-based insecticides/fungicides, etc. via state sector initiatives, but would instead encourage non-chemical techniques to safeguard crops. As a result, it has been agreed to give a 50 per cent incentive to all categories of farmers for insect traps and lures (Pheromone traps, light traps, sticky traps), bio-pesticides, bio agents, botanicals, and so on.
Soil Testing Programme: In the state, the Department of Agriculture has 11 soil testing laboratories, three fertilizer and seed testing laboratories, two bio-control laboratories, one state pesticide testing laboratory, and one bio-fertilizer production and quality control laboratory. The Department of Agriculture offers free soil testing to farmers for the purpose of assessing soil health. In addition, two bio-control labs are operating in Kangra and Mandi districts to promote non-chemical techniques of insect pest management. These labs are showing the use of bio-agents, bio pesticides, traps and lures, and other similar products on farmer fields for free. Soil testing service has also been added in the Himachal Pradesh Government Public Service Act, 2011, in which soil health cards are made available to farmers via internet service within the time limit specified.

State Sponsored Schemes
Mukhyamantri Krishi Samvardhan Yojna (MMKSY): According to the Expert Group's recommendation, eight ongoing programmes with similar goals have been consolidated in FY2022–23 to prevent activity duplication. The following are the scheme's components:
1) Cluster based vegetable production scheme.
2) Input based umbrella scheme (Seed, Parts Per Million (PPM) & Fertilizers).
3) Strengthening of Seed Multiplication Chain.
4) Strengthening of laboratories.
Under this scheme, a budget provision of ₹11.23 crore has been made for FY2022-23
i) Cluster Based Vegetable Production Scheme: Vegetables in general and green leafy vegetables in particular provide essential minerals, vitamins, and thus are a vital part of the human diet and nutritional security, thereby contributing to the achievement of SDG 2: End hunger, ensure food security, improve nutrition, and promote sustainable agriculture. Recent technical advancements in agriculture have highlighted the need for diversification, indicating that vegetables are expected to provide farmers and the state with great potential for quick economic growth. The Department has planned to gradually use the "Cluster Approach" for vegetable growing over the whole state. This strategy aims to boost the development of economically competitive vegetable crops and increase the income of farmers.
ii) Input Based Umbrella Scheme (Seed, Plant Protection Material & Fertilizer): Under eight State sector programmes, the Department of Agriculture provided subsidies for various agricultural inputs. The unified scheme, known as the "Mukhya Mantri Krishi Samvardhan Yojna," would cover all agricultural inputs, including seeds, fertilisers, plant protection material, assistance for high-yielding varieties of high-value crops, and incentives for value addition and branding of indigenous maize varieties.
iii) Strengthening of Seed Multiplication Chain: Seed multiplication is an essential agricultural activity and a crucial element of the seed chain for achieving self-sufficiency in seed, a resource for which we are mostly dependent on neighbouring states. Since seed multiplication is a continual scientific process including the generation of Nucleus Seed, Breeder Seed, Foundation Seed, and Certified Seed, these four types of seeds must be produced. Government farms play a crucial role in the multiplication of quality seed in the state and in reducing reliance on adjacent state agencies. Currently, 36 Departmental Farms cultivate various crops, including Paddy, Mash, Soybean, Wheat, Seed Potato, Rajmash, etc. On these farms, around 17,000 quintals of Foundation Seed of various crops are generated annually, which is then replicated as certified seed by the progressive farmers of the state. Strengthening of Laboratories (Fertiliser Testing, Soil Testing, Bio-control, Seed Testing, Bio-fertiliser and State Pesticide Testing Laboratory).
iv) Strengthening of Laboratories: (Fertiliser Testing, Soil Testing, Bio-control, Seed Testing, Bio-fertiliser and State Pesticide Testing Laboratory): There are 11 Soil Testing Laboratories, 3 Fertilizer Testing Laboratories, 2 Bio-Control Laboratories and 1 each State Pesticide Testing Laboratory and Bio-Fertilizer Production and Quality Control Laboratory in the State. All of these are run by the Department of Agriculture. Farmers can get free soil tests from the Department of Agriculture to find out how healthy their soil is. Besides this, the state has quality control labs for seed, fertiliser, and pesticide so that farmers can get high-quality inputs. Two bio control labs are also working in the districts of Kangra and Mandi to promote non-chemical ways to get rid of insect pests. These labs show farmers how to use bio agents, bio-pesticides, traps, lures, etc. for free on their fields.
Mukhya Mantri Krishi Utpadan Sanrakshan Yojana (MMKUSY): The three protection-based Departmental schemes that were already in place and had the same goal were combined into a single scheme called "Mukhya Mantri Krishi Upadan Sanrakshan Yojana," which has three parts.

1) Sour Badhbandi (Solar Fencing)
2) Anti Hail-Net Structure
3) Green House Renovation Scheme
Under this scheme, a budget provision of ₹51.00 crore has been made for FY2022-23
i) Solar Fencing
a) Every year in the State, crops lose a lot of money because of monkeys and other wild animals. The current practice of manually guarding crops does not guarantee that all of the crops will be safe. So, in 2016-17, the Government of Himachal Pradesh started a programme called "MMKUSY."
b) Under this plan, a subsidy of 85 per cent is granted if three or more farmers want to build solar fence, and an 80 per cent subsidy is provided if a farmer chooses to install solar fencing on individual property. The electric fence is powered by solar panels. The current in the fence encircling the farms will be enough to keep stray animals, wild animals, and monkeys away from the crops. The Himachal Pradesh Government has also authorised the erection of barbed and chain link fence, as well as composite fencing, for 2019-20.
ii) Anti Hail-Nets The State Government is implementing the "Krishi Utpadan Sanrakshan Yojana (Anti Hail Net Structure) Scheme" to protect crops from hailstorms. The plan is known as "MMKUSY" and is known as Anti Hail Nets. The plan will benefits farmers by assisting them in significantly reducing quantitative and qualitative losses. Eligible farmers can get up to 80 per cent financial help for the procurement of anti-hail nets.
iii) Green House Renovation Scheme Farmers in the State had urged that a plan be developed to replace the Poly sheets. As a result, the Himachal Pradesh government launched the "Mukhya Mantri Green House Renovation Scheme" in 2017-18. The project has now been combined as a component of the Scheme "Mukhyamantri Krishi Utpadan Sanrakshan Yojana," meaning Green House Renovation. This component provides farmers with 70 per cent support for the replacement of poly sheet after 5 years of setting up the polyhouse or damage due to natural catastrophes.
Himachal Pradesh Crop Diversification Promotion Project (HPCDP)(Japan International Cooperation Agency (JICA) –External Aided Project (EAP):
Phase –I
To promote sustainable agricultural diversification in prospective locations, the crop promotion diversification project of ₹321.00 crore assistance from JICA was sanctioned and implemented in the State till 2020. The project's objectives were to increase the area and production of vegetables through crop diversification, to increase the income of small and marginal farmers, to build infrastructure for irrigation, farm access roads, marketing, and post-harvest, to organise farmers into groups to take over irrigation system operation and maintenance, and to train and capacitate Department of Agriculture field extension staff. Himachal Pradesh Agriculture Development Society carried out the project. This project included the construction of 210 small irrigation schemes, 29.40 KM connection road, and 23 collecting centres. Kangra, Mandi, Una, Bilaspur and Hamirpur were selected as project locations.
Phase –II
The Phase-II JICA-Official Development Assistance (ODA) project, with an outlay of ₹1010.13 crore, is being implemented in all districts of the state during the following nine years. On 26th March, 2021, the Government of India and JICA signed a MoU for the implementation of the second phase. During the FY2021-22, a total of ₹20.00 crore was spent. HPCDP has been allotted ₹20.00 crore for FY2022-23.
Mukhya Mantri Nutan Polyhouse Pariyojana: Protected cultivation is critical for enhancing the yield / productivity of various cash / high value crops such as vegetables. With the necessity of protected cultivation in mind, the Government of Himachal Pradesh has proposed a new plan, Mukhyamantri Nutan Polyhouse Pariyojana, totaling ₹150.00 crore and spanning around 100 hectares in the state. This programme will result in the construction of 5000 ployhouses. This plan will be implemented in two stages.
The first phase, which will cost ₹78.57 crore, will run from FYs 2020–21 to 2022–23, and 2,522 polyhouses will be built. For the construction of polyhouses for approved models, this initiative provides for 85 per cent subsidy support. Amount of ₹22.00 crore has been allocated for this project for FY2022–2023.
Mukhyamantri Kisaan Evam Khetihar Mazdoor Jeevan Suraksha Yojana: The State Government has introduced a Program named "Mukhyamantri Kisaan Evam Khetihar Mazdoor Jeevan Surakhsha" in 2015–16 with the goal of providing insurance coverage to Farmers and Agricultural Labourers in the event of suffering injury or death due to operation of farm machinery. The affected farmers are given compensation in the event of a partial amputation, permanent handicap, or death in the amount of ₹10,000 to ₹40,000, ₹1.00 lakh, and ₹3.00 lakh, respectively.
Agriculture Marketing: Himachal Pradesh Agricultural and Horticultural Produce Marketing Development and Regulation Act, 2005" governs agricultural marketing. Himachal Pradesh State Agricultural Marketing Board (HPSAMB) and 10 District Agriculture Produce Marketing Committees (APMCs) are formed to market agricultural products in the state. Growers are served by 71 market yards (10 APMC and 61 sub Market Yards). These markets sell fresh produce and grains. www.agmarknet.gov.in periodically posts marketing data, including commodity prices, for stakeholders. All India Radio, Doordarshan and Newspapers report prices. In expanding areas, farmer's awareness camps teach marketing's latest techniques. Government grants are used for many tasks, including market yard building. Electronic-National Agriculture Market connects 26 state wholesale marketplaces (e-NAM).
Prakritik Kheti Khushal Kisan Yojana under Zero Budget Natural Farming(PKKKY-ZBNF): The State Government has introduced the "PKKKY" initiative to promote "ZBNF" in order to reduce cultivation costs. The use of synthetic fertilisers and pesticides is discouraged. The funds allocated to the Department of Agriculture and Horticulture for pesticides/insecticides are utilised to deliver bio-pesticides and bio-insecticides. Till date 1,71,063 farmers in the state have opted natural farming, spanning an area of 9464 hectares. Natural farming covered 54,237 farmers in the FY2021-22. An extra 20,000 hectares will be covered in FY2022-23. For FY2022-23, a budget provision of ₹17.00 crore has been made.
Jal Se Krishi Ko Bal Yojana: The project "Jal Se Krishi Ko Bal” has been started to provide water for irrigation. Check dams and ponds are built as part of this programme. Farmers can utilise this water for irrigation after building separate small lifting schemes or flow irrigation schemes. The Government bears the whole cost of implementing a community-based modest water-saving system under this scheme. For FY2022-23, a budget provision of ₹25.00 crore has been made.
Flow Irrigation Scheme: Under this scheme, besides renovating the source location of Kuhls, strengthening of kuhls in common area is undertaken. Under this scheme, 100 per cent expenditure is borne by the Government on community based work. Government has decided to grant 50 per cent subsidy for construction of bore-wells and shallow wells by individual for irrigation purposes under this scheme. A budget provision of ₹15.00 crore has been kept for FY2022-23.
Rajya Krishi Yantrikaran Karykram: Farm mechanisation involves the introduction of newly designed equipment and advanced technology to the state's farmers. The Department ensures that farmers have access to subsidised tools and machinery. This year, the state government is offering a 40 per cent to 50 per cent subsidy on additional equipment such as chaff cutters, maize shellers, wheat thrashers, sprayers, brush cutters, toolkits, stainless steel ploughs, mould board ploughs, seed bins, water tubs, and so on. The State Government has set aside ₹17.50 crore for FY2022-23.
Mukhya Mantri Krishi Kosh Yojana (MMKKY): Farmers Producer Organizations with little resources and difficulty constructing infrastructural facilities on their own. They represent farmers, horticulturists, dairy farmers, and fishers. They require fundamental inputs during planting, harvesting, and post-harvest infrastructure such as grading and packing machinery, transport vehicles, storage godowns, and pack houses, among other things, which demand long-term investments. The State Government has started Krishi Kosh, to assist farmers with seed money, interest subsidies, and credit guarantee coverage. For FY2022-23, a budget provision of ₹5.00 crore has been kept.
Krishi Se Sampannta Yojana (KSY): The Institute of Himalayan Bio Technology (IHBT) Palampur has found a novel type of Heeng (Asafoetida) that can be cultivated in high altitude areas like as Lahaul and Spiti, Kinnaur, and Chamba, among others. Similarly, climate conditions for saffron growth are particularly good in various sections of the state. With the importance and ideal growing circumstances of both crops in mind, the Krishi Se Sampannta Yojana is being implemented in the state. For FY2022-23, a budget provision of ₹3.00 crore has been established.
Centrally Sponsored Schemes
Rashtriya Krishi Vikas Yojana (RKVY RAFTAAR): Rashtriya Krishi Vikas Yojana is helping the state expand agriculture and allied sectors. The scheme's main goals are to incentivize states to increase public investment in agriculture and allied sectors; provide flexibility and autonomy to states in planning and executing agriculture and allied sector schemes; ensure the preparation of agriculture plans for districts and states based on agro-climatic conditions, technology, and natural resources; and ensure that local needs/crops/priorities are met.
Along with universities, the Department of Agriculture, HPSAMB, and the Department of Industries and Horticulture are also involved in the implementation of this scheme. Under this scheme, a budget allocation of ₹27.70 crore has been approved for FY2022-23.
National Bamboo Mission: The Cabinet Committee for Economic Affairs gave its approval to the reorganised National Bamboo Mission on 25th April, 2018. The main goal of this mission is to increase the area under bamboo plantation on non-forest Government and private lands to supplement farm income, contribute to climate change resilience, and make quality raw materials available for industries. It also aims to improve post-harvest management through the establishment of innovative primary processing units close to the source of production, promote skill development, capacity building, and awareness generation for farmers. The Director of Agriculture, Himachal Pradesh, has been designated as the State Mission Director, and the Department of Agriculture, Himachal Pradesh, as the Anchoring Department. Departments of Forestry, Rural Development, Panchayati Raj, Industries, and State Agricultural Universities are among the stakeholders.
Crop Insurance Scheme: From the Kharif 2016 growing season onward, the Pradhan Mantri Fasal Bima Yojana (PMFBY) and "Restructured Weather Based Crop Insurance Scheme (R-WBCIS)" are in effect in Himachal Pradesh. Wheat and barley crops are covered during the Rabi season under PMFBY, while maize and paddy crops are covered during the Kharif season. This new programme covers the many phases of agricultural loss risks caused by preventive planting, post-harvest losses, localised catastrophes, and losses to standing crops (from sowing to harvest). The scheme is voluntary for both loaned and unloaned farmers as of Kharif 2020. In accordance with PMFBY, Center and State will split payments equally for claims that total more than 350 per cent of the premiums collected or more than 35 per cent of the total amount insured at the national level, whichever is larger. Six crops, including potatoes, ginger, tomatoes, peas, cabbage, and cauliflower, are covered under the Restructured Weather Based Crop Insurance Scheme (R-WBCIS) during the Kharif season and potatoes, tomatoes, garlic, and capsicum during the Rabi season. The program's goal is to give producers insurance protection against meteorological events including rain, heat, relative humidity, hail storms, dry spells, etc. that are thought to harm crops.
Total 1,78,214 farmers have been insured for the Kharif 2021 and Rabi 2021-22 seasons under the Pradhan Mantri Fasal Bima Yojana (PMFBY) and R-WBCIS. For FY2022–23, a budget allocation of ₹10.00 crore has been established, which is used to cover the State's portion of the premium subsidy.
Support to State Extension programmes for Extension Reforms/ Agricultural Technology Management Agency (ATMA) programme under National Mission on Agricultural Extension and Technology (NMAET)/ Sub Mission on Agriculture Extension (SAME): Modified Extension Reforms Scheme was introduced with the objective of strengthening the extension machinery and utilizing it for synergizing the interventions in different schemes under the umbrella of ATMA. Besides Agriculture, like other Departments as Horticulture, Animal Husbandry, Fisheries etc. are also stakeholders in this programme. To create competition amongst the farmers for achieving the best in agriculture sector, Krishak Puraskar Yojana has also been launched in the State under this scheme. A budget provision of ₹24.61 crore has been kept for FY2022-23.
Sub Mission of Seed & Planting Material (SMSP): Quality seed is the most cost effective means for increasing agricultural production and productivity. Sub mission will cover the entire gamut of seed chain from nucleus seed to supply to farmers for sowing, Support for infrastructure, Strengthening of Protection of Plant Varieties and Farmers’ Rights Authority (PPV&FRA) and to encourage development of new varieties of plants. A budget provision of ₹5.11 crore has been kept for FY2022-23.
Sub Mission on Agriculture Mechanization (SMAM): The farmers of the State are given access to freshly developed equipment, contemporary machinery, and gender-sensitive equipment under this programme. According to the Government of India's authorised rules, farmers in the SC, ST Small & Marginal and women farmer groups receive a 50 per cent subsidy on agricultural equipment such tractors, power tillers, power weeders, crop reapers, and rotavators, while other farmers receive a 40 per cent subsidy. Additionally, under this plan, Custom Hiring Centers are also being built. Custom hiring centres provide services to farms in the surrounding region for those state farmers who cannot afford to buy heavy equipment. For FY2022-23, a budget allocation of ₹20.43 crore has been allocated.
National Mission on Sustainable Agriculture (NMSA):Productivity in sustainable agriculture is reliant on the quality and accessibility of natural resources like water and soil. By encouraging conservation and sustainable use of these limited natural resources through suitable site-specific methods, agricultural expansion may be maintained. Therefore, developing rain fed agriculture and conserving natural resources together hold the key to meeting the state's rising food grain need. In order to achieve this, the National Mission for Sustainable Agriculture (NMSA) has been developed to increase agricultural output, particularly in regions that get rainwater. The program's various elements include monitoring, modelling, and networking for climate change and sustainable agriculture, as well as Rainfed Area Development (RAD), agricultural development initiatives, and Climate Change and Sustainable Agriculture: Monitoring, Modelling and Networking (CCSAMMN).
Paramparagat Krishi Vikas Yojana (PKVY): Our State's abundant natural resources, biodiversity, and rain-fed agroclimatic conditions make organic farming possible. PKVY under NMSA mobilises farmers in clusters to certify their own organic goods and promote organic farming. Participatory guarantee certification will replace expensive third-party certification under the plan. Farmers are learning organic farming and Participatory Guarantee System (PGS) certification in 100 clusters having area of 50-acre (20 hectares) in each clusters. Since our state is using Subhash Palekar Natural Farming (SPNF), greater emphasis is being placed on PKVY as an analogy. Under this scheme, a budget provision of ₹10.43 crore has been kept for FY2022-23.
National Project on Soil Health and Fertility: Soil Health Management (SHM) will promote location and crop-specific sustainable soil health management, including residue management, organic farming practices by creating and linking soil fertility maps with macro-micro nutrient management, appropriate land use based on land capability, judicious fertiliser application, and minimising soil erosion/degradation. Geographic Information System (GIS)-based thematic maps and databases on land and soil characteristics from large field-level scientific surveys will be used to help develop improved land use and soil practices. This component also aids acid/alkaline/saline soil reclamation. State Govt., National Centre for Organic and Natural Farming (NCOF), Central Fertilizer Quality Control & Training Institute (CFQC&TI) and Soil and Land Use Survey of India will execute this component (SLUSI). States may use a Public Commercial Partnership Model based on the private partner's field strength to guarantee that soil testing is done on time and in sufficient numbers given the department of agriculture's field-level staff and infrastructure constraints. The private parties are encouraged to set up soil testing labs in selected areas in the district. Under this scheme, a budget provision of ₹2.47 crore has been kept for FY2022-23.
National Food Security Mission (NFSM): The NFSM is a centrally funded programme that began in 2007. During 2022-23, a provision of ₹698.80 lakh has been made for the cultivation of Rice, Maize, Pulses, Wheat, and Nutri-Cereals. For FY2022-23, a total of ₹29.10 lakh has been granted for NFSM Rice, ₹228.30 lakh for NFSM Wheat, ₹155.30 lakh for NFSM Maize, ₹191.10 lakh for NFSM Pulses and ₹95.00 lakh for Nutri-Cereals. Himachal Pradesh has been included in this Mission to boost wheat, maize, pulses, rice, and nutri-cereal output and productivity. Under this Mission, nine districts in the state have been selected for wheat (excluding Shimla, Kinnour, and L&S), two districts for rice (Kangra and Mandi), nine districts for maize (except Shimla, Kinnour, and Lahaul & Spiti) and all districts for pulses and nutri cereals. The Mission assists with cluster demonstrations, the distribution of Certified Seed, Micro-Nutrients, Plant and soil protection material, better implements and machinery, and the development of improved implements and machinery. A budget provision of ₹9.00 crore has been made for FY2022-23.
Pardhanmantri Krishi Sinchai Yojana (PMKSY): Government of India has launched a new plan known as the PMKSY. This scheme's main focus is on micro-irrigation projects ("Har Khet Ko Pani") and end-to-end irrigation solutions. "The major objective of the PMKSY is to achieve convergence of investments in irrigation at the field level, expand cultivable area under assured irrigation, improve on-farm water use efficiency to reduce wastage of water, enhance adoption of precision-irrigation and other water-saving technologies". Water conservation and waste reduction are critical to providing irrigation to every farm in the country. This makes introduction of sustainable water preservation practices and optimization of water resources (More Crop Per Drop) as important as introduction of new irrigation facilities. Under this scheme a budget provision of ₹10.00 crore has been made for FY2022-23.
Pradhan Mantri Kisan Urja Suraksha Evem Utthan Mahabhiyan Yojana (PM-KUSUM): Solar energy is sustainable, alternative, and has a large potential to meet most agricultural operations' vital demands. Solar energy is a continuous source and equals the energy in 20 days of sunshine. PM-KUSUM aims to give secure irrigation to crops, increase output, and productivity in distant locations where energy is expensive compared to ‎Solar Photovoltaic pumps. This initiative would give 85 per cent support to small and marginal farmers and 80 per cent to medium and large farms on an individual and communal basis to install solar pumping technology. A budget provision to the tune of ₹7.51crore has been kept with the target of installation of 1,000 solar pumps for FY2022-23.
National e-Governance Plan on Agriculture (NeGP-A): The Government of India has launched new scheme for the implementation of NeGP-A in the state from FY2022-23. The fund to the tune of ₹3.30 crore has been released under the scheme. The scheme shall be implemented throughout the state with the technical support of the Department of Information & Technology and Himachal Pradesh State Electronics Development Corporation Limited (HPSEDC) as per revised NeGP-A / Digital Agriculture Guidelines.

Over the years, there has been a structural shift in the cropping pattern in the State and horticulture sector is growing at a faster pace than agriculture towards making Himachal Pradesh a major horticulture hub. The returns from Horticulture per unit of land are higher as compared to Agriculture. Horticulture, as a climate resilient alternative involving less risk, assures higher income to farmers. Horticulture sector turned out to be an essential component for food and nutritional security in the state and is integral for food and nutritional security in the State. Horticulture comprises of fruits, vegetables, flowers, spices and plantation crops.
Himachal is ideally suited for the growth of temperate to subtropical fruits due to its diverse range of agro-climatic conditions, topographical changes, and altitudinal differences. Additional horticultural products including flowers, mushrooms, honey, and hops can also be grown in the area.
The Government of Himachal Pradesh is committed to farmer-centric programmes and identified Horticulture sector as one of the growth engines in economic development of the State. In Himachal Pradesh, the area under Horticulture crops increased from 792 Hectares in 1950-51 to 2,35,785 hectares in 2021-22. The area under Horticulture in state is contributing 26 per cent of the total Agriculture area (8, 91,926 hectares), whereas the sector contributes 22 per cent in terms of value of the produce (Agriculture crops value ₹16,076 crore including vegetables, Horticulture crops value ₹3,583 crore). Between 2007-08 and 2021-22, area under horticulture crops has seen a growth of 17.60 per cent. Apple, Mango, Orange, Pear, Plum, Peach, Galgal and Apricot are the major horticulture crops in the state.
Apple is the most important fruit crop of Himachal Pradesh, which constitutes about 48.8 per cent of the total area under fruit crops and about 81 per cent of the total fruit production during FY2021-22. Area under apple has increased from 400 hectares in 1950-51 to 3,025 hectares in 1960-61 and 1,15,016 hectares in FY2021-22. Between 2007-08 and 2021-22, area under apple has seen a growth of 21.4 per cent.
The fluctuations in the production of apple during last few years have attracted the attention of the Government. The State is trying to explore and harness the vast horticulture potential of the hill State through diversified horticulture production in varied agro-ecological zones.
The area under temperate fruits other than apple has increased from 900 hectares in 1960-61 to 27,911 hectares in FY2021-22. Nuts and dry fruits have seen an increase in area from 231 hectares in 1960-61 to 9,786 hectares in 2021-22, while citrus and other sub-tropical fruits have seen increase from 1,225 hectares and 623 hectares in 1960-61 to 26,096 hectares and 56,976 hectares in 2021-22 respectively.
The overall fruit output in FY2021-22 was 7.54 lakh tones, while the total fruit production in FY2022-23 (up to December 20, 2022) was 7.93 lakh tones. It was planned to put 1,556 hectares of new space under fruit plants during FY2022-23, but only 1549.27 hectares of area was brought under plantations, and 4.40 lakh fruit plants of various kinds were distributed up to 31st December, 2022. The crop wise growth in area and fruit wise contribution of Horticulture crops are given in Figure 8.9 and 8.10 respectively.
Sub-Mission of Agriculture Mechanism (SMAM)
Under SMAM, farmers are given support in the form of back-ended subsidies to help them acquire a variety of modern farm equipment and tools. Himachal Pradesh's State Agriculture Department is a nodal department for the Scheme. Funds of ₹21.50 crore were allotted to the department of horticulture for FY2019–20 of which ₹14.17 crore were spent under this scheme, benefited 4,272 farmers till 31st December, 2022.
86,186 MT of C-grade apple fruit worth ₹90.49 crore were procured during FY2022-23.
A total of 381 Hectare was put under commercial flower production during FY2021-22, in an effort to diversify horticulture, while 138 hectare is under protected flower production till 31st December, 2022.
In order to produce and market flowers in the State, there are nine different farmer cooperative societies operating in the Kangra, Lahaul-Spiti, Solan and Hamirpur Districts.
Beekeeping and other ancillary horticulture activities are also encouraged. 2,102 MT of honey have been produced under the Bee Keeping Program for FY2021-22.
During the FY2021-22, 437.15 MT of pasteurized compost for mushrooms was produced and distributed through departmental offices in Solan, Rampur, Bajoura, and Palampur and 17,687 MT of mushrooms were produced in FY2021-22.

Programmes/Schemes implemented for holistic development of Horticulture
State Schemes
Horticulture Development Scheme (HDS): As part of the HDS, 4,676 Power Sprayers, 1,706 Power Tillers (8 Brake Horse Power), and 238 Power Tillers (8 Brake Horse Power) were distributed as subsidies to orchardists during the FY2022-23 to promote mechanised farming.
Himachal Khumb Vikas Yojana (HKVY): HKVY was introduced in FY2019–20 to encourage the growth of the mushroom industry in the State. Fund to the tune of ₹3.00 crore was received and allocated to the field offices for FY2022-23, out of which ₹0.17 crore had been used as of 31st December, 2022. In accordance with the Yojana, 4 units have been created, providing benefits to 104 farmers thus far, and development is still ongoing.
Anti Hail Nets Scheme: To safeguard fruit crops against hail storms, ₹18.56 crore of funds have been given to field functionaries under the installation of Anti Hail Nets Scheme. Up till 31st December, 2022 ₹9.40 crore of those funds have been spent, and 1,404 farmers in the state have profited from this programme.
Himachal Pushp Kranti Yojana (HPKY): Funds have been allocated under the "HPKY" amounting to ₹10.99 crore to the field functionaries, out of which ₹3.55 crore have been utilised and 266 number of farmers benefited up to 31st December,2022 to promote commercial floriculture farming in the state and provide employment to skilled and unskilled unemployed youth.
Mukhya Mantri Madhu Vikas Yojana (MMMVY): Similarly, to produce quality fruit crops and increasing production to increase the honey production and other bee product, “MMMVY” has been started and funds of ₹4.50 crore during the year 2022-23 have been allocated and ₹4.02 lakh has been utilized and 30 number of farmers have been benefitted up to 31st December, 2022.
Krishi Utpaad Sarankshan: Under Krishi Utpaad Sarankshan an amount of ₹4.50 crore have been utilized and 79 farmers were benefitted up to 31st December, 2022.
Centrally Sponsored Schemes
Mission for Integrated Development of Horticulture (MIDH): The Mission was launched to promote holistic growth of Horticulture sector through an area based regionally differentiated strategies. A Centrally Sponsored Scheme-the MIDH is being implemented in the State by the State Horticulture Department. The focus of the programme is to provide comprehensive development of all the sub-sectors of Horticulture so as to provide additional income to Horticulture growers. The mission provides subsidies ranging from 40-85 per cent to farmers for horticultural activities like growing fruits, flowers, vegetables, species, new gardens, mushroom production, green house cultivation of high-value flowers and vegetables, Antihail Nets, Horticulture Mechanization, Post-Harvest Management and more. During the FY2022-23 funds amounting to ₹38.90 crore have been approved, out of which ₹9.72 crore have been received from Government of India as first installment and a total number of 2,67,497, farmers have benefitted from the year 2003-04 to December, 2022 under this mission.
Pradhan Mantri Krishi Sinchayee Yojana-Per Drop More Crop (PMKSY- PDMC): PMKSY-PDMC is the unique and first comprehensive project being implemented in a big way in Himachal Pradesh since 2015–16. Yojana was launched with an objective of enhancing the crop productivity by improving the water use efficiency through Micro Irrigation systems for the benefit of the farmers. To encourage farmers for adopting Micro Irrigation the State Government is giving top up subsidy. The PMKSY-PDMC guidelines were modified in FY2017-18 to include a provision for a subsidy of 55 per cent for small and marginal farmers and 45 per cent for large farmers. The State is providing 25 per cent additional State share to give 80 per cent subsidy to small and marginal farmers. The Government of India has approved ₹12.00 crore for PMKSY-PDMC for FY 2020–21. As of now (from 2015-16 to 2020-21) an area of 5,813.71 hectare has been covered under micro-irrigation and benefited 24,306 farmers upto 31st December, 2022.
Rashtriya Krishi Vikas Yojana - Remunerative Approaches for Agriculture and Allied Sectors Rejuvenation (RKVY-RAFTAAR): The aim of RKVY is to increase public investment in infrastructure facilities and provide flexibility and autonomy in the process of planning and executing schemes in the Horticulture sector. To execute the Government supported RKVY-RAFTAAR programme all of the field functionaries have been allocated ₹166.66 lakhs for FY2021-22.
Restructured Weather Based Crop Insurance Scheme (R-WBCIS): In Himachal Pradesh, the weather-based crop insurance was first made available in six blocks for apple and four blocks for mango crops during Rabi 2009-10. The coverage under this plan has been extended to successive years due to the popularity of the programme. The technique is now being used in 42 blocks for apples, 39 blocks for mangoes, 14 blocks for plums, 5 blocks for peaches and 18 blocks for citrus fruits. In addition 19 blocks have been covered under the Add-on Cover Scheme to protect the apple fruit crop against hailstorms. R-WBCIS is the new name of the programme as of 2016–17. The sum insured has been revised and a bidding system has been implemented. A total of 61,625 farmers have been given coverage under R-WBCIS for their apple, peach, mango, and citrus fruit crops for the Rabi Season 2020-21. These farmers have insured their 46,18,112 plants, for which the State Government has paid a premium subsidy of ₹34.06 crore.

HPMC a State public undertaking was established with the objective of marketing fresh fruits and vegetables, processing the unmarketable surplus produce & marketing the processed products. Since its inception, HPMC has been playing pivotal role in the life of fruit growers of the state by providing them remunerative returns of their produce.
During the FY2021-22 HPMC has registered overall turnover of ₹113.49 crore which is the highest ever in the history of HPMC since its inception. During FY2021-22 HPMC achieved a net profit of ₹2.88 crore. The state Government continued the policy of Market Intervention Scheme (MIS) for Mango, Apple and Citrus fruit crops in the state with the support price as under: HPMC is successfully operating 4 Controlled Atmosphere (CA) Stores in the apple growing areas of District Shimla namely Jarol Tikker (Kotgarh) 640 MT, Gumma (Kotkhai) 640 MT, Oddi (Kumarsain) 700 MT and Rohru 700 MT which in sum total are capable of storing total 2680 MT apple produce.
Setting up of one modern vegetable pack house and cold store at Nadaun, District Hamirpur and another Pack house alongwith cold room for packing & grading of fruits, vegetables, flowers and culinary herb at Ghumarwin in District Bilaspur with financial assistance i.e. grant-in-aid of ₹7.89 crore from Agricultural and Processed Food Products Export Development Authority (APEDA) for both the facilities. Vegetable pack house Nadaun will be made operational very soon and Ghumarwin facility is likely to be completed by February, 2023 for Grading and Storing of Vegetables.
Grant-in-aid to the tune of ₹8.00 crore for the upgradation of Apple Juice Concentrate (AJC) Plant at Parwanoo has been received from APEDA and work of upgradation has been successfully completed in year 2018 by undertaking trial production in the same year. The upgraded plant has started commercial production in 2018. HPMC is also carrying out the production of AJC at Fruit Processing Plant (FPP) Jarol (Sundernagar) as well the total AJC production at both the plants during last 05 years is as below: At FPP Parwanoo, District Solan three types of processed products are manufactured viz. AJC, Apple Aroma, Tetrapak-200 milliliters) and Apple Cider Vinegar (1000 millimeters & 600 millimeters). Further, at FPP Jarol (Sundarnagar), District Mandi (Himachal Pradesh) the various types of processed food products such as: Concentrates, Jams, Squashes, Pickles and Wines are manufactured. During, the FY2021-22 at FPP Jarol about 365 MT of processed food products were manufactured.
HPMC has entered into an MoU with the party M/s PH4 for manufacturing of Apple Cider at FPP Parwanoo and for manufacturing of Red Wine and other Fruit Wines at FPP Jarol with M/s Mountain Barrel. This will help in boosting the sale as well as profit margin of the Corporation in the coming years.
HPMC has planned to enhance its existing capacity of Grading, Storage and Processing of different fruits produced in the State through the World Bank funded Himachal Pradesh Horticulture Development Project (HPHDP). Under the post harvest support infrastructure component of the said project, a financial assistance of ₹266.14 crore is being provided by World Bank to HPMC. The process of enhancing the overall storage capacity of CA Stores from existing 2680 MT to a total capacity of 7,328 MT is underway and is expected to be completed by the second quarter of FY2023-24.
HPMC is setting up new CA Stores at Reckong-Peo, District Kinnaur and Chachyot, District Mandi under HPHDP having storage capacity respectively 250 MT and 500 MT.
Additionally, new grading and packaging facilities are being built at Tatapani (Shimla), Rohru (Shimla), Giabong (Kinnaur), and Chachyot (Mandi). Each of these grading and packaging facilities has a capacity of 10,000 MT each season. Under HPHDP, a pomegranate grading and packaging facility has already been developed at Bhuntar (Kullu), and it will be used for this purpose in the 2023 growing season.
Under the World Bank-funded Horticulture Development Project, a contemporary AJC processing facility in Parala that can crush 200 MT of apples per day is nearing completion and will be installed by April, 2022. This factory will assist the corporation to reduce AJC manufacturing costs, increase sales, and compete in the international market for AJC quality. The plant's winery will produce 1,00,000 liters per year. At the Parala factory, a 2,000-liters-per-hour packaged drinking water and mineral water unit is envisaged.
The HPHDP also proposes to upgrade the current FPPs in Jarol, District Mandi, and Parwanoo, District Solan. Both facilities are now undergoing upgrades, which should be finished by the second quarter of the FY2023-24.
In addition to the aforementioned, it is also proposed that the winery at HPMC, FPP Jarol (District Mandi) be upgraded from its current capacity of 30,000 liters to 70,000 liters per year under the World Bank-funded HPHDP.
In order to better serve its customers, HPMC has recently opened two new retail locations at Jarol, Sundernagar, District Mandi on NH-21 (Chandigarh Manali Highway) close to the HPMC, FPP Jarol (Sundernagar), District Mandi and at Jabli, District Solan.
A flagship store for HPMC goods is also planned to be built at Parwanoo with funding from the HPHDP a World Bank-funded project.

Grant-in-aid to the tune of ₹8.00 crore for the upgradation of Apple Juice Concentrate (AJC) Plant at Parwanoo has been received from APEDA and work of upgradation has been successfully completed in year 2018 by undertaking trial production in the same year. The upgraded plant has started commercial production in 2018. HPMC is also carrying out the production of AJC at Fruit Processing Plant (FPP) Jarol (Sundernagar) as well the total AJC production at both the plants during last 05 years is as below:

Livestock sector plays a key role in the economy where the poor contribute to growth directly. It also plays a significant role in improving livelihood, enhancing farmers’ income and fostering rural development in the country. Livestock rearing is an integral part of farming communities as it supplements the income of agricultural households. This has huge potential for generating self-employment in rural areas at the lowest possible investment.
Through providing nutrient rich food products, dung as organic manure and domestic fuel, hides and skin, animals as a regular source of cash income are backbone for rural households. Livestock is a natural capital, which can be easily reproduced to act as a living bank with offspring as interest and the best insurance against the vagaries of nature.
Domestic animal husbandry is widespread in Himachal Pradesh. Nineteen out of twenty families in Himachal Pradesh are engaged in livestock sector for their livelihood and livestock sector is emerging as one of the most potential and income generating sectors for rural and semi urban areas. Forests, water, grazing pasture, and agricultural land are all examples of Common Property Resources (CPRs) in Himachal Pradesh.

Inclusive Growth through Livestock: Most of the animal farming activities such as fodder collection, feeding, watering and healthcare, management, milking and household-level processing, value addition and marketing are performed by women. The growth in livestock sector is demand-driven, inclusive and pro-poor. The rate of return on investment from Livestock sector is comparatively very high. Livestock sector apart from contributing to the state economy in general and to agricultural economy in particular, also provides employment generation opportunities, asset creation, coping mechanism against crop failure and social and financial security. Livestock is the main source of animal protein for the population. Demand for animal food products is responsive to income changes, and is expected to increase in future.
In Himachal Pradesh, the activities under animal husbandry have been oriented towards improving health of the livestock, increasing production of milk, meat and eggs, and provision of bullock power for agricultural operations. In this regard, several schemes have been formulated in the State in pursuance with the national policies to improve the livestock production, fight protein hunger, and improve nutritional standards of the population and also provide technical support for the maintenance and improvement of livestock breeds.
Milk, Meat and Egg – Key Growth drivers
Livestock Population:
As per the Livestock Census 2019, State has 0.82 per cent share of India’s total livestock and 0.16 per cent of the total poultry. The State ranks 20th in Cattle and 27th in Poultry population in the country. The total livestock population in the State stood at 44.13 lakh, and that of poultry population was 13.42 lakh. In Himachal Pradesh, cattle form the largest share in the livestock population comprising 41.42 per cent of total population, followed by Goats, Sheep and Buffaloes (Figure-9.1). The percentage share of exotic/crossbreed cattle in total cattle population has been on an increasing trend in the State. Crossbreed cattle population in the State rose by 8.64 per cent in 2019 Livestock Census compared to the 2012 Census. Share of crossbred cattle has reached 58.48 per cent of total cattle population. This indicates the rising share of more productive animals and the same is reflected in the rising milk production in the State. The percentage share of livestock population to total population has shown decreasing trend in the state. However, the percentage share of poultry has shown increasing trend (Figure-9.2) The total Livestock and poultry population as per Livestock Census 2019 in Himachal Pradesh was 57.55 lakh showed a decrease of 3.24 per cent over Livestock Census 2012 (Table-9.1). Total Poultry population was 13.42 lakh in 2019 which showed an increase of 21.56 per cent over the 2012 Census.
Between the two Census periods (2012-2019), there is reduction in the total Cattle, Buffalo, Sheep, Goats, Horses & Ponies and Mules & Donkeys Population; however there has been an increase (21.56 per cent) in the Poultry population as per the Livestock Census, 2019 (Table 9.1).

The Animal Husbandry, from a humble beginning of backyard poultry, has grown into a dynamic industry. Milk and Meat production have also made a quantum leap with the production increasing substantially. Milk is the single largest commodity contributing highest economy to the State. Effective Veterinary and Animal Husbandry services are critical in achieving the significant production levels. Welfare schemes implemented by the Government for dairy, sheep and poultry units in addition to providing forward and backward linkages and organized marketing channels helped the rural masses enormously in bridging income gaps. This, besides conserving domestic biodiversity has become a means of producing food in dry lands without depleting ground water resources. A sizable number of families owning sheep and goat have already been covered with livestock insurance. The increasing trend of milk production in Himachal Pradesh from 2012-13 to 2022-23 is depicted in Table 9.2. It shows that milk production in State has grown from 11.39 lakh tonnes in FY2012-13 to 16.54 lakh tonnes in FY2022-23 (estimated), at a CAGR of 3.8 per cent. Cow milk constitutes around 70.0 per cent of total milk production while the share of buffalo milk is around 27.0 per cent and share of goat milk is 3.0 per cent. Species wise share of milk production to total milk production between 2011-12 to 2020-21 is shown below in Figure 9.3.
The per capita availability of milk in the State has increased from 455 gram per day in 2012-13 to 650 gram per day in FY2022-23. This is higher than the national average of 427 gram per day in FY2022-23. There is still a scope for increasing milk production and productivity through the adoption of good agricultural practices so as to increase farmer’s income.

There has been a decrease in meat production in the State from 2011-12 to 2022-23 as seen from Figure 9.4.
Egg production in Himachal Pradesh has increased marginally from 10.50 lakh in 2011-12 to 11.00 lakh in 2022-23. Growth of Livestock sector: Livestock rearing is an important sub-sector under agriculture and allied activities. It contributes 1.61 per cent of total Gross State Value Added (GSVA) and 12 per cent of agriculture and allied sector GSVA in FY2022-23. In Himachal Pradesh Gross Value of Output (GVO) created by livestock has steadily increased over the years. It has seen a marked increase from ₹5,496 crore in FY2018-19 to ₹6,793 crore during FY2022-23 Advance Estimates (AE). Contribution of various components of Livestock sector is depicted in Figure 9.5. Livestock sector witnessed a growth of 4.3 per cent in 2022-23 (AE). Over the period of 2017-18 to 2022-23, the livestock sector recorded an average growth of 8.2 per cent, as compared to 2.4 per cent in the crop sector.

The State recognises the potential economic benefits of animal husbandry and hence devotes resources to implementing a livestock development strategy by focusing on the following areas:
Animal Health and Disease Control
Cattle Development
Sheep Breeding and Development of Wool
Poultry Development
Feed and Fodder Development
Veterinary Education
Livestock Census
Under Animal Health and Disease Control Programme, 1 State level Veterinary Hospital, 3 Zonal Hospitals,10 Polyclinics, 60 Sub-Divisional Veterinary Hospitals, 362 Veterinary Hospitals, 30 Central Veterinary Dispensaries, 6 Veterinary Check posts and 1,762 Veterinary Dispensaries are functioning in the State as on 31st December, 2022 to provide veterinary and animal husbandry services to the farmers for their livestock.
Breeders across the State have access to enhanced Sheep Breeding Farms for improving the quality of sheep and wool, Government Sheep Breeding Farms at Jeori (Shimla), Tal (Hamirpur), and Karachham (Kinnaur) are supplying improved sheep to the breeders of the State. One Ram centre at Nagwain in district Mandi is also functioning where improved Rams are reared and supplied to breeders for cross breeding. The flock strength of these farms is 1,381 during the FY2022-23 up to December, 2022.
In view of the increasing demand for pure Hoggets and the established popularity of the Russian Marino and American Rambouillet in Himachal, the State has switched over to pure breeding at the existing Government farms and 9 Sheep and wool Extension Centres continue to function for the welfare of shepherds. During FY2022-23, the wool production is likely to be 1,500 tonnes. Angora rabbit farms are functioning at Kandwari (Kangra) and Nagwain (Mandi) for distribution of rabbits to the breeders. With the intention of ensuring the continuation of the Spiti breed of horses, a horse breeding farm has been set up in Lari in neighborhood of the Lahaul and Spiti district. This farm has been home to 71 horses from the beginning of the FY2022-2023 year to the end of the 2022 calendar year. In the same location as the horse breeding farm Lari, a Yak breeding farm has been established there. During the FY2022-2023, up to December, 2022 the total number of Yaks was 63. Under feed and fodder scheme, 13 lakh fodder roots, 2 lakh fodder plants have been distributed during FY2022-23 up to 31st December, 2022.
Welfare scheme for the Livestock Owners:
Scheme for General BPL Farmers
During the latter three months of pregnancy, indigenous and crossbred cows owned by BPL families in the general category are eligible for a 50 per cent subsidy on pregnancy ration at 3 kg per day. The scheme's primary purpose is to:
Increase the milk production.
To reduce inter calving period.
To improve the health of pregnant cows.
“Uttam Pashu Puraskar Yojana”
The Uttam Pashu Puraskar Yojana is being implemented in FY2022-23, with a provision of ₹100.00 lakh for farmers who have milch cattle/buffaloes with milk output of 15 liters or more per day. This plan provides a ₹1,000 reward per beneficiary per animal. Poultry Development Scheme: To improve the poultry sector in Himachal Pradesh, the department has implemented the following poultry development projects, particularly in rural areas:
Backyard Poultry Project: 50-100 numbers of chicks of 3 week old Low Input Technology (LIT) birds’ are distributed among the poultry breeders on cost price. During FY2022-23 under this Scheme 4,28,012 lakh chicks were distributed among the 10,408 beneficiaries.
Him Kukkut Palan Yojana: A budget of ₹ 475.20 lakh has been set up for the establishment of 120 poultry units in the State, for FY2022-23 the beneficiaries receive three thousand day-old broiler chicks, feed, feeders, and drinkers. Beneficiaries receive a 60 per cent subsidy on both capital investment (shed building, feeders and drinkers) and recurring costs (Cost of chicks, feed etc.)
Innovative Poultry Productivity Project (IPPP)-LIT Bird (Under National Livestock Mission): In this project, 200 beneficiaries get 400 four-week-old LIT birds (in two batches of 200 LIT chicks each at 72-week intervals), as well as ₹15,000 in help for shelter, feed, and other incidental expenses.
Innovative Poultry productivity Project (IPPP)-Broilers (Under National Livestock Mission): Under this initiative, 200 beneficiaries are provided with 600 four-week-old LIT birds (in four installments of 150 LIT birds each), as well as funding to help with shed building.

RGM is critical for increasing milk output and bovine productivity in order to fulfill rising milk demand and make dairying more profitable for the country's rural farmers. The following RGM activities are now being pursued and implemented in Himachal Pradesh:
Establishment of Murrah Breeding Farm under National Livestock Mission or promotion of Murrah in the State: It was planned to establish a breeding farm of high pedigree Murrah Buffaloes in Himachal Pradesh with the goal of producing high genetic merit Murrah Buffalo bulls for use at Sperm Stations across the country and providing elite Murrah Buffalo Heifers/Adult Buffaloes for sale to farmers and commercial use within and outside the state. The Government of India has provided a grant of ₹ 506.45 lakh for the building of a Murrah buffalo breeding farm in District Una as part of the Rashtriya Gokul Mission.
Establishment of Gokul Gram: the scheme objectives are to promote indigenous cattle rearing in the state, and with the goal of conservation, propagation, and development of indigenous breeds to increase productivity of local cattle and economic returns from animal products in a sustainable manner, to propagate high genetic merit bulls of indigenous breeds and to optimize modern farm management practices, to promote Common Resource Management, and to use raw material from indigenous cattle as Natural Farming, Government of India sanctioned ₹995.10 lakh for the creation of Gokul Gram in district Una.
Nationwide Artificial Insemination Scheme (NAIP): The goal of the scheme are delivering quality artificial insemination services at farmer’s doorsteps, boosting milk output and bovine productivity, and to increase farmer’s revenue, and increasing farmer approval of artificial insemination services. This goal is accomplished by the establishment of an organised farmer awareness programme. This component is being implemented in all districts of the state during a five-year period, from 2021-22 to 2025-26, and will include all breedable cattle and buffalo populations. The Government of India has provided ₹3058.36 lakh in the first, second, and third stages. In all three rounds of this plan, a 11,31,681 free artificial inseminations were performed in the state. Currently the fourth phase of the programme is being implemented since 1st August, 2022. Till 30th November, 2022 a 2,46,284 free artificial inseminations have been performed in the State.
Progeny Testing (Jersey) Program in District Kangra: The initiative is being executed in about 800 revenue villages in District Kangra through a network of 115 Department’s veterinary institutions, with the following goals:
1) To achieve consistent genetic improvement in the Jersey cattle population in terms of milk, fat, solids not fat, and protein yields, reproductive qualities, and type characters.
2) To construct a genetic assessment and selection system for bull moms and bull sires for the production of future generations of bull calves.
3) To generate the requisite number of genetically assessed bull calves for semen stations through progeny testing. A ₹228.55 lakh has been received from the Government of India (GOI) through the National Diary Development Board (NDDB) for the initiative, with ₹148.67 lakh already spent on various components.
Introducing Embryo Transplantation Technique (ETT) under Rashtriya Gokul Mission for the conservation and propagation of Sahiwal and Red Sindhi breeds of cows: The Government of India has released funds to the tune of ₹195.00 lakh for the establishment of Embro Transfer Technology Laboratory at Palampur District Kangra for Conservation and Propagation of Sahiwal and Red Sindhi breeds through Embryo Transfer Technology.
Centre of excellence cum Training Centre: To popularize Automation of dairy farm operations such as Milk collection and storage, feeding system, manure management and sanitation, health management, integrated herd management including that of young stock and adult stock management, and data storage for bringing the Indian Dairy industry to an international level, Himachal Pradesh Livestock Development Board has received ₹1292.21 lakh in this project from 1st July, 2021 to establish a Centre of Excellence.
Conservation and Propagation of Pahari Cows: The Department of Animal Husbandry Himachal Pradesh, in collaboration with the Department of Animal Breeding at Dr. G.C. Negi College of Veterinary and Animal Sciences, Palampur, has compiled the characteristics of this breed and submitted them to the "National Bureau of Animal Genetic Resources" in order to include the unremarkable hilly cow of the state in the category of nationally recognised breeds. Therefore, the hilly cow of Himachal Pradesh has received national recognition, and the State's breed has been included to the Bureau's list of nationally recognised breeds. The aforementioned Bureau has registered Himachali Pahari Cow as an official breed under the name "Himachali Pahari," such that this breed is now categorised among other indigenous breeds of cows such as Sahiwal, Red Sindhi, and Gir. The government of India has allocated ₹464.00 lakh for "Conservation and Propagation of Himachali Pahari Cattle of Himachal Pradesh." The primary goals of this initiative are:
1) Conservation and Propagation of Himachali Pahari Cattle of Himachal Pradesh.
2) To undertake breed improvement programme so as to upgrade the germplasm through selective grading and increase the herd stock.
3) Breeding, rearing and distribution of disease free high genetic merit bulls for semen station and natural service.
4)Capacity building programme for farmers and extension functionaries.
Establishment of Multi-Purpose AI technicians in Rural India (MAITRIs): The primary objective of the project is to improve the productivity of the existing bovine population by increasing Artificial Insemination coverage through the establishment of Multi-Purpose Artificial Insemination Technicians in Rural India (MAITRIs) to deliver artificial insemination services at the doorstep of farmers on a self-sustaining basis by collecting the cost of goods and services. In Himachal Pradesh, 18 MAITRIS have been trained thus far via the programme. Under this programme, the government of India has released a total of ₹20.25 lakh, of which ₹7.51 lakh has thus far been used.
Accelerated Breed Improvement Programme using Sex Sorted Semen (ABIP-SS) for getting assured pregnancy under RGM Scheme of GOI: Under the Accelerated Breed Improvement Programme of the Rashtriya Gokul Mission (RGM) Scheme, the Department of Animal Husbandry and Dairying (DAHD) of the Government of India has sanctioned a project on using sexed sperm to ensure pregnancy. This project will be carried out by various Implementing Agencies. The goals of the ABIP-SS Programme are:
1) To promote use of sexed semen for production of female calves with 90 per cent accuracy.
2) To enhance milk production and farmers income through production of female calves.
3) Increased availability of female caves of high genetic makeup for entrepreneurs interested in taking up dairy farming.
4) To make sexed semen technology affordable to farmers thereby increasing acceptability of artificial insemination with use of sexed semen.
5) To create visible demand of sexed semen in the country thereby attracting private entrepreneurs in production of sexed semen.
Strengthening of existing Semen Stations (SS): The GoI has granted ₹1,350.80 lakh for this project's Strengthening of SS Palampur and SS Aduwal under this component.
National Livestock Mission (NLM):
Rural Backyard Goat Development Scheme: This is a Government-funded initiative under the National Livestock Mission (90 per cent Central share, 5.0 per cent State share and 5.0 per cent Farmer share). During the FY2021-22, the Government of India has allocated ₹504.90 lakh for this programme. There have been no financial or physical accomplishments to date. This is a non-budgetary programme, hence it has been carried through into 2022-23
Rural Backyard Pig Development Scheme: This is a government-sponsored programme under the National Livestock Mission (90 per cent Central Share 5.0 per cent State Share 5 per cent farmer share). Pig breeders belonging to landless and small/marginal farmers will get a 95 per cent subsidy for 3+1 pig units. Till date 156 pig units have been established.
Risk Management & Livestock Insurance Scheme: Under this scheme 60 per cent discount is granted on the insurance premium of livestock and pack animals for Above Poverty Line farmers, while an 80 per cent subsidy is offered for Below Poverty Line/ Schedule Caste/ Schedule Tribe farmers. In the FY2021-22, ₹318.96 lakh was allocated for the insurance of 20,000 animals in eight districts of Himachal Pradesh: Bilaspur, Chamba, Hamirpur, Kullu, Mandi, Solan, Sirmour, and Una. Upto December, 2022, 1,005 animals were insured of 817 beneficiaries. The scheme is continuing in FY2022-23.
Provision of Subsidized Rams to Sheep Breeders of all categories in Himachal Pradesh:
Under this programme, 60 per cent of the cost of breeding rams is subsidised for all Himachal Pradesh sheep producers with at least 50 sheep (limit of 2 ram per recipient).
Objectives of the Scheme:
Genetic improvement of indigenous sheep breeds and dissemination of superior Germplasm amongst the migratory flocks of sheep in Himachal Pradesh.
To improve quality and quantity of meat and wool being produced in the state, ensuring better economic returns to sheep breeders.
To resolve the problem of inbreeding amongst the migratory sheep flocks of sheep breeders of all categories.
Krishak Bakri PalanYojna: Under this scheme, it is proposed to distribute units of 11 goats (10 females+1 male), 5 goats (4 female+1 male), and 3 goats (2 female+1 male) of Beetal/Sirohi/ Jamnapari and White Himalayan long-haired breeds at a subsidy of 60 per cent to goat farmers in order to improve the socio economic status of all categories of goat farmers. In addition to feed and fodder, there is a provision for insurance for goats throughout their last trimester of pregnancy. For the FY2021-22, a budget of ₹54.75 lakh has been allocated for the programme. 57 units have been distributed till date.
Rural Backyard Sheep Development Scheme: Under this programme, marginal/poor farmers in the state of Himachal Pradesh would receive a sheep unit of 10+1 at a 95 per cent subsidy. During the FY2021-22, the GoI had provided money totaling ₹1188.00 lakh under this initiative. This is a non-budgetary programme, hence scheme has been carried over to FY2022-23.
Assistance to State for Control of Animal Diseases: The GoI allocates cash on the basis of 90 per cent Central Share and 10 per cent State Share to give free immunization against infectious illnesses such as Hemorrhagic Septicemia and Black quarter (HSBQ), Enterotoxaemia, Peste des petits ruminants (PPR), Ranikhet, Marek's, and Rabies. With the scheme's execution, outbreaks of the above-mentioned illnesses are averted, protecting livestock owners from financial damage
Rashtriya Krishi Vikas Yojna (RKVY): In FY2021-22, ₹3.00 crore was received under this scheme for undertaking various activities of Animal Husbandry Sector.
Integrated Sample Survey for estimation of Production of major livestock product: Since 1977-78, the integrated Sample Survey has been conducted annually with the following objectives:
To estimate season wise and annual milk, egg and wool Production.
To workout average population and yield estimates
To estimate dung production
To work out average feed and fodder consumption
To study trend of population, yield and production
This survey work is carried out in the State as per the guidelines of Indian Agricultural Statistical Research Institute (AHS Division) New Delhi. It provides a reliable database relating to livestock products and livestock population.

HP MilkFed was registered in 1980. But it started its operation w.e.f. 2nd October, 1983 with the transfer of Dairy Development Activities to it by the Government in the district of Mandi, Bilaspur, Hamirpur, Sirmour, Solan and part of Shimla Districts. Una district was subsequently transferred to the Federation w.e.f. 01st May, 1988. Functional activities of milk collection and sale of the remaining parts of State were also transferred to this Milk Federation were taken over w.e.f. 01.09.1988 to 01.07.1992.
The main objectives of the organization are to organise Milk Producers Cooperative Societies and to provide a remunerative market to the Milk Producers’ for their surplus milk at their door steps and to ensure availability of milk and milk products in adequate quantity and reasonable prices to the Urban milk consumers.
Himachal Pradesh Milkfed has 1,097 milk producers Co-operative Societies. The total membership of these societies is 46,973 out of which 225 woman dairy co-operatives are also functioning. At present Milkfed is running 22 milk chilling centers having a total capacity of 91,500 liters milk per day and 11 milk processing plants having a total capacity of 1,30,000 liters milk per day. One milk powder plant of 5 MT per day at Duttnagar in Shimla district and one cattle feed plant of 16 MT per day capacity at Bhor in District Hamirpur is functioning. The average milk procurement is about 1,60,000 liters per day from the villages through village dairy co-operatives in FY2022-23.
Milkfed markets roughly 23,000 liters of milk every day, including bulk milk supplies to prominent dairies and supplies to army troops in the Dagshai, Shimla, Palampur, and Yol, Dharamshala regions. Under the brand name 'Him', Milkfed also produces Milk Powder, Ghee, Butter Dahi, Paneer, and Sweetened Flavoured Milk, Khoa.
During FY2022-23, Milkfed has manufactured around 500 quintal of sweets for Diwali festival. Milkfed has developed additional milk bars in convenient locations so that it is more accessible to consumers and can meet their demands. Milkfed has engaged a distributor in Solan and Kunihar and has begun supplying milk and milk products to new institutions, including Government Senior Secondary School-Portmore, Satluj Jal Vidyut Nigam limited, Indo-Tibetan Border Police-Saharan, Central Power Research Institute, Bemloe, Dayanand Aglo Vedic New Shimla, Bal Ashram, Industrial Training Institute- Shimla, Jawahar Navodaya Vidyalaya-Kunihar, and Saraswati Vidya Mandir-Vikasnagar. Milkfed has increased milk production rates by ₹2.0 per liter as of 01st April, 2022, from ₹29.80 per liter to ₹31.80 per liter, providing immediate financial assistance to 46,973 Milk federation-affiliated familie.
New Innovations of Himachal Pradesh Milkfed:
Himachal Pradesh Milkfed under the Integrated Child Development Scheme (ICDS) Project, produces Panjiri, Bakery Biscuit, Sevian and Pasta for the Welfare Department. During FY2022-23, Milkfed made and distributed 15,429.81 quintal of Fortified Panjiri, 3,608.58 quintals of Skimmed Milk Powder (SMP), 22,749.87 quintals of Fortified Bakery Biscuit, and 8,320.71 quintals of Wheat Seviyan to the Anganwadis of the State.
A training programme to around 500 milk producers and newly requited 14 Technical Superintendent and 3 Marketing Assistant has been imparted to educate at village level for producing good quality of milk.
During FY2022-23, a new factory with a capacity of 50,000 liters of milk per day to become operational at the Milk Processing Plant in Mandi, therefore benefiting the state's dairy cooperative.
A new plant with a capacity of 50,000 liters per day is being constructed at Milk Processing Plant MPP Duttnagar which will help the state's dairy cooperative.
Distributed incentive ₹2,000 in kind in the form of Milk cans and Stainless Steel Pails to 1875 milk producers for supplying good quality milk.
Himachal Pradesh Milkfed has installed bulk milk coolers at Karsog and Lambathach of 5000 liters capacity each.
At present, Himachal Pradesh Milkfed has deployed 350 Automatic Milk Collection Units in various local dairy cooperative societies.

WPMF's primary purpose is to support the growth and development of the wool industry in Himachal Pradesh and to liberate wool producers from the exploitation of middlemen/traders. WPMF is actively engaged in the acquisition of sheep and angora wool, the shearing of sheep at pasture level using imported automatic machinery, and the selling of wool. During FY2022-23 up to November 2022, 62,092 sheep were sheared, and 56,991 kilogram (Kgs) of sheep wool was purchased for ₹34.97 lakh, benefiting 535 breeder families of the State.
With the assistance of the Animal Husbandry Department, the Federation is also implementing a new Centrally Sponsored Scheme for the benefit and upliftment of the sheep producers in the state. Under health care, particularly dipping and de-worming, 6,00,000 sheep and goats will be covered in the districts of Chamba, Kangra, Mandi, Kullu, Shimla, and Kinnaur with an outlay of ₹2.0 crore.

Fishery is an important sub-sector of primary sector in the State. Promotion of pisciculture has been the priority of the Government and for that; the State has framed Himachal Pradesh Fisheries Rules 2020. State is endowed with rich potential of River water, trout waters and Reservoirs fishery resources. By judiciously harnessing these resources the fish production from capture, culture and culture based capture fisheries could be substantially augmented to cater to the domestic and export market. This would create employment and income-generating opportunities for the rural poor, women and youth, and contribute to achieve food and nutritional security in the State.
During their downstream journeys, the Beas, Satluj, and Ravi rivers acquire several streams containing valuable cold-water fish species such as Schizothorax, Golden Mahseer, and exotic Trouts. The cold water resources of the state have demonstrated its promise with the successful completion of an ambitious Indo-Norwegian trout farming project and the hill population's keen interest in adopting advanced technologies. The economically significant fish species in the reservoirs of Gobind Sagar, Pong, Chamera, and Ranjeet Sagar Dams have become an asset for the local populace.
Fish production: About 6,175 fishermen in the State depend directly on reservoir fisheries for their livelihood. During FY2022-23, up to December, 2022, cumulative fish production was 17,136.91 MT valued at ₹24990.72 lakh. Around 6.33 tonne trout has been sold from the State farms and ₹89.74 lakh has been earned during current FY2022-23 (up to December, 2022). The production and sale of fish is shown in Table 9.5. There has been significant rise in total fish production in Himachal Pradesh in the last decade. Fish production more than doubled between 2012-13 and 2021-22 and registered a CAGR of 7.2 per cent between the same period. Table 9.5 shows the trend and growth of fish production in Himachal Pradesh. The overall fish production increased from 8,560.89 MT in 2012-13 to 16,015.81 MT in 2021-22 and expected to reach 17,136.91 MT during FY2022-23. The value of the production also increased from ₹5,818.13 lakh to ₹24,990.72 lakh in the same period.
The growth rate and production of trout in Himachal Pradesh has shown a varied trend in the last ten years, the overall trout production decreased from 19.18 tonnes in FY2012-13 to 6.73 tonnes in FY2020-21, further rose to 13.68 tonnes in 2021-22 and estimated 6.33 tonnes during FY2022-23 registering a CAGR of -10.49 per cent during this period. In FY2021-22 the overall trout production grew by 103.3 per cent. Revenue from trout fish decreased to ₹89.74 lakh in 2022-23 from ₹169.24 lakh in FY2021-22 Table 9.6 shows the trend and year wise growth rate of trout production in the State. Export and Import of Fishery Products: The Fishery subsector shows mixed trends in exports and imports of fish as shown in Table 9.7. The total export of fish from all sources, decreased at CAGR of -1.18 per cent between 2012-13 and 2021-22. The total import of fish from all sources, increased at CAGR of 12.17 per cent between 2012-13 and 2021-22. Value of exports increased at CAGR of 15.73 per cent and value imports increased at CAGR of 26.03 per cent between 2012-13 and 2021-22.
Year on year growth rates of Export and import of Fish production depicted in Figure-9.6 Growth and contribution of Fishery sector: Fishery sub-sector constitutes 0.14 per cent of total GSVA and 1.0 per cent of agriculture and allied sector GSVA at current prices in 2022-23. The growth of fishery sector has been encouraging over the last five years. The Fishery sub-sector is estimated to grow at 7.0 per cent in 2022-23 against 7.8 per cent in 2021-22.

In order to meet the needs of reservoirs, rural ponds, and commercial farms across the public and private sectors, the Department of Fisheries has established carp and trout seed production facilities in the state. The State has produced a total of 23.14 lakh fingerlings of 70 mm and above of common carp, 4.19 lakh fingerlings of Indian Major Carp (IMC) and ₹3.57 lakh Rainbow Brown Trout by the end of 2022. Up until December, 2022 the total value of seeds generated during FY2022-23, is around ₹45.18 lakh.
Insurance and Welfare Schemes: The Department of Fisheries has initiated many welfare schemes for the upliftment of fishermen. Fishermen are covered under Insurance Scheme, where ₹5.00 lakh is given (in case of death/ permanent disability) and even losses to their gear and crafts are also being borne by the State Government to the extent of 50 per cent under Risk Fund Scheme. A contributory saving scheme has been initiated by the State Government and matching state’s shares of deposited saving is provided to them during the close season. The amount so generated is paid to fisherman in two equal installments. During the year 2022-23 ₹181.44 lakh, (₹60.48 lakh contributed by the fisherman plus ₹120.96 lakh as financial assistance from the State and Centre Government) will be provided to 4,032 fisherman under Saving–cum–Relief Fund Scheme now renamed as “Livelihood and nutritional support for socio-economically backward active traditional fishers families for conservation of fisheries resources during fishing ban/lean period” under the Centrally Sponsored Scheme Pradhan Mantri Matsya Sampada Yojana.
Trout Livestock Insurance Scheme: State Government implemented this programme for FY2022-23 in order to offer insurance coverage for the livestock of cold water fish producers in the state. 65 per cent of the premium is paid by the State Government and 35 per cent is paid by the recipient. United India Insurance Company Limited provides the comprehensive insurance coverage. During FY2021-22, the government has insured the construction of five trout units by five trout farmers. With a premium of ₹19,175 per year, each trout unit is insured at a maximum input cost of ₹2.50 lakh per annum. This project provides direct benefits to 666 trout farmers with 1,292 raceways/units.
Pradhan Mantri Matsya Sampada Yojana: The union government has started this programme, and the State Government is executing it. Under this yojana, the State Government has submitted to the Government of India for financing a number of projects totaling ₹3,520.19 lakh. The approval for the various projects ₹2875.99 lakh has been received. Table 9.8 shows the achievements of the fisheries sector for FY2022-23 (December 2022), as well as the targets fixed for FY2022-23.

Himachal Pradesh is located in both the Trans-Himalayan and Himalayan biogeographic regions. The State's abundance of flora and fauna is thanks in large part to the presence of the mountain ranges of the Shiwaliks, Western Himalayas, and Trans-Himalayan area. 15,443 square kilometers (Sq.Kms)-or 27.74 per cent of the State is forested. 37,948 sq.kms (or around 68.16 per cent) of the State's landmass is covered by officially designated forest land. According to Champion and Seth's taxonomy of forests (1968), there are eight main categories of forests and 37 minor types of forests. Most land is covered by the Himalayan Moist Temperate forest.
Himachal Pradesh is home to a very impressive, diverse and unique fauna– many of which are rare. The Constitution of India through Article 48A directs the governments at all levels to ―Endeavour to protect and improve the environment and to safeguard the forests and wildlife of the country‖. Article 51A (g) of the Constitution imposes the duty on every citizen to ―protect and improve the natural environment including forests, lakes, rivers, wildlife and to have compassion for living creatures‖. Embracing the spirit of environment protection under the Constitutional framework, the Government of Himachal Pradesh has been taking several initiatives to protect its forests and biodiversity, and minimize the harms done to the environment. In this effort, the Government focuses on striking a balance between the conservation of ecosystems and safeguarding the livelihood of the people.
Himachal Pradesh Forest Policy aims to ensure proper utilization of forests, and their conservation and extension. The aim of the Forest Department is to enhance the forest cover in the State from present about 27.74 per cent (as per India State of Forest Report 2021) to 30 per cent of its geographical area by 2030 to meet the Sustainable Development Goals (SDGs).
Forest Cover in Himachal Pradesh: Himachal has a total forest cover of 37,948 Sq.Kms that accounts for 68.16 per cent of the total geographical area of the state. The effective forest cover is much lower than this area primarily on account of the fact that a very large area is either alpine meadows or is above the tree line. An area of 15,443 Sq.Kms (27.74 per cent) is actual forest area with density ranging from 10 per cent to 70 per cent and above. This is constituted by 3,163 Sq.Kms of very dense forests, having a crown density of 70 per cent and above 7,100 Sq.Kms of moderate dense forest with crown density between 40 per cent to 70 per cent and 5,180 sq. km of open forest with crown density between 10 per cent to 40 per cent. In addition to this 322 Sq.Kms has been described as scrubs. The table-10.1 gives an overview of the forests as per the crown density.

In FY2022-23, the forestry and logging sub-sector contributed ₹6,053 crore that accounted for 24.36 per cent of the Gross Value Added (GVA) by the Agriculture sector and 3.28 per cent of the total Gross State Value Added (GSVA) in the State (Figure 10.4).
The GVA at constant (2011-12) prices by the forestry and logging grew from ₹4,008 crore in FY2015-16 to ₹5,023 crore in FY2021-22, an absolute increase of 25.32 per cent.
During FY2022-23 forestry and logging sector is expected to grow by 2.7 per cent.

The plan programme taken up by the Forest Department aims at fulfilling these policy commitments. Some of the important plan programme activities are as under: Forest Plantation:Forest plantation is being carried out under various State plan schemes such as Compensatory Afforestation Fund Management and Planning Authority (CAMPA) as well as Centrally Sponsored Schemes ―National Afforestation Programme‖ and National Mission for Green India as well as under Externally Aided Projects. Pasture and grazing lands of the state are being managed under state scheme Development of Pasture and Grazing lands. Van Mahotsava at State, Circle and Division levels is also celebrated for educating the masses and creating awareness amongst all stakeholders regarding forestry and environmental concerns under New Forestry Scheme (Sanjhi Van Yojana).
For the FY2022-23 plantation target of 15,000 hectares including CAMPA and Centrally Sponsores has been fixed out of which 12,131 hectares targets stand achieved and remaining target would be achieved up to 31st March, 2023.
Forest Management: Forests in the State are subject to increasing biotic pressure due to increase in human populations, changing animal husbandry practices, and developmental activities. Forests are exposed to perils of fire, illicit felling, encroachments and other forest offences. Forest protection is being strengthened by equipping check posts at sensitive places with CCTVs to ensure electronic surveillance to curb forest offences. Firefighting equipment and improved techniques are also being introduced and made available to all the forest divisions where fire is a major destructive element. Communication network for effective management and protection of forest wealth is very important. Keeping these factors in view, Centrally Sponsored Scheme- Forest Fire Prevention and Management Scheme and State scheme namely ―"Forest Fire Management scheme" is being implemented in the state.
Experimental Silvicultural Felling/Subsidiary Silviculture operations: The value of Himachal Pradesh's forests is estimated at around ₹1.50 lakh crore. Supreme Court of India has allowed the State for silviculture green felling of three species, Khair, Chil and Sal, on experimental basis in three ranges- Nurpur range of Nurpur Forest Division, Bharari range of Bilaspur Forest Division and Paonta range of Paonta Forest Division. The felling of trees was carried out during 2018-19 and during FY2022-23 maintainence of areas is being carried out as per recommendations of the Supreme Court Monitoring Committee.
New Schemes:To sensitize the local communities, students and general public about the importance of forests and their role in environmental conservation, for sustainable harvest handling and value addition, following new schemes have been launched:
Samudayik Van Samvardhan Yojana: The main objective of this scheme is to ensure participation of local communities in conservation and development of Forests through plantation improving quality of forest and increasing the forest cover. The scheme is implemented through existing Joint Forest Management Committee/Village Forest Development Societies (JFMCs/VFDSs). During the year, plantation and soil conservation activities are being carried out in all selected sites (JFMCs/VFDSs) as per approved Micro Plan. An outlay of ₹301.77 lakh has been kept under this scheme during the FY2022-23
Van Samridhi Jan Samridhi Yojana: This scheme has been started to strengthen the Non-Timber Forest Products (NTFP) resource base in the State through active community participation to, empower the local rural communities to collect, conserve and selling non-timber forest products to increase their income.
Ek Buta Beti ke Naam: In 2019–20, a new programme "Ek Buta Beti Ke Naam" was started to raise awareness about the value of daughters and the need to protect forests. Upon the birth of a girl-child anywhere in the State, the Forest Department would gift 5 saplings of identified species alongwith a planting ‗kit‘ to grow robust and healthy tall plants. During FY2022-23 ₹409.32 lakh has been kept under this scheme.
Vidyarthi Van Mittar yojna: The scheme is being implemented in association with Education Department and in collaboration with Himachal Pradesh State Legal Services Authority. A budget provision of ₹38.15 lakh has been kept under this scheme during FY2022-23. 65 new schools have been selected for carrying out plantation by the students during the FY2022-23.
Amrit Sarovar: In FY2022-23, under this scheme, 154 sites have been identified for the construction of Amrit Sarovars. Till date 147 Amrit Sarovar has been constructed.
Jal Bhandaran: Under this scheme, 82 places have been identified for the construction of dams in FY2022-23. So that, the water conservation can be done. A budget provision of ₹2295.89 lakh has been kept for the scheme.
Externally Aided Projects
Himachal Pradesh Forest Eco-systems Climate Proofing Project (KfW assisted): Himachal Pradesh Forest Ecosystems Climate Proofing Project with the assistance of KfW Bank (Credit Institute for Reconstruction), Germany is being implemented in Chamba and Kangra districts of the State for a period of 7 years w.e.f. 2015-16. The outlay of the project is ₹308.45 crore. The main objective of this project is the rehabilitation, protection and sustainable use of the selected forest ecosystems in Himachal Pradesh, to increase and secure the resilience of forest ecosystems against climate change. This will contribute to strengthening the adaptive capacity of forest ecosystems to climate change, protection of biodiversity, stabilization of catchment areas, conservation of natural resource base and time result in better livelihoods. Provision of ₹55.00 crore has been kept for the current financial year out of which ₹ 25.85 crore have been spent.
Himachal Pradesh Forest Eco systems Management and Livelihood Improvement Project: The Japan International Cooperation Agency is funding a 10-year, ₹800-crore "Himachal Pradesh Forest Ecosystems Management and Livelihood Improvement Project" (JICA). The project is being implemented in Bilaspur, Kullu, Mandi, Shimla, Kangra, and tribal areas of Kinnaur and Lahaul-Spiti with Project headquarter at shimla and Regional office at Kullu & Rampur Bushahar. The objectives of the project are to conserve the forest and mountain ecosystem and improve livelihood of the forest and pasture dependent communities by increasing forest cover, density and productive potential using scientific and modern forest management practices; enhancing biodiversity and forest ecosystem conservation. For FY2022-23, the Government has provided ₹70.00 crore under this project and entire budget will be utilized for project related activities till 31st March, 2023.
Wildlife-Human Interface: The state has always coexisted with its biodiversity. Over the years, people have used over 600 local plants for health care, food, fruit, fibre, fodder, fuel, gums, oil, resin, and more. These plants contribute substantially to the rural livelihoods. The State Government, in appreciation of these intimate rural livelihood linkages, has allowed the local communities the use of these usufructs from all forests except those that are reserved under the Indian Forest Act, 1927 and those that are constituted as National Parks under the Wildlife (Protection) Act, 1972.
Since 1984, population of wild animals has increased due to imposition of total ban on hunting. The extensification of agriculture coupled with increased human interference in hitherto undisturbed areas has led to greater human-animal conflict. Whereas, Wild Boar, Black Bear and Monkeys are reported to sometimes cause damage to standing crops, instances of lifting of domestic animals by leopards are also reported. Stray cases of injuries to and loss of human life by leopard and black bear have been reported.
The wildlife managers are in the process of formulating a longterm policy to deal effectively with the increasing human-wild animal conflicts. The State Government, concerned about these conflicts, extends monetary compensation in cases of loss of domestic animals and injuries to or loss of human life due to wild animals. It's impossible to separate forests and animals, since both are essential components of the environment.
Environment Forestry and Wildlife: Protection, improvement of environment and wildlife, creation of wildlife sanctuaries/national parks, and enhancement of wildlife habitat are all part of the scheme with the ultimate goal of saving endangered birds and animal species.

Department of Environment, Science and Technology was set up on 13th April, 2007 with a broad objective to improve the effectiveness of environmental management, protect vulnerable ecosystems and enhance sustainability of development.
Government Initiatives: The State today faces key environmental challenges, especially because of the nexus of environmental degradation and economic growth. These challenges pertain to the State of environmental resources, such as air, land, water, flora and fauna. Responding to these challenges the Government of Himachal Pradesh is devising suitable policies for its key sectors - hydropower, tourism, and industry- as well as for rural development for Environmental management.
Plastic Waste Management: The State Government has banned use and littering of plastic items from time to time under Himachal Pradesh Non-Biodegradable Garbage (Control) Act, 1995. A fine of ₹13.50 lakh has been collected from 1,224 violators in FY2022-23. Under this Act, polythene bags, plastic and thermocol cutlery single use plastic spoons, bowls, katories, stirring sticks, forks, knives, straws have been completely banned in Himachal Pradesh. Under Buy-back Policy for non-recyclable plastic waste in FY2022-23, ₹42.17 lakh has been paid on purchase of 29,965 kg of specified plastic waste to the households and registered rag pickers at 75 per kg in the State.
State level Special Task Forces has been constituted under the Chief Secretary, Government of Himachal Pradesh for taking measures to eliminate single use plastic in mission mode.
Creation of Model Eco Villages: The Department of Environment, Science & Technology is implementing Model Eco Villages scheme in the State. This scheme is focusing towards the perspective of developing low impact lifestyle as to reduce the ―ecological footprint by as much as 50 per cent of the base assessment from the launch of the scheme. 19 villages have been included under this scheme and total budget of ₹2.44 crore have been utilized upto 31st December, 2022 under this scheme.
Research and Development (R&D) Projects: To promote R&D, "Himachal Pradesh Specific Research and Development Projects 2022-23" are being funded to develop academic institutions, National laboratories and other recognized R&D Institutions in different fields of the State.
Schedule Caste (SC) Development Plan: This scheme is being implemented to strengthen capacity of marginal SC families/farmers for meeting energy requirement for irrigation, water lifting, heating and space lighting through demostration of solar power plants, restoration and mechanization of traditional water mills (Gharats), revival of natural springs of marginal SC families/communities.
State Level Environment Leadership Awards: Himachal Pradesh Environment Leadership Awards scheme is one of regular scheme of the Department of Environment, Science & Technology. Under this scheme ₹25.00 lakh have been earmarked to be utilized during the FY2022-23 and 34 applications have been received for awards in different sectors.
State Knowledge Cell on Climate Change (KCCC): Under the National Mission for Sustaining Himalayan Ecosystems (NMSHE), the Department of Environment, Science and Technology, Himachal Pradesh has established a State Knowledge Cell on Climate Change (KCCC). The Government of India provided ₹1.12 crore for State KCCC operations. The department is creating a cohesive database on geological, hydrological, ecological, social cultural and traditional ecosystem preservation and conservation information. Thus, monitoring and analysing data helps build a climate change policy knowledge base. The Climate Change Vulnerability Assessment and Adaptation Plans for Kinnaur & Lahaul-Spiti districts have been prepared and plans for Shimla, Kullu & Mandi are being prepared.
Climate Adaptation and Finance in Rural India (CAFRI) project: CAFRI project is implemented in the State under Indo-German Technical Cooperation between German Development Co-operation (GIZ) and Minisstry of Environment, Forest and Climate Change (MoEFCC). Under this project Capacity Development Package has been prepared and launched for the Panchayati Raj Institutions and Mahila Mandals and various trainings and capacity building programme have been organized in the State during FY2022-23.
Knowledge Network on Climate Change and Disaster risk reduction (HPKNCC&DRR): In order to implement SDG-13 Vision 2030 targets, HPKNCC&DRR has been setup in the State with the objectives to bring together policymakers, adaptation researchers, private and other non-governmental sectors at State and regional levels to support the objectives outlined in the State Mission for Climate Change Strategic Knowledge and Information.
National Adaption fund for Climate Change (NAFCC): Implementation of NAFCC (National Adaptation Fund for Climate Change) project in drought prone areas of three developmental blocks of district Sirmaur with the financial outlay of ₹20.00 crore has been completed. The objectives of this programme was to reduce the climate related vulnerability and improve the adaptive capacity of rural small and marginal farmers including rural women by introducing a package of Climate Smart Farming Technologies along with required social engineering and capacity building processes leading to improved food security and enhanced livelihood options to enhance resilience.
Department has successfully completed the training programme under National Adaptation Fund for Climate Change in drought prone areas of three developmental blocks of district Sirmaur and provided trainings to 30,880 farmers on climate change adaptation. The achievement of this project has also been showcased during 27th Conference of the Parties (COP-27) of the United Nations Framework Convention on Climate Change (UNFCCC) in Egypt from 6thNov, 2022 to 18th Nov, 2022.
Demonstration Micro Municipal Solid Waste Management Facilities: State Government has completed the process for setting up of 10 demonstration Municipal Solid Waste management facilities as pilot projects in the state with a budget of ₹4.48 crores sanctioned by MoEF&CC, GoI under National Mission on Himalayan Studies scheme.
State of Environment Report-2022: The Department of Environment, Science & Technology has revised and published State of Environment Report (SoER) 2022 covering various sectors viz Physiography, Agriculture, Horticulture, Bio-diversity, Energy, Land use, Forest, Health, Industry and Mining, Tourism and Culture, Transport, Water Resources, Environment Pollution and Management, Society and Environment & Natural Disaster. The SoER is brought under the scheme launched by MoEF&CC, GoI on the Pressure, State, Impact and Response Model (PSIR).This report has been released on the eve of the World Environment Day, 05th June, 2022.

The Himachal Pradesh Council for Science, Technology and Environment (HIMCOSTE), is the nodal agency for the promotion of Science and Technology and creation of Environment Awareness in the State.
Major achievements/policy initiatives
Technology and Innovation Policy 2022: HIMCOSTE has formulated the Science Technology and Innovation (STI) Policy for Himachal Pradesh and notified the policy with the vision to strengthen and promote Science, Technology and innovation in the State by providing the environment and opportunity to the innovators and stake holders for overall sustainable development of the mountain regions.
Objectives:
To strengthen R&D Institutions and Innovation centers.
Identify priority R&D areas for fostering scientific research and innovations.
Development of appropriate ecosystem for innovations.
To promote use of STI in identified priority areas by harnessing natural indigenous resources for science led appropriate livelihood options.
Supplementing the national objectives of self-reliance, technological competence for the socio-economic development.
To leverage the Traditional Knowledge System (TKS) including 'Vocal for Local' philosophy.
Promotion of enhanced public-private participation in the R&D activities.
Popularizing Science and developing scientific temper amongst the different sections of the society. Mapping of Science and Technology (S&T) Needs in the State in Consonance with Sustainable Development Goals (SDGS): The Science and Technology inputs assume greater significance in the hilly States like Himachal Pradesh, given the geographical constraints which act as challenge for its development. The basis of any planning for sustainable development has to be centred on human relationship with nature, sense of justice and equity within the permissibility of Himalayan specificities and response of the people. However, the need is to understand that the State is rich in the natural resources and it can render services as unpaid manager and custodian of natural wealth, compromising its own developmental requirements.
In Himachal Pradesh, HIMCOSTE has mapped the S&T Needs of the State. Mapping of Science and Technology needs in the State is being carried out by focusing on the following objectives:
To identify the core problems, issues and possible solutions through secondary sources in the State.
Inventorisation and mapping of identified issues in relevant sectoral areas of the State requiring S&T interventions based on secondary sources.
Documentation of the findings.
Climate Change: Impact and Mitigation in Himachal Pradesh:
Climate Change issues are of global concern. State Centre on Climate Change (SCCC) under the aegis of HIMCOSTE has been involved in carrying studies to assess the impact of climate change and its various facets on the Cryosphere (snow, glaciers permafrost and climate induced hazards), agriculture, horticulture & Forestry sectors in Himachal Pradesh Brief of the findings based on the work done is as under:
Cryospheric Studies (Snow, Glaciers and GLOFs):

i) Mapping of seasonal snow cover in Himachal Pradesh on regular basis through satellite images.

ii) Mapping and Monitoring of Glacial Lakes (GLOFs) in Himachal Pradesh through satellite images.

iii) Mapping and Monitoring of Glaciers in all basins of Himachal Pradesh by using high resolution satellite data. The recent study reveals that the glaciers in Chenab basin shows a reduction in their area by 3.51 per cent during the period 2001-2018 in terms of the clean glaciers and 1.17 per cent in terms of the glaciers covered with debris cover Likewise in Beas basin, the reduction is of the order of 5.15 per cent in terms of clean glaciers and 1.88 per cent in terms of the debris covered glaciers during the period 2001-2018 respectively. In Ravi basin, the deglaciation is of the order of 3.21 per cent in terms of the clean glaciers and 1.46 per cent in terms of the debris covered glaciers has been observed during 2001- 2018. In Baspa basin, the deglaciation is of the order of 4.18 per cent and 2.34 per cent in terms of clean and debris covered glaciers and in Spiti basin, it is of the order of 2.74 per cent and 1.88 per cent in terms of clean and debris covered glaciers.
Disaster Management:

i) Regular toning of Parechhu Lake is being done which has been formed in the Tibetan Himalayan Regions since its inception in 2004. The monitoring is being done using satellite data from April to October every year during the ablation season.
ii) District wise multi-hazards maps are being generated using high resolution satellite data for all the district of Himachal Pradesh. Other achievements/policy initiatives of HIMCOSTE
iii)The HIMCOSTE has constructed a Centre for Science Learning and Creativity at Village Bhog, Shoghi for awareness, popularization, research, development and dissemination relating to science & technology.
iv) A Planetarium is being established at Village Bhog. Shoghi, Shimla for which a Memorandum of Understanding between National Centre of Science Museum Kolkata and Himachal Pradesh Council for Science, Technology and Environment has been signed.

v) The HIMCOSTE is organizing Children's Science Congress for the students of 10-17 year of age group every year since 1993. This event is organized at Sub-Division Level. District level and State Level. This year 24,346 Students were registered for the event in which six activities like Science Quiz. Scientific Project Report, Mathematical Olympiad. Innovative Science Model, Science Activity Comer and Science Skit were organized.
The Himachal Pradesh State Biodiversity Board has been constituted under the aegis of HIMCOSTE for conservation and sustainable use of biological resources of the State as per the provisions of the Biological Diversity Act, 2002. The Board has constituted Biodiversity Management Committees at all the local bodies of the State and draft Peoples Biodiversity Registers, containing the information on various components of biodiversity. Trainings to progressive farmers were organized on cultivation of important medicinal plants for providing alternate livelihood options to the farmers of the State. Three Biodiversity Heritage Sites namely, Sural Bhatori, Block Pangi, Distt. Chamba, Hudan Bhatori, Block Pangi, Distt. Chamba and Nain Gahar, Gram Panchayat Mooring, Sub. Tehsil Udaipur, District Lahaul-Spiti have been notified in the State for conservation and management of biodiversity of that area.
During FY2022-23 the HIMCOSTE has filed applications for Geographical Indication (GI) registration of Sirmouri Loiya, Himachali Cap and Sepu Vadi with Registrar of GI at Chennai, Gol. Applications for Kinnauri Jewellery, Himachali Dham, Kinnauri Apple, Thachi Metal Craft, Chamba Chukh, Karsog Kulthi and Red Rice are under final stage of compilation.
The HIMCOSTE provided funds to support "Himachal Pradesh Specific Research and Development Projects" for strengthening research and development in various fields of Science & Technology in the State of Himachal Pradesh.
HIMCOSTE has established 3100 Eco-clubs in the State to strengthen the Eco club activities in Schools and Colleges in Himachal Pradesh. The HIMCOSTE has supported 144 numbers of Eco clubs to establish rain water harvesting herbal garden/ Solid waste Management activities in Eco club schools. Total 26,106 plants were planted by the members of Ecoclubs.
HIMCOSTE has identified 10 schools for establishment of Grid Connected Solar Power Plants to propagate the concept of energy conservation in schools.

The Jal Jeevan Mission established by the Union government on August 15, 2019, aims to provide Functional Household Tap Connections (FHTC) to every rural household by the year 2024. The estimated cost to accomplish this programme nationwide is ₹3.5 lakh crore. The programme focuses on the household's ability to get services in a suitable amount (55 litres per person per day) and with the required level of quality.
16.64 lakh homes out of 17.09 lakh received FHTC to December 2022. Compared to the national average of 56.50 per cent, 97.37 per cent of homes in Himachal Pradesh have domestic connections.
In the functionality assessment conducted by the Third Party Inspection Agency chosen by the Government of India during the year, the state received the first prize in the category of portability among the States and Union territories that provide more than sixty per cent of their households with tap water.
Urban Water Supply Schemes: Himachal Pradesh has 61 towns. Jal Shakti Vibhag maintains 59 Towns/urban local bodies (ULB) water supply systems. The Water Supply of Shimla Town is with Shimla Jal Prabhandan Nigam and Parwanoo Town is with HIMUDA. 45 of 59 schemes are complete. Six towns—Solan, Dehra, Jawalamukhi, Dalhousie, Daulatpur, and Sundernagar—are upgrading their water supply systems. New Water Supply Schemes @135 LPCD for Rewalsar, Jawali, Hamirpur, and Nerchowk are under construction. DPRs for improving water supply schemes in Baijnath-Paprola and Karsog have been approved, and construction will begin shortly. DPRs for improving water supply schemes at @135 LPCD for 7 towns—Shahpur, Anni, Nirmand, Chirgaon, Nerwa, Kandaghat, and Tahliwal—are being prepared.
Atal Mission for Rejuvenation and Urban Transformation-2.0 (AMRUT 2.0) has approved Detailed Project Reports (DPRs) totaling to ₹154.07 crore for upgrading/providing water supply to leftout areas in 13 towns (Mandi, Amb, Theog, Bhuntar, Rajgarh, Chamba, Hamirpur, Baijnath-Paprola, Sunni, Jawali, Rampur, Nahan, and Dalhousie).
Status of sewerage Schemes: Himachal Pradesh has 61 urban local bodies. Jal Shakti Vibhag is tasked with providing sewage systems for sixty municipalities/ULBs. Shimla Jal Prabhandhan Nigam (SJPNL) is in charge of the city's sewage system. Jal Shakti Vibhag has provided sewerage facilities in 35 towns, of which 14 have fully finished sewerage projects and 21 have partly completed sewage schemes. Jal Shakti Vibhag has established 68 Sewerage Treatment Plants (STPs) around the state with a total treatment capacity of 91.94 Minimal Liquid Discharge (MLD), of which 57.17 MLD (62.18 per cent) is now being treated. The work for building/up gradation of Sewerage Schemes for 14 towns is in process and plans of balance 18 towns are being produced and presented for finance under state head or Externally Aided Projects (EAP) AFD. Towns being covered under AFD include Nahan, Bilaspur, Karsog, Palampur and Manali (Rangri) Sewerage connectivity to left out and low laying area in MC Kullu and up gradation of STP at Badah at Kullu has been approved under AMRUT 2.0 for ₹11.10 crore.
Command Area Development (CAD):During FY2022-23, the Government of Himachal Pradesh allocated ₹75.06 crore, which included ₹ 75.03 crore for Himachal Pradesh Command Area Development (HIMCAD) activities in minor irrigation schemes to bridge the gap between potential created and utilised, and the remainder for major/medium irrigation and minor irrigation schemes in the state, including the central share. There is a physical goal of 6500 hectares Culturable Command area (CCA) for delivering CAD operations, of which 2217.08 hectares have been reached by November 2022 at a cost of ₹20.80 crore.
Hand Pump Programme: The Government has an active programme to provide hand pumps to regions facing scarcity of water during summer season. A total of 41,614 hand pumps have been installed as of December, 2022.

Himachal Pradesh has a total land area of 55.67 million hectares, however only 5.83 million hectares are farmed. It is estimated that the state's irrigation potential is around 3.35 million hectares. Through big and medium irrigation projects, 0.50 lakh hectares are irrigated, while the remaining 2.85 lakh hectares can be irrigated through small irrigation schemes. As of November 2022, a total of 2.97 million hectare is irrigated.

Major Irrigation: Shahnehar Project in Kangra District is the only significant irrigation project in the state. With the completion of the Project, irrigation infrastructure for 15,287 acres of land is now available. Until November 2022, the CAD team brought 9,998.50 hectares of land under CAD operations out of a total of 15,287 hectares.

Medium Irrigation: The Balh Valley Left Bank Irrigation Project covers 2,780 hectares of land, the Sidhatha Kangra Irrigation Project covers 3,150 hectares, and the Changer area Bilaspur Irrigation Project covers 2,350 hectares. As of November 2022, CAD efforts have been expanded to include 2,705 hectares of land in the Sidhatha area. The Phina Singh Cultivated Command Region is 4,025 hectares, while the Nadaun area in District Hamirpur is 2,980 hectares, both of which are undergoing development as part of a medium-scale irrigation project.

Minor Irrigation: ₹218.03 crore has been allocated in FY2022–23 to provide irrigation infrastructure for an area of 9,000 hectares, and as of November 2022, ₹30.25 crore has been spent to cover 2270.08 hectare area.

The Industry sector has been at the forefront of global economic growth and increased worker productivity ever since the beginning of the Industrial Revolution in the 16th century. South Korea, Singapore, and Taiwan are just a few examples of newly industrialised nations that have relied on industrial policy and industry support to achieve rapid economic growth. Those nations are today among the world's wealthiest.
Himachal Pradesh has seen good industrialization in recent years. Over the previous four years, the industry sector of the state has contributed 40.0 per cent, on an average, to the State's Gross Domestic Product (GDP). The industry sector has seen a Compound Annual Growth Rate (CAGR) of 6.0 per cent during the last decade.
Manufacturing industries in the areas of medicine, electronics, energy, transportation, construction, textiles, chemicals, and pharmaceuticals are flourishing in the state. The state has paid significant emphasis to public-private partnerships as a means of financing hydropower projects. The State Government has lately introduced a variety of programmes meant to promote industrial growth in the state. To improve its Ease of Doing Business (EoDB), the State Government now allows applications to be submitted and approved online, saving businesses time and money.
Contribution of Industry Sector and its sub-sectors: The industry sector is crucial for boosting the state economy and generating a lot of job possibilities in Himachal as well. Industry Sector (including Mining and Quarrying) at current prices as per Advance Estimates (AE) for the FY2022-23 is estimated at ₹79,284 crore.
Manufacturing sector contributes 71.75 per cent of the nominal Gross Value Added (GVA) to the overall value added by the industry sector, with the remaining contributions coming from the sub-sectors of construction, mining and quarrying, and electricity and other utilities.
The contribution of industry sector (including Mining and Quarrying) at current prices to Gross State Value Added (GSVA) is 42.97 per cent in FY2022-23 in which 30.83 per cent comes from manufacturing sector, 6.28 per cent from construction and 5.62 per cent in electricity, water supply and other utilities services.
The contribution of mining and quarrying sector in GSVA at Current Prices has decreased from 0.31 per cent in the year 2019-20 to 0.24 per cent in FY2022-23, due to the result of stringent action taken to check illegal mining by the State Government (Figure11.1).
Growth of Industry Sector and its sub-sectors: As per the AE, the Industry sector's GSVA is expected to grow by 7.1 per cent during FY2022-23 and at the national level, the industry sector's GVA surged by 4.1 per cent in constant terms during the same time span. The rapid growth in GVA of State‟s industry sector implies that the effects of supply chain disruption were temporary and demonstrates the industry's resilience, which is bolstered by the government's growth-focused industrial policies.
i) Manufacturing sector: During FY2022-23, manufacturing sector is expected to grow at 6.7 per cent which is third highest growth rate in industry sector (Figure 11.2). Between 2011-12 to 2021-22, manufacturing sector experienced higher CAGR of sub-sectoral GSVA than their national counterparts (Figure 11.4), demonstrating Himachal Pradesh‟s rapid manufacturing development and its capacity to draw in investment through business reforms, the provision of better infrastructure and the offering of competitive financial concessions to prospective investors.
ii) Construction sector: Growth of construction sub-sector is critical for increasing income of organised as well as unorganised sector and also necessary for infrastructure development of the State. Construction sector anticipated highest growth rate during FY2022-23 which is 9.5 per cent (Figure 11.2). Construction sector grew at a CAGR of 6.0 per cent which is 2.0 per cent point less than national average between 2011-12 to 2021- 22 (Figure 11.4).
iii) Electricity, Water Supply and Other Utility services sector: During FY2022-23, electricity, water supply and other utility services sector is expected to grow at 7.2 per cent which has second highest growth rate in industry sector (Figure 11.2). On the other hand, CAGR of electricity, gas and water supply between 2011-12 to 2021-22 was 5.0 per cent which is less than national average.

Mining and quarrying sector expected to grow at 2.2 per cent in FY2022-23. The CAGR for the Mining and Quarrying sub-sector over ten years was 4.0 per cent, which is result of curtailing mining activities in Himachal, to promote environmental sustainability.

Persons who were either 'working' (or employed) or 'seeking or available for work' (or unemployed) constituted the labour force. According to the Periodic Labour Force Survey (PLFS) 2020-21, 19.32 per cent of the state's working adults were employed by the industry sector which is increased to 20.12 per cent in 2021-22, PLFS. This is approximately 10,74,844 working adults in the State engaged in industry sector.
Construction and manufacturing are two sub-sectors within the industry sector that proved the largest share of employment to the workforce in the State employing 11.53 per cent and 7.61 per cent of the State‟s working adults respectively. The other two sub-sectors together employ 0.78 per cent of the state's workforce. From figure 11.5, it is visible that construction sector‟s share in employment improves to 38.0 per cent in 2021-22 from 34.0 per cent in 2020-21, while share of electricity and other utility decrease to 4.0 per cent in 2021-22 from 8.0 per cent in 2020-21.

Percentage distribution of usually working persons by industry of work for Himachal Pradesh (out of total workforce) has been presented in figure 11.6 which show that 57.23 per cent, 19.92 per cent and 22.85 per cent is employed in Primary, Secondary and Tertiary sector respectively (PLFS, 2021-22). In Himachal Pradesh in urban area 28.11 per cent working population is employed in secondary sector and in rural area only 19.25 per cent working population is employed in secondary sector.
Figure 11.7 displays the gender-based differences in the labour force between rural and urban areas. While just 6.76 per cent of rural women are engaged in the secondary sector, 30.53 per cent of men in the labour force in rural areas are gainfully employed in this sector. Comparatively, only 16.82 per cent of women in urban areas are engaged in the secondary sector (10.06 per cent higher than in rural areas), whereas 32.43 per cent of men in urban areas are gainfully employed in the labour force.

The State's industrialization is a relatively new phenomenon. It only gained traction after gaining statehood. Prior to the attainment of Statehood in 1971, the primary industrial entities in the State were Nahan Foundry at Nahan (Sirmour), Mohan Meakins Breweries at Kasauli (Solan), Salt Mines at Drang (Mandi), Rosin and Turpentine Manufactures at Nahan and Bilaspur, and four minor gun factories at Mandi. The State Government recognised the significance of Industrial Policy as an important tool for increasing investor confidence and catalysing industrial growth. Incentives to Industries were first announced in 1971 and were changed in 1980, 1984, 1991, 1996, 1999, and 2004, before being modified in 2009, 2015, and 2017 in response to changing circumstances.
The vision statement in the industrial policy 2019 is
“To create an enabling ecosystem to enhance the scale of economic development and employment opportunities; ensure sustainable development and balanced growth of industrial and service sectors to make Himachal as one of the preferred destination for investment”.
In 2022-23, industrial policy 2019 extended from December, 2022 to December, 2025 for providing favourable industrial development environment, especially for Micro, Small and Medium Enterprises. If this strategy is implemented, it will help accomplish its goals by
EoDB will be ensured by the simplification of laws and processes, the adoption of self-certification, and the rapid digitization of all approvals.
Building a new industrial infrastructure, or improving upon an existing one, and establishing a private Land Bank.
The provision of reliable, cost-effective electricity.
As a result of streamlining the distribution of State-provided incentives, concessions, and facilities, investment in the State may be maintained and speed up.
By providing incentives, facilities and concessions with condition of employment to 80 per cent Bonafide Himachlies at all level. Enterprises employing above 80 per cent Bonafide Himachlies on regular basis are being incentivized on additional employment generated over and above of 50 Bonafide Himachlies.

To encourage manufacturing and create more jobs in Himachal Pradesh, the state government has selected eight priority industries to concentrate on. The major goal of the sector designation is to establish an investor and entrepreneur friendly and transparent system, as well as to provide simpler processes, convenience of doing business, and attractive policies in different sectors.
i) Agri-Business, Food Processing and Post Harvest Technology: The State has an abundance of raw material for the food processing industry. Himachal Pradesh has dedicated infrastructure in the form of industrial facilities such as designated food parks, Mega Food Park, Agri Export zone, Inland container depot and Effluent Treatment plant for the growth of the Agri-Business and Food Processing industry in the State. ii) Manufacturing and Pharmaceuticals: The State has made a significant transition from agrarian to an industrial economy; with a quantum jump from a mere 7.0 per cent contribution of the industry sector to GSDP in 1950-51 to 42.97 per cent in 2022-23. In the Industrial Investment Policy 2019 for equitable and balance development of industrial development across the State higher incentives are being offered for the investors for setting up of “B” and “C” category of the State. Sector Highlights of Manufacturing and Pharmaceuticals are stated under following point:
The State has 47 Industrial Areas and 17 Industrial Estates and offers market access to over 300 million customers (25 per cent population of India). It supported the development of Cremica Food Park through private sector participation. With abundant raw material and better connectivity, the State Government envisages the development of more Food Parks.
New Industrial parks have been proposed at various locations in the State such as: Integrated Industrial township and Software Technology Park at Kangra, Integrated Industrial Township under MIIUS, Mega Food Park under Mega Food Park Scheme, Mega Textile Park at Una, Proposed Biotechnology Park at Aduwal and Bulk Drug Park at Una, Medical Devices Park in Solan Software Technology Park at Mehli in Shimla Policy Support Industrial Investment Policy 2019.
Largest pharma hub of Asia: Himachal Pradesh is the pharmaceutical manufacturing hub of the country. Almost all the leading pharma giants have set up their units here or are in the process of setting up units. An ultra-modern laboratory assisted by National Institute of Pharmaceutical Education and Research (NIPER) is also proposed to be set up at Baddi. Himachal Pradesh contributes 35.0 per cent of pharma demand in India. The initial development work for the approach Road, Power etc. has been started for these 2 parks. For “Medical Device Park”, Centre Govt has given its initial share of ₹30 crore and State Government has released ₹74.95 crore as State share. For “Bulk Drug Park”, State Government has released ₹35.54 crore as initial State share and ₹300 crore are expected soon as Central Share. With the commissioning of these 2 parks, State will get boost in investment and in employment opportunities.
Tourism, Hospitality and Civil Aviation: Himachal Pradesh offers a wide variety of options to tourists having different interests and is popular for leisure, religious, adventure and cultural tourism. The tourism sector of Himachal Pradesh provides innumerable opportunities for private investors to be a part of the growth story. Ayurveda, Yoga, Unani, Siddha and Homeopathy (AYUSH), Wellness and Healthcare: AYUSH comprises practices of alternate medicine systems such as Ayurveda, Yoga, Unani, Siddha and Homeopathy. The State is home to some of the rarest Herbs in the Himalayas used in Ayurveda. Himachal Pradesh has a rich history in providing ayurvedic treatments and is home to various luxury wellness resorts.

Shimla and Dharamshala both have been selected as two of the hundred Indian cities to be developed as Smart Cities under Smart Cities Mission. Significant of investment will be made in Public Private Paternership (PPP) mode in the area of infrastructure, Technology, Solid Waste Management, Housing and Community facilities. Information Technology (IT), Information Technology Enabled Services (ITeS) and Electronics Manufacturing: India is aspiring to become a 1 trillion-dollar digital economy in the next few years, riding on opportunities in areas such as IT, IT-enabled services, ecommerce, electronics manufacturing, digital payments and cyber security. Himachal Pradesh government has an aim to leverage this opportunity through investment in IT, ITeS and electronics manufacturing sectors and in governance to transform the State.
The State government of Himachal Pradesh has developed an e-governance road map to boost IT, ITeS and electronics ecosystem in the State. The initiatives under the e-governance road map include as integrated enterprise architecture, setting up of IT parks, cyber security measures, connectivity in tribal areas, data centre and command and control centre etc. Education and Skill Development: The State has performed remarkably well in the field of education not just in achieving good standards in educational indicators but also in new innovative initiatives like “Sameeksha Program: A Technology-based Integrated Review and Monitoring System” and “Continuous Learning Programme: Refresher Training for InService Teachers” for exemplary implementation of the programmes through Samagra Shiksha in the Department of Education.
Renewable Energy: Hydro power development is the key engine to the economic growth of Himachal Pradesh, with a significant contribution to economy in terms of revenue generation, employment opportunities and enhancing the quality of life. Harness able hydropower potential is 23,500 Mega Watt (MW), of which 10,580 MW has already been harnessed. Himachal Pradesh has the unique distinction of being net exporter of power with 100 per cent renewable energy. Himachal Pradesh accounts for nearly a quarter of harness able hydropower potential of India and robust transmission and distribution network in place ensuring 100 per cent electrification in the State.

< Rationalization of Regulatory Compliances (RRC): State has taken several initiatives for reducing the regulatory compliance burden to realize the State and Nation‟s goals of improving “Ease of Living” and “EoDB”. A „State Task Force” in this regard has been constituted under the Chairmanship of Chief Secretary with other Administrative Secretaries as members to minimize the various regulations in the State. Department of Industries is the Nodal Agency to implement and coordinate with all line departments.
Key objectives behind the RRC exercise are to identify/ reduce/ eliminate all the burdensome compliance, minimize physical touch points between Government to Business (G2B)/ Government to Citizen (G2C) and provide hassle-free delivery of services by Government. Himachal Pradesh has reduced a total of 2011 burdensome compliances in RCB Action Plan 2022-2023 (Reduced 961 compliances with Business Interface category and 1,050 with Citizens Interface category) as on 31st January 2023.
Mukhya Mantri Swavalamban Yojana (MMSY): MMSY is one of the important flagship programmes of the State Government. It is an ambitious scheme of the State Government to provide self-employment opportunities for youth of Himachal Pradesh. The scheme has been made available online with the provision of 60 per cent “Front Loading” of subsidy. The scheme has been recently amended by adding activities related to agriculture, animal husbandry, sericulture and mining in order to provide benefits to rural youth. The age limits for women have been revised from 18-45 years to 18-50 years and so that more women could take the benefit of the scheme and become self-dependent. This scheme is being regularly monitored at higher level and is very popular amongst the youth.
Under MMSY, from 2018-19 till now, 8,559 projects have been sanctioned with an employment of 13,720 and subsidy released is ₹249.59 crore to assist these projects. Projects up to ₹1 crore investment are financed/ assisted under this scheme. A subsidy ranging from 25 per cent (to General Candidates), 30 per cent to scheduled caste (SC), 35 per cent (Women and Divynagjan led enterprises) is given up to a maximum ceiling of ₹ 60 lakh in Plant and Machinery. Investment subsidy of 5 per cent for 3 years on loan up to ₹ 60 Lakh is also given.
During the year 2022-23 till now, 2184 cases have been sanctioned by the Banks and a subsidy of ₹60 crore has been released. These enterprises will create 2,600 new job opportunities in self-employment sector.
State Rural Engineering Based Training Programme (SREBTP): In order to develop and upgrade skills of rural entrepreneurs belonging to the Scheduled Tribe and Other Backward Classes categories in Rural Engineering /Economy based Industries, SREBTP is being implemented.
Under this training programme in rural engineering trades are being imparted in the industrial enterprises for a period of 9 months, under the supervision of instructors of Training Centre/Industrial Enterprise. Candidates are being provided monthly stipend of ₹2400 and toolkit worth ₹7000 after completion of training.
Himachal State Food Mission (HPSFM): Ministry of Food Processing Industries (MFPI) had launched a Centrally Sponsored Scheme (CSS) National Mission on Food Processing (NMFP) during the 12th Plan (2012-13) for implementation through States/ UTs. Further, the Government of India has approved continuation of the Mission during the remainder of 12th Five Year Plan (2013-17). The basic objective of NMFP is decentralization of implementation of Ministry‟s schemes, which will lead to substantial participation of State governments / Union Territories (UTs).
This scheme has been delinked from central assistance and has been continued by the State Government from 2015-16 onwards. Under HPSFM, till now (from 2015 to January 2023) 215 food processing based enterprises have been sanctioned since inception till date and grant-in-aid amounting to ₹60.62 crore is involved in setting up of these projects.
Chief Minister’s Startup/ Innovation Projects/ New Industries Scheme: The "Chief Minister's Startup/ Innovation Projects/ New Industries Scheme" was created to help educated young people transition from job seeker to job creator, to help the state's "Startup" and "innovation projects," and to train young people and prospective investors in business skills.
In accordance with the policy, the Department of Industries is constructing a robust ecosystem that is in compliance with the policy requirements. The initiative envisions numerous incentives for startups to help entrepreneurs' success in their enterprises, including a monthly subsistence stipend of ₹25,000 per month for one year and free incubation facilities with plug-and-play capabilities.
To further enable venture capital and seed investment in the state, the government has announced the HIMSUP (Himachal Startup) Yojna, under which a fund of 10 crore has been established for five years to support companies. The following are the highlights of the Chief Minister's Startup mission:
To meet the demands of prospective start-up companies, the State Government has authorised a total of twelve business incubators to operate throughout the state.
The numbers of startups have been selected for incubation is 329 in which 280 startups have completed their incubation period and 49 startups are under incubation. The funds of ₹6.54 crore have been disbursed to incubation centres for infrastructure development.
HIMSUP Yojana has contributed around ₹1.5 crore to 10 different businesses as a form of capital assistance, and 78 different firms have succeeded in bringing their ideas to market. Sustenance allowance of ₹4.97 crore has been disbursed to the selected start-ups.

State Sponsored Schemes
The State has achieved 94.13 per cent in the implementation of EoDB reforms. The enactment of the “State Single Window (Investment, Promotion and Facilitation) Act in 2018 backed by a strong Public Service Guarantee Act enacted in 2011, provides an enabling and investment-friendly environment to the investors. Under EoDB rating, State has found a commendable place in the category of “Achievers”. Himachal has emerged as one of the Fastest Moving States. This ranking will create a feasible environment for Industrial Investment. The State has implemented 301 business reforms covering 15 business regulatory areas. “Single Window Portal- Emerging Himachal for Business services and Himachal Online Sewa Portal- E-District Himachal for Citizen related services" are fully functional to provide one stop solution to all Business/Industries and Citizens service.
Centrally Sponsored Schemes
i) Prime Minister Formalization of Micro Food Processing Enterprises (PMFMFPE): PMFMFPE is centrally Sponsored Scheme in which sharing pattern for Himachal Pradesh is 90:10 ratios (Government of India- 90.0 per cent, States- 10.0 per cent). Under Atama Nirbhar Bharat, PMFMFPE scheme has been launched, with an objective to assist Food Based Micro Enterprises of unorganized sector and bring them to organized sector.
Overall outlay for India is ₹10,000 crore for 5 years 2020-21 to 2024-25. For Shimla district under One District One Product (ODOP) approach Apple is selected as ODOP. Existing units of individual and groups to be supported even if not for ODOP product and new units would only be supported for ODOP product.
ii) Prime Minister’s Employment Generation Programme (PMEGP): Prime Minister‟s Employment Generation Programme (PMEGP) is a credit linked subsidy programme of Central Government. This scheme was launched on 15th August, 2008 by merging of two schemes, Prime Minister Rozgar Yojna and Rural Employment Generation Programme.
Under the scheme the maximum cost of the project in manufacturing sector is ₹50 lakh and ₹20 lakh under Service Sector. If the total project cost exceeds ₹50 lakh or ₹20 Iakh for Manufacturing and Service/Business sector respectively, the balance amount may be provided by Banks without any Government subsidy. General Category Candidate get 15-25 per cent subsidy depending upon the location of the proposed venture/unit and contribution towards project cost is 10 per cent. For other category candidates gets 25-35 per cent depending upon the location of the proposed venture/unit and their own contribution is only 5.0 per cent.
This scheme is being implemented by industries department, Himachal Pradesh Khadi and Village Industries Board (HPKVIB) and Khadi and Village Industries Commission (KVIC) State Offices. During 2022-23, 410 projects/ persons have been assisted with a margin money assistance of ₹13.29 crore to set up their chosen ventures. Till now approximately 10,000 persons have setup their ventures since inception of PMEGP.
The objectives of PMEGP are:
To generate employment opportunities in rural as well as urban areas of the country through setting up of new self-employment ventures/projects/micro enterprises.
To bring together widely dispersed traditional artisans/ rural and urban unemployed youth and give them self-employment opportunities to the extent possible at their place.
To provide continuous and sustainable employment to a large segment of traditional and prospective artisans and rural and urban unemployed youth in the country, so as to help arrest migration of rural youth to urban areas.
To increase the wage earning capacity of artisans and contribute to increase in the growth rate of rural and urban employment.
iii) Sericulture Industry: Sericulture activities are providing part time employment to the weaker section of the State. In order to promote silk worm rearing in the State, 146 communities based organizations and “Resham Sathi” has been nominated under various projects.

To bring transparency and save time, the entire process of sanctioning the mining lease is now online. To generate more revenue for the State, the Government has enhanced the royalty rates for the extraction of minor minerals (Sand, Stone, Boulder and Bajri) from ₹60 per tonne to ₹80 per tonne. For the facilitation in the working of brick kiln Units, the removal of clay/soil upto a depth of 1.5 meter from the general ground level for the purpose of development of agricultural land and plot in private land shall not be treated as mining activity.
Strict provisions have been made to check illegal mining and the penalty for illegal mining has been raised from ₹25,000 to ₹5,00,000 and the provision for imprisonment has been enhanced for a term up to 2 years or both. On one hand, Government is committed to check illegal mining and punish the offenders with the strict provisions made in the rules, on the other hand, it is making all efforts to make mining material available for legal activities.
The border Districts of State viz: Kangra, Una, Solan and Sirmaur are prone to illegal mining. In order to curb illicit mining, a complete ban for grant of mining leases for open/free sale has been imposed in the border area of District Kangra, Una, Nalagarh sub division of District Solan and Paonta Sahib area of District Sirmaur. Further, 5 mining check posts in District Una and one in District Solan have been established to check illegal mining as well as overloading. During the last 05 years, the department has auctioned more than 220 mining sites through tendercum-auction mode.

MSMEs play a crucial role in the economic and social growth of their respective states by encouraging business innovation and creating new job possibilities. The government has made a number of moves to support and advance micro, small, and medium-sized enterprises. As part of the Atma Nirbhar Bharat package, a new composite-criterion of investment and annual turnover-and equal restrictions for manufacturing and services sector MSMEs was implemented as of 1st July, 2020 (Table 11.4). The modified definition of MSMEs will facilitate expansion and growth of these enterprises. The resulting economies of scale can enhance productivity without the MSMEs losing out on several government incentives including market support, export promotion, preferential procurement in the public sector and incentives through the Micro Small Enterprises-Cluster Development Programme (MSE-CDP), PMEGP and Scheme of Fund for Regeneration of Traditional Industries (SFURTI) and enabling of information technology ecosystems. This enabling environment will promote competition and avoid dwarfism among MSMEs.
The recent measures taken by the Government to improve the ease of doing business for the MSMEs include the launch of the new Udyam Registration Portal in July 2020. The registration process under this is fully online, digital, paperless and is based on self-declaration. New registration process has boosted the ease of doing business for MSMEs by reducing transaction time and costs.
As on 09th February, 2023, 79,484 enterprises have registered on the Udyam portal in the state, out of which 76,713 are Micro, 2,493 are Small and 278 are Medium enterprises. District wise data of registration on Udyam portal including manufacturing and services enterprises is listed in figure 11.15.

KVIC is a statutory organisation established by the Government of India in April 1957 (during the Second Five Year Plan) under the 'Khadi and Village Industries Commission Act of 1956. The KVIC has a state section in Shimla and 13 operational Khadi Institutions throughout the state. Table 11.5 shows the current state of production and sales via KVIC affiliated/registered Societies and Institutions. In addition to Khadi Programme, KVIC is also implementing PMEGP. Under this programme Credit Linked Back ended subsidy scheme is under implementation all over India with the involvement of Khadi and Village Industrial Board (KVIB) and Directorate of Industries in the respective State. With the active support of local Government agencies and Banks, KVIC is implementing PMEGP scheme since 2009 and generating employment opportunities to educated and uneducated youth. The status of industrial units, utilization of subsidy and employment generation is depicted in table 11.6. KVIC has also identified clusters for regeneration of traditional industries in the state. Under SFURTI Sirmour Beekeeping Cluster has been identified and Mahila Samaj Kalyan Samiti, Rajgarh, Sirmour will be the implementing Agency. With the technical support of Lee Bee International institute of Bee Keeping and Agro Enterprises, Ludhiana, 300 artisans will be covered involving project cost of ₹ 255.76 lakh.

The HPKVIB is a statutory body created by an act of Legislative assembly (Number 8 of 1966). It came into existence on 8th January, 1968. The original Act of 1966 has been subsequently amended during the year 1981 and 1987. The objectives of the board are broadly given as under:
The social objective of providing employment.
The economic objective of producing saleable articles.
The wider objective of creating self-reliance amongst the poor and building up of a strong rural community spirit.

HPSIDC has expertise in construction of roads, bridges, stadium, government colleges, govt. polytechnic, school building, water supply, street lighting, sewerage infrastructure in the state, common facility center at Bathu, skill development centre at Palkawah (Una) labour hostel Bathu and transit workers hostel Dulehar (Una) are some of the state of art projects developed by HPSIDC. The corporation has also developed many industrial Areas/Estates/Parks for the State Government. It owns 424 industrial Plots at Baddi and Davni and has built "State of Art" Industrial areas at Kandrori and Pondoga. It also owns Sheds at Paonta Sahib and Parwanoo. HPSIDC is authorised dealer of Indian Oil Corporation and SAIL for supply of Bitumen and steel products and Cold Mix products from Bitchem Asphalt (Govt. of India approved) catering to the need of different Govt. Dept. and private players.

HPIDB has been established for furtherance the purpose of Himachal Pradesh Infrastructure Development Act-2001 and to provide for framework for participation by persons other than the State Government and Government agencies in financing, construction, maintenance and operation of infrastructure projects and to raise resources on behalf of the State Government for infrastructure projects development. So far, various developmental works in the following sectors have been undertaken.
State Roads and Bridges Projects.
Irrigation and Public Health Projects.
Health infrastructure.
Power projects.
Urban Local Bodies and other infrastructures.
HPIDB is also acting as Public Private Partnership (PPP) cell of the State Government in addition to its existing activities. The HPIDB has successfully awarded 20 projects on PPP mode and other projects which are in pipeline for different sectors as shown in table 11.7 and 11.8 The bidding process for Operation and Maintenance of Shri Chintpurni Sadan, Block C, Chintpurani and Operation, Maintenance and Management of High End Cafe in ground floor of Town Hall, Shimla is complete and Concession Agreements are accordingly to be signed shortly. The bidding process for Operation and Management of Markandeya Temple Precinct at Bilaspur in Himachal Pradesh and Operation, Management and Maintenance of Book Cafe constructed/ under construction at Chotta Shimla, New Shimla and Chaura Maidan at Shimla of Municipal Corporation, Shimla is at final stage.

IIP is a yardstick for measuring industrial growth: it includes the relative change of physical production in the field of Industry during specific period as compared to the previous period. The main objective of this index is to estimate the contribution of Industry sector to the Gross State Domestic Product. IIP in the State is being compiled on base year 2011-12. The IIP is estimated quarterly by collecting data from selected units of Manufacturing, Mining, Quarrying and Electricity, on the basis of quarterly indices, annual indices have been worked out and are shown in table 11.9. The General Index has increased from 221.9 to 235.3 in the FY2021-22 showing an increase of 6.0 per cent mainly due to the increase in the production of mining and manufacturing industries. As regards the indices for FY2022-23, these have been worked out on the basis of one quarter i.e. June, 2022. As compared with the quarterly indices of June quarter of FY2021-22 with the same quarter of FY2022- 23, an increase of 7.4 per cent has occurred. This is attributed to increase in Industrial production, which is a healthy sign for growth in manufacturing sector as well as in economy of the State.

The potential for hydroelectric power generation in Himachal Pradesh is huge. About 25 per cent of national potential of hydroelectricity lies inside the borders of this State. The state has the potential to create around 27,436 MW of hydroelectric electricity via the development of different hydroelectric projects on the five perennial river basins. Out of total hydroelectric potential of the state, 10,519 MW is harnessed so far, out of which only 7.6 per cent is under the control of Himachal Pradesh Government while the rest is exploited by the Central Government.
Table 12.1 below summarizes the status of generation and consumption of Electric power in the state.

In 2009, an independent Directorate of Energy was established; before, it was part of the Himachal Pradesh State Electricity Board. Directorate of Energy is nodal office of Department of Multi Purpose Project (MPP) and Power, Government of Himachal Pradesh (GoHP). It strives to provide efficient and timely coordination with all power utilities in the power sector of the State of Himachal Pradesh. It oversees the allocation of Hydroelectric Projects with a capacity greater than 5 MW, the granting of Techno Economic Clearance (TEC), issues related to Hydro Power Safety, environmental and social issues, management of Local Area Development Fund, quality control, management of power flow, sale of GoHP Power share received from various Central, State and private Hydro Electric Projects, implementation of Energy Conservation activities in the state and safety aspects for all large Dams in the capacity of DAM Safety Organisation for the State.
GoHP has earned ₹1302.00 crore as revenue from the sale of 3,105 MUS during the FY2022-23 (ending 31 December 2022).Anticipated revenue from January, 2023 to March, 2023 is ₹160.00 crore. i) Capacity Addition: Two projects with aggregated capacity of 14.9 MW namely Rajpur HEP (9.9 MW) in district Shimla and Ani HEP (5 MW) in district Kullu were commissioned between 01.04.2022 to 31.12.2022 whereas two projects of 49.6 MW namely Lambadug HEP (25 MW) in district Kangra and Selti Masrang HEP (24.6MW) are likely to be commissioned during 01.01.2023 to 31.03.2023. Beside this, DoE received ₹4164.00 lakh on account of upfront premium and capacity addition charges up to December, 2022.
ii) Government’s Power Entitlements: The detail of various projects in the state of Himachal Pradesh wherein GoHP has entitlement to power is as below: Table 12.2 shows that Government of Himachal Pradesh (GoHP) has entitlement of free and equity power aggregating of 1352.55 MW in various Central Sector, Joint Sector and Private Sector projects in the State. Out of 1352.55 MW, capacity aggregating to 155 MW is in respect of those Projects which are directly connected to Himachal Pradesh State Electricity Board (HPSEB) System and its power is being utilized by HPSEB Ltd. throughout the year. 438 MW on account of equity participation of GoHP in Satluj Jal Vidyut Nigam (SJVN) projects is being utilized by HPSEBL to provide 24X7 supply to its consumers.

This index for 2022 was conceptualized by NITI Aayog and the Bureau of Energy Efficiency (BEE). The composition of the Index has been developed considering energy consumption, energy-saving potential and states’ influence in implementing energy efficiency in buildings, industry, municipalities, transport, agriculture and DISCOMs. It examines states’ policies and regulations, financing mechanisms, institutional capacity, adoption of energy efficiency and energy savings.
The State Energy and Climate Index consists of 6 Parameters and 27 Key Performance Indicators (KPIs) as follows: DISCOMS performance with eight indicators is the most important parameter because DISCOMs are the important link in the entire energy value chain and its performance has been assigned with higher weightage (40 per cent).The other parameters such as ‘access, affordability & reliability of energy’, ‘clean energy initiatives’, ‘energy efficiency’, ‘environmental sustainability, and ‘new initiatives’ have been assigned 15, 15, 6, 12, and 12 per cent weightage respectively. The State Energy and Climate Index ranks the performance of the states in the energy and climate sector. The list of indicators under each parameter is given below: Overall, among the neighbouring states of Himachal Pradesh, the top three performers in SECI are Punjab, Haryana, and Uttrakhand. Himachal Pradesh has been outstanding in Access, Affordability and Reliability, environment sustainability, and new initiative. The State has secured 7th rank among overall States and second place among special category States.

The Himachal Pradesh State Electricity Board Limited (HPSEBL) is responsible for the supply of uninterrupted and quality power to all consumers in Himachal Pradesh. Transmission lines, sub transmission lines, and distribution lines are all part of the larger network that distributes the power. Since it was established, the Board has achieved significant progress in the execution of the goals that have been entrusted to it, as shown in table 12.3. HPSEBL has generated highest number of units of electricity from the power houses of Mandi district, followed by Kinnaur. In five districts of the State there was no generation of power.
i) Hydro Electricity Generation: In HPSEBL, 27 hydroelectric plants with a total installed capacity of 489.35 MW are operational. One project, Uhl Stage-III (100 MW), is under construction by Beas Valley Power Corporation Limited (BVPCL), a subsidiary company of HPSEBL. During FY2021-22, HPSEBL's own power plants had produced 2,203.59 MU of energy. In 2022-23 (until December, 2022), 1,938.36 MU of energy have been produced, and a further 222.60 MU are anticipated through December, 2023.
ii) Transmission: The transmission wing of HPSEBL has installed 56 Extra High Voltage (EHV) Sub-Stations with a transformation capacity of 5,164 Mega Volt Ampere (MVA) and 3,633.22 Circuit Kilometres (CKM) EHV lines till FY2021-22. During FY2022-23 upto December, 2022, 1 EHV sub-station has been installed 26.475 Ckt. Km lines has been commissioned and 152 MVA capacity has been added through addition and augmentation of power transformers.

HPPCL was established in December, 2006 under the Companies Act, 1956 to plan, promote, and coordinate all elements of hydroelectric power production. HPPCL has technical and organisational skills comparable to National Thermal Power Corporation Limited (NTPC), Satluj Jal Vidyut Nigam Limited (SJVNL), and National Hydroelectric Power Corporation (NHPC).
i) Projects under Operation/ Execution Stage: HPPCL has following projects of hydropower: ii) Other areas of Power development: Himachal Pradesh Power Corporation plans to broaden its power development efforts beyond hydro power to include other renewable sources such as solar to fulfil the rising energy needs for the State and Nation's growth.
a) Berra- Dol Solar Power Project (5 MW): HPPCL has built a 5 MW solar power facility near Shri Naina Devi Ji Shrine in the district of Bilaspur. This was the first solar power project established in the state by the government. From the date (04th January, 2019) of operation of the project 32.66 MU has been generated from the project upto December, 2022.
b) 150-200 MW Solar Power Projects: HPPCL is in the process of locating appropriate areas for the establishment of a 150-200 MW solar power capacity in the state which will be funded by the World Bank.
Financial Achievements in Respects of Projects under Construction/Implementation Stage: Following table presents achievements of the projects under construction/implementation stage of Himachal Pradesh Power Corporation Limited are hereunder: HPPCL earned ₹1206.29 crore till December, 2022, of which ₹867.42 crore was generated until 31st March, 2022 and ₹338.87 crore was generated during April, 2022 to December, 2022.

This corporation is an undertaking of Government of Himachal Pradesh established with an aim to strengthen the transmission network and to facilitate evacuation of power from upcoming generating plants. The tasks entrusted to Corporation by Government of Himachal Pradesh include execution of all new works; both Transmission Lines and Sub-Stations of voltage rating 66 kilovolt (KV) and above, formulation, up-gradation, and execution of Transmission Master Plan of Himachal Pradesh for strengthening of transmission network, and evacuation of power. HPPTCL is discharging the functions of a State Transmission Utility (STU) and coordinating the transmission related issues with Central Transmission Utility, Central Electricity Authority, Ministry of Power (Government of India), Himachal Pradesh Government and HPSEB Ltd. Besides, Corporation is also responsible for planning and coordination of transmission related issues with Independent Power Producers (IPPs), Central Public Sector Undertakings (CPSUs), State Public Sector Undertakings (SPSUs), HPPCL and other State/Central Government Agencies. Government of India has approved (Asian Development Bank) ADB loan for implementation of transmission projects covered in Power System Master Plan (PSMP) of Himachal Pradesh. Table 12.8 presents the details of commissioned projects by HPPTCL.
In addition to Green Energy Corridor-I (GEC-I) scheme has been initiated for developing economical transmission system in order to encourage green renewable energy generation. The scheme has been funded partly (40 per cent) as grant from Ministry of New and Renewable Energy (MNRE) and partly (40 per cent) as low fixed interest rate loan from German Development Bank and rest from equity. With financial assistance from Rural Electrification Corporation Limited, HPPTCL has commissioned 5 projects. Completion of these has resulted in the addition of 163 MVA transformation capacity and 102 CKM of transmission line in the existing State transmission network of districts of Chamba, Kullu and Kinnaur.
Under Green Energy Corridor (GEC) -1, HPPTCL has awarded 11 transmission projects of which 6 projects have been commissioned and remaining 5 projects are under various stages of execution. Completion of all these projects shall result in addition of 847 MVA transformation capacity and 184 CKM of transmission lines in various districts.
Major Achievements: In the FY2022-23 up to 31st December, 2022, HPPTCL had completed and commissioned four (4) Transmission Lines with an approximate cost of ₹191.68 crore and four (4) Sub-stations with an approximate cost of ₹214.58 crore resulting in the addition of 197.56 ckt. Km. and 520 MVA Transformation Capacity respectively to the existing transmission network during FY2022-23 (till 31st December, 2022). HPPTCL has incurred overall Capital Expenditure for various transmission projects (completed and ongoing) during FY2022-23 (till 31st December, 2022) is approximately ₹168.97 crore.

HIMURJA has made efforts to popularize renewable energy programmes in the State with financial support of Ministry of New and Renewable Energy (MNRE), Government of India and the State Government. The major programmes implemented/being implemented in the State are Solar Power Plants/Projects, Solar Photovoltaic Lights, Solar Thermal Systems and Small Hydro Electric Projects (upto 5.00 MW capacity).

Since its commencement, 18.86 MW of grid-connected solar roof top power plants have been erected. This will result in yearly savings of ₹12.50 crore and an offset of 13,140 tonnes of carbon impact in the state. In addition, 3.98 MW of off-grid solar power plants and 38.10 MW of ground-mounted solar power projects have been commissioned.
Small Hydro Electric Projects Upto 5 MW Capacity: HIMURJA is responsible for exploitation of Small Hydro Electric Projects(upto 5 MW) in the State. The allotted projects up to 5 MW capacity up to December, 2022, are mentioned in the Table 12.10. The private sector has been awarded 739 minor hydro projects, with 7 projects awarded on a Build, Operate, and Transfer (BOT) basis. Important Policy Initiatives: The hydro power policy 2006 of the state has served its objectives well and over the last 15 years, there has been a paradigm shift in energy scenario of the country. The country is moving towards renewable energy that is total green energy as per the Paris Agreement signed in December, 2015. The solar and wind power share is increasing at a faster rate than the hydro. Hydro power along with hybrid, battery and pumped storages and hydrogen energy is going to be the focus areas in coming years. Hence, the need for a new energy policy 2021 of Himachal Pradesh was felt. Important policy initiatives are given as follows:
After 15 years, Himachal Pradesh has modified its hydro power policy to address fresh challenges in hydro, biomass and solar power development.
The state has prepared a draft energy policy 2021 that aims to promote green, clean and sustainable generation of energy to enable quick harnessing of full potential of Himachal Pradesh.
It also aims to harness and commission 10,000 MW of hydro energy by 2030 to have an operational capacity of 20,948 MW, besides upgrading the existing run of river hydro plants for pumped storage plants/hybrid power plants.

Economic growth, according to the Annual Report of the Ministry of Labour and Employment 2021–22, Government of India, entails not only the creation of employment but also the improvement of working conditions so that people may engage in their occupations with freedom, safety, and dignity. The State's planned interventions in the shape of policies and social security networks are responsible for the free and secure working conditions in the State. Compared to other parts of the country, reported wage rate of workers in both agricultural and non-agricultural sectors in Himachal Pradesh is higher (Periodic Labour Force Surveys). The higher wage rates in Himachal Pradesh attract in-migrants into the State, especially from States where wage rates are very low. The State now needs to create additional employment opportunities and employment-intensive growth for which the labour force has to move from low-value-added to high-value-added activities. In order to generate new employment in both urban and rural parts of the State, the State strives to promote job-induced inclusive growth in the economy.
Three Regional Employment Exchanges, nine District Employment Exchanges, two University Information and Guidance Bureaus, 65 Sub Office Employment Exchanges, one Special Employment Exchange for Physically Handicapped, and Central Employment Cell all offer employment assistance and information services to job seekers. All 77 Employment Exchanges have been automated and made available online for the purpose of providing youth with vocational guidance and employment counseling as well as information about the employment market.
i) Minimum wages: Himachal Pradesh Government has constituted a Minimum Wages Advisory Board under the Minimum Wages Act-1948 for the purpose of advising the State Government in the matter of fixing and revising the minimum rates of wages for the workers. The State Government has enhanced the minimum wages for unskilled category of workers from ₹300 to ₹350 per day or ₹9,000 to ₹10,500 per month w.e.f. 1st April, 2022, working in all existing 19 scheduled employment under the provisions of Minimum Wages Act, 1948.
ii) Employment Market Information Programme: At the district level, the employment data is being collected under the Employment Market Information Programme since 1960. The total employment in the State as on 31st March, 2021 in Public Sector was 2,79,365 and in private sector was 1,95,791. The number of establishments in Public Sector and Private Sector were 4,417 and 1,824 respectively.
iii) Vocational Guidance: The Department of Labour and Employment provides Vocational/Career Guidance to the youth and organizes guidance camps at Schools, Colleges, ITIs and Polytechnics, among other places. Accordingly apart from providing information about Schemes/Welfare programmes being implemented for the youth, information about skill development, career options, employment/ self employment opportunities etc., is also provided by the officers/competent officials of the department and officers/ representatives from different departments/organizations. During this Financial Year, (up to 31st December, 2022) 30,104 youth were provided vocational guidance and career counseling.
iv) Central Employment Cell: To provide technical and highly skilled manpower to all the industrial units, Institutions and establishments, the Central Employment Cell which has been set up in the Directorate of Labour and Employment of the State remained engaged in rendering its services during the year 2022-23. Under this scheme, assistance is provided to the employment seekers, in finding suitable jobs in private sector according to their qualifications. The Central Employment Cell organizes Campus Interviews for Private Sector Employers for their requirement of unskilled labour. During this financial year, up to 31st December, 2022 Central Employment Cell has organized 4 job fairs and 242 Campus Interviews wherein 3,835 candidates have been selected.
v) Special Employment Exchange for Specially Abled: The special employment exchange for the placement of disabled persons (physically, visually, hearing and locomotor impaired) was set-up in the Directorate of Labour and Employment in 1976. This special employment exchange renders assistance to the specially abled candidates in the field of vocational guidance and also provides employment assistance in Public and Private Sector. The Physically disabled persons who are among the weaker sections of society have been provided a number of facilities or concessions including free medical examinations through the Medical Boards constituted at the State and District level, age relaxation by 5 years, exemption from qualifying type tests for those with upper limb disabilities and 5 per cent reservation for Class-III and Class-IV posts. During FY2022-23 (up to December, 2022) 1722 specially abled persons were brought on the Live Register of the Special Employment Exchange bringing the total number to 18,421 and 75 specially abled persons were provided employment.
vi) Employees Insurance and Provident Fund Scheme: The Employees State Insurance (ESI) is applicable in the areas of Solan, Parwanoo, Barotiwala, Nalagarh, Baddi in Solan District, Mehatpur, Bathri & Gagret in Una District, Paonta Sahib & Kala Amb in Sirmour District, Golthai in Bilaspur District, Mandi, Ratti, Ner Chowk, Bhangrotu, Chakkar & Gutkar in Mandi District and Industrial Area Shoghi and Municipal area of Shimla in District Shimla. About 11,042 establishments with an estimated 3,46,160 insured persons are covered under ESI Scheme in Himachal Pradesh and under Employees Provident Fund (EPF) scheme about 20,08,516 workers have been brought under this scheme working in 30,214 establishments up to March, 2022.
vii) Building and Other Construction Workers (Regulation of Employment and Conditions of Service) ACT-1996 and Cess Act- 1996: Under this Act, various provisions have been made to implement welfare schemes such as providing Maternity/Paternity Benefits, Disability Pension, Retirement Pension, Family Pension, Medical Assistance, Financial Assistance for marriage of self and up to two children, Skill Development Allowance, providing bicycles and washing machines to women workers, providing induction heaters or solar cookers and solar lamps to beneficiaries. About 2,270 establishments are registered with the Department of Labour and Employment and 4,42,834 beneficiaries are registered with the Himachal Pradesh Building and Other Construction Workers Welfare Board. Benefits amounting to ₹447.86 crore under various welfare schemes have been provided to the eligible beneficiaries and ₹870.20 crore has been deposited with Himachal Pradesh Building and Other Construction Welfare Board, Shimla up to 31st December, 2022.
viii) Skill Development Allowance Scheme: During this FY, the provision of ₹94.00 crore has been made under Skill Development Allowance Scheme, 2013. This programme offers financial assistance to the State's qualified unemployed youths in order to help them improve their skills and increase their employability. For the length of skill development training, up to a maximum of two years, this allowance is granted at a rate of ₹1,000 per month and offered at a rate of ₹1,500 per month for those who are 50 per cent or more permanently physically handicapped. During current FY2022-23 (up to December, 2022) ₹29.96 crore Skill Development Allowance has been disbursed amongst the 60,751 beneficiaries. The department is also implementing Industrial Skill Development Allowance Scheme, 2018. During current financial year, budget provision of ₹6.00 crore has been made under Industrial Skill Development Allowance Scheme. Under this scheme there is a provision allowance to the eligible employed youth engaged in private industrial establishment of the State for their on job skill up gradation and better employment opportunities. The disbursement criteria under this scheme is the same as for the Skill Development Allowance Scheme, 2013 and under this head an amount of ₹1.00 crore was disbursed among 1,580 beneficiaries.
ix) Unemployment Allowance Scheme: During this FY2022-23, budgetary provision of ₹24.00 crore has been made under Unemployment Allowance Scheme. Under this scheme, there is provision of allowance to the eligible unemployed youths of the state @ ₹1,000 per month and for 50 per cent or more permanent physically challenged @ ₹1,500 per month for a maximum period of 2 years to enable them to sustain themselves for a certain period. During the period up to December, 2022, a total of 35,541 people have benefitted under this scheme and ₹19.73 crore has been disbursed.

During current FY (up to December, 2022) 1,41,011 applicants were registered under Employment Exchange Scheme. Of these, 821 placements were made in Government sector against 1,339 notified vacancies and 7,047 placements in private sector against 13,600 notified vacancies. The consolidated number on live registers of all employment exchanges as on December, 2022 is 8,21,895. The district-wise registrations and placements done by the employment exchanges with effect from April to December, 2022 are given in Table 13.1 below:

HPKVN is a State Government Corporation incorporated on 14th September, 2015 under the Companies Act, 2013 as the State Skill Mission. It is implementing two major projects for imparting training to the youths of Himachal Pradesh i.e (i) Asian Development Bank (ADB) assisted Himachal Pradesh Skill Development Project (HPSDP) and (ii) the state managed Pradhan Mantri Kaushal Vikas Yojna (PMKVY) 2.0 and 3.0.
1) Asian Development Bank (ADB) Assisted Himachal Pradesh Skill Development Project (HPSDP): HPSDP became operational in May, 2018 and will end in June, 2023. Total cost of the project is ₹827.00 crore with the following breakup:
a) Asian Development Bank (ADB) Share: ₹661.00 crore and
b) Himachal Pradesh State Government Share : ₹166.00 crore
Contracts amounting to ₹648.00 crore were awarded and an amount of ₹307.00 crore were claimed as disbursement against ADB Share and total ₹67.00 crore have been utilized against the state share. Currently the enrolments of candidates under various skill training programmes are 57,781 candidates, out of which total 31,770 candidates (i.e. 55 per cent achievement) have been certified.
i) Setting up of Center of Excellence (CoE): In order to create institutional framework for long term skill development needs of the state, a CoE is being setup at Waknaghat, in district Solan with an estimated cost of ₹68.00 crore on civil works which is expected to be completed by July, 2023 under ADB assisted HPSDP.
Training for the first batch of 66 applicants has begun, with a goal of training 750 candidates within 5 years in following domain with training cost of ₹64.00 crore:
1) Food Production
2) Food and Beverages Operations & Management,
3) Hotel Operations and Management,
4) Fitness and Wellness
5) Food Technology.
ii) Short Term Training Programmes through Government Industrial Training Institutions (ITIs) of Himachal Pradesh: HPKVN under its HPSDP has started short term up skilling and multi skilling training in 67 ITI’s and more than 16,000 students have been enrolled in various sectors such as Automotive, Construction, Plumbing, IT-ITes, Capital Goods, Apparel & Made-ups, Electronics & Hardware, Beauty & Wellness, Iron & Steel, Media & Entertainment etc. against training targets of 39,391.
iii) Graduate Add On Training Programmes: To increase the employability of final year graduating students of 28 Government Degree Colleges, HPKVN has introduced a National Skills Qualifications Framework (NSQF) aligned graduate add on training programmes in sectors complementing their core studies. Against target of 7,500 students 7,974 have been enrolled and 5,291 have been certified.
iv) National Skill Qualification Framework (NSQF) aligned Recognition of Prior Learning (RPL) Training: RPL is a component of HPSDP under which 8,000 individuals with prior learning experience or skills are envisaged to be assessed and certified. At present, more than 7,500 enrolments have been made and 6,419 candidates have been certified.
v) Short-Term Training Programmes through Training Service Providers (TSPs): HPKVN has on-boarded training service providers to impart skills training to youths of Himachal Pradesh in various sectors. Total 2,958 Against the target of 9,600, have been certified.
vi) Bachelor of Vocation (B.Voc) Degree Programme: The B.Voc. Program is a joint effort of HPKVN and the Department of Higher Education (DoHE). This 3 Years full-time Degree Programme is running in 18 Government Degree Colleges of the State in 2 sectors (Retail Management and Tourism & Hospitality) from Academic Year 2017-18. Till date against target of 2,880 numbers, 5,521 candidates have been enrolled and 1,796 candidates have been certified.
vii) Skill training for Persons with Disability (PwD’s): In order to generate livelihood opportunities for PwD’s, HPKVN has launched “NAVDHARNA” programme under which for imparting skill trainings to relevant stakeholders, training provider has been shortlisted/ selected for conduct of skill trainings for 600 candidates in Retail and Tourism and Hospitality Sectors. The training targets will be completed in FY2023-24 as a part of mandatory outcome of Design, Monitoring, framework of Himachal Pradesh Skill Development Project i.e. 1 per cent of the total certified/trained trainees should be specially abled.
viii) Up-gradation of Tools and Equipments in 50 ITIs, Women Polytechnic (Rehan, district Kangra) and Government Engineering Colleges: The HPSDP is also facilitating the up-gradation of 50 ITIs where 23 trades shall convert from State Council for Vocational Training (SCVT) to National Council for Vocational Training (NCVT) levels with funding provisions of ₹81.00 crore. This will include equipment’s for Women Polytechnic Rehan and Government Engineering Colleges. The procurement for up gradation of all the above-mentioned technical training institutes is envisaged to be completed during the FY2023-24.
ix) City Livelihood Centers (CLCs), Rural Livelihood Centers (RLCs), Model Career Centers (MCC) and other aligned infrastructure: In order to provide institutional support for skill development activities across the State the construction of 5 CLCs, 7 RLCs and 10 MCC are under progress with the budgetary provisions of ₹84.00 crore. Besides, Women Polytechnic at Rehan, Kangra with construction cost of ₹37.00 crore, has been completed and training in 3 trades with enrolment of 197 candidates commenced.
1) Pradhan Mantri Kaushal Vikas Yojana (PMKVY): HPKVN is the implementing agency for the state component of PMKVY 2.0 (2016-20) and 3.0 (2020-21) wherein training in 371 job roles is mandated to increase the employability of the youth. The scheme was launched on 2nd October, 2016 and till date HPKVN has enrolled more than 16,584 youth in 22 sectors. Out of these training of more than 11,300 youth has been completed. PMKVY 3.0 was launched in December, 2020 wherein against the enrolment of 501 candidates, 394 were certified under short term training. PMKVY 3.0 also includes RPL, in which 1,664 candidates were enrolled and 1,235 of them were certified. Apart from this Customized Cash Course Programme was implemented wherein 80 candidates were enrolled and 68 of them were certified. PMKVY 3.0 is on its closure and PMKVY 4.0 is expected to be launched soon.
2) Skills Acquisition and Knowledge Awareness for Livelihood Promotion (SANKALP): HPKVN is implementing World Bank assisted SANKALP with sanctioned funds of ₹2.10 crore and aimed at strengthening institutional mechanism and skilling ecosystem across the state.
3) New Initiatives:
i) MoU’s with reputed Government Training Institutions: With a view to focus on high and aspirational skilling, HPKVN has signed MoU’s with various Government Institutions and Public Universities like National Institute of Electronics and Information Technology (NIELIT), Centre for Development of Advanced Computing (CDAC), Institute of Hotel Management (IHM)] Atal Bihari Vajpayee Institute of Mountaineering and Allied Sports (ABVIMAS), Click-Through Rate (CTR), National Institute of Financial Management (NIFM), Himachal Pradesh University (HPU), Institute of Chartered Accountants of India (ICAI), University of Horticulture and Forestry (UHF) and National Institute of Food Technology Entrepreneurship and Management (NIFTEM) for imparting training to around 15,160 Himachali youth in higher aspiration industry driven job roles. At present More than 9,935 candidates have been enrolled and 4,755 got certified for the said training.
ii) English, Employability and Entrepreneurship (EEE) Trainings: In order to bridge the gaps in Education, Employment and Entrepreneurship, HPKVN has introduced English, Employability and Entrepreneurship (EEE) Programme in total 56 Government Degree Colleges of Himachal Pradesh in academic session 2022-23 onward with an objective to facilitate development of English speaking, Employability and Entrepreneurial skills amongst the 5,000 final year graduating students of Government Degree Colleges.
iii) Flexible Memorandum of Understanding (Flexi-MoU): In pilot phase with training target of total 1,000 numbers of candidates in 7 sectors, Flexi MoU Scheme has been introduced with minimum 70 per cent placement outcome and 70 per cent of payment milestone after successful placement of the certified candidates. In first phase, 02 industry/organizations have been selected with 200 numbers and in the second phase, 03 industry/organizations have been shortlisted for award of total 300 targets.
iv) MoU’s with Government Industrial Training Institutes (ITIs) for Drone Service Technician Training: To introduce industry 4.0 courses, NSQF aligned short term training of Drone Service Technician to total 360 candidates in 09 Government Industrial Training Institutes (ITIs) across the State has been introduced in the year 2022-23.
4) New Interventions / policies proposed to be undertaken by the department towards improvement of service delivery to the general public or to the benefit of poor and needy people:
i) Skill Training for Person with Disabilities (PwDs): HPKVN intends to skill 500 more candidates in collaboration with the Directorate of Empowerment of SC's, OBC's, Minorities Affairs and the Specially Abled, Himachal Pradesh, in order to generate livelihood opportunities for Persons with Disabilities (PwD) candidates in the state and keeping in mind the mandate of HPSDP to impart skills and related trainings to the Specially Abled candidates.
ii) MoU’s with Sector Skill Councils (SSCs) registered bodies of National Skill Development Corporation (NSDC) for Drone Flying Training and Electric Vehicles Training:
a) Drone technology is increasingly being used in a wide range of disciplines, including Agriculture (spray pesticides, insecticides, nutrition’s, detect crop damage, crop survey and irrigation survey etc.), Healthcare (support in health emergencies in remote areas for delivery of medical supplies such as blood, vaccines, drugs and laboratory test samples, safe transport of disease test samples, transport of test kits in high-contagion areas, delivery of Personal Protective Equipments test kits etc.) and also for applications which includes power line inspections, wild life monitoring, land surveying etc. HPKVN intends to impart skill trainings in Drone Technology in collaboration with concerned SSCs in following job roles: b) Due to fossil fuel depletion, electric vehicles are becoming more popular worldwide and the automotive industry is switching to eco-friendly technologies. Government of India has launched the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME Scheme) in 2015, under the National Electric Mobility Mission Plan (NEMMP) to promote eco-friendly vehicles and setting goal to move to 30 per cent electric cars by 2030. The Government of Himachal Pradesh's focus is to promote electric cars for public and private travel, which requires competent local workforce in charging station management and electric vehicle servicing and maintenance. Currently above requirement being met from human resource outside the state and no training is being imparted in state by any department. HPKVN intends to impart skill trainings in Electric Vehicles in collaboration with concerned SSC’s in following job roles: iii) Flexible Memorandum of Understanding (Flexi-MoU): The Scheme envisage Employer/Industry skills model where the prospective Industry/Organization imparts skilling to prospective employees/trainees/ candidates in their premises or setup or allocate a dedicated training infrastructure in association/Tie up with Industry partner/s with minimum 70 per cent placement outcome and 70 per cent payment milestone after successful placement of certified candidates. Additionally, keeping in view the initial responses of training and placements of candidates, the request for addition of 500 training numbers for Flexi-MoU Scheme under State Budget is proposed.
iv) Organizing Job Fairs on monthly basis: HPKVN organizes the Job Fairs/Placement Drives on monthly basis for the candidates being trained/certified under various skills and related programmes across the state and as per the requirement of the industries/institutions in collaboration with the Department of Industries and Department of Labour and Employment, Himachal Pradesh.
v) Operationalization of Rural Livelihood Centres (RLCs) and City Livelihood Centres (CLCs) being developed under Asian Development Bank (ADB) assisted Himachal Pradesh Skill Development Project (HPSDP): Under the HPSDP, which is funded in part by the Asian Development Bank (ADB), a number of cutting-edge infrastructures are being built for the line departments, including CLCs for the Department of Urban Development (DoUD) in Himachal Pradesh and RLCs for the Department of Rural Development in Himachal Pradesh, with the goal of operationalizing the training centers being constructed above for which HPKVN shall facilitate and support the parent departments for implementation of skills training and related activities.
vi) English, Employability and Entrepreneurship (EEE) Training: The scheme is envisaged to improve and upgrade communication skills, increase employability skills/potential and to inculcate idea and spirit of entrepreneurship by covering the final year graduating students of Government Degree Colleges of Himachal Pradesh in Second phase. Keeping in view the initial response of the students in first phase, HPKVN intends to impart EEE training to additional 5000 final year graduating students in academic year 2023-24 under state budget.

The Government of India started the Periodic Labour Force Survey (PLFS) in 2017, replacing the quinquennial employment and unemployment surveys of National Sample Survey Organization (NSSO), now National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI). The PLFS data is now the primary source of data on employment and unemployment at national and State level. The Government of India issued the first Periodic Labour Force Survey (PLFS) 2017-18 Report in May, 2019 based on NSO's July, 2017–June, 2018 survey and the second PLFS 2018-19 Report in June, 2020 based on NSO's July, 2018–June, 2019 survey. The Present report is the fifth annual report being brought out by NSO based on the survey conducted during July, 2021–June, 2022. Estimates of labour force indicators based on the usual status (principal status (ps) + subsidiary status (ss)) approach and Current Weekly Status (CWS) approach adopted in the survey for classification of the population by activity statuses. The reference period for usual status (ps+ss) approach is one year and for current weekly status, one week.
Labour Force in Himachal Pradesh: The situation of the labour force in Himachal Pradesh can be gauged from various indicators such as Labour Force Participation Rate (LFPR), Worker Population Rate (WPR), Daily Wage Rate and trends in industrial relations. According to PLFS-2021-22, “Persons who were either ‘working’ (or employed) or ‘seeking or available for work’ (or unemployed) constitute the labour force”. Labour force or in others words, the ‘economically active’ population, refers to the population which supplies or seeks to supply labour for production and, therefore, includes both ‘employed’ and ‘unemployed’ persons. The LFPR is defined as “the percentage of persons in the labour force among the persons in the population”.
Table 13.4 presents the LFPR in Himachal Pradesh, Uttarakhand, Punjab, Haryana, and India in 2020-21 and 2021-22 as per the PLFS. In 2021-22, LFPR (all ages) for Himachal Pradesh (58.1) is higher than Uttarakhand (40.8), Punjab (41.3), Haryana (35.4) and India (41.3). For females, it is more than double from all these states and all India (Figure 13.1). The reason that LFPR in Himachal Pradesh. is so much higher than in other adjoining states is that agriculture is still the mainstay of State’s largely rural economy, and predominantly agricultural economies tend to have higher labour force participation rates.

WPR is an indicator used for analyzing the employment situation and knowing the proportion of the population actively contributing to production of goods and services in the economy. “WPR is defined as the percentage of employed persons in the population”. Table 13.5 shows the worker population ratio in the Himachal Pradesh, Uttarakhand, Punjab, Haryana, and India. It is clear at all ages the WPR of Himachal Pradesh in 2021-22 (55.8) is better than Uttarakhand (37.6), Punjab (38.6), Haryana (32.3) and India (39.6). It is evident from the survey results that more women (50.5 per cent) in Himachal Pradesh are actively participating in the economic activities than their counterparts, at all India level and among neighboring states (Figure 13.2).

“Unemployment Rate (UR) is defined as the percentage of persons unemployed among the persons in the labour force”. It is measured in terms of usual status (ps+ss) and weekly status in the PLFS surveys. This represents the proportion of the labour force actively seeking or available for work. According to the PLFS 2021-22 (table 13.6), unemployment under usual status (ps+ss) for persons of all ages among the neighboring states and India, shows that Himachal has an unemployment rate of 4.0 per cent compared to India’s rate of 4.1 per cent, Uttarakhand’s 7.8 per cent, Punjab’s 6.4 per cent, Haryana’s 9.0 per cent.
The unemployment rate in Himachal Pradesh has risen from 3.3 per cent in 2020-21 to 4.0 per cent in 2021-22. The unemployment rate in the usual status (ps+ss), was 4.5 per cent for males and 2.6 per cent for females in rural areas, while the rates were 4.9 per cent for males and 17.3 per cent for females in urban areas.

Employment status divides workers in usual status (ps+ss) into three basic groups. Workers might be self-employed, salaried, or casual. Two sub-categories of self-employed workers are own account workers and employers and unpaid home helpers. Table 13.8 presents the percentage distribution of workers by status in employment for Himachal Pradesh, Uttarakhand, Punjab, Haryana and India in the year 2020-21 and 2021-22 According to the report for the year 2020-21, more females in Himachal Pradesh are self-employed as own account workers, employers (47.2 per cent), and unpaid helpers in home enterprises (38.9 per cent) than in neighboring states and all India level. This proportion of the same activities of the females in the state has decreased to 46.0 and 38.7 per cent respectively in the year 2021-22, which is again more than their counterparts. This is because most of the females in Himachal Pradesh. are engaged in agriculture and allied sector. On the other hand for the year 2020-21 only 11.6 per cent of females in Himachal Pradesh have been found to be in status of regular wage /salary earner as compared to Uttarakhand (17.4), Punjab (32.1), Haryana (37.5) and all India (17.4). The proportion of the females has increased to 11.9 per cent for the year 2021-22. Government of Himachal Pradesh intends to increase the proportion of the females in this particular broad status to provide more jobs to them by way of women empowerment, gender budgeting and various other job oriented schemes. In the status of casual labour, proportion of the females in Himachal Pradesh is again very less (2.2 per cent) than its neighboring states and all India in the year 2020-21. Further, in the similar status the proportion of the females has increased to 3.4 per cent in the year 2021-22, which is less than its neighboring states and all India.

Tourism offers great opportunities for emerging economies and developing countries. The Manila Declaration on World Tourism of 1980 recognized its importance as "an activity essential to the life of nations because of its direct effects on the social, cultural, educational, and economic sectors of national societies, and on their international relations." Tourism has emerged as an important sector globally, contributing to around 10 per cent of global Gross Domestic Product (GDP), 9.4 per cent of global employment, 7 per cent of global exports and 30 per cent of service exports in 2020. International tourism receipts earned by destinations worldwide surged from US $ 2 billion in 1950 to US $ 637 billion in 2021. The World Economic Forum’s (WEF) ranked India 54th position (down from 46th in 2019) with a score of 4.1 in its Travel and Tourism Development Index 2021, but still, India remains the top performer in South Asia. Japan has topped (1) the global chart and the bottom position (117) is occupied by the country Chad. The tourism industry contributes to 7 per cent of GDP and accounts for 5 per cent of employment in India. Himachal Pradesh is abundantly bestowed with natural beauty, ranging from vast tracts of high altitude Trans-Himalayas desert to dense green deodardar forest, from apple orchards to cultivated terraces, from snow-capped high Himalayan mountain ranges to snow fed lakes and gushing rivers. This makes the state a truly wonderful getaway. Tourism constitutes 7.0 per cent of Himachal’s GDP, and contributes around 14.42 per cent direct and indirect employment to the total employment in the State. Despite the huge potential of the sector for contributing to economic growth and employment, global tourism studies show that the benefits from tourism in many places are overestimated. The reason includes issues associated with the definition of tourists and the measurement of the economic impacts of tourism. The economic impact of the estimates for tourism rest heavily on fair estimates of the number and types of visitors, as mentioned in global studies on tourism. Thus, whether the contribution from tourism to the Himachal economy is commensurate with the large investment made by the State in tourism depends on the quality of the estimates of the number and type of tourists. The State does not figure among the top 10 tourist destination states for domestic as well as foreign tourist arrivals, as per the statistics released by the Ministry of Tourism, Government of India in 2022. The outbreak of COVID-19 presented tourism sector in the State with a major and evolving challenge but now the industry has recovered almost completely.
Interest Subvention Scheme: Interest Subvention Scheme was started by the Government on 2nd July, 2020 to provide financial assistance to the entrepreneurs associated with tourism to meet the needs of daily work as these people suffered a lot due to the COVID epidemic, it has been revised again on dated 17th June, 2021 and the scheme has been extended upto 30th September, 2022.
The Department has recommended 147 cases i.e. 125 cases of Financial Year (FY)2020-21 and 22 cases of FY2021-22 under Interest Subvention Scheme and is able to reimbursed the interest amounting to ₹39,29,680 of 32 Tourism Units.
The New Asian Development Bank Project-2: A proposal of $ 291.04 Million (ADB financing US $ 233.00 Million) ₹2,095.70 crore with the financial assistance of ADB, was submitted to Government of India (GoI) and has been approved by the Department of Economic Affairs, Ministry of Finance, GoI.
Tranche- I & II: Total cost of Tranche-I is about ₹938.50 crore and Tranche II is about ₹1,157.20 crore. The Department of Tourism & Civil Aviation have hired two consultancy firms for preparing of Detailed Project Reports (DPRs) of Sub projects, Tranche –I. DPRs of ₹451.90 crore have been prepared and further submitted to ADB.
Swadesh Darshan Scheme: The Government of India, Ministry of Tourism has sanctioned the “Swadesh Darshan Scheme” in the year 2017 for Himachal Pradesh. The following projects are being executed:
Convention Centre at Kiarighat District Solan.
Shimla Heliport.
Village Haat at District Kangra.
International Standard free standing artificial climbing wall at Manali District Kullu.
Art and Craft Centre Bhalei Mata, District Chamba.
Maa Hateshwari Temple, Hatkoti, District Shimla.
Installation of Signages, Ganteries, Closed Circuit Television (CCTV) and Wireless Fidelity (WiFi) for the entire Circuit.
Paragliding Centre at Bir Billing, District Kangra is in progress.
Marketing and Publicity: The Department of Tourism and Civil Aviation, Himachal Pradesh plays proactive role in promotion of tourism in the State. The Department is promoting the tourism through Print Media, Electronic Media, Outdoor Media, Digital Media, Social Media and through participation in various Tourism Travel Fairs/Marts/Exhibitions etc. at National and International level. The Department publicizes different Brochures, Folders, Pamphlets, Monal Magazines, Calendars, Guide Map and Coffee Table Book etc. for promotion of tourism. The information is also being disseminated through Departmental website and Social Media handles. In addition, the Department has established Tourist Information Centres in the State for facilitation of Tourists and information are being provided through these centre to the visiting tourists in the State.

At present, there are 03 existing airports in Himachal Pradesh i.e. Shimla Airport, Kullu Airport & Kangra Airport and 01 Greenfield Airport at Nagchala, Mandi is proposed for development /construction.
Present status of 03 Airports i.e. Jubberhatti (District Shimla), Bhunter (District Kullu) and Gaggal (District Kangra) is as under:
i) Shimla (Jubberhatti) Airport: The Government has completed Runway End Safety Area (RESA) work upto 30 mtrs on both sides of Shimla Airport. Air services on Shimla-Delhi-Shimla route have been resumed by the State Government through M/s Alliance Air India Ltd. In addition, the Government of Himachal Pradesh had signed an Memorandum of Understanding (MoU) on 12th October, 2022 with Alliance Air Aviation Ltd. to extend their services through Air Transportation Rack (ATR)-42-600 in two sectors i.e. Shimla-Kullu-Shimla (04 Days a week) and Shimla-Dharamshala-Shimla (03 Days a week). Flights have been started from 9th December, 2022 and 100 per cent Viability Gap Funding (VGF) is to be borne by the State Government on these routes.
ii) Kullu (Bhunter) Airport: Kullu Airport has an existing runway of 1,128 meters with a width of 30.5 meters which is suitable for the landing of 72 seater aircraft with load penalty. Flight operation is being conducted by Air India through ATR-72. Proposal for fulfillment of minimum security/widening of Kullu Airport is under consideration, for which Forest Conservation Act (FCA) case has been processed.
iii) Kangra (Gaggal) Airport: The present, runway of Kangra Airport is 1372 mtrs X 30 mtrs, which is suitable for landing of 72 seater aircraft with load penalty. Flight operation is being conducted by Air India through ATR-72. Master Plan along with requirement has been received from Airport Authority of India (AAI) for the development of Kangra Airport for operation of ATR-72/Q-400 and A-320 type of aircraft. Kangra Airport can be developed in two phases i.e. Phase-I for operation of ATR/72/Q-400 type of Aircraft and Phase-II for operation of A-320 type of aircraft.
iv) Proposed Greenfield Airport at Nagchala, Mandi: Feasibility of runway with a length of 3,150 meters was explored in two phases (i.e. 1st phase 2,100 meters and 2nd phase 1,050 meters). Accordingly, 2,868 bighas land has been identified out of which 2,543 bighas is private land. Social Impact Assessment (SIA) notification has also been issued by the Government and is being carried out through SIA unit and Himachal Pradesh Institute of Public Administration (HIPA).
The Joint Venture Agreement for information of Joint Venture Company (JVC) for developing of Mandi Airport has been signed between Government of Himachal Pradesh (GoHP) and Airport Authority of India (AAI). Share of AAI will be 49 per cent and of state will be 51 per cent.

In order to provide the connectivity and to give boost to the Tourism Industry of the State 05 new Heliports i.e. one each in Kangnidhar (District Mandi), Defence Geoinformatics Research Establishment (DGRE) Snow and Avalanche Study Establishment (SASE) Manali (District Kullu), Baddi (District Solan) and 02 in Shimla and Rampur (District Shimla) are being developed under Regional Connectivity Scheme (RCS) Ude Desh ka Aam Naagrik-2 (UDAN-2) Scheme of Government of India.
The work of Shimla, Baddi and Rampur Heliports is completed and Directorate General of Civil Aviation (DGCA) inspection is awaited for final licensing to start the scheduled operations. Work of Kangnidhar (District Mandi) is in progress, whereas SASE Manali Heliport will be started soon, after obtaining no objection certificate (NOC) from Ministry of Defence.
At present there are 63 helipads in the State and 38 new helipads are being constructed by the State Government. In addition, a Heliport in District Headquarter is proposed to be constructed for which land has been identified by the District Administration and same is being transferred in the name of Directorate of Tourism.
Nai Raahein Nai Manzilein: To develop new tourist destinations, the state Government has implemented a new scheme “Nai Rahein Nai Manzilein” in the year 2018-19, to develop the unexplored areas of the state from tourism point of view. Under this scheme, an amount of ₹50.00 crore each (total ₹250.00 crore) have been approved in the year 2018-19, 2019-20, 2020-21, 2021-22 and 2022-23. The following places are being developed from tourism point of view under this scheme:
Paragliding Destination at Bir-Billing, District Kangra.
Chanshal, District Shimla is being developed as a Ski Destination.
Janjehli District Mandi is being developed from Eco-tourism point of view.
Development of Infrastructure and Promotion of Water Sports activities at Larji, Tatapani and Pong Dam.
Paragliding Destination is being developed at Ser Jagas, District Sirmaur and Eco-Tourism in Churdhar from Nohradhar.
Development of Tourism related public facilities at both the ends of Atal Rohtang Tunnel.
Construction of Shiv Dham.
Beautification of various religious places in the State.

Aviation and Tourism were the first industries that were hit significantly by the pandemic. The sector that has contributed to a large portion of India’s annual GDP has been hit hard by restrictions and curfews imposed by the states. The hospitality sector is linked to the tourism sector.
Tourism remains the main source of revenue generation and employment in the State. COVID-19 forced lockdown which caused the worst hit to the tourism sector in the State. Geographical advantages place the State at win-win situation for tourism sector, but there was a huge decrease in the tourist arrival, when restrictions on movements were imposed in view of COVID-19 pandemic.
Tourist arrival is one of the main indicators of the demand for tourism in a particular destination. Table 14.1 presents the data on the foreign and domestic tourist arrivals in Himachal Pradesh from 2012 to 2022. After COVID-19 pandemic the domestic tourist arrivals have increased from 32.13 lakh in 2020 to 56.37 lakh in 2021 and further to 150.99 lakh in 2022 in absolute terms. It shows that, the tourist arrivals are reaching to the pre-pandemic levels. The need of the hour, given our fragile ecosystem, is to ensure that this growth continues in a sustainable manner. Arrival of tourists sees a variation in terms of year-on-year growth rate in the state. However, a large variation in the growth rate was seen at the time of countrywide lockdown which not only forced domestic tourists to stay locked in their homes, but led to foreign tourists staying back in their countries due to ban on international flights. The figure 14.1 shows the highest (-81.33 per cent) contraction in the arrival of tourists compared to the previous year. The tourist arrival hugely improved after the lockdown. Growth Rate reached to 75.43 per cent in 2021 and 167.87 per cent in 2022.

UNESCO defines sustainable tourism as “tourism that respects both local people and the traveler, cultural heritage and the environment”. Sustainable tourism seeks to provide people with an exciting and educational holiday that is also beneficial to the people of the host country. All tourism activities, of whatever motivation – holidays, business travel, conferences, adventure travel and ecotourism – need to be sustainable.
Himachal has various natural and man-made assets namely, the Himalayas, lakes, rivers, snow, rural landscape, pilgrimage spots like temples, gurudwaras and monasteries, heritage structures, traditional dance forms and attires, local handicrafts and cuisine and some well- established commercial destinations like Shimla, Manali and Dharamshala. These existing assets of Himachal Pradesh are being used to create tourism products which revolve around following ten themes for tourism development.

HPTDC is a pioneer in the development of tourism infrastructure in Himachal Pradesh formed in 1972. It provides complete package of tourism services, including accommodation catering, transport, conferencing and sports activities, having the largest chain of finest hotels and restaurants in the State with 55 hotels having 1,083 rooms with 2,442 beds.
As the tourism industry all over the globe is trying to recover after the impact of Covid-19 pandemic, HPTDC has also made all-out efforts to revive from the earlier losses. Corporation has started the operation of a newly constructed Hotel Kiari Bungalow at Kiarighat, District Solan which consists of 34 rooms having a total capacity of 68 beds. 4 numbers of new tempo travellers were purchased to facilitate the group bookings and strengthen the Transport Wing of HPTDC. HPTDC has generated an income of ₹83.36 crore up to December, 2022.

Roads are a very vital infrastructure for rapid economic growth of the State. The development of important sectors of economy such as Agriculture, Horticulture, Industry, Mining and Forestry depends upon efficient road network. In the absence of any other suitable and viable modes of transportation like railways and waterways, roads play a vital role in boosting the economy of the hilly State like Himachal Pradesh. Starting almost from a scratch the State Government has constructed 41,048 kms. of motorable roads (inclusive of jeepable and track) till December, 2022. The State Government has been assigning a very high priority to road sector.
Himachal Pradesh State has a good road network. There are 9 National Highways with total length of 1,208 kms. 19 State Highways with total length of 1,625 kms. and 45 Major District Roads with total length of 1,753.05 kms. For the State to have significant economic expansion, roads are a crucial piece of infrastructure. An effective road network is essential for the growth of key economic sectors like agriculture, horticulture, industry, mining and forestry. Roads play a crucial part in increasing the economy of the hilly State of Himachal Pradesh in the lack of any other adequate and practical routes of transportation, such as trains and waterways. The road sector has received top focus from the State Government.
The target fixed for FY2022-23 and achievements made up to December, 2022 are given as under in table 14.4. In the State 10,704 villages as shown in Table 14.5 are connected with roads as of December, 2022: National Highways (Central Sector): At present, 2,609 kms., 19 National Highways are the main lifelines of the State Road network out of which 1,025 kms. are maintained/ developed by State Public Works Department, whereas 213 kms. of length of National Highway in state is being developed by Ministry of Road Transport and Highways. In addition, the National Highway Authority of India has been looking after development/ maintenance of 5 National Highways having length of 784 kms. and Border Road Organization has also developed/ maintained 3 National Highways covering of 587 kms.
Transport Development Introduction: The Transport department functions under the provisions of section 213 of the Motor Vehicle Act, 1988. The Transport department is primarily established for enforcement of the provisions of the Motor Vehicle Act, 1988, Himachal Pradesh Motor Vehicles Taxation Act, 1972 and the rules framed there under. The Transport Department of Himachal Pradesh assists other organizations in the development of transport facilities and endeavors to provide an efficient, adequate and economic transport service for the movement of passengers and goods by road. In discharging statutory functions, the department has shaped up as one of the major revenue earning departments to the Government in the shape of taxes on motor vehicles.

(i) Revenue Generation: The revenue collection of the department in as under: (ii) Enforcement of Vehicles: The officers of the Transport Department enforce the Motor Vehicle Act and the summery is as under:
(iii) Registration of Vehicles: 21,06,438 numbers of vehicles (Transport and Non Transport) have been registered in the state up to 31st December, 2022. District wise detail up to 31st December, 2022 is as under:

The Department of Transport Government of Himachal Pradesh has attained the following remarkable achievements of the Department during the year 2022-23:
i) Inspection and Certification Centre: Ministry of Road Transport and Highways (MoRTH) has sanctioned the project for setting up of Inspection and Certification Centre for vehicle fitness in favour of Himachal Pradesh at Baddi, District Solan. The cost of project was of ₹16.35 crore. The detailed estimate for Civil work was prepared by Architect of Civil Work (M/S Comprehensive Architectural Services, Noida) amounting to ₹11.57 crore which was submitted to the Ministry of Road Transport and Highways, Government of India vide letter dated 14th November, 2018.
After completion of all codal formalities, the civil work was awarded through e-tender process in favour of M/S Combined Promoters and Infrastructure Pvt. Limited for ₹9.20 crore and the vendor/contractor has started the civil work in the month of March, 2020. Due to Change in structural design, necessitated by the presence of excess fly ash at the Site, the variation at work costing ₹132.81 lakh got added in the project and eventually, the project cost inclusive of GST arrived at ₹1219.60 lakh. Till date Gross amount of ₹4.76 crore Stands paid/processed to the Contractor and work at Site is underway. Currently over 40 per cent of Civil work has been completed. MoRTH has released 3 instalments for the project amounting to ₹6.00 crore and till date, out of this, ₹4.75 crore has been paid to the Contractor and ₹14.71 lakh has been paid to the Architect.
ii) Creation of Transport Nagar: As per the Transport Policy 2004, Department of Transport Himachal Pradesh in order to create/provide multiple facilities like parking lots, seating places, eating places, toilets, recreation centres and facilities at selected sites, has started the process for establishment of Transport Nagars in all district of the State. All Deputy Commissioners (DCs) in this state has been requested to identify the suitable land atleast 50 bighas for the establishment of each Transport Nagar in their respective District for construction of Transport Nagar. Suitable land has been identified in 6 districts of the state i.e Shimla, Kangra, Hamirpur, Sirmaur, Solan and Una. The process of further action is being started.
iii) Driving Training School (DTS) and Pollution Check Centre: In order to impart training to aspirant candidates, department has given licenses to 381 driving training schools in the State which include 11 Driving Training Schools of Industrial Training Institute, 11 Himachal Road Transport Corporation and 359 Private Driving Training Schools. Beside this 259 Pollution Check Centre has also been authorized in the state.
iv) Employment Generation: Transport Department has provided employment to 10463 people up to 31st December, 2022 by granting various categories of permits to the un-employed youth. The detail is as under:
v) Electric Vehicle Policy: To preserve the sensitive mountain ecosystem of Himachal Pradesh and to address global climate change, Himachal Pradesh has been an early adopter of clean energy technologies, including Electric Vehicle (EVs). Himachal Road Transport Corporation (HRTC) is among the first State Transport Undertakings (STU) in the country to introduce electric buses and is operating 75 Electric buses in Shimla and Manali as well as 50 Electric Taxies in different cities and town of the State.
The state has declared its Electric Vehicle policy in the year 2022 and has declared Shimla, Dharamshala, Mandi and Baddi as Model Towns for adoption of EVs. An inclusive survey for setting up of charging infrastructure has been carried out and 30 locations have been identified for fast charging infrastructure across these four model towns for faster adoption of Electric Vehicles in Private/public transport.
The Government has further identified 612 locations wherein charging infrastructure shall be installed in Public Private Partnership (PPP) mode as per the policy of Energy Efficiency Services Limited (EESL).
vi) Guidelines for safe Transportation of School Children: The State government is seriously concerned with the safety of School children. State Government has issued detailed guidelines for School buses vide notification dated 10th October, 2018. The direction contained in this notification has been circulated to all Regional Transport Offices (RTOs) and other concerned department for strict implementation with the directions for achievement of 100 per cent target for checking of vehicles ferrying School Childrens and the same has been monitoring in the Directorate level.
vii) Rent a Motor Cycle and Motor Cab Scheme: The rent a Motor Bike scheme is a notified Scheme under the provision of Motor Vehicle Act, 1988. The State of Himachal Pradesh vide notification no. Tpt-A(4)9/2015 dated 25th May, 2017 adopted the Rent-A Bike Scheme notified by Central Government in the year 1997. Thereafter State of Himachal Pradesh vide notification no.Tpt-A(4)9/2015 dated 6th March, 2019 notified this scheme in the State. The State Transport Authority granted 2,364 vehicle purchase permission to 143 applicants.
viii) Fleet Strength of Private buses and Taxies: In Himachal Pradesh total strength of Private Stage Carriage Buses is 3,309 and the Strength of Taxies (Seating Capacity 4+1) is 28,034, Maxi (6+1 and above) is 12,267 upto 31st December, 2021. The District wise and RTO Wise Detail is as under:

Road Transport is the main stay of economic activity in the Pradesh as other means of transport namely Railways, Airways, Taxies, Auto Rickshaw etc. are negligible. Therefore, the Road Transport Corporation assumes paramount importance in the State. The passenger transport services to the people of Himachal Pradesh, within and outside the State are being provided by Himachal Road Transport Corporation with a fleet strength of 3,142 buses, 75 Electric Buses, 38 Taxies, 50 Electric Taxies and 12 Tempo Travelers.
HRTC Schemes for the benefits of Passengers: For the benefit of the people, the following schemes remaineded in operation during the year:
i) Green Card Scheme: Green cardholder is allowed 25 per cent discount in fare, if the journey undertaken by passenger is of 50 km. The cost of this card is ₹50 and having its validity for two years.
ii) Smart Card Scheme: Corporation has introduced Smart Card Scheme. The cost of the card is ₹50 and having its validity for two years. This having 10 per cent discount in fare and also valid in HRTC Ordinary, Super Fast, Semi Deluxe and Deluxe buses. In Volvo and AC Buses discount is to be allowed from 1st October to 31st March.
iii) Samman Card Scheme for Senior Citizen: Corporation has introduced Samman Card Scheme for the senior citizen of the age of the 60 years or more. Under this scheme, the discount of 30 per cent in fare is allowed.
iv) Free Facility to Women: Women have been allowed free travelling facility in HRTC ordinary buses on the occasion of “Raksha Bandhan” and “Bhaiya Dooj”. Muslim women have been allowed free travelling facility on occasion of “Id” and “Baker Id”.
v) Discount in fare to Women: The Corporation has also allowed 50 per cent discount in fare in ordinary buses within the State to the women.
vi) Free Facility to Students of Government Schools: The students of Government schools up to +2 classes have been allowed free travelling facility in HRTC ordinary buses from their residence to School and School to residence.
vii) Free Facility to the person suffering from serious disease: Free travelling facility is provided to cancer, spinal injury, kidney and dialysis patients along with one attendant in HRTC buses for the purpose of medical treatment on referral slip issued by the Doctor within and outside the State.
viii) Free Facility to the Special abled persons: The Corporation is providing free travelling facility to special abled persons having disability of 70 per cent or more along with one attendant within State.
ix) Free Facility to the Gallantry Awardees: The Gallantry Award winners have been allowed free travelling facility in HRTC’s ordinary buses in addition to Delux Buses in the State.
x) Luxury Buses: The Corporation is plying 65 owned and 23 buses super luxury (Volvo / Scania) and 08 luxury AC buses under bet-leasing scheme to Interstate routes to provide better transport facility to the public.
xi) 24X7 Helpline: 24x7 HRTC/ Private Bus Passenger’s helpline No.94180-00529 and 0177-2656326 have been introduced to lodge and address the complaints of passengers.
xii) Taxies on sealed roads: Taxies Services have also been introduced by the Corporation in Shimla Town for public on sealed/ restricted roads.
xiii) Free travelling facility to the families of Martyrs: HRTC extended the free travelling facility to the War Widows, Parents and Children up to the age of 18 years of Armed forces personnel martyred in War and Widows, Parents and Children up to the age of 18 years parents of Armed Force Personnel and Para Military Troops, who were martyred on duty.
xiv) Facility of electric buses to tourist place: The Corporation has introduced electric buses for the tourist and visitors to the famous tourist places.
xv) Facility of sanitary pad vending machines for women: For the benefit of women sanitary pad vending machines have been installed at 38 Bus Stands.
xvi) Facility of wheelchair to special abled person at Bus Stands: For the benefit of special abled person, wheel chair has been provided at 42 Bus Stands.
xvii) Development of public information system at the bus stands of the corporation: Development of public information system provided at Bus Stands, So that passengers can get information related to departure of buses and other.
xviii) The Corporation purchased 195 ordinary buses, 11 Super Luxury AC Volvo buses under smart city plan 12 Tempo Travelers and 18 Innova Crysta to provide better transport facility to the public and remote area.
xix) On public demand, Corporation started 11 Super Luxury AC Volvo buses from Chandigarh to Shimla, Shimla to Chandigarh International Airport, Shimla to Delhi, Manali to Delhi, Manali to Shimla, Jispa to Delhi, Manali to Haridwar and Dharmshala to Haridwar.

“Education is the most powerful weapon which you can choose to change the world”- By- Nelson Mandela.
The State's literacy rate was 31.96 per cent at the time it became a full-fledged state. However, the State and the economy have made remarkable progress in terms of expanding the educational infrastructure, which has led to an increase in school enrollment and literacy. This is due to political will, administrative involvement, and the society at large making constant conscious efforts, Article 21A, stipulates that "The State must offer free and compulsory education to all children of 6 to 14 years in such a way as the State, may by law prescribe," was added to the Indian Constitution after the 86th amendment. Under the Right of Children to Free and Compulsory Education (RTE) Act of 2009, free and compulsory education for all children until they complete elementary school is assured by the State.
Himachal Pradesh has an 82.80 per cent literacy rate in 2011, 8.8 per cent higher than the national average of 74.0 per cent. Statewide, males had 89.53 per cent and women 75.93 per cent. These percentages are far better than the Census 2001 averages of 85.35 for males, 67.42 for women, and 76.48 overall. The gender gap fell from 17.93 per cent in 2001 to 13.6 per cent in 2011. The National Sample Survey Office (NSSO) 75th round of survey on "Household Social Consumption: Education" in 2017–18 provides latest figures. 2017, research predicts 86.6 per cent literacy for the State. Male literacy rose to 92.9 per cent and female to 80.5 per cent, with a 12.4 per cent gender disparity.

The above figure illustrates the enrolment of children in Government, Private and Other institutions of the State. In all age categories, enrolment in public schools is significantly higher than in private schools. In government schools, enrolment is highest among 15 to 16 year old girls (82.4 per cent) and boys (77.6 per cent). In the same age range, 3.4 per cent children are not enrolled in school. The percentages in the above figure depict the reading ability of children by grade. Reading itself is a progressive tool. Each bar in the above figure shows the variation in children’s reading levels within a given grade. For example, among children in std. III, 5.10 per cent cannot even read letters, 17.90 per cent can read letters but not words or higher, 20.10 per cent can read words but not Std. I level text and 28.50 per cent can read std. II level text. For each grade, the total of these exclusive categories is 100 per cent. The percentages in the table above represent the mathematical ability of children in each grade. The evaluation of arithmetic level is also a progressive instrument, with each row representing the range of arithmetic levels within a specific grade. For example, among children in Std. III, 2.20 per cent cannot even recognise 1-9, 16.80 per cent can recognise numbers up to 9 but cannot recognise numbers up to 99 or higher, 39.50 per cent can recognise numbers up to 99 but cannot do subtraction, 32.30 per cent can do subtraction but cannot do division, and 9.20 per cent can do division. For each grade, the total of these exclusive categories is 100 per cent. Figure 15.3 presents English reading level of children by grade in terms of percentage. Each bar shows the variation in children’s reading levels in English within a given grade. For instance, among children in Std III, 6.80 per cent cannot even read capital letters, 6.50 per cent can read capital letters but not small letters or more, 39.40 per cent can read small letters but not words or more, 21.10 per cent can read words but not sentences, and 26.10 per cent can read sentences. For each grade, the total of these exclusive categories is 100 per cent. Figure 15.4 depicts the status of children taking paid tuitions by grade and school type. The percentage of students in private schools who are taking paid tuitions is substantially greater than the percentage of children in public schools. The percentage of children of Std. VIII around 23 per cent studying in private schools are taking paid tuitions, their percentage is higher than any other std. children, whereas the percentage of children in Std. III of government schools is around 9 per cent which is higher than any other Std. of Govt. school, those who are taking paid tuitions. Figure 15.5 provides a comparison of few major infrastructure facilities available in the government schools of State in 2020-21 to 2021-22. A variety of amenities are available such as library, computers, internet facility, drinking water, boys and girls toilets and a place to wash one's hands etc. The UDISE+ 2021-22 data presented in the above figure shows that almost all the major infrastructural facilities have improved in 2021-22 as compared to the previous year. The above figures 15.6 compares the Pupil-Teacher Ratio (PTR) at all levels of education and in all educational institutions of the State with that of Haryana, Uttrakhand, Punjab and India as a whole. Our state's PTR at the secondary level has improved from 2020-21 to 2021-22, reaching 6 in 2021-22 as opposed to 7 in 2020-21. The remaining levels, including upper elementary and secondary, remain unchanged. Only at the primary level has this ratio marginally worsened from 15 to 16. Himachal Pradesh compares favourably to its surrounding states, Punjab, Haryana, Uttrakhand, and India as a whole, where the PTR is significantly higher.

As on 31st December, 2022 there are 10,758 Primary Schools and 1,965 Middle Schools in Government Sector. To overcome shortage of trained teachers, efforts are being made to make fresh appointments of teachers in the schools regularly. An attempt has also been made to cater to the educational needs of specially abled children. The policies of the Government in the field of elementary education are implemented with following aims:
To achieve the goal of universalization of Elementary Education.
To ensure that all children have access to a high-quality elementary school education.
Access of education to every child in the State.
State Sponsored Scholarship Schemes: The following incentives were provided during the year 2022-23:

There is a strong emphasis on education in the state. As on 31st December, 2022, in Government sector there are 962 High schools (out of which 3 are non functional), ,999 Senior Secondary Schools (out of which 1 is non functional) and 166 Degree Colleges (out of which 5 are non functional) including 11 Sanskrit Colleges, 1 SCERT, 1 B.Ed. College and 1 Fine Art College, running in the State.

To improve the educational status of the deprived sections of the society, various scholarships/stipends are being provided by the State/Central Governments at various stages. The scholarship schemes are as under: Promotion of Sanskrit Education : Continuous efforts are being made by the State, as well as Central Government to promote Sanskrit Education. Specific details are shown below:
Award of scholarships to students of High/ Senior Secondary Schools studying Sanskrit.
Modernization of Sanskrit Schools.
Grant for various schemes for promotion of Sanskrit and for research/ research projects.
Teachers Training Programmes: During 2022-23 the SCERT, Solan and Government College of Teacher Education Dharamshala, Himachal Pradesh organized online Training Programmes in which 601 teaching and non teaching staff of Schools and colleges have been given training.
Free Text Books:The State Government provides free text books to all students of 9th and 10th classes. 1,34,866 students have been benefitted under this scheme during 2022-23.
Free Education to Specially Abled Children: Free and compulsory education for children with 40 per cent or above disabilities is being provided in the State up to 10+2 level and they have been exempted from paying any fee and funds up to 10+2 level. Further, Children with special needs are exempted from paying fees up to university level.
Free Education to Girls: Free education, without any tuition fee, is being provided to girl students in the State up to University level.
Information Technology Education:Information Technology education is being imparted in all Government Senior Secondary Schools on self finance basis where students have opted for IT education, as an optional subject. The department is charging Information Technology fee of ₹110 per month per student. The students of SC (BPL) families get a 50 per cent fee concession. In 2022-23, 1,18,597 students are enrolled in Information Technology education out of which 6,976 SC (BPL) students have benefitted from this scheme.

Following schemes are running under Samagra Shiksha:
Rashtriya Madhyamik Shiksha Abhiyan (RMSA): RMSA is running in sharing pattern of 90:10 (90 per cent Government of India and 10 per cent State Government). The activities under RMSA are being taken up to strengthen infrastructure in the existing secondary schools. Kala Utsav is being held in the State with a total amount of ₹12.00 Lakh.
Information and Communication Technology (ICT) Project: To improve and strengthen the teaching and learning activity by using smart class rooms and multi-media teaching aids, department has successfully implemented ICT in 2,137 Government High/ Senior Secondary Schools up to 2021-22 and 418 Government schools are being covered during current financial year.
Vocational Education: Under the National Skill Qualification Framework Scheme (NSQF), vocational education is being provided in 1,100 schools and recruitment of vocational trainers in 54 newly approved vocational schools from 2022-23 is in progress and vocational education will be imparted in these schools from April, 2023. Under this scheme trades i.e. Agriculture, Made ups & Home Furnishing, Automotive, Beauty & Wellness, BFSI, Electronics & Hardware Healthcare, and Information Technology (IT)/Information Technology Enabled Services (ITeS), Media & Entertainment, Physical Education Plumbing Private Security,Retail, Telecom and Tourism & Hospitality are being taught to the students. Agreements with 17 Vocational Training Providers have been executed by State Government to provide vocational education in the State.
Inclusive Education for Specially abled at Secondary Stage: Under this scheme, 12 model schools have already been established in all the districts out of which 4 schools are with residential facilities. 5,758 children with special need have been enrolled in Government schools. 131 Medical assessment camps for children with special needs were organized in blocks of all the districts of Himachal in 2022- 23.
Rashtriya Ucchtar Shiksha Abhiyan (RUSA): The RUSA has been implemented in the State to improve the higher education system. Under this scheme RUSA grant is being given to 70 colleges and Himachal Pradesh University (HPU). Medha Protsahan Yojana: The objective of the scheme is to assist meritorious students of Himachal Pradesh, whose families income does not exceed from ₹2.50 Lakh, by providing them coaching for Common Law Admission Test (CLAT)/ National Eligibility cum Entrance Test (NEET)/ Indian Institutes of Technology-Joint Entrance Examination (IIT-JEE)/ All India Institute of Medical Sciences (AIIMS)/ Armed Forces Medical College (AFMC)/National Defence Academy (NDA)/ Union Public Service Commission (UPSC)/ Staff Selection Commission (SSC)/Banking etc. In total 500 students have been benefited from this scheme during the year 2022-23.
Swaran Jayanti Utkrisht Vidyalaya and Utkrisht Mahavidyalaya Yojana: The Higher Education Department, Himachal Pradesh has identified 68 schools of each assembly constituency and designated as Utkrisht Vidyalayas under Swaran Jayanti Utkrisht Vidyalaya Yojana in the current financial year and approved budget of ₹44.00 lakh for each school for the development and beautification of school campus and environmental friendly features. Beside this, 10 Government Degree colleges have been designated as Utkrisht Mahavidyalya during the year 2022-23.
Khel Se Swasthaya Yojana: Sports accessories such as Kabbaddi mats, JUDO mats, Wrestling, Weight lifting and Boxing rings have been provided to 129 Sr. Sec. Schools and 57 Government Colleges to encourage the students for the participation in sports activities under this Yojana in 2021-22, during the year 2022-23 selection process is under way.
Swaran Jayanti Super 100 Yojana: The department has started the process to provide financial assistance of ₹1.00 lakh each to the top 100 meritorious students of 10th class of Government schools for undergoing coaching for admission in professional / technical courses under this Yojana and for the same an amount of ₹1.10 crore has been sanctioned during the FY2022-23 and out of which ₹42.43 lakh has been disbursed to the chosen students.
C.V Raman Virtual Class rooms for schools and Colleges: Under CV Raman Virtual Classroom Yojana, the process of establishing virtual class rooms in 23 Government Senior Secondary (GSS) schools and 13 colleges is under way in the current FY2022-23.
Swaran Jayanti Vidyarthi Anushikshan Yojana: The Scheme “Swaran Jayanti Vidyarthi Anushikshan Yojana” was launched by the Hon'ble Governor on 5th September, 2021 on the occasion of Teachers Day, under which students of Government schools studying in 9th to +2 classes, get free coaching for JEE-NEET Entrance Exams. For this, study material is being uploaded on “Har Ghar Pathshala Portal” every Saturday and Sunday.
Bachelor of Vocational Degree courses (B.Voc): B.Voc Degree Program started in 18 colleges of the State in two sectors “Retail Management” and Hospitality & Tourism. These colleges are Government College Bilaspur, Chamba, Dharmshala (Kangra), Nurpur (Kangra), Kullu, Mandi, Sanjauli, (Shimla), Rampur (Shimla), Una, Hamirpur, Solan, Nahan (Sirmour), Dhaliara (Kangra), Ghumarwin (Bilaspur), Sarkaghat (Mandi), Haripur (Kullu), Seema Shimla) and Rajkiya Kanya Mahavidyalaya (RKMV) Shimla, Total 2,533 students are under training/ enrolled during the academic session 2022-23.

The department is providing Technical Education, Vocational and Industrial Training and has reached a stage where aspiring students of the State can get admission in Engineering / Pharmacy in diploma and degree as well as certificate courses in following institutions in Himachal Pradesh: Short Term Training under Himachal Pradesh Skill Development Project: Under HPSDP, HPKVN has signed a MoU with 67 Government ITIs for providing NSQF aligned Short Term Skill Training to youth of Himachal Pradesh. The duration of the training programme / course is from 200 Hrs. to 1,000 Hrs.
39,611 trainees proposed to be trained by the 67 ITI’s in three years. Till 15th November, 2022 15,732 trainees have been enrolled for short term training courses, out of which 6,926 were certified by the concerned sector skill council after due assessment.
MoU has been signed between Directorate of Technical Education and HPKVN for 4 ITI’s to start Short Term NSQF aligned, under State sector Pradhan Mantri Kaushal Vikas Yojana.
278 trainees to be trained by the above 4 ITI’s, out of which 258 have got certified by concerned skill council after thorough evaluation. Admission for the offered courses is under progress at Institute level.

Under the Centrally Sponsored Project known as STRIVE, 19 ITIs have been chosen in order to modernise their facilities and provide students with high-quality training and an amount of ₹30.71 crore has been allocated under this scheme. ₹1.34 crore has been sanctioned and transferred to ITI’s as per their allocation and ₹11.80 crore have been allocated to State Directorate for the year 2022-23.
Other Initiatives taken:
The Faculty Development Programme, run by the National Institute of Technical Teachers Training and Research, the IIT, the National Institute of Technology, the Institute of Himachal Pradesh Public Administration (HIPA), etc., has educated more than 598 faculties.
To improve industry-institute engagement and secure the best placements for students, the state government has signed MoUs with reputed industries. As of now, 180 MoU’s have been signed by department which includes MoU’s with IITs/ CIPET/ Institutes of Kerala/ Karnataka/ Gujrat for exchange of students, exposure visits and workshops to enhance the quality of technical education as well as to implement Ek Bharat Shreshtha Bharat Programme.

“The ultimate resource in economic development is People. It is people, not Capital or raw material that develop economy.”- By Peter Ferdinand Drucker.
The World Health Organization (WHO) defines health as "a condition of complete physical, mental, and social well-being, rather than only the absence of sickness or disability." The role of health as an engine of economic growth is not entirely unsubstantiated, as an investment in health care leads to better, healthier lives for the populace, which in turn, increases productivity, and creates an efficient workforce, thereby significantly adding to the social and economic progress of any country. Universal health care has also been stressed by the United Nations (UN) under its Sustainable Development goal#3 which states “Ensure healthy lives and promote wellbeing for all at all ages” by 2030. The health sector includes a very diverse set of activities that not only includes services that detect diseases but also its prevention and awareness.
Because of its overlapping characteristics, functions, and purposes, the health industry in India is fairly extensive and provides a significant source of revenue as well as job creation for the economy. Himachal Pradesh's health indices have also showed consistent improvement, demonstrating the state's strong commitment to effective service delivery. Himachal Pradesh has made significant investments in its health infrastructure, which is among the finest in the country in terms of availability per capita. The State has recorded consistent progress in outcomes as well. Take the case of immunization, where Himachal Pradesh stands out among its neighbours and nationally. Childhood mortality in Himachal Pradesh also recorded steady improvements, particularly between 1971 and 2001, although it hit a plateau there after. Self-reports of health condition and awareness of health issues are also better among residents of Himachal Pradesh than they are among residents of adjacent states. Investments in health infrastructure and service delivery networks in the early years of Himachal Pradesh’s Statehood were instrumental in achieving its positive health outcomes. These investments were effective in terms of outreach, despite the hilly terrain. Data from the National Family and Heath Surveys (NFHS) indicate that a majority of households use government health facilities when they are sick. This is compelling evidence of user satisfaction with the public health system. The Indian Human Development Survey (IHDS) also shows that a substantial number of people in Himachal Pradesh use public facilities.
State Government’s vision is to ensure good health and well being of all citizens of the State by providing good health services, elimination of communicable and non- communicable diseases and also expanding its health care service in this decade. State has made considerable progress in this area and now ranks higher in health indices than several other states. The Health and Family Welfare Department in Himachal Pradesh provides curative, preventive, and rehabilitative services through a network of 108 Civil Hospitals, 104 Community Health Centres, 580 Primary Health Centres, and 16 Civil Dispensaries.

The above figure compares Institutional births, Institutional births at Home, births performed by skilled health personnel, Births attended by skilled health personnel, Births delivered by caesarean section and so on in 2015-16 and 2019-20. On analyzing the delivery care system at its all level, it has been found that the percentage of institutional births was 76.4 per cent in the year 2015-16, which has increased to 88.2 per cent in 2019-20, likewise the other indicators has also increased from its previous levels except the home birth proportions conducted by skilled health personnel, which has reduced to 1.7 per cent in 2019-20 from 3.4 in 2015-16. Which shows most women choose institutional birth, preferably in a government hospital, to reduce infant death and other difficulties. This reflects the general public's trust in government health institutions as well as their increased understanding of health-care issues.

The child vaccination is very important for protecting children from illness and lowering newborn mortality. The above figure 16.2 compares the immunization status of children vaccination in 2015-16 and 2019-20. On analyzing the status of children in the age group of 12 to 23 months, it has been observed that the percentage of fully vaccinated children was 85.4 per cent in 2015-16, which has improved to 96.4 per cent in 2019-20 as per the information from vaccination cards. Similarly, there has been a significant rise in other vaccines administered to children in 2019-20 over 2015-16, such as BCG, Polio, and DPT.
Figure 16.3 compares our state's crude birth rate, death rate, natural growth rate, and infant mortality rate as of 2020 to adjacent states and India as a whole. Himachal's crude birth rate is 15.3, which is lower than Haryana (19.9), Uttrakhand (16.6), and All India (19.5), except for Punjab (14.3), which is favorable in comparison. In Himachal Pradesh, the newborn death rate is 17, which is lower than in adjacent states and across India, indicating that better baby health care facilities are available and health programmes of the state are more effective.

During Financial Year (FY)2021-22, the northern states and UTs had a low sex ratio at birth (SRB). According to a recent government Health Management Information System (HMIS) study, only Himachal Pradesh, Jammu and Kashmir, and Ladakh in the area have a higher SRB than the national average. SRB in Punjab, Haryana, Chandigarh, and Delhi are lower than the national average. Even Himachal Pradesh, Jammu and Kashmir, and Ladakh are not much higher than the national average of 934. While Ladakh had the highest SRB in the area (943), Himachal and J&K came in second and third with 941 and 940, respectively. Despite the fact that Himachal has a higher SRB than the national average, the situation is not ideal. The SRB should be more than 960.
Meanwhile, Punjab (928), Delhi (924), Haryana (920), and Chandigrh (892) are among the 11 states and UTs with SRBs that are lower than the national average. In fact, Chandigarh is only above the last-placed Dadra and Nagar Haveli and Daman and Diu. In reality, Chandigarh had a significant reduction in SRB during FY2021-22 compared to the prior year. The SRB in Chandigarh was 941 in FY2020-21, but it fell by 49 points to 892 in FY2021-22. Ladakh and Haryana are the other northern states and UTs in the area to have a reduction in SRB. While the SRB in Ladakh fell from 973 to 943, it fell to 920 from 927 in Haryana. The issue appears to necessitate stronger application of the Pre-Conception and Pre-Natal Diagnostic Techniques (PCPNDT) Act. To promote gender equality, the Act forbids prenatal sex determination. The Act must be properly enforced so that there is no gender imbalance at birth. Efforts must be increased to modify people's attitudes concerning girl children. Brief detail of Health and Family Welfare programmes during FY2022-23 is shown as below:

Currently, the Directorate of Medical Education and Research regulates six medical colleges, one dental college, one Atal Medical and Research University, and one Atal Institute of Medical Super Specialties in the public sector, as well as one medical college and four dental colleges in the private sector. Under the Pradhan Mantri Swathya Suraksha Yojana (PMSSY), one All India Institute of Medical Sciences (AIMS) has been established in Himachal Pradesh in district Bilaspur. The institution wise allocation and expenditure of funds during FY2022-23 up to 21st January, 2023 is given in the following table:

Academic achievements in Medical Education and Research are as follows:
i) Bachelor of Medicines and Bachelor of Surgery (MBBS) and Post Graduate (PG): During academic session 2022-23, total 870 MBBS seats were filled in Government and Private Sector (720 in Government and 150 in Private Sector). Another 322 Post Graduate (MD/MS) seats in various specialties were allotted in Government and Private Medical Colleges i.e. 230 in Government Medical Colleges and 92 in Private medical colleges. These are allotted to Indira Ghandhi Medical College (IGMC) and Hospital Shimla, Dr. Rajinder Prashad Government Medical College (Dr. RPGMC) and Hospital, Kangra at Tanda, Sh. Lal Bahadur Shastri Government Medical College (SLBSGMC) and Hospital, Nerchowk Mandi and Maharishi Markandeshwar Medical College and Hospital (MMMCH), Kumarhatti Solan.
ii) Bachelor of Dental Surgery (BDS) and Master of Dental Surgery (MDS): 295 Bachelor of Dental Surgery (BDS) seats and 96 Master of Dental Surgery (MDS) seats were filled in both Government and Private sector during Academic Session 2022-23.
iii) Nursing : During the academic year 2022-23, 334 seats for Auxiliary Nurse Midwife (ANM) training course, 1,610 seats for General Nursing and Midwifery (GNM) course, 1,900 B.Sc. Nursing, 655 Post Basic B.Sc Nursing and 181 seats for M.Sc Nursing Degree course have been approved in various Government and Private institutions.
iv) Scholarship/Stipend: State Government has enhanced the stipend for Bachelor of Medicines and Bachelor of Surgery (MBBS) from ₹17,000 to ₹20,000 per month, but the stipend for Bachelor of Dental Surgery (BDS) Intern students remained same i.e. ₹17,000 per month.
v) Diplomate of National Board (DNB) Courses: During the academic session 2022-23 in Dr. Rajinder Prashad Government Medical College (Dr. RPGMC) and Hospital, Kangra at Tanda DNB Courses are being run in 2 specialties, in Sh. Lal Bahadur Shastri Government Medical College (SLBSGMC) and Hospital, Nerchowk Mandi in 8 specialties. Pt. Jawahar Lal Nehru Government Medical College (Pt. JLNGMC) Chamba, in 3 specialties and in Dr. Radhakrishnan Government Medical College (Dr. RK GMC), Hamirpur in 7 specialties.
vi) Super Specialty Courses: During the academic session 2022-23, 7 seats in super specialty courses were filled up in different specialties in Indira Gandhi Medical College (IGMC) and Hospital Shimla and 2 seats were allotted to Dr. Rajinder Prashad Government Medical College (Dr. RPGMC) and Hospital, Kangra at Tanda under super specialty courses.

The Institution wise major achievements up to December, 2022 are given in following table:

AYUSH Vibhag is an important part of the Himachal Pradesh Health Care System. AYUSH was established in 1984, Health Care services are being provided to the general public through AYUSH health infrastructure in the State. To achieve this goal, the State AYUSH Policy, 2019 was drafted and notified on 6th November, 2019. Under this policy, 52 MoUs worth ₹1,335.25 crore were signed with prospective Investors in AYUSH Sector. Out of which 26 MoUs worth ₹485.05 crore were grounded and 4 MoUs worth ₹17.00 crore became operational.
Overall view of the AYUSH infrastructure is given in the table below: Pathshala AYUSH Vatika: Pathshala AYUSH Vatika was created to revive the traditional system of medicine by explaining the importance of herbal plants to school going children, and it was inaugurated on 8th of August, 2022 by His Excellency the Governor, Himachal Pradesh from Government Senior Secondary School, Baldeyan, District Shimla. School AYUSH Garden has been established in 200 schools selected by education department across the state and the AYUSH department has provided 60,792 medicinal plants free of cost from its herbal garden for plantation in schools.

In the State of Himachal Pradesh, welfare is the primary concern while formulating policies. The government is committed to enhancing the welfare of those who are socially and economically marginalised, including women, children, senior citizens, people with special needs, and members of Scheduled Castes (SCs), Scheduled Tribes (STs), and Backward Classes (BCs). The welfare agenda's effectiveness depends on ensuring that the programmes take into account the requirements of particular sections and are methodically implemented, with their deliverables aligned with the government's planned social goals.
Social Welfare and Welfare of Other Backward Classes: The empowerment of the underprivileged and marginalised groups in society is the responsibility of the Directorate for Empowerment of SC's, OBC's, Minorities Affairs and the Specially Abled (ESOMA). The department's programmes are primarily focused on enhancing these groups' socioeconomic circumstances in order to integrate them into society as a whole. The target groups' social, educational, and economic growth has been a focus of the ESOMA's numerous programmes and plans. The well being of these groups has significantly improved as a result. Both extreme deprivation, risk and vulnerabilities are addressed through social protection. If everything is left to the market and growth, one cannot address inequality. It deals not only with social hazards (illness, old age, unemployment, and social exclusion), but also with programmes that provide income for the poor. Social security programmes' existence help preserve social harmony and stop irreparable losses of human capital. Social security measures are advantageous for more growth and for lowering inequality, according to theory and research. Within the framework of social assistance programmes, the following pension plans are being implemented:
Old Age Pension: Old age pension plans are initiatives to guarantee that individuals who lack access to fundamental necessities of life are provided for and have access to better resources.
Special Ability Relief Allowance: Under this scheme, social security is provided to the disability persons, so that they can meet the basic needs of their life.
Widow / Deserted / Ekal Nari Pension: The Widow/Deserted/Ekal Nari Pension plan offers widows monthly financial help with the goal of ensuring a safe and improved living environment.
Rehabilitation allowance to Lepers: Leper rehabilitation allowance: Leprosy sufferers get a monthly financial aid payment known as the Leprosy Rehabilitation Allowance. There is no relevant age or income restriction for this.
Transgender Pension: Transgender pension is given to those who have been approved by the Health and Family Welfare Department's State/District level medical boards irrespective of age or income.
Indira Gandhi National Old Age Pension (Below Poverty Line (BPL): Under this programme, recipients who are at least 60 years old and are from BPL families receive monthly financial support.
Indira Gandhi National Widow Pension: This programme helps widows living in rural regions and ensures they get government financial benefits and allowances if they fall below the poverty line.
Indira Gandhi National Specially Abled Pension: The Indira Gandhi National Specially Abled Pension is a programme launched under the National Social Assistance Program that offers handicapped persons a monthly pension to improve their quality of life.

National Family Benefit Scheme: As part of this programme, the family of a BPL household will get help in the amount of ₹20,000 in the event that the major breadwinner passes away. Up till December, 2022, 524 households have received financial assistance of 114.00 lakh against a budget allocation of 4.00 crore.
Self Employment Schemes: The Himachal Pradesh Scheduled Castes and Scheduled Tribes Development Corporation (HPSC & STDC), Himachal Pradesh Backward Classes Finance and Development Corporation (HPBCF & DC), and Himachal Pradesh Minorities Finance and Development Corporation (HPMF & DC) are three corporations receiving funding from the state government for various self-employment programmes. The detail of loans given by the corporations up to December, 2022 is in Table 17.2.

25.19 per cent of the total State Development Plan allocation is set aside for the SC Development Plan to provide special coverage under individual beneficiary programmes and the development of infrastructure in SC concentrated villages. The SC Development Programme's budget for FY2022–2023 is ₹2400.12 crore. In addition, the SC Development Program for the FY2022–23 has been allocated ₹851.45 crore as Additional Central Development Budget.
During FY2022-23 ₹1,423.90 crore has been spent upto December, 2022 under SC Development Plan for the welfare of SC’s in the state. The year-wise breakup of these expenditures is as under figure:

The ST sub-approach plan's to economic growth is area-based. For the FY2022–23, the ST Development Programme has been allotted ₹855.40 crore under the ST Development Plan.
As part of the ST Development Plan, ₹270.73 crore is being spent in the FY2022–23 up till August, 2022, for the welfare of ST in the state. Figure 17.2 below shows a breakdown of expenditures by year.

Welfare of Scheduled Castes, Scheduled Tribes, Other Backward Classes: The important schemes implemented during 2022-23 are as under:

The government is putting into effect a number of measures with a specific focus on the welfare and empowerment of women in order to ensure equal development in the state across all disciplines. These programmes concentrate on reducing the wage gap between men and women, raising household incomes, and enhancing women's negotiating power. The government has made steps to empower women through a vast network of SHG organisations and to offer financial aid for weddings. In addition to the aforementioned initiatives, the government is also putting into action Centrally Sponsored Schemes, including Beti Padhao Beti Bachao, Integrated Child Protection Services, Supplementary Nutrition Program, Poshan Abhiyaan, Construction and Renovation of Anganwadi Centers and Ujjwala for Victims of Trafficking and Commercial Sexual Exploitation.
The Directorate of Women and Child Development was established in the year 2011 as a part of the department of Social Justices and Empowerment.
State Home cum Protective Home Mashobra:The scheme's major goal is to offer young girls, widows, deserted, poor, and women in moral risk with free shelter, food, clothes, education, health and medication, counselling, and vocational training. The Mashobra State Home currently has 20 inhabitants. Financial aid of up to ₹25,000 per woman is offered for the rehabilitation of such women once they leave the State Home. In the case of marriage, ladies are also given ₹ 51,000.
One Stop Centre: One Stop Center is a programme that centrally sponsored. The scheme's main goals are to offer integrated support and assistance to women who have experienced violence in both private and public settings under one roof and to make it easier for them to access a variety of services, including medical , legal, psychological, and counselling support, right away in both emergency and non-emergency situations. In the current state of affairs, each district's headquarters in Himachal Pradesh has one "One Stop Center".
Saksham Gudiya Board: The scheme's main goal is to make policy recommendations for the empowerment of girl child/adolescent girls, acts, rules, policies, and programmes related to safety and security, and to review the implementations of various programmes being run by different departments for upliftment and empowerment for the protection of girl child/adolescent girl against crime.

Rural Development includes measures to strengthen the democratic structure of society through the Panchayati Raj Institutions (PRIs). It also includes events to improve the rural infrastructure, improve income of rural households and delivery systems pertaining to education, health and safety mechanisms. The Department implements the most prestigious scheme Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which provides 100 days guaranteed employment to every eligible household in a year.
Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM): With effect from 01st April, 2013, the Swarnjayanti Gram Swarozgar Yojana (SGSY) has been replaced in the State by the DAY-NRLM. This programme is one of the Ministry of Rural Development's (MoRD's) major initiatives with the goal of reducing poverty by giving low-income households access to chances for productive self-employment and skilled wage jobs for long-term subsistence. NRLM is being implemented in 88 blocks all throughout the State.
The main features of this programme are as under:
The National Rural Livelihoods Mission’s aim is to reach out to all poor families, mobilize them into Self-Help-Groups (SHGs) link them to sustainable livelihoods opportunities and nurture them till they come out of poverty and enjoy a decent quality of life. This programme focuses on women empowerment hence, the rural poor House Holds (HHs) under NRLM are covered through their women members. These women are firstly organized into SHGs and thereafter into Village/ Block / District federations in order to assist them in accordance with the guidelines of Government of India. The households identified with at least one deprivation criteria as per Socio-Economic and Caste Census (SECC) along with households identified through the Participatory Identification of Poor (PIP) process are accepted in DAY-NRLM target group and are eligible for all the benefits under the programme.
According to the scheme's mission in Himachal Pradesh, the State Rural Livelihood Mission would encompass all rural poor and the poorest of the poor, who would be picked using the PIP and SECC data of 2011. The selected women are grouped into SHGs, and their Federated Institutions are linked with Banks for recurring micro financing. In addition to the aforementioned groups, the NRLM prioritises the coverage of single women, war widows, the disabled, and the elderly who do not have caretakers.
The incentives being provided to the women SHGs are as under:
1.Financial Inclusion
NRLM facilitates universal access to the affordable, cost-effective and reliable financial services to the poor. These include financial literacy, bank account, savings, credit, insurance, remittance, pension and counseling on financial services. The core of the NRLM financial inclusion and investment strategy is “making poor the preferred clients of the banking system and mobilizing bank credit”.
For Financial Year (FY)2022-23, the State Government has agreed to cover all eligible SHG women through social insurance programmes such as Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). The State Government will pay the premium for the PMSBY and PMJJBY. To accomplish this, Himachal Pradesh State Rural Livelihood Mission (HPSRLM) launched a special push, and around 2.10 lakh SHG women have been covered under the PMSBY programme, while 1.65 lakh have been covered under the PMJJBY scheme.
In the recently issued Master Circular by the Reserve Bank of India (RBI), it has been notified that all the SHGs will get loan/credit through the banks on 7 Per cent in all the districts in the state. The condition of Cat-I and II districts has been removed by the RBI. This will help the SHGs to get the credit at an affordable rate of interest from the banks to start or expand the livelihood activities.

In FY2022-23, the HPSRLM began Farm Livelihoods Interventions in 15 new Blocks (in addition to 41 blocks of previous FY). The Farm Livelihood Intervention has reached 2,070 communities, with 37,770 Mahila Kisan identified and 1,270 Farm Livelihood Community Resource Persons (CRPs) (Krishi Sakhi and Pashu Sakhi, Krishi Udyog Sakhi) identified and trained in Agro-Ecological and Sustainable Livestock Practices. The selected Mahila Kisans are being educated on Agro Ecological Practices and Sustainable Livestock by Farm Livelihood CRPs, and have assisted in the creation of Backyard Kitchen Gardens/Agri Nutrition Gardens, as well as the preparation of bio fertilisers such as beejamrit and jeevamrit. A total of ₹1.68 crore has been set up for the development of 42 Custom Hiring Centres in the FY2022-23, where SHG Women can hire farm equipment. Livelihood Sub Committees of Village Organizations constituted under DAY NRLM will run and manage these Community Health Centres. HPSRLM has also begun Natural Farming in all of its blocks.
In addition to the foregoing, 1,272 Animal Health Camps have been hosted in all Farm Livelihood Blocks, and 28,971 Mahila Kisans/SHG Members have been educated/aware of Lumpy Skin Disease in collaboration with the Department of Animal Husbandry, Himachal Pradesh.
Eight exposure visits were made to CSK-HPKV, Palampur and the Council of Scientific and Industrial Research-Institute of Himalayan Bioresource Technology (CSIR-IHBT) Palampur for 240 Farm Livelihood CRPs/Mahila Kisan/SHG Members in collaboration with the Watershed Development Component- Pradhan Mantri Krishi Sinchayee Yojana (WDC-PMKSY) 2.0.
80 Producer Groups have been created, and 1,620 mahila kisan of their groups have been covered.
With the assistance of the Department of Animal Husbandry, the Pashu Sakhis of District Kullu vaccinated 9,500 animals.
Non Farm Livelihoods
The non farm livelihoods activities may be defined as comprising all those activities associated with waged work or self-employment in income generating activities (including income in-kind) that are not agricultural but which generate income. In this regard HPSRLM has taken many new initiatives related to non-farm sector in the state. The major activities and programmes which are being implemented in the State for providing sustainable livelihood under non farm are:
i) HIM-IRA brand registration
Self-help groups formed under NRLM in the state were selling their products by different names, which resulted in limited market reach and low/zero repeat customer. To increase the market reach of SHGs products brand “HIM-IRA” and logo have been registered to sell all the SHG products under single umbrella. Registration of brand has helped:
Given new recognition to SHG products
Enhanced the product recognition
Increased market reach.
Help in built brand loyalty
Aid in introduction of new products in the range
Build brand equity
Enhanced credibility and ease of purchase.
ii) HIM-IRA SHG Shops
In the budget 2020-21, the Himachal Pradesh Government announced the opening of stores managed and run by women SHG members. The department decided to open 100 HIM-IRA SHG stores around the state. In the state, 95 businesses have been opened to far. So far, 31 new HIM-IRA Shops have opened in FY2022-23.
For FY2022-23, the total sale reported by these Shops is about ₹130.00 lakh upto 20th December, 2022.
iii) HIM-IRA weekly Market
HPSRLM has planned to organize weekly Market under the brand name of HIM-IRA, where Self Help Groups of the local area can participate and sell their products.
This programme has helped them gain confidence and contribute to the family's income. HIM-IRA weekly markets are held in ideal places such as blocks and districts. Currently, 72 blocks host HIM-IRA weekly markets. HIM-IRA Weekly Markets were organised by 5 new Development blocks in FY2022-23 (April-December). The total sale reported in these weekly Markets in same time frame is ₹156.00 lakh.
iv) HIM-IRA Canteen
HIM-IRA Canteen provides an option for rural SHG women to generate additional income. The objective of is to create a unique and traditional dining experience that focuses on "Atihi Devo Bhav". HIM-IRA Canteen will strive to maintain sanitary canteens inside the institution's premises in order to give high quality meals to officers, personnel, students, and guests, among others, at a fair price and with excellent service. There are now 21 HIM-IRA canteens operating in Government Institutions.
v) Him-Annapurna Food Van
Under Him-Annapurna Food Van Scheme the plan is to launch a food van that will be owned, operated, and managed by the state's SHGs. Districts Una and Kangra are running HIM-IRA Food Vans, whereas the rest of the districts are underserved.
vi) Prime Minister Formalisation of Micro Food Enterprises (PMFME)
The PMFME project, which is being implemented in the state, provides financial support in the form of seed money in the amount of ₹40,000 to SHG groups interested in food processing operations. This seed financing is being offered to SHGs to help them expand their businesses and earn more money by manufacturing more items.
To date, an amount of ₹357.00 lakh has been disbursed to 200 Community Based Organizations (CBOs) in the state, consisting of 918 SHG beneficiaries, and 2,067 SHG beneficiaries proposals have been recommended to Department of Industries totaling ₹798.00 lakh till December, 2022.
vii) Start Up Village Entrepreneur Programme (SVEP)
SVEP is a centrally funded initiative with the primary goal of assisting the rural poor in establishing their own businesses by constructing a sustainable paradigm for village entrepreneurship development.
This plan is being implemented in Mandi Sadar (Block), and under SVEP, a total of 2,018 firms in Mandi Sadar block must be supported during a four-year period. A block resource centre has been established, and businesses are being mobilised. Thirty Community Resource Persons-Enterprise Promotion (CRP-EPs) have been trained and placed in the neighbourhood. Five additional SVEP blocks have been added for FY2022-23.
Numbers of Social Inclusion and Social Development
Social Inclusion: Category-wise inclusion of SHGs under Social Inclusion has so far been recorded in the following table: As of now, this component has resulted in the formation of 768 Elderly SHGs, 2 Cluster Level Federations (CLFs), and 5 Village Organizations (VOs). Of these, the Ministry of Social Justice and Empowerment MoSJE has approved a grant for 108 Elderly SHGs totalling ₹6.61 crore (₹50,000 per SHG) under the Action Groups Aimed at Social Reconstruction (AGRASR) programme. The start-up and revolving funds for these SHGs have already been supplied. In addition to this, 566 PwD SHGs have been founded so far. Of these, 276 SHGs have received a revolving fund at a rate of ₹15,000 per SHG. Training on sustainable livelihoods has been given to 202 Elderly Executive Council members from 4 blocks (Food Processing, Dairy Activity and Marketing).
To date, 102 Vulnerability Reduction Plans (VRP) have been developed, and ₹108.00 lakh has been allocated as Variable Refrigerant Flow (VRF) to 72 VOs at a rate of ₹1.50 lakh per VO. The estimated annual expenditure on Social Inclusion activities is ₹41.00 lakh. Two Elderly Cluster Level Federation/Self Help Groups (CLF-SHGs) of Chopal and Tutu participated in the Food Carnival, Ridge Maidan, Shimla and sold a total of ₹1.35 lakh worth of Millets, Apple goods, Ginger candies, etc.
Food Nutrition Health and Wash (FNHW): This component established a three-year State Operational Strategy and the FNHW State Core Committee. In 25 blocks, 172 Community Resources Persons (Health, Nutrition, and Gender) (CRP HNG) have been taught and are working to implement FNHW. For distribution and awareness, 9 types of Information Education Communication (IEC) on Anaemia and Menstrual Hygiene, Food Group Chart have been produced and given to all 12 districts, 88 blocks, 3,615 Gram Panchayats, 20 CLFs and 1,300 VOs. The approximate amount spent on FNHW activities throughout FY is ₹40.00 lakh.
During the POSHAN Maah FY2022-23, around 38,700 SHGs participated in this event at their respective locations across the State, and 10,250 Kitchen Gardens were planted. Aside from that, employees, SHGs, and cadres have received 100 per cent of the first and second doses of the covid-19 vaccine and are receiving booster doses as needed.

This component includes the establishment of a three-year State Operational Strategy and a Gender State Core Committee. In 25 blocks, 172 Community Resources Persons, Health, Nutrition, and Gender (CRP HNG) have been trained and are working to implement FNHW. In addition, CRP-HNG has trained 20 CLF and 278 VO level Social Action Committees on gender integration and institutional mechanisms in 9 blocks for the state's gender roll out. A total of 820 Gender Point Persons (GPP) were trained for this purpose. With the assistance of line departments, the National Gender Campaign against "Gender Based Violence" was launched (14th December, 2022-14th January, 2023).
Aside from this, 5 CLF immersion sites, Gender Forums at the GP level in 9 blocks, and one Lok Adhikaar Kendra at the block level will be launched this year. A rough estimate of the money spent on GENDER activities during the year is ₹52.00 lakh.
Convergence of Panchayat Raj Institutions and Community Based Organizations (PRI-CBO)
HPSRLM has signed a MoU with National Research Organisation Kudumbashree Kerala to a roll out the Panchayati Raj Institutions (PRIs) and Community Based Organisation (PRI-CBO) Convergence project in 20-20 Gram Panchayats in two blocks, Rajgarh and Theog. Furthermore, HPSRLM will soon be functioning in 20-20 GPs of another four blocks in the State.
In addition, 3,192 Village Poverty Reduction Plans (VPRPs) are being developed by 3,192 Resource Persons / Community Resource Persons (RPs/CRPs) in 3,184 Gram Panchayats of the State using a mobile-based app, which will be integrated into the Gram Panchayat Development Plan (GPDP). The approximate amount spent on PRI-CBO Convergence efforts throughout FY is ₹186.00 lakh.
Mukhya Mantri Gram Kushal Yojana (MMGKY): MMGKY covers traditional craftsmen and artisans who are not covered by any other skill development plan. It is a one-of-a-kind skill scheme that covers all of Himachal Pradesh's traditional arts and crafts and has 31 approved traditional courses lasting 3-6 months, such as Kangra/Thangka painting, stone/wood carving, miniature replica temples/handloom, Chamba rumal, Iron tool making, jute/pine/bamboo products, and so on.
For FY2022-23, 3,500 trainees and 700 trainers were suggested to profit from the initiative, with 362 Master trainers chosen in the first batch, who are providing conventional instruction to 1,820 trainees.

The Scheme was launched in the month of May, 2020 by the Hon’ble Chief Minister of Himachal Pradesh, this is a convergence scheme between NRLM and MGNERGA. Any woman of SHG formed under DAY-NRLM can avail the benefit of this scheme up to ₹1.00 lakh, if she holds MGNERGA Job Card.
The main objective of the MM1BS is to provide food security by the development of backyard kitchen garden in the households to produce nutritional, healthy vegetable and fruits.
During FY2022-23, a total of 1,456 works worth ₹9.18 crore were sanctioned in favour of women of SHGs under the MM1BS for Land Development, Nursery Production, Fruit Tree Plantation, Construction of Vermi Compost and Azolla Pit and Animal Shed related works, of which 109 works worth ₹89.21 lakh were completed.

DDU-GKY is being implemented in Himachal Pradesh through the Rural Development Department. The major goal of the programme is to offer skills to under privileged rural kids and to provide them with employment that pays at or above the minimum wage on a regular monthly basis.
The benefits under this scheme are:
The DDU-GKY target population includes impoverished rural youth aged 15 to 35, women, and other vulnerable groups like as those with impairments; the upper age restriction is eased to 45 years.
Households living Below Poverty Line (BPL) are also be eligible for the skilling programme.
Special Focus of the scheme: At the national level, 50 per cent of funding are reserved for SC/ST, with the proportion of SC/ST determined on a case-by-case basis by the Ministry of Rural Development (MoRD).
15 per cent funding for the minority group.
States must ensure that 3 per cent of recipients are differently abled.
Special emphasis on women 33 per cent of recipients will be women.

Watershed development project is being operated in the state with the goal of rehabilitating wasteland and degraded lands, drought prone and desert areas on a 90:10 financing pattern between the Centre and the State. The project has been approved by the Government of India for the years 2021-2026. The financing was received in March 2022, following which the state's entrance point activities commenced.
i) Evolution of Watershed Development
The approach to watershed development has gradually evolved over time, from initial objectives of soil and water conservation and reducing siltation of river valley projects to the current integrated approach of managing the biological, physical, and social elements in a landscape within a watershed's boundaries. The 'Ridge to Valley' strategy to watershed development has been acknowledged as a paradigm for substantial public investments aimed at sustainable production systems for natural resource management and livelihood possibilities. Climate change issues and their impact have had a negative impact on ecology in general and agricultural production systems in particular, posing serious challenges to long-term livelihoods, particularly for the vast majority of people in India who are directly or indirectly dependent on Agriculture.
In Himachal Pradesh, the aquifer zones that feed the springs and their related recharge zones have been harmed as a result of careless usage and abuse of the upper reaches. As a result, spring rejuvenation must be undertaken through proper watershed development initiatives.
ii) Objectives of Watershed Development Projects
To improve productive potential of rainfed / degraded land through integrated watershed management;
To strengthen community based local institutions for promotion of livelihoods and watershed sustainability, and
To improve the efficiency of watershed projects through cross learning and incentive mechanism.
At a macro level, the vision of WDC-PMKSY-2.0 projects is to accelerate agricultural economic growth in the country's less endowed rainfed areas. The development plan at the watershed level must be directed by the need to achieve greater earnings for farmers, improved livelihood possibilities for landless people, fairness in benefit sharing, community ownership and management, and an environmentally sustainable action plan.
iii) Status of Projects Sanctioned under WDC-PMKSY -2.0
iv) Agencies engaged in the preparation of DPR under WDC-PMKSY-2.0 v) Entry Point Activities
The Watershed Development Team (WDT) engages in entry-level activities to create rapport with the village population and earn their trust in people-centered project development. vi) Amrit Sarovars
Mission Amrit Sarovar was inaugurated on National Panchayati Raj Day, 24th April, 2022, with the goal of conserving water for the future. The Mission's goal is to develop and revitalise water bodies in every area of the country.
The details of Amrit Sarovars in the State are as under: vii) Institution and Capacity Building (I&CB)
“Jalayan Campaign” (w.e.f. 27th June- 30th June 2022 under WDC- PMKSY 2.0)
A four-day sensitization campaign ‘Jalayan’ w.e.f. 27th – 30th June 2022, was organized across all 26 project blocks which included activities like:
Plantation Drives
Poster Making Competitions
Livelihood Exhibitions Etc.
viii) Detailed Project Report (DPR) Activities
The various DPR activities under the Project in 26 Blocks of the project are: A number of proposed activities will be executed in a span of 3 years of project phase.
Pradhan Mantri Awaas Yojana Gramin (PMAY-G): By 2024, the PMAY-G seeks to offer pucca dwellings with basic facilities to all homeless and kutcha households, as well as those living in outdated structures. The cost of a unit (home) is split 90:10 between the central and state governments. With effect from FY2019-20, this plan provides a financial aid of ₹1.50 lakh per recipient for the construction of a house. FY2019-20, the State Government has allocated a sum of ₹20,000 per house, in addition to the unit cost of ₹1.30 lakh. The Government of India Ministry of Rural Development (MoRD) has set a target of 3,514 dwellings for FY2021-22 under the Awas Plus survey. Up until 20th December, 2022, the department sanctioned 3,487 dwellings and finished 671 houses out of the desired number.
Mukhaya Mantri Awaas Yojana (MMAY): The State Government announced this plan for all types of people living below the poverty line. A budget of ₹21.48 crore is projected for FY2022-23, with 1,432 dwellings of various types expected to be built throughout the state. Up until 20th December, 2022, the agency sanctioned 1,397 dwellings and spent ₹94.10 lakh of the budget.
Saansad Adrash Gram Yojana (SAGY): The SAGY's main goal is to ensure the holistic development and quality of the identified Gram Panchayats through improved basic amenities, higher productivity, enhanced Human development, better livelihood opportunities and reduced disparities, access to rights and entitlements, broader social mobilisation, and enhanced social capital. The following villages have been designated as part of Phase II of SAGY implementation:

SPMRM was established in India in February, 2016 with the goal of developing 300 clusters over a five-year period by delivering urban facilities in rural regions. The clusters for this mission were chosen from a list of probable locations (sub-districts) provided by the Ministry of Rural Development, Government of India. Clusters are chosen based on rural population, non-active activities, or prospective areas of economic development, tourist attractions, and religious significance.
Each Rurban cluster is created under this mission at a total project cost of roughly ₹50.00 crore, of which 70 per cent is given through convergence with schemes of other departments and 30 per cent is provided by other departments' programmes. The Center and the State share the necessary gap financially (90:10).
i) Rurban Cluster
Rurban clusters are groups of geographically connected villages with populations ranging from 25,000 to 50,000 in plain and coastal areas and 5,000 to 15,000 in desert and hilly tribal areas. Rurban clusters are notified with a planned layout in accordance with planning regulations (State Town and Country Planning Acts/other similar Acts). Finally, these plans are merged with the District Plans/Master Plans.
ii) Integrated Cluster Action Plan
The Integrated Cluster Action Plan is a critical document that covers the baseline study and outlines the cluster's requirements. DPRs are created and authorised by the State Level Empowered Committee following ICAP approval.
iii) Critical Gap Fund (CGF)
CGF is a one-time fund, provided to support infrastructure projects. Out of 300 clusters allotted by the Ministry of Government of India, these 6 clusters are being developed in 3 phases of the mission for Himachal Pradesh. Matri Shakti Bima Yojana: The scheme covers all women living below the poverty line within the age group of 10-75 years. The policy provides relief to family members/insured women in case of their death or disablement arising due to any kind of accident surgical operations like sterilization, mishap at the time of child birth/delivery, drowning, washing away in floods, landslide, insect bite and the scheme also gives benefit to married women in case of accidental death of her husband. The compensation amount is as under:
Death ₹2.00 lakh.
Permanent total disability ₹2.00 lakh.
Loss of one limb and one eyes or both eyes and both limbs ₹2.00 lakh.
Loss of one limb/one ear ₹1.00 lakh.
In case of death of husband ₹2.00 lakh.
During FY2022-23, the Yojana offered financial support to 64 households totaling ₹128.00 lakh till 31st December, 2022.

On 2nd October, 2014 the Government of India began the "SBM-G," and on 28th October, 2016, Himachal Pradesh was proclaimed an Open Defecation Free (ODF) State. SBM-G is now focusing on the following activities/components:
Nonlinear Rigid Block Normal-Mode Analysis Method (NoLB), Individual Household Latrines, Construction of Community Sanitary Complexes (IHHL, CSCs)
Solid Waste Management (Non-Biodegradable and Bio-degradable)
Liquid Waste Management (Grey Water and Black Water)
Gobardhan Projects
IEC/capacity building.
The Government of India has released phase-II instructions for the implementation of SBM-G in the State, which are effective from 01st April, 2020. The key elements are as follows: Achievements during the year 2022-23:
13,067 Individual Household latrines have been sanctioned for FY2022-23.
A total of 643 CSCs were built during FY2022-23.
Over 5,000 settlements have been chosen for SLWM.
A total of 31 locations for Plastic Waste Management Units have been identified, with work on 39 sites now underway and 11 units finished.
Three Gobardhan sites have been finished, nine are under construction, and fourteen are nearing completion.
Over 13,000 PRI representatives were trained in a two-day training at Block Headquarters.
Special Initiatives under Swachh Bharat Mission (SBM-G):
Guidelines for establishing, operating, and maintaining a Community Managed Sanitary Complex in a Government facility at the village level have been developed and distributed to field officials.
A manual for the management of solid and liquid waste in Gram Panchayats has been produced and distributed to field officials.
Revised Maharishi Valmiki Sampooran Swachhata Puraskar Guidelines have been created and sent to field officials.
The establishment of a Plastic Waste Management Unit has been prioritised.
Efforts are being made to create sanitation-related infrastructure such as soak pits, twin pits, and so on, in collaboration with MGNREGA and 15th Finance Commission funding.
Panchwati Scheme: The Panchwati Yojana was launched in FY2020-21. The major goal of this yojana is to build parks and gardens that would provide spaces for the elderly to enjoy leisure activities. With the collaboration of the MGNREGA, the Swachh Bharat Mission (G), and the 14th Finance Commission, these parks and gardens are being constructed on levelled land of at least one bigha. In FY2022-23, 353 sites were completed under this plan up to 03rd January, 2023.
Plantation: During FY2022-23, 3,873 works were undertaken and 11,47,390 plants were planted as part of the prioritisation and promotion of Horticulture plantation, including Moringa (Drumstic) Plantation with Cluster Level Federations-Programme Implementing Agencies (CLF as PIA) and other than CLF as PIA.

On 05th September, 2005 the Government of India notified the MGNREGA. Progress accomplished during FY2022-23 (up to 3rd January, 2023) is as follows:

This state has 12 Zila Parishads (ZP), 81 Panchayat Samities, and 3,615 Gram Panchayats. The following are the department's main accomplishments:
1) The implementation of the 15th Finance Commission began in FY2020-21. Under the 15th Finance Commission, a sum of ₹329.00 crore has been sanctioned for this State for FY2022-23, of which ₹164.50 crore has been issued by Government of India and distributed to Panchayat Raj Institutions.
2) Of the total sanctioned provision of ₹23.60 crore under State Finance Commission (SFC) grant, newly created 134 Gram Panchayats have received a sum of ₹15.00 crore for the construction of new Panchayat Ghars, while an amount of ₹8.60 crore has been provided for the repair/maintenance/upgradation of existing Panchayat Ghars in the State.
3) The Revamped Rashtriya Gram Swaraj Abhiyan (RGSA) Centrally Sponsored Scheme was authorised by Government of India on 14th March, 2022 for implementation from 1st April, 2022 to 31stMarch, 2026. (co- terminus with 15th Finance Commission period).
4) For FY 2022-23 the Ministry of Panchayati Raj (MoPR), Government of India has authorised a grant of ₹194.03 crore under Revamped RGSA, of which ₹67.43 crore has been given in the ratio of 90:10. (₹60.96 crore Centre Share and ₹6.47 crore State Share) for different components such as the development of a Common Service Centre for 536 units, training and capacity building for 70,000 participants, institutional structure for a Drug Prevention Resource Center (DPRC), and so on.
5) A grant of ₹352.00 crore has been made available by the State Finance Commission (SFC) to cover the salary/wages/honorarium of workers of various categories within the Zila Parishad/Gram Panchayat cadre and Elected representatives of three tiers of the Performance Related Incentive System (PRIS). During FY2022-23, ₹330.24 crore was distributed until 31st December, 2022.
6) The State Government is committed to appointing Panchayat Secretaries to each Gram Panchayat in order to ensure the effective and seamless operation of the Gram Panchayat. 389 Panchatyat Secretaries and 124 Technical Assistants positions were established in the ZP Cadre for FY2022-23.
7) The department has established several apps via which the general public may access different online services such as the parivar registry, ration cards, marriage registration, and so on. The Panchayat accounts may be accessed using the e-Gram Swaraj Software Programme. These e-applications will be improved further.

The Himachal Pradesh Government, through the Housing and Urban Development Authority (HIMUDA), is offering homes, apartments, and plots to suit the housing needs of individuals of all economic levels. In the current FY2022-23, an expenditure of ₹75.82 crore was incurred up to December, 2022. During the current year, there is a target to construct 281 flats, 2 houses and to develop 202 plots of different categories. Construction work of 2 houses, 56 flats have been completed. In addition, 186 plots have also been developed. HIMUDA intends to develop new housing colonies in Dharamshala, Sohala (Sirmaur), Chettrra (Una) and a commercial complex in Shimla. 938 plots, 1,455 flats and 23 cottages would come up in these colonies. Apart from above HIMUDA has submitted a Detailed Project Report (DPR) for setting up a Mountain Township at Jathia Devi (Shimla Hills) with the Ministry of Housing and Urban Affairs (MoHUA) Government of India (GoI) having estimated project cost of ₹1373.44 crore. Construction works of Housing colonies at Sanauli, Sproon, Sheel (Solan), Dharampur (Solan), Parwanoo, Nalagarh, Dehra, Dhoundi (Mandi) and Rajwari (Mandi) are in progress
HIMUDA’s Initiatives: Construction of various works being carried out by HIMUDA through private contractors and expected to produce 5,95,690 man days of wage employment during the FY2022-23.

Himachal Pradesh has 61 Urban Local Bodies (ULBs), including Municipal Corporations in Shimla, Dharamshala, Solan, Mandi, and Palampur. The Government is providing grants-in-aid every year to these local bodies to enable them to provide civic amenities to the general public. As per the recommendations of the State Finance Commission ₹183.76 crore has been released to the ULBs during the current FY2022-23. This includes development grant and gap filling grant between income and expenditure.
Maintenance of Roads in Municipal Areas: 61 ULBs manage about 3,349 kms of roads, pathways, streets, and drainage. The government has allocated ₹6.00 crore for these roads in the current FY2022-23.
Deendayal Antyodaya Yojana-National Urban Livelihood Mission (DAY-NULM): The primary goal of DAY-NULM is to reduce poverty among the urban poor through the promotion of diversified and gainful self-employment and skill wage employment opportunities, resulting in significant improvement in their livelihood on a sustainable basis.
The following are the major components of this scheme:
i) Employment through skill training and placement.
ii) Social Mobilization and Institution Development.
iii) Capacity Building and Training.
iv) Self Employment Programme.
v) Shelter for Urban Homeless.
vi) Support to Urban Street Vendors.
vii) Innovative and Special Projects.
The following is the progress made in 2022-23:
325 Self Help Groups (SHGs) have been formed.
Under this initiative, 1,158 beneficiaries received skill training, and 927 applicants were placed.
260 individuals and 5,169 SHGs were provided loan assistance on subsidized interest for setting up their micro enterprises.
Around 7,005 loan applications have been submitted to banks under PM SVANidhi Scheme out of which 5,791 applications have been sanctioned and loan to 5,502 applicants have been sanctioned and disbursed.
Central Finance Commission Grant: The 15th Finance Commission has recommended two types of grants to be released to ULBs and Cantonment Boards (CBs). First is the Untied Grant (40 per cent) to be released unconditionally and the second is Tied Grant (60 per cent) subject to fulfillment of certain conditions as laid down in the 15th Finance Commission Report. There is a budget provision of ₹162.00 crore for FY2022-23. In addition, the GoI has also allocated Health Sector Grant amounting to ₹5.65 crore under 15th Finance Commission to the ULBs of the state during current financial year. The 2nd installment of both (Untied and Tied) grants amounting to ₹78.00 crore for the FY2021-22 has been released to the ULBs and CBs during current FY2022-23.
Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and AMRUT 2.0:
AMRUT: The main objective of the AMRUT Scheme is to provide basic amenities in regions of the city that do not have them. Two cities Shimla and Kullu have been included in the scheme. Total size of State Annual Action Plan is earmarked to ₹304.52 crore, which includes 75 projects. Out of total 75 projects, 58 worth ₹178.48 crore have been completed and remaining 17 worth ₹126.03 crore expected to be completed by March, 2023.
AMRUT 2.0: AMRUT 2.0 Mission has been launched on 1st October, 2021 by the Prime Minister with the aim to make the cities ‘water secure’ and ‘self-sustainable’ through circular economy of water. The mission will focus on water supply, sewerage & septage management, recycle/re-use of treated waste water, rejuvenation of water bodies and creation of green spaces. The mission period is from FY 2021-22 to FY 2025-26 and funding pattern is 90:10 ratio (Centre and State) with a proposal to cover all Statutory Towns (61 ULBs + 7 CBs). Total allocation for the project is ₹280.00 crore (₹252.00 crore from the Centre and ₹28.00 crore from State).

Smart City Mission was launched in June, 2015 and Municipal Corporation, Dharamshala was approved by GoI under the mission. In 2017-18, Municipal Corporation, Shimla was also selected under SCM by GoI. During the current financial year there is a budget provision of ₹100 crore under this Mission. In addition, the GoI has released a Central share of ₹294.00 crore. Out of 76 projects in Dharamshala Smart City Limited (DSCL) 34 projects have been completed and 42 more have been initiated. In Shimla Smart City Limited (SSCL) out of 53 projects, 28 most do-able projects have been identified. These are further bifurcated into 212 components of which 79 components have been finished and for 133 are still under construction.

Swachh Bharat Mission (Urban) 2.0 (SBM 2.0) is a flagship Programme of the GoI and is being implemented in all notified towns by MoHUA, GoI. The main aim of SBM is to make cities/towns open defecation free and provide a healthy and livable environment to all. Following actions/ progress have been made under the Mission:
i) Funds have been disbursed to ULBs for construction of individual household toilets and Community/Public toilets for providing adequate toilet facilities in towns. Till date more than 6,715 individual toilets for the households without toilet facilities have been constructed under the mission and 391 Community and 1,273 public toilet seats have been installed newly or renovated.
ii) Funds amounting to ₹3.05 crore have been released to different ULBs for the clearance of legacy waste sites. Furthermore, a sum of ₹20.00 crore has been demanded from the MoHUA, GoI under the Waste Management component of SBM-U 2.0.
iii) Various Information, Education, and Communication (IEC) initiatives are performed on a regular basis throughout the State to make the general people aware through Swachhta pakhwada, hoardings/banners, nukkad nataks, print and electronic media etc.
Pradhan Mantri Awas Yojana Housing for all (Urban): A mission “Housing for all” (Urban) has been launched by the GoI effective from 17th June, 2015 to 31st March, 2024. The aim of this scheme is to provide houses for slum dwellers under in-situ slum rehabilitation component providing affordable houses for Economically Weaker Sections (EWS), Low Income Groups (LIG) and Middle Income Groups (MIG) through the credit linked subsidy component, and housing through the public-private partnership component. The Government is also providing funds for construction of beneficiary houses through subsidy for beneficiary-led individual house component. For the current FY2022-23, there is a budget provision of ₹5.00 crore for implementation of this scheme.
Atal Shresth Shahar Yojana (ASSY): The Government has started the scheme to encourage ULBs, under which the best performing top three Municipal Councils and top three Nagar Panchayats are given cash rewards. In the budget speech for the FY2022-23 the Hon’ble Chief Minister of Himachal Pradesh has extended this scheme to cover the Municipal Corporations also. By covering the Municipal Corporation the scope of the scheme has now been extended to cover all ULBs. The top performing Municipal Corporation, top three Municipal Councils and top three Nagar Panchayats will be honored with the “Atal Shresth Shahar Puruskar” on 25th December of every year on the birth anniversary of Late Sh. Atal Bihari Vajpayee (former Prime Minister of India) or any other date as decided by the Government. The details of the prize money are appended below: Mukhya Mantri Shahri Ajeevika-Guarantee Yojana (MMSAGY): The Government of Himachal Pradesh, keeping in view the COVID-19 pandemic has notified a scheme known as Mukhya Mantri Shahri Ajeevika Guarantee Yojana (MMSAGY) on 16th May, 2020 to enhance livelihood security in urban areas by providing 120 days of guaranteed wage employment to every household in the financial year. The scheme has been re-notified on 19th April, 2021 and 26th March, 2022. All adult members of the households who register under this scheme will be eligible to work. Local residents of the ULBs residing within the jurisdiction of the ULB either in their own house or on rent are eligible. The upper age limit for providing work is 65 years. The Urban Development Department has developed online portal for MMSAGY. The beneficiary can register himself without visiting municipality office. Under this scheme 13,941 beneficiaries have been benefited with a total of 4,95,173 man days and amounting to ₹13.90 crore was disbursed till date.

To ensure functional, sustainable and planned development, the Himachal Pradesh Town and Country Planning Act (HPTCP Act), 1977 has been enforced in 55 Planning Areas (1.60 per cent of the total geographical area of the State) and 35 Special Areas (2.06 per cent of the total geographical area of the State).
Initiatives:
1) The State Government has carried out an amendment in HPTCP Act, 1977 vide notification dated 11th October, 2022 whereby the time of validity of planning permission has been increased from 5 years (3 years, extendable by 2 years) to perpetuity. This step will help those who could not complete the construction work in limited period. It will save common people from doing the rounds of Govt. offices on expiry of validity.
2) The State Government vide Notification dated 14th July, 2022 enforced the provisions of the HPTCP Act, 1977 in South Portal of the Atal Tunnel to curb likely un-authorized and unplanned development activities due to tunnel being in operation.
3) Vide Notification dated 14th October, 2022 the State Govt. has notified the amendment in Appendix-7 of the HPTCP Rules, 2014, which deals with the regulations for Real Estate Projects. To protect the interests of buyers, the Saleable and Non-saleable areas have been clearly demarcated.
4) The GIS-based Development Plans for Shimla Planning Area sent to the Government. Similarly, work for preparation of Kullu Valley Planning Areas under AMRUT Sub-Scheme of GoI is in final stage.
5) To reduce physical touch points and footfall of applicant in all field offices, a Notified Standard Operating Procedure (SOP) for Registered Private Professionals (RPP) for grant of development permission up to 500 square meters of plot area for residential use only in all notified Planning/Special Area and ULBs will be implemented shortly after its incorporation in the TCP online portal.
6) TCP Web portal being developed with AUTO Development Control Regulations (DCR) capability. This will enable computerized scanning of maps submitted for Planning Permission. The Auto DCR will generate one time report. The applicants will be able to know objectively the shortcomings related to DCR, which needs to be rectified by the applicants. The work has been awarded to the M/s. ABM Knowledge ware Limited and is likely to be completed by end of May 2023 including the SOP for RPPs regarding approval for residential use up to 500 square meters.
7) The proposal for extension of the Himachal Pradesh Town and Country Planning Act, 1977 (Act No. 12 of 1977) in the areas included for constitution of Municipal Corporation, Mandi, Solan and Palampur and newly constituted ULBs i.e. Nagar Panchayat Chirgaon, Nerwa, Nirmand, and Shahpur is being sent to the government.

Himachal Pradesh Real Estate Regulatory Authority (HPRERA) has started its function with effect from 01st January, 2020. The main objective of the HPRERA is to regulate and promote the Real Estate Sector and to ensure the sale of plots, apartments, or buildings, as the case may be, in an efficient manner and to protect the interests of consumer/ home buyers in the State of Himachal Pradesh. This Authority has registered 133 Real Estate Projects and 23 Real Estate Agents up to 31st December, 2022. About 57 complaints have been registered with the authority so far out of which 24 have been disposed of and hearings in the remaining 33 are under process. RERA has taken initiative to settle the matters of complaints amicably between parties. As a result of which sum of ₹2.18 crore has been refunded to the allottees/home buyers. HPRERA has been working in a consumer-friendly manner and all the hearings of complaints are being conducted through online mode (WebEx). The authority monitors online pending approvals of Real Estate projects with the coordination of concerned departments to facilitate the promoters to get statutory approvals/sanctions in time.

The National Building Organization has tasked the Department of Economic and Statistics of the Government of Himachal Pradesh to compile the Building Construction Cost Index (BCCI) of the State. The department has been preparing and releasing the State level BCCI with base year 2011-12. These indices are collected and compiled on quarterly basis and on this basis annual indices have been worked out as shown in following table: As per the above table, the material cost index has increased from 132.64 to 140.82 in 2021-22 which increased further to 146.43 in the year 2022-23. Due to rise in the transportation cost there has been increase in building material prices. The labour cost index has also risen from 132.31 to 140.29 in 2021-22 and to 145.87 in 2022-23, owing to an increase in the wages component of this index. Similarly the component other expenditure, which includes contractual and supervisory charges, comes under the index of other expenditure, this has also increased from 131.87 to 140.30 in 2021-22, and increased to 148.85 in the year 2022-23. The rise in all these indices has led an increase in the overall BCCI from 132.44 in 2020-21 to 146.76 in the year 2022-23.

Information Technology (IT) is the application of computing resources for the purposes of producing, analyzing, storing, retrieving, and disseminating information of any sort.
At the national level the Ministry of Communications and Information Technology's Department of Electronics and Information Technology (DeitY) is in charge of developing, enforcing and revising national rules pertaining to the use of computers, the Internet and other electronic devices (all matters other than licensing of Internet Service Provider). Computer-based information technology and processing, including hardware and software, standardisation of procedures and matters relating to international bodies, establishing the National Knowledge Network with multiple gigabit bandwidth to connect Knowledge Institutions across the country, promoting knowledge-based enterprises, internet access for all citizens, and e-Governance (which seeks to make all Government Services available to the common man in his locality) are all examples of areas where the ministry’s policies are relevant.
IT Policy Himachal Pradesh: Himachal Pradesh is in the forefront among the States. State Data Centre (SDC), Himachal State Wide Area Network (HIMSWAN) with e-district, etc. State offers considerable potential for the expansion of the IT&ITeS industry and has helped create basic Information and Communication Technology (ICT) infrastructure. The State Government now offers 59 Government to Citizen (G2C) services via the e-district site.
Lok Mitra Kendra Policy (LMK): The Government of Himachal Pradesh is committed to provide the General Public, especially living in distant rural areas of the State, with the benefits of using Information Technology (IT) in Governance at their doorstep.
The Web-enabled Government-Citizen Interface, named Lok Mitra Kendra is one such step in Himachal Pradesh. The objective of the Lok Mitra Kendras is to provide e-services in the locality of citizens, by creating the physical service delivery infrastructure for accessing various e-services. LMK is envisaged to be a Change Instrument that would provide a structured platform for socially- inclusive community participation for development.
At present, there are 3,800 Common Service Centres (CSCs) in the State while 2,400 out of these are LMKs. The aim of the state policy is to ensure last mile services delivery through LMKs in the State of Himachal Pradesh.
Currently there are 1,810 active LMKs in the State and they are providing various services including following:
Himachal Pradesh State Electricity Board Bill Collection
Nakal Jamabandi
IPH Water Bill Collection

An efficient instrument for promptly resolving the problems of the State's inhabitants is the MMSS helpline @ 1100. As of 22nd December, 2022, 1,23,567 complaints had been submitted through the MMSS Helpline for the FY2022–23, of which 1,13,224 (92 per cent) had been resolved, including 82,349 (67 per cent) concerns that had been properly addressed after consultation with concerned residents.
Overall, since the launch of MMSS Helpline, a total of 4,75,058 complaints have been received through MMSS Helpline till 22ndDecember, 2022, Out of which 4,64,438 (98 per cent) complaints have been disposed of, including 3,30,386 (69 per cent) complaints which are resolved to the satisfaction of the concerned citizens.
The Nasha Nivaran Helpline (NNH) has also been created in conjunction with MMSS, to provide help to patients in the State who are affected by drugs with support that need. Through NNH, 110 instances have been recorded, of which 99 have been resolved. MMSS Helpline has also launched a 24X7 Women Helpline to assist women in need. Through the 181 Helpline, 582 instances have been reported, of which 580 have been resolved.
E-Office: E-Office is being implemented in various departments of the State to enable paper-less offices and bring increase efficiency and transparency in office work. At present, e-Office has been mapped in 88 Branches of Himachal Pradesh Secretariat, 62 Directorates, 11 Deputy Commissioner (DC) Offices, 10 Superintendent of Police (SP) Offices and 50 other field offices. Efforts are being made to ensure that offices mapped should start using e- Office for processing of files and letters. The usage of e-Office in above mentioned offices is given below: To further promote the use of Office, the application has been made accessible from anywhere anytime by using Success and Forti-client which allow officers/officials to use e-Office from any network. All Directorates have been upgraded to bandwidth 100 Mbps capacity.
Governance and Reforms Using Drones: Unmanned Aircraft Systems (UAS), commonly known as Drones, offer tremendous benefits to almost all sectors of the economy like – medicine delivery, agriculture, mining, infrastructure, surveillance, emergency response, transportation, geo-spatial mapping, defense, and law enforcement etc. Drones can be significant creators of employment and economic growth due to their reach, versatility, and ease of use, especially in India’s remote and inaccessible areas. India has the potential to be a global drone hub by 2030.
The State IT Department has initiated the process for the introduction of Drone usage in Government as well as private sector and to promote use of Drones in Himachal. Governance and Reforms Using Drones (GARUD) Project was launched in Mandi on 27th December, 2021. GARUD has a quad-strategy with following components:
1) Drone-enabled Governance: Aimed at exploring and increasing use of drones in governance and functioning of various departments – use in Health, Pollution Monitoring, Apple Transportation etc. explored.
2) Drone Mahotsav and Melas: Aimed at generating awareness and creating enthusiasm for use of drones by departments and in private sector – Drone Mela organised at Dharamshala and Mandi.
3) Enabling Policy for promoting Drones: Aimed at promoting the establishment and participation of private sector in drones and drone enabled technologies – Himachal Pradesh Drone Policy-2022.
4) Drone Flying Training Schools: Aimed at creating a network of Flying Training Schools, to make Himachal the leading State in exploiting the job opportunities expected in the sector.
Drone Mahotsav and Mela: On 14th December, 2021, the first Drone Mela was held in Dharamshala to examine the potential applications of drone technology in a variety of fields, including governance.
Creating awareness amongst students, youth, farmers and other stakeholders
Synergy between Industry-Educational Institutions-Stakeholders to accelerate drone usage
Drone Flying Training Schools/ Courses:
On 13th March, 2022, ITI Shahpur in Kangra, Himachal Pradesh, launched the first Drone Flying Training School (DFTS), in partnership with the Indira Gandhi Rashtriya Uran Academy (IGRUA).
Drone Flying Training of 50 students from Government colleges and Technical Education colleges has been completed.
Drone Flying Training of 59 State Government Officers from Revenue, Forest, Pollution control Board (PCB), Technical Education and Education Department has been completed.
Drone Technician course started in 7 Government ITI’s at Mandi, Sirmaur, Shimla, Kangra, Solan (2 ITI) and Kullu under Himachal Pradesh Skills Development Project by the Technical Education Department.
Enabling Policy for promoting Drones:
On 13th June, 2022, the Himachal Pradesh Drone Strategy, 2022 was announced, making Himachal Pradesh one of the few States with a specialised drone promotion policy.
Policy focuses upon the creation of Drone and Drone-enabled technology ecosystem, industries, creation of licensed manpower pool through establishment of Drone Flying Training Schools and skill development through various Drone related courses.
Drone Flying related courses in schools are being finalized by Government of India under National Education Policy, 2020 (NEP) and National Skill Qualification Framework (NSQF).
Drone trials for establishing Proof of Concept (PoC): Department of Digital Technologies and Governance (DIT) in collaboration with the Drone companies has conducted following Proof of Concepts (PoCs) in the State:
Kangra -Delivery of medicines from Dharamshala to Tanda Medical College with 3Kg payload and 10 km aerial distance.
Chamba - Delivery of medicines in 6 Public Health Centres/Community Health Centres using 22 number of flights; total 170 Km aerial distance in 3 days.
Kullu – trial conducted on 5th February, 2022 in Tirthan Valley, Kullu, Himachal Pradesh for the delivery of medicines between Primary Health Center, Gushaini to Sub Center, Mangalore. The Drone covered an aerial distance of 15km in less than 9 minutes delivered 2Kg of medicines, whereas road transport takes more than one hour.
Mandi - Delivery of medicines from Mandi to Janjehali using Drone.
The 6th August, 2022 saw a successful test of drone spraying on an apple orchard at Periodical Confidential Demi Official (PCDO) Annu Jubbal, Shimla. 2 bighas of area were covered in 3 minutes.
Kinnaur - 100 Kg Payload of apple was delivered in 3 days trials in Kinnaur. 5 Kg per flight and daily 6 to 8 flights were done.
Kangra - A successful drone Proof of concept (POC) /trial in collaboration with District Rural Development Agency (DRDA) Kangra was conducted for spraying herbicide on 3rd June, 2022 by 8 flights over Raja ka Talab, Kangra. The project was conducted for herbicide spraying over whole area of Raja ka Talab which covers an area of 4 acres. The project was completed on 6th June, 2022 by conducting 20 flights for spraying herbicides from sunrise to sunset.

To reduce the footfall in government offices and to facilitate the citizens of the state with different Government services at their door steps. Himachal Online Seva Portal has been created where the common people can access Government schemes/services in a transparent way.
During FY2021-22, the Department has added 17 new services in Himachal Online Seva portal for online delivery. Out of these 17 services, 6 services are of Animal Husbandry, 5 services of Agriculture Department, 2 services of Himachal Pradesh Swasthya Bima Yojana Society, 1 service of Women and Child Welfare Department, 1 service of Department of Food, Civil Supply and Consumer Affairs and 1 service of Department of Jal Shakti Vibhag. Now, 113 online services of various departments including Revenue, Women and Child Development, Panchayati Raj, Rural Development, Urban Development etc. are being provided through this portal. There are on an average 5,000 transactions for various services through the Himachal Online Seva Portal on a daily basis. In the current FY, total 15,20,485 transactions have been done till December, 2022.
Aadhaar: There are 74,31,000 (LIVE) residents in the State (projected population 2022) as on 30thSeptember, 2022. A total of 103.98 per cent (LIVE) Unique Identifications (UIDs) have been generated in the State. The Aadhaar saturation level in the State for the population above 5 years is more than 100 per cent. The State has attained overall 4thRank and 1stin 0-5 year age group in the Country with regards to the Aadhar generation. To cover the left-out population and Aadhar updation, Currently 430 Permanent Enrolment Centres (PECs ) are functioning covering all the districts and blocks in the State through the Department of Digital Technologies and Governance and Common Services Centers- Special purpose vehicle (CSC-SPV).
Direct Benefit Transfer (DBT): Direct Benefit Transfer is being adopted in the State to ensure that all of the monetary benefits of Government initiatives and programmes reach the persons who are entitled to them in a timely manner and that no money is misappropriated. DBT has been implemented in 46 schemes out of a total of 160 selected by the IT Department with related departments for the FY2022-23 (Centre-17; State-29). So far (as of the end of the month of November, 2022) DBT transfers of ₹2,054.32 crore has been done to 17.26 lakhs beneficiaries under 46 programmes.

Department of Information and Technology, Himachal Pradesh (DIT-Himachal Pradesh) established a safe network known as HIMSWAN as part of the National e-Governance Plan (NeGP) (Himachal Pradesh State Wide Area Network). HIMSWAN enables the effective electronic delivery of G2G (Government to Government), G2C (Government to Citizen), and G2B (Government to Business) services, as well as secure network connection for all State Government Departments up to the block level. Since its inception in February 2008, HIMSWAN has enabled connectivity across 2,402 State Government Offices throughout the State. Newer Multiprotocol Label Switching (MPLS) technology has been used to increase bandwidth in light of rising demand. It was crucial during the COVID-19 epidemic. Using HIMSWAN, the Government has virtually conducted a number of meetings with field officials. There is now a requirement of 8 Mega bits per second (Mbps) for minimum bandwidth. The internet speeds in all District level directorates and offices with heavy internet use have been increased to 100 Mpbs. The current standing is organised by category as follows
Bharat Net: To connect every Indian household to high-speed internet, the Government of India launched Bharat Net. The goal is to provide high-speed Internet access to unserved regions, such as rural communities. This plan to link rural areas together through an optical fibre network is unique. There is 3,615 Gram Panchayats (GPs) in Himachal Pradesh, which will be covered under Bharat Net. In Bharat Net phase-I only 410 GPs have been covered so far.
The State Government has been monitoring the implementation of the second phase of Bharat Net, which aims to cover the remaining 3,205 GPs of the State with Optical Fibre Cable in order to increase connectivity across the State.

To streamline the electronic delivery of Government to Government (G2G), Government to Citizen (G2C), and Government to Business (G2B) services, the IT Department of Himachal Pradesh established the HPSDC, one of the core Information and Communications Technology (ICT) infrastructures in the state. The Himachal Pradesh State Data Centre now hosts 156 websites and apps for different government agencies, regulatory bodies, and public companies. The HPSDC has a staging environment where 27 apps are being checked for vulnerabilities. No website, portal, or application may be hosted at the Himachal Pradesh State Data Centre without first passing a security assessment and showing that it complies with all relevant regulations. During FY2022-23, 20 new applications/ websites of various departments were hosted in HPSDC. The present capacity of HPSDC is full utilized, HPSDC will be enhanced to meet the growing needs of digitisation of various Government departments in the State for the next 5 years.
CM Dashboard: To monitor the progress of key projects CM Dashboard has been developed. In the first phase, 8 departments i.e. Revenue, Women Child and Development, Jal Shakti, Public Works Department, Rural Department, Education, Tribal and Health Services including Director Health Services, National Health mission, Directorate of Medical Education were identified for integration with CM Dashboard and 81 Key Performance Indicators (KPIs) were identified in consultation with concerned departments. Accordingly, all data entry forms, reports and departmental dashboards have been developed and User Acceptance Test (UAT) of the same has already been done at the departmental level.
Multiple trainings for updating CM Dashboard portal have already been provided to the concerned officers/ officials of 8 departments. CM Dashboard application facilitates real time monitoring of projects, i.e., physical progress, funds utilization, departmental level monitoring, ranking of districts/ field offices based on their progress etc.
HIM Parivar: DIT, Himachal Pradesh is developing its Social Registry (Him Parivar) over the existing Parivar Register, which will serve as a single source of truth for proactive benefit distribution in the state. The eKYC of more than 45 Lakh beneficiaries of the e-PDS (Ration Card) database has been completed, and mapping with Parivar data has been performed for these beneficiaries. Him Parivar will assist in the identification of qualifying programmes. The whole eco system will aid in identifying inclusion and exclusion lists of beneficiaries, ensuring that only the appropriate individuals get socio economic advantages.
E-Cabinet: In order to streamline and facilitate efficient decision-making and monitoring of policies by the Government for benefit of people, a paperless e-Cabinet System has been implemented. This helps reduce the processing time of Cabinet notes and also improve the security of entire process to maintain confidentiality.
Litigation Monitoring System: The DIT has created generic software for tracking court cases pending in multiple courts involving Government agencies. Using this programme, Administrative Secretaries/ Heads of Departments and Departmental Officers can monitor the progress of their court cases, including the overall number of outstanding cases, timely filing of replies, personal attendance necessary in the case, etc. Following features are included in the software:
To enter case details online on Litigation Monitoring System.
Cases listed for hearing, replies to be filed in a time bound manner - 0-7, 8-15, 16-30 days pendency report generated.
Cases requiring personal presence
Court-wise pending cases report
Pendency of Cases can be easily monitored by supervisory offices
61 departments are on boarded and 12,725 cases are registered online on LMS application.
Revenue Management System (RMS): The IT department is working in close coordination with the revenue department to establish a comprehensive enterprise resource planning (ERP) system known as the Revenue Management System (RMS). The RMS Portal's first phase of availability includes the Revenue Courts and Online Relief application modules. Himachal Pradesh's Revenue Courts case can be found under the RMS site, which serves as a full-featured Court Management System. All relevant case information is freely available to citizens and attorneys. Case summaries, updates, final orders, cause lists, etc., are all examples of this kind of data. 13,811 cases have been entered into the RMS system using the Revenue Courts module. In contrast, the RMS-Relief module of the RMS site is a thorough programme for handling all varieties of Relief applications in accordance with the Himachal Pradesh Relief Manual, 2012. Relief applications are now available to citizens over the internet.
Policy Initiatives Undertaken:Amendment of State Right of Way (RoW) Policy, 2021: The Government of India has introduced 5G technology to deploy 5G connectivity throughout the country and notified updated Indian Telegraph Right of Way (Amendment Rule) Rules, 2022 to that effect. The revised Indian Telegraph Right of Way (Amendment Rule) Rules, 2022 include provisions for the use of Street Furniture for the installation of Small Cells and Telegraph lines. Fees and charges for obtaining Right of Way clearances by Telecom Service Providers (TSPs) / Infrastructure Service Providers (ISPs) have also been streamlined in the revised Policy to provide consistency throughout the nation. To boost telecom sector, the State Right of Way Policy 2021 is being aligned with the modified Indian Telegraph Right of Way (Amendment Rule) Rules, 2022.

The Department of Digital Technologies and Governance, Himachal Pradesh, has administrative supervision over Himachal Pradesh State Electronics Development Corporation Ltd. The Corporation's primary functions include providing high-quality computer hardware and related services, packaged software hardware for office automation and medical applications, and other electronic equipment to government agencies and Public Utility Companies (PSCs) in Himachal Pradesh. It also ensures proper maintenance of the supplied hardware through the appropriate Original Equipment Manufacturers, Vendors, and Active Service Pages (OEM’s/Vendors/ASP).
OBJECTIVE and ACTIVITIES
HPSEDC COMPUTER DIVISION: The main objectives and functions are:
i) To conduct systems and feasibility studies for Departments.
ii) To develop software packages for identified application areas.
iii) To suggest and procure the optimum hardware keeping in view the overall standardization of hardware throughout the state.
iv) To ensure proper maintenance of supplied hardware through respective OEM’s/Vendors/ASP
v) To develop site for installation of computers hardware including Local Area Network (LAN) electrical and civil work.
vi) Conduct training of user department in implementing IT/E-Governance Projects.
vii) Website development of Government Departments/ Organizations (Static as well as dynamic websites with database integration)
viii) Data Entry and documents scanning jobs.
ix) On premises handholding and training on system (Computer basics, MS Office etc.)
x) For resource (hardware/software/manpower) supply for implementation of:
e-Governance Projects
Software development
Project execution on turn-key basic etc.
Manpower Deployment.
Procurement through GeM Portal: The Corporation also provides technological equipment and office automation throughout the State. The computer department now generated a turnover of ₹47.56 crore, which includes hardware and accessories. The primary non-computer sector increased its revenue from ₹0.92 crore to ₹2.45 crore. Products sold via this segment include photocopiers, Liquid Crystal Display/Light Emitting Diode (LCD/LED) TVs, fax machines, LCD projectors, pollution equipment, Public Address (PA) systems, and digital cameras, among others.