The Economic Survey of the State reviews the developments in the economy over the previous 12 months. It highlights the policy initiatives of the government, summarizes the performance of major development programs, and shows the growth prospects of the economy. This is an important document of the State to present the economic scenario. It presents the comparative economic performance of the State throughout various sectors in a year. The economic survey also presents the impact of climatic changes and other changes in economic activities,throughout the year. It is presented in the State Legislative Assembly, ahead of the Budget presentation for the ensuing year.
Economic Survey is a vital source of information for various stakeholders’ viz. policy planners, officers of various departments, researchers and students with respect to State economy as well as, government schemes.
The Economic Survey gives first-hand information on the state of affairs of the economy and discusses major government initiatives with explanations.
Several issues appraised in the Economic Survey are considered for implementation by the government in future initiatives.
Optimism about the potential for India’s economic growth has grown steadily in recent years. India has continued to focus on economic revival as its priority. Key initiatives taken, inter-alia, include ‘Make in India’, ‘Startup India’ and ‘Ease of Doing Business’ reforms. Digital Technology, especially Unified Payments Interface (UPI) has been the ‘sprint runner’ that has enabled money transactions easy. Efficient financial intermediation and macroeconomic stability through fiscal and monetary policies are other efforts initiated by the Government to increase growth in the country.

For India, 2023 was special. Following the Chandrayaan moon mission and hosting of the G20 Summit, India is positioned to emerge from 2023 with increased stability and optimism for its growth and prospects. The country's attractiveness as an investment destination remains robust, given the size and scale of operations it offers to global companies, its abundant skilled talent pool, and its prowess in technology and innovation. The industrial manufacturing sector has experienced a significant boost, attracting global technology giants like Apple, eager to expand their supplier networks within India. This momentum is further supported by the implementation of policies that complement sector-specific incentive schemes. Concurrently, substantial investments in logistics and infrastructure development, including the construction of new roads, highways, and rail tracks, underscore the government’s commitment to bolstering this critical sector.
India's strategic focus on reducing logistics costs is pivotal for its ambition to become a key player in global supply chains and become a US$ 5 trillion economy by the end of 2025. With an eye on the future, the country aims to achieve developed economic status by 2047, demonstrating a clear trajectory towards sustained growth and development.
As per Advance Estimates (AE), the Indian economy is expected to grow at 7.3 per cent for the year ending March, 2024. This follows 7.2 per cent growth in the previous financial year.
A Reuter report notes that India is now reaching the pivotal phase of the S-curve, characterized by a significant acceleration in urbanization, industrialization, household incomes, and energy consumption. This phase typically spans several decades, marked by rapid growth in these key factors.
With GDP of US$3.75 trillion, India is the fifth largest economy in the world. The per capita income, as per government data, was INR 98,374 in 2022-23 (approx. US$1,183) in real terms. Further, the Indian economy is on track to hit US$5 trillion by 2027 on the strength of development of the financial sector and the country’s demographic advantage as per the Reserve Bank of India (RBI).
Sector-wise, the Indian economy showed a growth rate of 2.6 per cent in FY 2023-24 (AE) compared to a 4 per cent growth rate in the FY 2022-23 in the primary sector. Growth has significantly picked up to 7.9 per cent compared to 4.4 per cent in FY 2022-23 in the secondary sector.
Real GDP of India at constant (2011-12) prices for the year FY 2023-24 is estimated at ₹171.79 lakh crore as against a provisional estimate of GDP of ₹160.06 lakh crore in FY 2022-23 with a growth rate of 7.3 per cent.
The Gross Value Added (GVA) at constant basic prices witnessed a growth of 6.3 per cent in trade, hotels and transport sector during FY 2023-24 which was 14 per cent during the previous FY 2022-23. This contraction has been followed by Agriculture, forestry & fishing which saw a 1.8 per cent growth in FY 2023-24 compared to a 4 per cent growth rate during the previous FY 2022-23.
On the contrary manufacturing sector saw the highest growth of 6.5 per cent during FY 2023-24 which was 1.3 per cent during the previous FY 2022-23.
The construction, financial services, real estate, electricity, gas, water supply etc. and Mining & quarrying were the highest contributing sectors to the growth rate of FY 2023-24. A comparative position of National as well as State economic performance in terms of the growth rate of GDP and GSDP is presented in Figure 1.3.

After “V” Shape recovery sudden boost in the growth rate gradually, the economy is returning to normal on a sustained growth path. There was a sharp dip in the growth rates in FY 2020-21, whereas a sharp recovery in the growth rate can be seen in the year FY 2021-22.
This is because the lifting of restrictions on the movement of people and goods had a positive impact on the growth of the economy. The major growth drivers for the FY 2023-24 were construction, financial services, real estate, electricity, gas, water supply and Mining & quarrying.
Net National Per Capita Income (PCI) at current prices was ₹1,72,276 in FY 2022-23 against ₹1,48,524 for the previous FY 2021-22 which is estimated at ₹1,85,854 for FY 2023-24 (Advance Estimates) at national level. In absolute terms, Himachal Pradesh had an estimated PCI of ₹2,18,788 for the FY 2022-23 First Revised (FR) compared to ₹1,72,226 at the national level for the same year.

Himachal Pradesh is located in the northern region of India. The State is surrounded by Jammu and Kashmir on the north, Punjab on the west and the south-west, Haryana on the south, Uttar Pradesh on the south-east, and Tibet China on the east. Despite lacking rich natural resources like iron ore, and coal and being less fertile than other states in India, Himachal has progressed due to steady efforts of the hardworking people of the State and through implementation of progressive policies.
The Gross State Domestic Product (GSDP) at current prices, is estimated at ₹1,91,728 crore in FY 2022-23 (FR) as against ₹1,72,162 crore in Second Revised (SR) estimate in FY 2021-22, showing an increase of 11.4 per cent during the year.
GSDP at constant (2011-12) prices in FY 2022-23 (FR) is estimated at ₹1,33,372 crore against ₹1,24,770 crore in FY 2021-22 (SR) registering a growth of 6.9 per cent during the year.
The growth of 6.9 per cent in FY 2022-23 (FR) is mainly attributed to a 5.7 per cent growth in the primary sector, 5.1 per cent growth in the secondary sector, and 10.4 per cent growth in the tertiary sector of the economy. Food grain production, which was 15.79 lakh metric tonnes (MT) during FY 2021-22 decreased to 15.23 lakh MT in FY 2022-23 and is anticipated to be 16.52 lakh MT in FY 2023-24. Vegetable production increased to 18.67 lakh MT in FY 2022-23 as against 18.04 lakh MT in FY 2021-22.
The PCI at current prices as per the first revised estimates for the year FY 2022-23 is ₹2,18,788 as compared to ₹1,95,795 in FY 2021-22 which is an increase of 11.7 per cent.
As per current estimates based on economic conditions up to December, 2023, the economy of the State for FY 2023-24 is expected to grow by 7.1 per cent against 6.9 per cent during FY 2022-23 ( Figure1.3).
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 9.45 per cent in FY 2022-23.
The share 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 41.97 and 44.08 per cent in FY 2022-23.
The declining share of the agriculture sector does not affect the importance of this sector in the State economy as the growth in the 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 an overall impact on other sectors via input linkages, employment, trade 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 deep and well-drained soils favour cultivation of temperate to sub-tropical fruits. The region is also suitable for the cultivation of ancillary horticultural produce like flowers, mushrooms, honey and hops.
For climate change mitigation, Himachal Pradesh has taken various steps to achieve its targets. The State action plans on climate change aim to create institutional capacities and to implement sectoral activities to address climate change.
Over the years State Government has taken several steps to provide an uninterrupted power supply in the State. Several steps have been taken to increase power generation, transmission and distribution. As a source of energy, hydropower is economically viable since it is non-polluting and 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 have been taken to sustain 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's decisions.
The State was hit with severe Natural calamity in the monsoon months of 2023. Responding with unwavering resolve, the government allocated a special relief package of ₹4500 crore, increasing compensation by 25 times. Reconstruction aid for completely damaged houses was increased from ₹1 lakh 30 thousand to ₹7 lakh.
Up to March 31, 2024, families living in relief camps due to disasters are being given a rent of ₹5,000 per month in rural areas and ₹10,000 per month in urban areas. Besides LPG gas connection, free ration is also being provided to the affected families. There is a provision for providing cement for house construction at government rates and free electricity and water connections.
To address the challenges faced by apple-dominated areas during natural disasters, ₹110 crore has been allocated for road restoration, demonstrating the government's commitment to the welfare of the farming community.
Himachal Pradesh stands as a pioneering state with initiatives like the Mukhya Mantri Sukh Aashray Scheme, introducing a legal frame work for protection of orphans. In a remarkable gesture, 4,000 orphans have been granted the status of "Children of the State" under this scheme. Mukhya Mantri Sukh Aashray Scheme bearing the expenses of education and providing pocket money to the orphans.
The Government is steering Himachal towards becoming a Green Energy State by March 31, 2026. The progressive e-vehicle policy earmarks 54 locations for charging stations in the initial phase. The government has signed MoUs for Green Hydrogen and Ammonia Projects, attracting an investment exceeding ₹ 4,000 crore creating over 3,500 employment opportunities. The foundation stone for a ₹ 220 crore solar power plant in Pekhubela was laid, which will yield annual income of about ₹27 crore for the State.
To ensure educational excellence, the State government will introduce English from Class 1st in all government schools from this academic session.
The Government of Himachal Pradesh has introduced “Dr. Yashwant Singh Parmar Vidyarthi Rin (Loan) Yojana” that offers education loans up to ₹20 lakh at a nominal interest rate of 1% to the students of the state.
Addressing fiscal concerns, the government has reduced the lease period for government land from 99 to 40 years. The ground breaking new excise policy yielded a substantial increase of ₹846 crore in revenue while auctioning liquor retail shops brought a remarkable 40 percent boost for the State.
For the welfare of tribal communities, ₹857 crore has been allocated under the Tribal Area Development Program for the fiscal year 2023-24, with ₹ 335 crore proposed in central schemes.
The State government has started the “Him Unnati Yojana”, aimed at boosting production of milk, vegetables, fruits, and other cash crops through structured incentives.
₹500 crore "Himachal Pradesh Him Ganga Yojana" is dedicated to developing milk-based rural economy, facilitating transportation of milk from farmers to Chilling Plants.
“Himachal Pradesh Sub Tropical Horticulture, Irrigation and Value Addition Project (HPSHIVA)” has been conceptualized to increase income and strengthening climate resilience of the farm households in sub-tropical areas and to develop Himachal Pradesh as Fruit Bowl of India. ₹1292 crore HPSHIVA project aims to establish farms in 400 clusters, covering six thousand acres of land and benefiting 15 thousand farmers and gardeners in its first phase. The project includes provisions for solar fencing and irrigation facilities, fostering sustainable agricultural practices.
The government's commitment to economic growth is evident in the establishment of a State Investment Bureau which will replace the old ‘single-window’ system to scale up the ease of doing business and to minimize delay in getting requisite approvals. At a recent investor meet in Shimla, the government unveiled 29 projects worth ₹ 8,468 crore, marking a significant stride towards creating job opportunities for 12,584 State youth.
The government has launched the ₹680 crore Rajiv Gandhi Swarozgar Start-up Yojana, fostering entrepreneurship. The first phase provides 50 per cent subsidy on the purchase of e-taxis.
Under MNREGA, the State government has increased daily wages of labourers from ₹ 224 to ₹ 240 in general areas and from ₹ 280 to ₹294 in tribal areas.
The State government's unwavering dedication to its citizens is illuminated through the “Sarkar Gaon Ke Dwar” initiative, where Ministers and MLAs actively engage with communities, swiftly addressing their concerns.
The groundbreaking 'Revenue Lok Adalats' at Tehsil and Sub-Tehsil levels have successfully settled more than 6,500 partition and Mutation cases. These transformative endeavors underscore the government's commitment to fostering connectivity and promptly resolving the grievances at the doorsteps of the people, marking a new era of responsive governance.
Additionally, the government introduces cutting-edge programs like Drone Mechanics, Artificial Intelligence, and other New Age Courses in ITI and Polytechnic institutions. These initiatives usher in a transformative era in educational enrichment, showcasing the state government's dedication to establishing a dynamic and inclusive learning environment.
In the realm of public health, a significant ₹100 crore is allocated for the pioneering initiation of Robotic Surgery across medical colleges. Transforming health institutes into Model Health Institutes and deploying six medical experts in each of the 50 constituencies prioritizes healthcare accessibility.

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, usually a year. These estimates of the economy, over some 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 the State Domestic Product shows 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 the formulation of policies by administrators, policymakers and planners.

GSDP at Current and Constant (2011-12) Prices: According to the Advance Estimates(AE), the GSDP at current prices for the Financial Year (FY) 2023-24 is estimated to be ₹2,07,430 crore, as against ₹1,91,728 crore in the FY 2022-23, with growth rate of 8.2 per cent for the FY 2023-24 as against 11.4 per cent of FY 2022-23 First Revised Estimate (FR). As per the AE, the GSDP at constant (2011-12) prices or real GSDP for FY 2023-24 is estimated at ₹1,42,800 crore, as against ₹1,33,372 crore in FY 2022-23, showing growth rate of 7.1 per cent for the FY 2023-24 as against 6.9 per cent of FY 2022-23(FR). The year-wise details are shown in Figures 2.1 and 2.2

The State Domestic Product estimates, when studied in relation to the total population of the State, indicate the level of per capita net output of goods and services available. The PCI is obtained by dividing the Net State Domestic Product by the midyear population of the State in the respective year. According to AE, the PCI at current prices for FY 2023-24 is estimated at ₹2,35,199 against ₹2,18,788 in FY 2022-23 showing a growth of 7.5 per cent as against 11.7 per cent in FY 2022-23(FR).
The PCI of State is higher than the All India figures over the years. There is a rise in the PCI of the State from ₹87,721 in the FY 2011-12 to ₹2,35,199 in FY 2023-24, registering a compound annual growth rate (CAGR) of 7.9 per cent over 2011-12. The PCI of All India was ₹63,462 in FY 2011-12 which has increased to ₹1,85,854 in FY 2023-24, registering a CAGR of 8.6 per cent compared to 2011-12. This implies that the CAGR of the PCI of the State grew less than the All-India PCI. The PCI of Himachal Pradesh vis-à-vis All India and their growth trends at current prices are illustrated in Figures 2.3 and 2.4 respectively.

The classification of the economy based on the nature of the job is presented in Figure 2.5. The growth rate of these sectors is measured in terms of GVA at basic prices. The basic price can be understood as the 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 includes sectors, namely, Trade and Repair Services; Hotels and Restaurants; Transport, including Railways, Road, Water, Air and Services incidental to Transport; Storage; Communication and Services relating to Broadcasting; Financial services; Real Estate, Ownership of Dwellings & Professional Services; Public Administration; and Other Services.
Primary Sector: As per the AE, for FY 2023-24, the Gross Value Added (GVA) from the primary sector is likely to contract at the rate of -2.2 per cent at constant prices because of contraction in the crop sector. During FY 2023-24(AE), the GVA of the Primary sector is expected to be ₹17,036 crore as against ₹17,417 crore in FY 2022-23 (FR) at constant prices (see Figure 2.6).
In constant price, the GVA of primary sector registered a growth of 4.6 per cent, 5.7 per cent and -2.2 per cent in FY 2021-22, FY 2022-23 and FY 2023-24, respectively. It is noteworthy that the primary sector which is the backbone of the State economy employs 58.71 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 FY 2023-24(AE) in real terms is estimated at ₹8,540 crore as against ₹9,138 crore in FY 2022-23(FR) with a contraction of -6.5 per cent. Forestry and logging sector GVA for FY 2023-24(AE) in real terms is estimated at ₹5,380 crore as against ₹5,296 crore in FY 2022-23(FR) with a growth rate of 1.6 per cent. The livestock sector grew by 4.1 per cent, the fishing sector grew by 7.0 per cent and the mining and quarrying sector grew by 5.8 per cent in FY 2023-24(AE). The primary sector and its sub-sectors growth trends and GVA at constant prices are depicted below in Table 2.1.

Secondary Sector: As per AE, for FY 2023-24 the GVA of the secondary sector is estimated at ₹63,424 crore against ₹58,039 crore for FY 2022-23(FR) at constant (2011-12) prices, expected to register a growth rate of 9.3 per cent over the previous year (Figure 2.7).
Manufacturing sector at constant (2011-12) prices as per the AE for FY 2023-24 is expected to register a growth rate of 8.9 per cent and is estimated at ₹43,829 crore as against ₹40,261 crore in FY 2022-23(FR). Electricity, Gas, Water and water supply and other utility services sectors, have registered growth rates of 6.7 per cent. The construction sector is expected to register an impressive growth rate of 12.9 per cent and is estimated at ₹11,284 crore as against ₹9,992 crore in FY 2022-23 (FR) Table 2.2.
Tertiary or Services Sector: The services sector in the State is the highest contributor to GSVA and employment. The AE for the FY 2023-24 at constant (2011-12) prices for the services sector is estimated at ₹54,253 crore as against ₹50,520 crore in FY 2022-23(FR) with a growth rate of 7.4 per cent over last year (Figure 2.8).
All the key sub-sectors within the services sector depicted buoyant growth rates in 2021-22(SR) and 2023-24(AE) in Himachal Pradesh. The “Trade, Repair, Hotel & Restaurants” sector GVA grew at 4.8 per cent in 2022-23 and 8.4 per cent in 2023-24. “Transport, Storage, Communication and Services relating to broadcasting” registered a growth rate of 11.4 per cent and “Real estate, Ownership of dwelling and Professional Services” grew at 7.8 per cent in 2023-24(AE). Table 2.3 depicts the growth of various sub-sectors within the services sector from 2019-20 to 2023-24.

The GSDP of any State is measured in terms of the economic contributions made by three key sectors-Primary, Secondary and Tertiary. The tertiary sector has been the highest contributor to the State’s GVA, followed by the secondary and primary sectors. Based on the AE of GVA for FY 2023-24, the tertiary sector accounted for 43.5 per cent of the State’s GVA at current prices, followed by the secondary sector at 42.4 per cent and the primary sector at 14.1 per cent. The secondary sector in the State is quite vibrant. The Government of Himachal Pradesh recognizes that industrial development is crucial to job creation and increasing productivity in other sectors. It has taken 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's share of the State's value added is continuously increasing and is, therefore, one of the most important sectors in the State's economy. Its share in the State's nominal GVA increased from 42.0 per cent in 2018-19 to 43.5 per cent in the FY 2023-24 (Figure 2.10).
As per the AE, for FY 2023-24, the GVA from the primary sector in absolute terms is estimated at ₹27,147 crore at current prices, the secondary sector stood at ₹81,968 crore, while the service sector is estimated at ₹84,005 crore (Table 2.4).

The structure of the economy and workforce in Himachal Pradesh is perceptibly different from the structure of the economy and workforce in the rest of India. Agriculture and allied activities employed 58.37 per cent of total workforce of Himachal Pradesh as compared to 45.76 per cent for India. The share in GVA is 13.57 per cent as compared to 18.97 per cent in India (see Table 2.5).
The share of the workforce, employed in the secondary and tertiary sectors (16.94 and 24.35 per cent respectively) is less than the share of GVA (41.98 and 44.08) which means fewer workers are contributing more to the GVA indicating the scope for workforce reallocation from agriculture to secondary sector so that disguised unemployment in primary sector is reduced.
In Himachal’s context, the services sector has become extremely important not only in terms of contribution to GSDP but also as a key vehicle for employment generation. Employment in the services sector in the state was estimated to be 24.35 per cent in 2022-23 as per Periodic Labour Force Survey (PLFS) estimation against 28.94 per cent for India. The sector-wise comparison of the distribution of value-added and employment is given below in Table 2.5.
The estimates of the GDP of Himachal Pradesh and India from 2011-12 to 2023-24 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 Indian growth rate as shown in Table 2.7 below:

Public finance is the management of a Government's revenue, expenditures, and debt load through various government and quasi-government institutions. It relates to the collection of taxes by the Government from taxable entities under the jurisdiction of the State and the use of the tax receipts towards the production and distribution of public goods and services. The main components of public finance are tax collection, making expenditure on the creation and maintenance of assets, providing services to the citizens and managing deficits/surplus between revenue and expenditure.
Being a hill State Himachal Pradesh has to face many challenges for development compared to any other State where developmental costs are much less than the development cost in Himachal Pradesh. Mobilisation of funds for developmental and non developmental purposes has remained a central concern. Despite all these challenges the State has appeared top performer in many developmental indices among small States in India.
State 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 the developmental needs of the economy. State role is even more important in a State like Himachal Pradesh where human habitations are not alike the plain ones. Himachal Pradesh provides essential services like water, electricity, education and health at higher costs compared to other plain region States. The road and communication infrastructure accrue even higher costs compared to other plain region States of the country.

The 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. Debt remains an important component of the fiscal profile of the State. The implementation of the Fiscal Responsibility and Budget Management Act, of 2003 directs all State governments to manage their finance according to their resources and growth.
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 the Central Government to meet the expenditure for administrative and developmental activities. The major fiscal indicators for the State for the FY 2022-23 (RE) and FY 2023-24 (BE) are given below: a) Tax Revenue: According to Budget Estimates (BE) of FY 2023-24 shown in Table 3.1, the tax revenue (including central taxes) was estimated at ₹21,504 crore as against ₹18,750 crore in FY 2022-23 Revised Estimates (RE), whereas it was ₹12,301 in FY 2019-20.
Figure 3.1 shows the components of tax revenue as a percentage of total receipts. Percentage of State Own Tax Revenue to Total Receipts has increased from 20.7 in FY 2021-22(A) to 25.1 in FY 2023-24(BE). The share in Central Taxes to the Total Receipts has seen a minor increase from 15.7 in FY 2021-22(A) to 16.3 in FY 2023-24(BE).
b) Non-Tax Revenue: Non-tax revenue consists, mainly of interest receipts on loans, receipts from the 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 such as health and education and economic services. Non-tax revenue is likely to increase to ₹3,447 crore in FY 2023-24 (BE) as against ₹3,023 crore in FY 2022-23(RE) which is an increase of 14.02 per cent. Economic services are the highest contributor to the non-tax revenue receipts component of the total revenue receipts of the government.
Figure 3.2 shows the components of non-tax revenue as a percentage of total receipts.
Economic services include electricity, gas and water supply which have consistently remained the highest contributor whereas general services and interest receipts, dividends and profits are the lowest contributors in the State’s non-tax revenue receipts.
c) Grant in aid: In absolute terms, Grants in Aid has reduced to ₹13,049 in FY 2023-24(BE) compared to ₹17,172 in FY 2022-23(RE). Figure 3.3 shows Grant in aid as a percentage of total receipts. Grant in aid is the highest percentage of total receipts contributing 25.2 per cent during FY2023-24 (BE) which is 12.4 percentage points lower as compared to FY 2021-22 (A).
d) Non-Debt Capital Receipts: Non-debt capital receipts consist of recovery of loans and advances and disinvestment receipts. The budget estimate for FY 2023-24(BE) envisages ₹26 crore as recovery of loans and no income from disinvestment.
Growth of Major Fiscal Indicators of the State: Table 3.2 shows that in FY 2023-24(BE), in the tax revenue there is a highest growth of 14.69 per cent, followed by the non-tax revenue which is estimated at 14.02 per cent. There is a negative growth of 15.04, 5.35 and 17.57 per cent in total expenditure, revenue expenditure and capital expenditure respectively during the FY 2023-24(BE). Grant in aid has seen the highest dip of 24.01 per cent in FY 2023-24(BE) compared to the dip of 4.23 per cent in FY 2021-22(A).
Fiscal Indicators as a percentage of GSDP: As per the budget estimates the revenue receipts of the Government for the FY 2023-24(BE) were estimated at 18.32 per cent of the GSDP as against 20.31 per cent in FY 2022-23 (RE). Similarly, the tax revenue for FY 2023-24 (BE) was estimated at 10.37 per cent of GSDP as against 9.78 per cent during FY 2022-23 (RE). Non-tax revenue is 1.66 per cent of the GSDP in FY 2023-24 (BE) as compared to 1.58 per cent during FY 2022-23 (RE). In FY2023-24 (BE), the total expenditure of the State is estimated to be 25.75 per cent of GSDP, revenue expenditure is 20.59 per cent while capital expenditure will be 2.51 per cent of the GSDP. Table 3.3 shows Fiscal Indicators as a percentage of GSDP.
Government Expenditure: Revenue and capital expenditure are the main components of Government expenditure. Figure 3.4 shows that 79.95 per cent of the total expenditure will be spent on the revenue expenditure in the year 2023-24 (BE), whereas, 9.74 per cent will be as capital expenditure for the same year. Detail expenditures are presented in Tables 3.1, 3.2 and 3.3 respectively. As per budget estimates of FY 2023-24 (BE), the total expenditure of the State Government was estimated to be ₹53,413 crore out of which ₹42,704 crore was earmarked for revenue expenditure. a) Revenue Expenditure: The budget estimates revenue expenditure for FY 2023-24(BE) to be ₹ 42,704 crore compared to ₹ 36,195 for FY 2021-22(A) showing a growth of about 18 per cent. Revenue expenditure is estimated to be 20.59 per cent of GSDP for FY 2023-24(BE). b) Capital Expenditure: The budget estimates capital expenditure to be ₹5,202 crore which is 2.51 per cent of the GSDP for FY2023-24 (BE) compared to ₹6,311 crore for FY 2022-23 (RE) showing a negative growth of 17.57 per cent and it is 9.74 per cent of total expenditure during 2023-24 (BE).
Composition of Revenue Expenditure: The Government spends a major chunk of its expenditure on revenue expenditure. During FY 2023-24 (BE) it is estimated that 79.95 per cent of the total budget spending will be on Revenue Expenditure.
he composition of revenue expenditure is given in Table 3.4 below which shows that about 57 per cent of total expenditure is likely to be committed expenditure which includes salary, pension, interest payment and subsidies in FY 2023-24 (BE). Expenditure on salary, pension and interest payments is committed expenditure in nature and that is limited headroom for the creation of additional fiscal space. The total committed expenditure is ₹30,400 crore which is 14.66 per cent of the GSDP for the FY 2023-24 (BE). Table 3.5 shows that the growth in expenditure on Salary and Wages during the FY 2023-24 (BE) is 0.44 per cent as compared to 25.78 per cent in FY 2022-23 (RE). Pension expenditure is expected to decrease by 3.95 per cent in FY 2023-24 (BE), as compared to the growth of 41.45 per cent in previous year. Growth in interest payments was 3.10 per cent in FY 2022-23 (RE) which is likely to be 16.25 per cent in FY 2023-24 (BE). There is a negative growth in subsidy expenditure which is estimated to be 34.79 per cent in FY 2023-24 (BE) as compared to 60.60 per cent in the previous year.

Debt of the State is an important indicator of its financial health. The financial prudence of the State depends on its debt and its repaying capacity. Table 3.6 shows that debt as a percentage to GSDP was 37.02 per cent in FY 2021-22 as against 40.23 per cent in FY 2020-21.

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 the 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 undertaken by department of Empowerment of SCs, OBCs, Minorities and the 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.

Research and experimental development comprise creative and systematic work undertaken to increase the stock of knowledge, including knowledge of humankind, culture & society and to devise new applications of available knowledge. The role of Government in spending on Research and Development (R&D) can lead to breakthroughs in technology and innovation, which can improve efficiency, and productivity and drive economic growth.
The Gross Expenditure on R&D (GERD) in the country has been consistently increasing over the years and has more than doubled from ₹ 60,196.75 crore in 2010–11 to ₹127,380.96 crore in 2020–21. India's GERD as percentage of GDP remained at 0.66 per cent and 0.64 per cent during the years 2019–20 and 2020–21, respectively. India's per capita R&D expenditure has increased to a current purchasing power parity (PPP) of $ 42.0 in 2020–21 from a current PPP of $ 29.2 in 2007–08.
GERD is mainly driven by the Government sector comprising the Central Government (43.7 per cent), State Governments (6.7 per cent), Higher Education (8.8 per cent) and Public Sector Industry (4.4 per cent) with Private Sector Industry contributing 36.4 per cent during 2020–21.
In most of the developed and emerging economies, the participation of Business Enterprises in GERD is generally more than 50 per cent. It is more than 70 per cent for China, Japan, South Korea and USA. India stands in contrast with developed and emerging economies with 59 per cent participation in GERD being made by the government including Higher Education Sector.
As per Science and Engineering (S&E) Indicators, 2022, National Science Foundation (N.S.F.) out of the total 40,813 Doctorates in the country, 24,474 (60.0 per cent) Doctorates were from the Science and Technology (S&T) discipline during 2018–19. India occupies 3rd rank in terms of the number of PhDs awarded in Science and Engineering (S&E) after the USA (41,071) and China (39,768).
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 keep 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.

The department-wise R&D expenditure in Himachal for the FY 2021-22(A), 2022-23 (RE) and 2023-24 (BE) is presented in Table 3.8 It is evident from the chart that R&D is greatly influenced by investment in the sectors of education, health, and agriculture.

The Purpose R&D expenditure in Himachal is presented in table 3.9 which shows that R&D expenditure on higher education and university education is expected to be highest which is ₹92,702 lakh, ₹1,27,293 lakh and ₹1,04,703 lakh in FY 2021-22(A), 2022-23(RE) and 2023-24(BE) respectively.

Expenditure is classified either as Revenue Expenditure or as Capital Expenditure. Revenue expenditure is usually imminent and committed. A large part of the revenue expenditure is incurred on salaries, pensions, interest payments, maintenance and subsidies etc. Capital Expenditure is incurred for the creation of capital assets. Expenditure is also incurred on Centrally Sponsored Schemes. R&D on revenue account is ₹1,02,383 lakh in FY 2023-24 and on capital account is ₹9,321 lakh which is illustrated in figure 3.5.

R&D expenditure as per cent of GSDP and total expenditure is shown in figure 3.6 which shows that R&D as a percentage of GSDP and total expenditure is 0.54 per cent and 2.09 per cent respectively in FY 2023-24 (BE).

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 77 per cent of the State's network of 2,292 bank branches are located in rural regions. According to the 2011 census, the average population per branch in the state is 3,073, compared to the national average of 11,000. 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. The details of various Bank branches in the State are shown below, in Table-4.1. Kangra district has the highest number of 425 bank branches and Lahaul-Spiti has the lowest number of 26 branches.
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 12,243 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 the National Bank for Agriculture and Rural Development (NABARD) has its Regional Office headed by 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, 2023 banks in the State have achieved 5 out of the 7 National Parameters fixed by the RBI for Lending to Priority Sectors, which include Agriculture Sector, Small and Marginal Farmers, Micro Enterprises, Weaker Sections and Women. Banks have extended 60.18 per cent of their total loans to the Priority Sector Activities viz. Agriculture, MSME, Education Loan, Housing Loan, Micro Credit etc.
Agriculture loans account for 17.48 per cent of total loans given by banks as of September, 2023, compared to the RBI's national threshold of 18 per cent. Advances to Weaker Sections and Women account for 18.79 and 12.13 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 44.03 per cent till September, 2023. The State and National Parameters are given in Table 4.2 below:

Financial inclusion denotes the delivery of financial services and products at an affordable cost to the excluded sections 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, 2023, banks have 18.30 lakh accounts under the initiative, 16.38 lakh of these accounts are in rural regions, while 1.92 lakh are in urban areas. Banks supplied RuPay Debit Cards to 12.67 lakh PMJDY account holders, accounting for more than 69 per cent of these accounts. Banks have taken the initiative to link bank accounts with Aadhaar and mobile numbers, and 80 per cent of PMJDY accounts have been linked as of September, 2023.
Universal Social Security Initiatives under the 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 23.96 lakh PMSBY subscribers by September, 2023.
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, 2023 banks have 8.21 lakh customers through this plan.
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 that 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. Up to September, 2023 banks have registered 4.41lakh subscribers in the APY. Additionally, the Department of Posts and Telegraph participates in the APY Scheme.

Pradhan Mantri MUDRA Yojana (PMMY) was implemented across the country, including in Himachal Pradesh. Smaller micro firms are non-farm enterprises in Manufacturing, 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 ₹957.96 crore to 40,451 new micro-entrepreneurs under the Scheme, during this FY 2023-24 up to September 2023. Including this period, the total amount of disbursed loans stands at ₹3,214.24 crore, covering 1,85,950 entrepreneurs.

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 a new enterprise in the field of construction, business or service sector (also termed as green field enterprise). Banks have sanctioned ₹60.52 crore to 361 new enterprises set up by SC/ST and Women entrepreneurs under the scheme during this financial year up to September, 2023.

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 increased from ₹1,61,995 crore in September, 2022 to ₹1,81,021 crore in September, 2023. Bank deposits increased by 11.74 per cent year on year. Aggregate advances increased from ₹60600.63 crore in September, 2022 to ₹76,188.33 crore in September, 2023 indicating a 25.72 per cent year-on-year growth. The overall banking business has increased by 15.55 per cent to ₹2,57,209 crore as of September, 2023 from ₹2,22,595 crore in September, 2022.
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 18 per cent, others at 2 per cent. Table 4.3 contains the comparative statistics.

Banks have prepared an Annual Credit Plan for 2023-24 for the disbursement of fresh loans based on potentials worked out for various priority sector activities by NABARD. The financial targets under the Annual Credit Plan 2023-24 have been increased by 11.63 per cent over the last plan outlay and fixed at `37,713 crore. Banks have disbursed fresh loans to the tune of `22,042 crore up to September, 2023 and achieved 58.44 per cent of the annual commitment. The Sector-wise target viz-a-viz achievement up to 30th September, 2023 is given in Table 4.4.

National Rural Livelihoods Mission (NRLM): The Ministry of Rural Development launched a flagship programme of the Government of India for promoting poverty reduction through building strong institutions for the poor, particularly women and enabling these institutions to access a range of financial services and livelihood services. This scheme is implemented in the State through HP State Rural Livelihoods Mission (HPSRLM), Rural Development Department, Government of Himachal Pradesh. Banks in Himachal have been allocated the annual target of ₹300.00 crore covering 14,800 beneficiaries under this Scheme. Banks have sanctioned 2,941 loan to the tune of ₹62.33 crore up to September, 2023 under the NRLM scheme.
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). 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 Urban Development Department and several banks have disbursed ₹11.63 crore in NULM loans upto September, 2023.
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 the 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 989 additional units under the plan in 2023-24. Under the scheme, the implementing agencies are expected to offer margin money disbursements totalling ₹32.14 crore. Banks have approved ₹38.76 crore as margin money for 1,093 units till September, 2023.

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 1,11,961 farmers and disbursed totaling ₹1,551 crore till September, 2023. Banks have funded 5,33,432 farmers through KCC for a total of ₹9070 crore till September, 2023.

Rural Self-Employment Training Institutes (RSETIs) are an initiative of the 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 243 training programmes during 2023-24 and trained 6,576 youths.

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, Promotion of Micro Credit, Farmer Producer Organizations, Rural Farm and Non-Farm Sector, improving the male and female workforce participation through 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 the Government of India.
Rural Infrastructure: Since its inception in 1995-96, the development of infrastructure in rural areas through the 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 the 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.
The State has been allocated an allocation of ₹ 800.00 crore under RIDF-XXIX (2023-24). 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 Polyhouses, Ropeway, Micro Irrigation Systems, and Solar Irrigation have been supported, which would aid in the commercialization of agri-business and sustainable farming.
A ₹10,944.58 crore has been sanctioned to the state under the RIDF as of 31st March, 2023 for projects of rural roads/bridges, irrigation, rural drinking water, etc. Under RIDF Tranche XXIX, ₹918.81 crore has been sanctioned to the State and ₹575 crore has been disbursed to the State Government up to 15th January 2024.
Following the implementation/completion of the sanctioned projects, 13,535 kilometres of roads will be made motorable, 27,395 metres of bridges will be constructed, and irrigation projects will benefit 1,94,874 hectares of land. 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.
Technology Facilitation Fund (TFF): Technology Facilitation Fund (TFF) has been set in NABARD, with an initial corpus of ₹50 crore, to support and scale up technology adoption that benefits the agriculture and rural development space to have a nimble policy for engagement with Tech Start-ups and a dedicated funding source.
Fisheries and Aquaculture Infrastructure Development Fund (FAIDF): NABARD has extended support to the State Government for the establishment of a State of Art Fisheries Training Centre at Carp Farm, Gagrat in district Una by 31st March 2025 under FAIDF (Fisheries and Aquaculture Infrastructure Development Fund).
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. During 2023-24 refinance of assistance to Himachal Pradesh Gramin Bank and Cooperative Banks including State Cooperative Agriculture Rural Development Bank(SCARDB), ₹1355.56 crore has been disbursed as on 15th January, 2024.
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 ₹2,300 crore for the FY 2023-24, against which the banks have drawn refinancing assistance of ₹1,560 crore as on 30th December, 2023.
Special Refinance Schemes: To give a boost to the agriculture and rural sector in the post-Covid era, NABARD launched the following new Special Refinance schemes: a) Transformation of Primary Agricultural Credit Societies (PACS) as Multi-Service Centres (MSCs): This scheme aims to convert PACS to MSCs across the country providing concessional refinance facility @ 3 per cent to the banks for extending cheaper credit to the ultimate beneficiaries. State cooperative banks lend to PACS at the rate of 4 per cent and if the project is eligible under AIF further 3 per cent subvention will be granted by GOI. b) Schematic Refinance for Water, Sanitation and Hygiene (WASH) Activities: The scheme aims to meet out the credit requirement of banks/FIs to enable them to provide timely and hassle-free credit to eligible beneficiaries/ entrepreneurs to facilitate WASH activities. Eligible Institutions are All Commercial Banks, SFBs, RRBs, Cooperative Banks and Subsidiaries of NABARD. The Financing to WASH activities is a Thrust area under Sustainable Development Goals and will be eligible for 95 per cent of the eligible loan for refinance. NABARD will extend concessional long-term refinance to all the eligible banks @ 6 per cent p.a. at quarterly rest. Eligible activities Support to start-ups/entrepreneurs/MSMEs manufacturing/ supplying sanitary fittings, readymade toilets, etc.
Government Sponsored Scheme: 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 up to 31st March, 2026.
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 of 31st March, 2023, the total number of credit-linked SHGs was 75,069 and 13,091 credit-linked SHGs with loans outstanding of ₹179.16 crore.
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. Up to 31st March, 2023, 16,969 Joint Liability Groups have received loan disbursements totaling ₹110.06 crore.
NABARD in collaboration with various NGOs/Joint Liability Promoting Institutions in the state to promote the "Joint Liability Group" scheme in the state. NABARD has sanctioned ₹20 lakh to various NGOs during FY 2023-24 for the promotion and credit linkage of 550 JLGs throughout three years.
Promotion of Farmers’ Producer Organization: NABARD has sanctioned a grant of ₹13.01 crore in Himachal Pradesh for the formation/promotion of 124 FPOs across all 12 districts. On an aggregate basis, these FPOs will produce process and market vegetables, medicinal and aromatic plants, milk and flowers. These FPOs cover about 23,417 farmers across the State with an annual turnover of ₹13.07 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 23 FPOs with a total grant of ₹10.47 crore.
Watershed Development: NABARD has approved 50 Watershed Development Projects (29 Watershed and 21 Spring Shed Projects) across the state's 10 districts. As of 31st December, 2023, a total of 26.84 crore had been given under these projects, which covered 38,732 hectares and benefited 300 villages in 10 districts. These initiatives will improve water availability, safeguard the environment, raise farmer production and income, conserve decreasing grasslands, and promote animal husbandry.
Tribal Development through the Tribal Development Fund (TDF): NABARD has approved 14 tribal development projects with a total grant of ₹21.35 crore benefiting 3,708 families up to 31st December, 2023. These initiatives intend to establish WADIs (small orchards) and dairy units in selective villages covering around 2,616 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 42 projects totalling ₹4.80 crore under the FSPF, benefiting about 20,773 farmers. During the FY 2023-24, 2 projects in Solan and Bilaspur districts have been sanctioned with a grant assistance of ₹43.00 lakh.

NABARD has sanctioned a support of ₹3.80 crore in FY 2023-24 up to 31st December, 2023 to various banks throughout the State for spreading Financial Literacy through Financial and Digital Literacy Camps. Out of this, Financial and Digital Literacy camps amounting to ₹2.84 crore have been sanctioned for spreading financial literacy and awareness. Further, NABARD has also sanctioned 200 Micro-ATMs amounting to ₹45.00 lakh to Fino Payments Bank and 600 mPoS (Mobile Point-Sale) amounting to ₹17.00 lakh to Airtel Payments Bank. Grant assistance of ₹27.00 lakh has been sanctioned to 7 Rural Development and Self Employment Training Institutes (RSETI) in the state for the 'Purchase and maintenance of training equipments of RSETIs'. Also, other program about Financial Inclusion such as 'Reimbursement of examination fee of BC/BF (Business Correspondent/ Business Facilitator) for 1500 BCs amounting to ₹7.00 lakh have been sanctioned to India Post Payment Banks.
NABARD is also implementing GoI’s program on ‘Promotion of Digital Payments in Mandis’ in two mandis of Himachal Pradesh viz. Dhalli mandi, Shimla and Agricultural Produce Market Committee (APMC) Solan. Under the said program, QR codes have been provided by Himachal Pradesh State Cooperative Bank and Punjab National Bank in Dhalli, Mandi and APMC Solan respectively to promote payments about collection of market cess from arthiyas and collection of all other payments in Mandis. Airtel Payments Bank has also provided mPoS to the retail shop owners in the Mandi premises. Various banks are organizing Financial and Digital Literacy camps in these mandis to sensitize the farmers and other stakeholders to make online payments.
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: i) Project Management Consultancy for Integrated Cold Chain Project at Parala and Kharapathar to Himachal Pradesh State Agricultural Marketing Board. ii) Setting up PMU (Project Management Unit) under the Agri-Infrastructure Fund (AIF) at the State Level in Himachal Pradesh. iii) Impact Assessment Study of Mukhya Mantri Khet Sanrakshan Yojana in Himachal Pradesh. iv) Impact Evaluation Study of Micro Irrigation in Himachal Pradesh. v) NABCONS is the Central Technical Support Agency for DDU-GKY in Himachal Pradesh. vi) Social Impact Assessment of CSR programs undertaken by SJVN.

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 out 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 up to 31st December, 2023. The project has been extended up to 31st March 2024.

Prices are an important indicator of the economy performance. Himachal Pradesh was badly affected by unprecedented rainfalls during the current financial year. Worldwide conflicts the war between Russia and Ukraine and the Israel-Hamas conflict in the Middle East have contributed to global price increases, primarily driven by the rising costs of crude oil and other commodities and weather uncertainties. As a result, Central bank has faced pressure to tighten monetary policy impacting home budgets. The spectre of stagflation, a combination of high inflation and economic stagnation, became a significant concern that needed to be addressed. Consequently, industrialized economies were left no choice but to increase their interest rates.
As the US Federal Reserve raised rates, the United States (US) dollar appreciated, making dollar-denominated fuel imports more expensive. Rising prices are always a cause for concern for policymakers, as they disproportionately impact the common man. The challenges of inflation are more acutely felt in developing economies, where necessities constitute a higher proportion of the consumption basket compared to developed countries.
In the case of Himachal Pradesh, the inflation rate has been relatively subdued. India adopted flexible inflation targeting in 2016, and inflation targets are set every five years. In March 2021, the government retained the target at 4 per cent for headline Consumer Price Index (CPI) inflation from April 2021 to March 2026, with lower and upper tolerance limits of 2 per cent and 6 per cent, respectively. This framework provides a guideline for monetary policy to maintain price stability while allowing for some flexibility to accommodate economic conditions.
Supply-side disruptions played a significant role in driving inflation beyond the Reserve Bank of India's (RBI) maximum tolerance range of 6 per cent in the fiscal year 2021-22. The pandemic had a pronounced impact on the supply side than on demand, leading to disruptions in the supply chain for essential items like food, medicine, and industrial goods. Consequently, cost-push inflation in the state was exacerbated as the production and distribution of essential goods faced challenges, causing their prices to rise.
Current Status of Inflation: WPI at the state level fell from 11.6 per cent to (-)1.1 per cent in FY 2023-24. This significant decline was attributed to factors such as a slowdown in the inflation of key commodities (crude oil, iron, aluminium, and cotton) and the influence of the base year's high prices. The Consumer Price indices based inflation fluctuated between 1.9 and 5.1 per cent during the same period.CPI inflation exceeded the upper tolerance level set by RBI during July and August 2023, primarily due to rising vegetable prices, especially tomatoes.
The convergence of WPI and CPI was influenced by the decline in commodity prices, specifically commodities like crude oil, iron, aluminium, and cotton. These commodities, which have a significant weight in the WPI basket, experienced a slowdown in inflation. The factor contributing to higher CPI was the rising service costs, which are not included in the WPI basket. This reflects that the convergence of the two inflation indicators was a result of commodity prices levelling down and the impact of rising service costs, which are not considered in the WPI.
a) Divergence in WPI and CPI: The divergence between relatively high WPI inflation and lower CPI inflation widened from May 2023 to August 2023. Figure 5.1 likely visually represents this divergence.
b) Factors Contributing to Divergence: The divergence is attributed to different weights assigned to the two indices and the lag time in the impact of rising import costs on consumer prices. The WPI, being more volatile due to these factors, reflects the impact of rising import costs more rapidly.
c) The trend towards Convergence: Despite the initial divergence, there has been a narrowing of the gap between WPI and CPI since then, indicating a trend towards convergence. This convergence suggests a balance in the impact of rising import costs on both wholesale and consumer prices.
d) Core Inflation and Government Focus: The core inflation, which is an indicator of demand-pull inflation, has seen little movement recently. Despite this, Himachal Pradesh Government places a high premium on controlling inflation, emphasizing its commitment to maintaining price stability.
e) Impact on Ordinary People: Personal income is not tied to prices, indicating that when inflation occurs, ordinary people suffer disproportionately. This highlights the adverse effects of inflation on the purchasing power and living standards of individuals.
f) Indices for Measuring Inflation: Various indices are mentioned as tools for measuring the ups and downs of inflation: i) Wholesale Price Index (WPI) ii) Consumer Price Index-Rural (CPI-R) iii) Consumer Price Index-Urban (CPI-U) iv) Consumer Price Index-Combined (CPI-C) v) Consumer Price Index-Industrial Worker (CPI-IW) vi) Consumer Price Index-Agriculture Labourers (CPI-AL) vii) Consumer Price Index-Rural Labourers (CPI-RL)
g) Diverse Tracking of Inflationary Trends: These indices represent different segments of the population, such as rural and urban consumers, industrial workers, and agriculture labourers, and a combined index that encompasses various demographic groups. The diversity in indices reflects the recognition that inflation affects different groups in society, differently.
Consumer Price Index-Combined (CPI-C) Inflation among other States: The inflation trend in Himachal Pradesh, as described, reflects a fluctuating pattern throughout the year 2023. Starting at 3.4 per cent in January and peaking at 7.1 per cent in July, the increase in inflation can be attributed to a spike in vegetable prices. This phenomenon could be due to various factors such as weather conditions affecting crop yields, transportation costs, or other supply chain disruptions.
Central banks often raise interest rates to cool down an overheating economy and control inflation. However, it's important to note that the impact of interest rate changes on inflation is not immediate and takes time to manifest.
The subsequent decrease in inflation from September 2023 suggests that either the measures taken, including the interest rate hike, had a positive effect or that the initial factors causing the spike in vegetable prices may have alleviated.
In January 2023, Himachal Pradesh had a CPI-C inflation rate of 3.4 per cent. Himachal Pradesh had relatively moderate inflation compared to other states. The inflation rates in the remaining states ranged from 7.1 per cent to 5.2 per cent.
This disparity in inflation rates among states can be attributed to various factors, including differences in economic activities, supply chains, agricultural production, and regional economic policies. The lower inflation rate in Himachal Pradesh, in comparison to most other states, indicates a relatively stable economic environment and effective measures taken by the State to control inflation.
Drivers and contributors to Consumer Price Index inflation (Combined) 2023 vs 2017 Figure 5.3:
a) Retail Inflation Driven by Following Commodities:
i) Fuel and Light:
1. Largest contributor to overall inflation.
2. Accounts for 26.6 per cent of the total CPI-C inflation.
3. Indicates that changes in fuel and energy prices significantly influence the overall inflation rate.
ii) Clothing and Footwear:
1. The main driver of CPI-C inflation with a 25.1 per cent contribution.
2. Reflects the impact of price changes in clothing and footwear on the overall inflation rate.
iii) Miscellaneous:
1. Contributes to the overall inflation, with 19.2 per cent share.
2. "Miscellaneous" typically includes a variety of goods and services not classified under other major categories.
iv) Food and Beverages:
1. Contributes to the overall inflation, with 17.4 per cent share.
2. Indicates the influence of food and beverage price changes on the overall inflation rate.
v) Pan Tobacco & Intoxicants:
1. Contributes 11.6 per cent to the total inflation.
2. This category involves products like tobacco and intoxicants, and its contribution suggests its impact on the inflation rate.
Consumer Price Index Industrial Worker (CPI-IW):The Consumer Price Index for Industrial Workers (CPI-IW) is a measure of inflation specific to the cost of living for industrial workers and is released by the Labour Bureau. The base year for CPI-IW was changed from 2001 to 2016 in September, 2020. The index includes industrial employees from various sectors such as factories, mines, plantations, railroads, public motor transport undertakings, energy generating and distributing enterprises, as well as ports and docks.
The information provided in Table 5.2, 5.3 and Figure 5.4 indicates that in November, 2023 the CPI-IW inflation in Himachal Pradesh was lower than the national average.
This could be due to various factors such as regional economic conditions, differences in the composition of industries, and specific factors affecting the cost of living in Himachal Pradesh. The lower CPI-IW inflation in the state might have positive implications for the purchasing power and standard of living of industrial workers in comparison to the national average.
Wholesale Price Index (WPI):Wholesale Price Index (WPI)-based inflation during and after the Covid-19 era, with additional impact from the Russia-Ukraine war. Overall, the monthly trend of inflation rates based on wholesale prices has been sliding downwards from its peak of 4.8 per cent in January, 2023 to (-) 4.2 per cent in June, 2023 and further increased to 0.7 per cent in December, 2023. (Figure: 5.1). The key points are mentioned below:
a) Low WPI-based Inflation during the Covid-19 Era:
i) WPI-based inflation remained low throughout the COVID-19 period. This is attributed to the economic slowdown and disruptions caused by the pandemic, which lead to reduced demand and pricing pressures.
b) Increase in WPI-based Inflation after the Epidemic:
i) As economic activity restarted post the Covid-19 pandemic, WPI-based inflation began to gain momentum. Economic recovery often leads to increased demand for goods and services, which can contribute to upward pressure on prices.
c) Impact of Russia-Ukraine War:
i) The Russia-Ukraine war is a factor contributing to the increase in WPI-based inflation.
ii) Disruption of global supply networks and disruption of free flow of key goods due to geopolitical events, such as wars, can lead to supply shortages and increase production costs, influencing inflation rates.
d) Negative WPI in FY 2023-24:
i) The wholesale inflation rate decreased to almost negative up to October in FY 2023-24.
ii) The negative inflation rate indicates a period of deflation, where the average prices received by producers for their goods and services decreased, possibly reflecting the challenges in the supply chains and economic uncertainties.
e) Consequences of Disruptions:
i) The disruptions caused by both the COVID-19 pandemic and geopolitical events have consequences on global supply chains, trade, and economic activities, impacting inflation rates.
f) WPI Inflation Fluctuations Main Points:
i) Imported Inflation and WPI:
1) Imported inflation contributes to WPI inflation, with a specific mention of the impact on edible oils.
2) The temporary impacts of higher worldwide costs for items, especially edible oils, are reflected in local pricing.
ii) RBI Study on Global Inflation Shock:
1) According to an RBI study, a one per cent increase in prices across all countries and sectors due to a global inflation shock could raise inflation in India.
2) The second-round effects include domestic indirect effects (46 basis points) and global spillovers (17 basis points), in addition to the direct impact of 100 basis points.
iv) Influence on WPI (Manufactured Goods Component): The influence of global market prices on WPI, particularly in the prices of oil and basic metals, is noticeable, especially in the manufactured goods component.
v) Global Prices for Various Commodities:
1) Global prices for edible oils, rubber, cotton, crude oil, and metals have fallen in the current fiscal year.
2) Fluctuations in global commodity prices can have significant implications for countries that rely on imports for these commodities.
v) Capital Outflows and Currency Rate:
1) Capital outflows had a negative influence on India's currency rate in the first half of FY 2023-24.
2)This contributed to the high costs of imported inputs, especially those denominated in dollars.
Monthly Wholesale Price Index (WPI):Through a network of District Statistical Offices, the Department of Economics and Statistics collects compiles and analyses data on 160 commodities. Every first Friday of the month, the prices are collected from the district's designated shops. These rates are made accessible to stakeholders after being scrutinised at headquarters. Show in figures 5.6 and 5.7.
The Monthly Wholesale Price Index, at the National level for the State during December, 2022 was 150.5 which increased to 151.6 (P) in December, 2023 showing an inflation rate of 0.7 per cent. The month-wise average WPI for the year 2023-24 is given in Figures: 5.1 and 5.5. The information from Figure 5.5 indicates a comparison of Wholesale Price Index (WPI) inflation between two periods: April to December, 2023 and April to December, 2017. Here are the key observations:
a) WPI Inflation in April to December, 2023:
i) In the more recent period of April to December, 2023, WPI inflation fell into negative territory, ranging between (-) 4.2 to 0.7 per cent.
ii) The negative inflation indicates a period of deflation, where average prices received by producers for their goods and services decreased.
b) WPI Inflation in April to December 2017:
i) From April to December 2017, WPI inflation ranged between 0.9 and 4.0 per cent.
ii) This suggests a relatively moderate to low level of inflation during that period.
c) Significant Decline in WPI Inflation:
i) The data reveals a significant decline in WPI inflation between the two periods, with the more recent period experiencing negative inflation rates.
ii) This decline suggests that overall, wholesale prices have decreased or remained subdued, indicating potential stability or even a decrease in retail prices.
d) Implications for Retail Prices:
i)The conclusion drawn is that with the significant decline in WPI inflation, retail prices in India are expected to stay steady or fall in the next months.
ii) Lower wholesale prices can potentially translate into lower costs for retailers and may contribute to stability or reduction in consumer prices.
e) Wholesale Price Coefficient of Variation of 2022 and 2023 (Figure 5.6 and Figure 5.7):
a) Visual Representation: The figures, particularly Figure 5.6 and Figure 5.7, are likely visual representations of the coefficient of variation for the prices of fat grains and pulses, respectively. These figures can provide a graphical representation of the volatility trends in wholesale prices for the mentioned commodities.
b) Analysis of Fat Grain Wholesale Prices (Figure 5.6):
i) The coefficient of variation is employed to analyze the volatility of wholesale prices for fat grains in 2022 (April to December) and 2023 (April to December).
ii) The focus is on commodities like wheat and rice parmal, which are identified as highly volatile during 2023-24.
f) Factors Affecting Pulse Prices (Figure 5.7):
i) The coefficient of variation in pulses remained subdued due to increased production, government initiatives to maintain buffer stocks, and lower import taxes and cess on pulses.
ii) Increased production levels contribute to the stability of the prices of pulses.
g) High Volatility in Specific Pulses:
i) Certain pulse commodities, including Chickpeas, Kabuli channa, Arhar dal, Chane dal, Moong, Urd, Masur Dal, and Malka, are identified as highly volatile based on the coefficient of variation calculations for 2022 (April to December) and 2023 (April to December).
ii) This indicates that the prices of these specific pulse commodities experienced significant fluctuations during the mentioned periods.
h) Stability in Other Pulses:
i) On the other hand, commodities like Kulth, Rajmah, and Soyabean are identified as less volatile, staying stable throughout the year.
ii) The stability in these pulse commodities may be attributed to factors such as consistent production levels or effective market interventions.
Inflation CPI (IW) vs repurchasing option rate (Repo Rate):This information discusses the challenges associated with higher inflation, especially in the context of fiscal policy and its impact on various economies. Here are the key points:
a) Political Ramifications of Rising Inflation:
i) Higher inflation rates can have political ramifications, particularly when they coincide with the budgeting process.
ii) Political leaders may face challenges in managing public expectations and addressing concerns related to the cost of living.
b) Global Economic Challenges in 2023:
i) Many economies faced difficulties in 2023, even as some were recovering from the impact of the COVID-19 pandemic.
ii) Ongoing geopolitical issues, such as the war between Russia and Ukraine and the Israeli–Palestinian conflict, have created supply-side constraints, impacting global economic conditions.
c) Unmanageably High Rates of Inflation:
i) Most nations have entered a problematic zone marked by unmanageably high rates of inflation.
ii) High inflation can erode purchasing power, disrupt economic stability, and pose challenges for both consumers and businesses.
d) Repo Rate as a Tool for Mitigating Inflation:
i) The repo rate is mentioned as an effective method for mitigating inflation.
ii) The repo rate, or repurchase rate, is the interest rate at which the central bank (Reserve Bank of India) lends money to commercial banks and other financial institutions.
e) Financial Crisis and Central Bank Intervention:
i) During financial crises, banks often turn to the central bank for support.
ii) The Reserve Bank of India (RBI) plays a crucial role in managing monetary policy, including using tools like the repo rate to influence the money supply and inflation levels.
The dynamics of inflation in 2022 and 2023, particularly focusing on measures taken by the Reserve Bank of India (RBI) and the Central Government to address inflationary pressures in figure 5.8 below are the main findings:
f) Retail Inflation exceeding RBI's Tolerance Limit in 2022:
i) Instances in 2022 when retail inflation exceeded the RBI's tolerance limit.
ii) The RBI's Monetary Policy Committee (MPC) responds by calling for a rise in the repo rate to control inflation.
g) Repo Rate Hike by the RBI:
i) CPI (IW) inflation reached a high of 7.89 per cent in May 2022, exceeding the RBI's tolerance level of 6.0 per cent.
ii) From May to December, 2022, and up to February, 2023 the MPC raised the policy repo rate under the Liquidity Adjustment Facility (LAF) by 225 basis points, from 4.0 per cent to 6.50 per cent, to tackle inflation.
iii) This indicates a proactive approach by the RBI to use monetary policy tools to curb inflation.
h) Impact on Inflation:
i) As a result of the measures taken, inflation came down, with CPI inflation reaching and went into the lower tolerance level of 2.0 per cent during May and June, 2023.
I) Inflation Spike in July and August, 2023:
i) A sudden spike in inflation was noted in July and August 2023, attributed to a rise in vegetable prices, especially tomatoes.
ii) However, the situation has cooled down, and inflation is reported to be moving between the tolerance levels set by the RBI.
j) Recent REPO Rate:
i) The RBI increased the REPO rate by 25 basis points from February 8th, 2023.
ii) The rate hike was followed by a decrease in retail inflation from 7.89 per cent in May 2022 to 0.15 per cent in May 2023.
Weekly Retail Price :The District Statistical Offices in Himachal Pradesh are part of the Department of Economic and Statistics for collecting and analysing data on basic goods. Every Friday, prices are gathered from participating shops 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 a report every week detailing the previous week's pricing changes.
Volatility in Essential Commodity Prices: The scarcity of available workers, possibly due to COVID-19 regulations, may have contributed to an increase in retail prices. Additionally, the analysis of price fluctuations for various commodities between April to December, 2017 and April to December, 2023 reveals distinct trends. Below are the observations (Figure 5.9):
a) Possible Impact of Worker Scarcity:
i) The scarcity of available workers is mentioned as a potential factor contributing to the increase in retail prices following the implementation of COVID-19 regulations.
ii) Labour shortages can disrupt supply chains, leading to production challenges and affecting prices.
b) Commodities with Stable Prices Since (April to December, 2023):
i) Certain commodities, including Onion, Urd dal, Gur, Potato, Wheat Kalyan, Wheat atta, Tea loose Brooke Bond, and Groundnut oil, have remained stable since April, 2023.
ii) Stability is attributed to factors such as adequate supply resulting from domestic production and the maintenance of adequate buffer stocks for rice and wheat to meet food security requirements.
c) Volatility in Prices for Specific Commodities (April to December, 2023):
i) Kerosene oil, Channa dal, Mustard oil, Uttam vanspati ghee, Sugar, Rice parmal, Cement, and Sugar packet all experienced volatility in prices between April to December, 2023.
ii) These commodities saw fluctuations, suggesting that various factors such as demand, supply chain disruptions, or external influences may have affected their prices.

Targeted Public Distribution System: One of the main constituents of the Govt. strategy for poverty alleviation is the Targeted Public Distribution System (TPDS) which ensures the availability of essential commodities like Wheat, Wheat Atta, Rice, Sugar etc. through a network of 5,249 fair price shops. The total families for distribution of essential items have been divided into two categories viz.
a) National Food Security Act (NFSA):
i) Antodaya Anna Yojna (AAY)
ii) Priority Households
b) Other than National Food Security Act (OTNFSA) (Above Poverty Line) (APL): In the State, the Targeted Public Distribution System has having total ration cards of 19,44,225 covering a card population of 72,55,574 from digitized records. These card holders are being provided with essential commodities through 5,249 fair price shops which comprise 3,348 Cooperative Societies, 22 Panchayats, 51 HPSCSC, 1,784 Individuals, 8 Self Help Groups and 36 Mahila Mandals. The Distribution of essential commodities during the year 2023-24 (up to 12/2023) is given as under in Table 5.5. Presently, the following food items are being distributed through TPDS and Himachal Pradesh State Specially Subsidized Scheme which is as per Table 5.6:

The 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, up to December, 2023 the Corporation procured and distributed various commodities under TPDS to the tune of ₹1,304.09 crore as compared to ₹1,574.63 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, 47 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 notebooks, cement, CGI sheets, medicines, and 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, up to December, 2023, the Corporation purchased and distributed different goods under the subsidised plan to the tune of ₹742.64 crore, compared to ₹792.05 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 FY 2023-24 (until December 2023), the Corporation coordinated the distribution of 11,093.97 metric tonnes (MT) of rice under this programme, compared to 11,765.31 MT during the same time in the 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 FY 2023-24, (up to December, 2023) the Corporation has distributed these commodities under the said scheme to the tune of ₹538.15 crore as compared to ₹604.92 crore during the corresponding period of last year to the ration card holders as per the scale fixed by the State Government. During the FY 2023-24 for the implementation of this scheme, a budget provision of ₹215 crore has been made as a State subsidy. During the FY 2023-24 the corporation is likely to achieve a total turnover of about ₹2100 crore as compared to ₹1,955.30 crore during the FY 2022-23.
Government Supplies: 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 FY 2023-24, the following is the anticipated status of government supply:
Mahatma Gandhi National Rural Employment Guarantee Act, (MGNREGA) Cement Supplies: During FY 2023-24, (up to December, 2023), the Corporation managed the procurement and distribution of 24,36,300 bags of cement amounting to ₹76.33 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 and petroleum products including kerosene oil and Liquefied Petroleum Gas (LPG) in tribal and inaccessible areas. During FY 2023-24 the supplies of essential items and Petroleum products to tribal and snow-bound areas were arranged as per the tribal Action Plan of the Government.
Implementation of National Food Security Act, 2013 (NFSA-2013): The State Government has provided funds to construct Godowns for the Civil Supplies Corporation to enhance the storage capacity of food grains under the NFSA Scheme. The construction of Nerwa, Sidhpur, Rajgarh, Bilaspur, Chamba, Chetru, Thunag and Sandhol godowns has been completed under the budget provision being made by the state government and day-to-day business is being carried out. Apart from this, the corporation has received a budget of ₹ 5.00 Crore only under the PM Gati Shakti Scheme for the repair and maintenance of existing godowns and the construction of two godowns at Bhoranj and Jhandutta.
Medicines Shops: 13 new Medicine Shops, in addition to the existing 40 Medicine Shops have been proposed to be opened shortly at the locations as follows:
i) AIMSS Chamiana
ii) Medical College Hamirpur at Jol Sappar
iii) New OPD Block IGMC
iv) Zonal Hospital MCH New wing Mandi
v) Medical College Ner Chowk
vi) DDU Hospital Shimla New wing
vii) AIIMS Bilaspur
viii) Civil Hospital Bangana
ix) Civil Hospital Barsar
x) Civil Hospital Shahpur
xi) Civil Hospital Saraha (Sirmour)
xii) Civil Hospital Rajgarh
xiii) Civil Hospital Chowari (Chamba)
Paddy & Wheat procurement from farmers: As per the decision of the State Government, the Corporation has started procuring paddy & wheat from the farmers with effect from Kharif Milling Season (KMS), 2022-23 and Rabi Milling Season (RMS), 2022-23.
During this year, in the Rabi Milling Season (RMS) 2023-24, a total of 2,868.20 MTs of wheat have been procured directly from the farmers at the Minimum Support Price (MSP) by this Corporation. This has benefitted 813 farmers across the state. In the Kharif Milling Season (KMS) 2023-24, a total of 22,897.95 MTs of paddy have been procured directly from the farmers at the Minimum Support Price (MSP) by this Corporation. This has benefitted 3746 farmers across the state.

Himachal Pradesh, renowned for its agricultural prominence, relies heavily on agriculture and horticulture to bolster its rural economy. The diverse climate in the region, particularly conducive to fruit production, has positioned agriculture as a vital economic driver. The Government is actively working towards achieving agricultural self-sufficiency and enhancing the economic standing of farmers through initiatives like the Him Unnati Yojana, Mukhyamantri Krishi Samvardhan Yojana, Krishi Utpadan Sanrakshan Yojana, Prakritik Kheti Khushal Kisan Yojana, Rajya Krishi Yantrikaran Karykram, Jal Se Krishi Ko Bal Yojana etc.
The swift evolution of technology is revolutionizing the global landscape, and agriculture is no exception. In this era of rapid technological advancement, innovations are addressing critical challenges across various sectors. One such transformative technology is drones, which the state government in Himachal Pradesh is keen on integrating into the state's agricultural practices. In the challenging geographical conditions of Himachal Pradesh, drone technology holds immense potential to augment the income of farmers and horticulturists. Its applications range from precise weather forecasting and improved sowing facilities to efficient pesticide spraying and crop health monitoring. The government's emphasis on embracing drone technology reflects a forward-looking approach to enhancing agricultural productivity in the state.
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. 58.71 per cent. Agriculture and its allied industries account for around 13.70 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 ₹1,875.17 crore in FY 2023-24. In the FY 2023-24 budget, the state has allocated 4.39 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 and allied sector to GSVA at Current Prices has increased 49 per cent from ₹17,767 crore in 2018-19 to ₹26,458 crore in 2023-24 (Advance Estimates (AE)). There is a marked improvement in GSVA of crops at current prices between 2018-19 to 2023-24 (from ₹10,286 crore in 2018-19 to ₹16,410 crore in 2023-24). The contribution of the crops sector to GSVA at Current Prices has increased by 60 per cent in the same period.
Between 2018-19 to 2023-24 (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. The crop sector was a major driver of this growth with a CAGR of 8.1 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 13.70 per cent in 2023-24. 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 2.4 per cent at constant prices in FY 2023-24 against a growth rate of 5.7 per cent realised in FY 2022-23. The contraction in the agriculture sector was mainly due to a sharp contraction in the crop sub-sector (-6.5 per cent) (Figure 6.3). The agriculture and allied sectors growth rate in Himachal Pradesh has been more volatile as compared to the national-level agriculture and allied sectors' growth rate.
a) Crop-sub-sector:The crop sub-sector constitutes major sub-sector within agriculture in Himachal Pradesh accounting for 62 per cent of agriculture and allied sector GSVA and 8.50 per cent of total GSVA in FY 2023-24 (Figure 6.1 & 6.2). During FY 2023-24, the contribution of livestock, fishery, and forestry in agriculture and allied sector GSVA stood at 9.6 per cent, 1.1 per cent and 27.3 per cent respectively (Figure 6.1).
b) Livestock:The Animal Husbandry and livestock sectors are critical for the rural economy, especially the small and marginal farmers. They not only contribute to their income but also their best insurance against any natural calamity. The potential of crop production depends upon huge investment, weather and meteorological conditions. Comparatively, the Animal Husbandry and Livestock sectors are more stable and require less investment. It has great potential and its contribution to the state economy. Further, Livestock and poultry have proved to be life saviours in many distress conditions, especially in cases of drought etc. for the rural poor. Realizing this and the growth potential of this sector, greater attention is being paid to raise investment in this sector. Livestock subsector accounts for 1.31 per cent of total GSVA and 9.6 per cent of agriculture and allied sector GSVA in FY 2023-24. The livestock sub-sector growth plummeted to 4.1 per cent in 2023-24 against a 16.3 per cent growth rate in 2018-19 and 9.9 per cent in 2019-20 and 5.7 per cent FY 2020-21.
c) Forestry: Forestry accounted for 3.7 per cent of total GSVA and 27.3 per cent of agriculture and allied sector GSVA at current prices in 2023-24. Forestry sub-sector is estimated to grow at 1.6 per cent in FY 2023-24 against 3.7 per cent in FY 2022-23.
d) Fishery: The fishery subsector constitutes only 0.15 per cent of total GSVA and 1.1 per cent of agriculture and allied sector GSVA at current prices in FY 2023-24. The growth of fishery sector has been encouraging over the last ten years. The Fishery sub-sector is estimated to grow at 7.0 per cent in FY 2023-24 against 9.1 per cent in FY 2022-23.

Himachal Pradesh ranked 17th State in India and 126th in world with a geographical area of 55,673 square kilometres (Sq Km). Out of the total geographical area, 11.49 per cent of the area comes under Net Sown Area and around 24.55 per cent is under forest coverage, Land put to non-agriculture uses is around 7.98 per cent, fallow lands 1.53 per cent, Barren and uncultivable land 16.73 per cent Figure 6.4
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 the average size of land holding is 0.95 hectares. The size of holdings, area operated and percentage of each category of land holding pattern and area operated are indicated in Table 6.1 and Figure 6.5.
Rainfall: Himachal Pradesh received 879 millimetres (mm) of rainfall from June to September, 2023, which is 144 per cent over normal rainfall of 734 mm. Similarly from October to December, 2023 state received 45 mm of rainfall which is 38 per cent less than normal rainfall of 83 mm (Fig 6.6). Rainfed agriculture accounts for approximately 80 per cent of the farmed land in the state. Rice, Maize and Wheat are important cereal crops of the State. The Soyabean and Sunflower in Kharif and Rapeseed/Mustard and Toria are important oilseed crops in the Rabi season. Mash, Moong, and Rajmash in Kharif season and Gram and lentil in Rabi are the important pulses crops of the State. Agro-Climatically, the state can be divided into four zones viz;(i) Sub Tropical, sub mountain and low hills,: (ii) Sub Temperate, Subhumid mid hills,(iii) Wet temperate high hills,(iv) Dry temperate high hills and cold deserts. The Agro-climatic conditions in the state are congenial for the production of cash crops like Seed Potato, off-season Vegetable and Ginger. The State Government is emphasizing the production of off-season vegetables, potatoes, ginger, pulses and oilseeds besides increasing the productivity of cereal crops, through timely and adequate supply of inputs, 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. There are four distinct seasons concerning rainfall. Almost half of the rainfall is received during the monsoon season and the remaining precipitation is distributed among other seasons. The State receives an average rainfall of 1,251 mms. Kangra district gets 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 2018-19. During this period, thousand of hectares were brought under cultivation. Wheat, Maize, Rice, Barley, and Pulses are the major crops grown in the State. Cumulatively, the area under these crops constitutes nearly 82 per cent of the total area under cultivation. Currently, cultivated area under Wheat (34.90 per cent) and Maize (31.37 per cent) constitute 66 per cent of the total.
Production of Major Crops: Production of major crops in Himachal Pradesh from 2019-20 to 2022-23 is presented in Table 6.2. During FY 2022-23, food grains contributed around 42.10 per cent and commercial contributed 57.90 per cent of the total crop production of the state. As shown in Table 6.2 small millets & Bajra production is estimated to increase by 145.11 per cent in the year 2023-24, 4.74 per cent increase in maize and 1.75 per cent increase in wheat.
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 691.66 thousand hectares in FY 2022–23.
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 of seeds (HYVS) to farmers to enhance foodgrain output. The area under high-yielding varieties of principal crops, namely Maize, Paddy, and Wheat is shown in Table 6.3 below.
Farms / Development Stations of Agriculture Department: The Department of Agriculture has set up 20 Seed Multiplication Farms (SMF), 3 Vegetable Development Stations (VDS), 12 Potato Development Stations (PDS) and 1 Ginger Development Stations (GDS) in the state. These Government Farms are for the multiplication of Breeder Seed received from Indian Council of Agriculture Research / State Agriculture Universities into Foundation Seed. As per the policy, the Breeder Seed has to be multiplied in the Government Farms under strict supervision of Agriculture Experts. The Foundation Seed produced in the Farms is given to the Registered Seed Growers for multiplication which is further procured by the Department to meet the requirement of seed in the State.
Plant Protection Programme: The incidence of insect pests and diseases is a hindrance in achieving targeted production. Thus to minimise the losses, suitable measures are to be adopted to keep insect pests and diseases below an economic threshold level. State Government has decided not to promote chemical-based insecticides/fungicides etc. under state sector schemes but on the other hand, some non-chemical measures are to be promoted to save the crops. Hence, it has been decided to provide a 50 per cent incentive to all categories of farmers on insect traps (Pheromone traps, light traps, sticky traps) and lures, bio-pesticides, bio-agents, botanicals etc.
Consumption of Fertilizers and Subsidy: Consumption of fertilizers and pesticides is determined by multiple factors such as the 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 57,852 MT in FY 2022–23. As the use of chemical fertilisers and pesticides is gradually discouraged, a decline in consumption was seen throughout the year 2022–23, as shown in Table 6.4. A subsidy of ₹1,000 per MT for complex fertilisers has been allowed to encourage the balanced use of chemical fertilisers. The following is a breakdown of fertiliser use by year:
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 to assess 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 show the use of bio-agents, biopesticides, 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 Yojana (MMKSY): According to the Expert Group's recommendation, four ongoing programmes with similar goals have been consolidated in FY 2023–24 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 ₹33.67 crore has been made for FY 2023-24.
a) Cluster-Based Vegetable Production: 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.
b) 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 Yojana," 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.
c) 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.
d) 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, 3 Seed 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 pesticides 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.
The Seed testing laboratories are engaged in testing the seed for the various quality parameters viz. Physical Purity, and Germination Test so that distribution of good quality seed to the farmers is ensured.
Mukhya Mantri Krishi Utpadan Sanrakshan Yojana (MMKUSY): The budget provision of ₹18.00 crore has been made for implementation of this scheme during the current FY 2023-24. The scheme has following component:
i) 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."
ii) Under this plan, a subsidy of 70 per cent is granted if three or more farmers want to build solar fences, interlink chain fencing, composite interlink chain solar fencing and barbed wire fencing for the FY 2023-24, as per their requirement. The department has the registered/ approved service providers for the installation of Solar Fencing and Composite Interlink Chain Solar Fencing in the farmers 'fields, whereas, Interlink Chain Wire and Barbed Wire may be installed by the farmer himself, as per approved guidelines of the Department
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 roads, 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 the Japan International Cooperation Agency signed a MoU for the implementation of the second phase. During FY 2023-24, the budget provision of 30.00 crore revised to ₹150.00 crore has been made to implement the scheme during the FY 2023-24. The following components will be covered under JICA Phase –II.
i) Infrastructure development (Minor & micro irrigation system, Farm Access Road and Solar/ Electric Fencing),
i) Farmers Support Component (capacity building programme of Engineering & Agriculture staff and vegetable promotion, Seed Production and Demonstration)
i) Value Chain and Market Development Component
i) Institutional Development Component.
Mukhyamantri Kisaan Evam Khetihar Mazdoor Jeevan Suraksha Yojana: The State Government introduced a Program named "Mukhyamantri Kisaan Evam Khetihar Mazdoor Jeevan Suraksha" in 2015–16 to provide insurance coverage to Farmers and Agricultural Labourers in the event of suffering injury or death due to the 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. A Budget provision of ₹40.00 lakh has been kept for FY 2023-24.
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" 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, 1,78,643 farmers in the state have opted for natural farming, spanning an area of 24,210 hectares. An extra 50,000 bigha of land will be covered in FY 2023-24. For FY 2023-24, a budget provision of ₹13.00 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 FY 2023-24, a budget provision of ₹10.00 crore has been made.
Flow Irrigation Scheme: Under this scheme, besides renovating the source location of Kuhls, strengthening of Kuhls in the common area is undertaken. Under this scheme, 100 per cent of expenditure is borne by the Government on community-based work. The government has decided to grant a 50 per cent subsidy for the construction of bore wells and shallow wells by individuals for irrigation purposes under this scheme. A budget provision of ₹8.00 crore has been kept for FY 2023-24.
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 ₹10.00 crore for FY 2023-24.
Promotion of Nutri Cereals : The year 2023 has been decided to be celebrated as the International Year of Millets (IYOM-2023) for awareness about the health and nutritional benefits of millets. Therefore, realising the need of the hour, it is necessary to sensitize & incentivise the farmers about these crops, and at the same time provide necessary technological inputs and market linkages to motivate these farmers to produce a market surplus, which will ultimately result in retaining these farmers in cultivation of millets. Given the above, the following components have been proposed under the project to enhance the area under the cultivation of millets:
i) Distribution of Seed on Subsidy.
ii) Distribution of Minikits.
iii) Organization of Millet Food Festival
iv) Capacity Building of Farmers in Production, Post harvest technology and its uses in nutritional security.
v) Farm Gate Sale of Millets (Through Canopy).
The budget provision of ₹1.51 crore has been made for the FY 2023-24, by the State Government for the implementation of this scheme.
Him Unnati Yojana :
i) The Chief Minister of Himachal Pradesh announced a New Scheme "Him Unnati" to be implemented throughout the State from this FY 2023-24. Under the Scheme, for the development of the Agriculture & Allied sector,1,239 clusters, each having a minimum of 40 Bigha culturable land have been identified. A total 2,600 number of clusters have to be identified by all the stakeholders i.e. Agriculture Department-1,200, State Project Implementation Unit (SPIU)-1,100, Japan International Cooperation Agency (JICA)-300 under the scheme.
ii) In FY 2023-24 there is budget provision of ₹25.00 crore under the scheme. A total 2,600 number of clusters are to be identified throughout the State covering all the Districts. Till now 283 clusters have been marked out of which the activities in 186 clusters have been started from this Kharif Season 2023.

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 ₹16.23 crore has been approved for FY 2023-24.
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 and 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. Under this scheme, a budget allocation of ₹30.00 lakh has been approved for FY 2023-24.
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)" is 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. By PMFBY, the 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.
During Kharif, 2023 season, 1,07,837 No. of farmers have been covered and 1,07,058 No. of farmers have attentively been covered during the Rabi 2023-24 season. For FY 2023–24, 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, Agricultural Extension and Technology (NMAET)/ Sub Mission on Agriculture Extension (SAME): The modified Extension Reforms Scheme was introduced to strengthen the extension machinery and utilize it for synergizing the interventions in different schemes under the umbrella of ATMA. Besides Agriculture, other Departments as Horticulture, Animal Husbandry, Fisheries etc. are also stakeholders in this programme. To create competition amongst the farmers to achieve the best in the agriculture sector, the Krishak Puraskar Yojana has also been launched in the State under this scheme. A budget provision of ₹14.59 crore has been kept for FY 2023-24.
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, infrastructure support, 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 ₹10.49 crore has been kept for FY 2023-24. Under the component organization of training camps at the block level and distribution of wheat seed will be done.
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 FY 2023-24, a budget allocation of ₹15.37 crore has been allocated.
Agro-forestry: Agro-forestry is known to have the potential to mitigate the climate change effects through microclimate moderation, conservation of natural resources and creation of an additional source of livelihood and income opportunities for the small farmer. To make agriculture less vulnerable to climatic aberrations, the Government of India launched a scheme "Agroforestry" to encourage and expand tree plantation on farmland, with the motto of "Har Med Par Ped”, along with crops/ cropping system. For FY 2023-24 a budget provision of ₹89.00 lakh has been approved by the Government of India under the component.
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 the 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. 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). A proposal amounting to ₹ 7.94 crore has been sanctioned for the FY 2023-24 by the Government of India.
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 organic goods and promote organic farming. Participatory guarantee certification will replace expensive third-party certification under the plan. The main components of the scheme include management cost for cluster formation & capacity building and incentives to the farmers as DBT on organic/natural farming inputs. A total budget provision of ₹5.53 crore (Center & State) has been sanctioned for the FY 2023-24.
National Project on Soil Health and Fertility : National Project on Management of Soil Health and Fertility Based on the recommendations of the Task Force on Balanced Use of Fertilizer, this Centrally Sponsored Scheme entitled "National Project on Management of Soil Health and Fertility (NPMSF)" was formulated. The Department of Agriculture provides soil testing facilities and distribution of soil health cards to all the farmers of the State free of cost, further ensuring soil test-based recommendations and promoting Integrated Nutrient Management (INM). A budget amounting to ₹2.21 crore has been sanctioned by the GOI for the implementation of component during the FY 2023-24.
National Food Security Mission (NFSM): The NFSM is a centrally funded programme that began in 2007. During 2022-23, a provision of ₹ 6.98 crore has been made for the cultivation of Rice, Maize, Pulses, Wheat, and Nutri-Cereals. For FY 2022-23, a total of ₹0.291crore has been granted for NFSM Rice, ₹2.283 crore for NFSM Wheat, ₹1.55 crore for NFSM Maize, ₹1.91 crore for NFSM Pulses and ₹0.95 crore 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 ₹7.94 crore has been made for FY 2023-24.
Pardhanmantri Krishi Sinchai Yojana (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 the introduction of sustainable water preservation practices and optimization of water resources (More Crop Per Drop) as important as the introduction of new irrigation facilities. Under this scheme, a budget provision of ₹22.22 crore has been made for FY 2023-24.

In Himachal Pradesh, traditionally the surplus produce was taken to nearby markets outside the state for trading. This caused numerous inconveniences in terms of transport, price negotiability and security concerns for farmers. To facilitate the farmers, the Government has induced various interventions. The state has implemented the "Himachal Pradesh Agricultural and Horticultural Produce Marketing (Development & Regulation) Act, 2005", to regulate the wholesale trade. Under this act, the HP State Agricultural Marketing Board and APMCs were constituted.
Himachal Pradesh State Agricultural Marketing Board (HPSAMB) is the apex body that provides agricultural marketing infrastructure in the state through its Agricultural Produce Market Committees (APMCs) In addition to agricultural marketing infrastructure, HPSAMB provides the latest technology in terms of trading, grading and storage of Agricultural Horticultural crops.
At present, there are 73 Market yards are operational in the state. Out of which 10 are Principal Market Yards (PMYs) and 63 are Sub Market Yards (SMYs). These market yards are equipped with marketing facilities 38 Markets are integrated with the National Electronic Market (e-NAM).
Under the Himachal Pradesh Horticulture Development Project (HPHDP) funded by the World Bank, HPSAMB is constructing/ upgrading 9 Market yards. These are Parala, Mehandli, Shlaroo (Shimla), Parwanoo (Solan), Paonta Sahib (Sirmarur), Bandrol, Shaat (Kullu), Kangni (Mandi) and Palampur (Kangra). The total expenditure made on these works is ₹55.44 crore. Works of ₹33 22 crore are in progress. Total expenditure will be ₹88.67 crore.
Under the Himachal Pradesh Crop Diversification Project (HPCDP) funded by JICA, HPSAMB is upgrading 13 market yards in different parts of the state. These market yards are Jassur, Passu (Kangra), Chauri Bihal, Patlikulh, Khegsu (Kullu), Tapri (Shimla), Takoli (Mandi), Solan, Kunihar, Wakhnaghat (Solan), Khairi, Ghandoori and Nohradhar (Sirmaur). The total expenditure made on these market yards is ₹27.26 crore.
To provide the benefits of minimum support price (MSP) procurement of foodgrain was conducted during Rabi Marketing Season (RMS) and Kharif Marketing Season (KMS) at 10 procurement centres Total of 2,868 MT of wheat having value ₹6.09crore was procured from 689 Farmers During Kharif Marketing season total 22,897 MT of paddy having value of ₹50.43 crore was procured from 4,815 farmers.
To provide a better realization of farmers' produce this year the apple was traded on an actual weight basis in APMC Yards. A circular dated 6th April, 2023 in this regard was issued by HPSAMB and the Government has issued a notification dated 6th April, 2023 to provide enforcement powers to various officers.
The government of Himachal Pradesh has constituted a panel of experts and functionaries of the State Government vide notification No. Agr BOB/25/2023 dated 19th Dec, 2023 to deliver the functions of Agricultural Produce Marketing Standards Bureau. In the apple marketing season of 2023, out of a total of 1.82 crore apple boxes, 89.80 boxes were traded in APMC Yards of the state.
Sub-Mission of Agriculture Mechanism (SMAM):
i) 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 FY 2019–20 of which ₹20.43 crore were spent under this scheme, benefiting 4,547 farmers till 31st December, 2023.
ii) 52845 MT of C-grade apple fruit worth ₹ 63.41 crore were procured during FY 2023-24.
iii) A total of 261.82 hectares area is under commercial flower production during FY 2022-23, to diversify horticulture, while 93.60 hectare area is under protected flower production till 31st December, 2023.
iv) To produce and market flowers in the State, 10 farmers cooperative societies are working in Chamba, Kangra, Lahaul-Spiti, Solan, Shimla and Hamirpur Districts.
v) Beekeeping and other ancillary horticulture activities are also encouraged. 2,124.02 MT of honey has been produced under the Bee Keeping Program for FY 2022-23.
vi) During the FY 2022-23, 417.14 MT of pasteurized compost for mushrooms was produced and distributed through departmental offices in Solan, Rampur, Bajoura, and Palampur and 16,182 MT of mushrooms were produced in FY 2022-23.
Programmes/Schemes implemented for holistic development of Horticulture:

State Schemes

i) Horticulture Development Scheme (HDS):As part of the HDS, 326 Power Sprayers, 1,779 Power Tillers (8 Brake Horse Power), and 81 Power Tillers (>8 Brake Horse Power) were distributed as subsidies to orchardists during the FY 2023-24 to promote mechanized farming.
ii) Anti-Hail Nets Scheme :To safeguard fruit crops against hail storms, ₹14.95 crore of funds have been given to field functionaries under the installation of the Anti Hail Nets Scheme. Up till 31st December, 2023 ₹7.00 crore of those funds have been spent, and 566 farmers in the state have profited from this programme.
iii) Himachal Pushp Kranti Yojana (HPKY):Funds have been allocated under the "HPKY" amounting to ₹11.00 crore to the field functionaries, out of which ₹3.55crore have been utilised and 212 farmers benefited up to 31st December 2023 to promote commercial floriculture farming in the state and provide employment to skilled and unskilled unemployed youth.
iv) Mukhya Mantri Madhu Vikas Yojana (MMMVY):Similarly, to produce quality fruit crops and increasing production to increase honey production and other bee products, "MMMVY” has been started and funds of ₹4.50 crore during the FY 2023-24 have been allocated and ₹2.99 crores have been utilized and 2,450 number of farmers have been benefitted up to 31st December, 2023.
v) Mukhya Mantri Kiwi ProtsahanYojana:Under this scheme,₹1.00 crore have been allocated to field functionaries during the FY 2023-24, out of which ₹20.00 lakh has been utilized till date, covering 2-hectare area by benefitting 12 no. of farmers, up to 31st December, 2023.

Centrally Sponsored Schemes

i) Mission for Integrated Development of Horticulture (MIDH):The Mission was launched to promote holistic growth of the Horticulture sector through area-based regionally differentiated strategies. A Centrally Sponsored Scheme 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 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, greenhouse cultivation of high-value flowers and vegetables, Antihail Nets, Horticulture Mechanization, Post-Harvest Management and more. During the FY 2022-23 funds amounting to ₹19.44 crore were received from Government of India under the scheme out of which ₹15.56 crore have been utilized upto 31st December, 2023. During the year 2023-24, funds amounting to ₹32.00 crore have been approved by Government of India and the 1st installment is likely to be received in January, 2024. Under the mission total number of 2,67,895 farmers have benefitted from the year 2003-04 to December, 2023.
ii) 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 to enhance crop productivity by improving water use efficiency through Micro Irrigation systems for the benefit of the farmers. To encourage farmers to adopt Micro Irrigation the State Government is giving top up subsidy. The PMKSY-PDMC guidelines were modified in FY 2017-18 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 a 25 per cent additional State share to give an 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 2023-24) an area of 3,981 hectares has been covered under micro-irrigation and benefited 9,828 farmers up to 31st December, 2023.
iii) Rashtriya Krishi Vikas Yojana-Remunerative Approaches for Agriculture and Allied Sectors Rejuvenation (RKVY-RAFTAAR):RKVY aims to increase public investment in infrastructure facilities and provide flexibility and autonomy in the process of planning and executing schemes in the Horticulture sector. Annual Action Plan of ₹11.26 crore has been submitted to the Directorate of Agriculture for 2024-25.
iv) Restructured Weather-Based Crop Insurance Scheme (R-WBCIS):In Himachal Pradesh, 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 36 blocks for apples, 56 blocks for mangoes, 29 blocks for plums, 16 blocks for peach, 58 blocks for citrus fruits, 21 blocks for Pomegranate, 38 blocks for litchi and 22 blocks for Guava. In addition19 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 61,472 farmers have been given coverage under R-WBCIS for their Apple, Plum, Peach, Mango, and Citrus fruit crops for the Rabi Season 2022-23. These farmers have insured their 41,70,834 plants, for which the State Government has paid a premium subsidy of ₹34.02 crore.

Horticulture has evolved into an integral facet of agriculture, offering farmers a diverse array of crops for cultivation and addressing nutritional needs. Its significance extends beyond sustenance, providing a platform for numerous agro-industries that, in turn, generate substantial employment opportunities. The changing dietary patterns associated with an improved standard of living in India have led to an increased demand for horticultural products. Fruits, vegetables, and flowers, key components of horticulture, exhibit significantly higher gross returns per unit of area compared to many other crop categories. Over the past decade, the growth in the horticultural sector has catalyzed crop diversification, even in smaller farmer holdings.
In the context of Himachal Pradesh, the state has garnered global recognition as a prominent fruit hub. Horticulture emerges as a crucial driver in fortifying the state's economy. Beyond its economic contribution, the horticulture sector engenders substantial employment opportunities, enriching the livelihoods of numerous individuals. Presently, approximately 234 lakh hectares of land in the state are dedicated to horticulture, yielding an average annual income of around ₹5,000 crore. This sector directly and indirectly employs a staggering nine lakh people, underlining its role as a significant source of livelihood.
The allure of horticulture's growth potential has enticed corporate entities to explore innovative models, establishing connections from farm to fork. This paradigm shift towards corporate involvement reflects the sector's dynamism and adaptability. As Himachal Pradesh continues to shine on the global stage as a fruit-centric region, the multifaceted contributions of horticulture not only bolster the state's economic foundations but also weave a robust tapestry of employment opportunities and sustainable agricultural practices.
The Government of Himachal Pradesh is committed to farmer-centric programmes and identified the Horticulture sector as one of the growth engines in the economic development of the State. In Himachal Pradesh, the area under Horticulture crops increased from 792 Hectares in 1950-51 to 2,36,466 hectares in 2022-23. The area under Horticulture in the state contributes 26 per cent of the total Agriculture area (8, 91,926 hectares), whereas the sector contributes 22 per cent in terms of the value of the produce (Agriculture crops value ₹16,076 crore including vegetables, Horticulture crops value ₹4,476.64 crore, 2022-23). Between 2007-08 and 2021-22, the 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 48.92 per cent of the total area under fruit crops and about 82.53 per cent of the total fruit production during FY 2022-23. The area under apple has increased from 400 hectares in 1950-51 to 3,025 hectares in 1960-61 and 1,15,680 hectares in FY 2022-23. Between FY 2007-08 and FY 2021-22, the area under apple has seen a growth of 21.4 per cent.
The fluctuations in the production of apples during the 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 apples has increased from 900 hectares in 1960-61 to 27,563 hectares in FY 2022-23. Nuts and dry fruits have seen an increase in area from 231 hectares in 1960-61 to 9,583 hectares in 2022-23, while citrus and other sub-tropical fruits have seen an increase from 1,225 hectares and 623 hectares in FY 1960-61 to 26,370 hectares and 57,270 hectares in FY 2022-23 respectively.
The overall fruit output in FY 2022-23 was 8.15 lakh tonnes, while the total fruit production in FY 2023-24 (up to 31st December 2023) was 5.84 lakh tonnes. It was planned to put 1,224 hectares of new space under fruit plants during FY 2023-24, 2110.2 hectares of area was brought under plantations, and 5.98 lakh fruit plants of various kinds were distributed up to 31st December, 2023. The crop-wise growth in the area and fruit-wise contribution of Horticulture crops are given in the figure below:

HPMC a State public undertaking was established to market fresh fruits and vegetables, process the unmarketable surplus produce & marketing the processed products. Since its inception, HPMC has been playing a pivotal role in the life of fruit growers of the state by providing them with remunerative returns for their produce.
During the FY 2022-23 HPMC registered an overall turnover of ₹120.30 crore which is historical as the Corporation has crossed the turnover of 100.00 crore & above for the first time since its inception in the year 1974. Before this, it was ₹ 88.96 crore in the FY 2019-20. Except this HPMC achieved first time a net profit of ₹2.67 crore in 2019-20. The State government continued the policy of market intervention schemer (MIS) for mango, Apple, and citrus fruit crops in the state with the support price as under:
i) HPMC is successfully operating 6 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 Patlikuhal (Kullu) 700 MT Parwanoo 3,000 MT which in total are capable of storing total 6, 380 MT apple produce.
ii) In FY 2022-23, 35 farmers and growers benefited from the facility of controlled atmosphere/cold storage.
iii) Horticulture Produce Marketing Corporation at Nadaun, District Hamirpur, the storage capacity for vegetables is 50 MT and the grading packing capacity is 2 MT/hour. Similarly, at Ghumarwin, District Bilaspur, the storage capacity is 50 MT, grading packing capacity is 2 MT/hour.
iv) HPMC operates a fruit processing plant in Parwanoo with a capacity of 18,000 Metric Ton per season, another in Jarol, Sundernagar District, Mandi, with a capacity of 3,000 Metric Ton per season, and a third in Parala (Theog) District, Shimla, with a capacity of 18,000 MT per season.
iv) HPMC has planned to enhance its existing capacity for Grading, Storage and Processing of different fruits produced in the State through the World Bank-funded HP Horticulture Development Project (HPHDP). Under the post-harvest support infrastructure component of the said project, financial assistance of ₹266.14 crore is being provided by the World Bank to HPMC. The process of enhancing the overall storage capacity of CA Stores Jarol Tikker, Gumma and Rohru from the existing 1,980 MT to 5,858 MT shall be completed by the first quarter of FY 2023-24. In addition to the above CA Stores, HPMC is setting up new CA Stores at Reckong-Peo, District Kinnaur having a storage capacity of 250 MT under HPHDP.
v) Additionally, a new grading and packaging facility is being built at Katlog (Chachyot), District Mandi, Tutupani, District Shimla, and Giabong, District Kinnaur. "Each grading and packaging facility has a capacity of 5,600 MT per season. Additionally, the Controlled Atmosphere storage at Katlog District Mandi has a capacity of 5,000 Metric Tons. The grading and packing facility in Bhunter, District Kullu, has a capacity of 1,000 MT, while the facility in Reckong Peo, District Kinnaur has a Controlled Atmosphere capacity of 250 MT."
vi) The newly established processing unit at Parala, under the World Bank-funded Himachal Pradesh Horticulture Development Project, has a production capacity of 18,000 MT of apple juice concentrate, 50,000 litres of vinegar per year, and 100,000 litres of wine per year."
vii) The new sales outlets of HPMC have been opened at Jarol in Sundernagar, District Mandi, and at Jabli in District Solan.
New Product, agreement and other proposals: "To increase the Corporation's business, agreements have been made with the following organizations:"
i) New retailers/distributors are being appointed by the HPMC under the New distribution policy.
i) In the FY 2022-23 HPMC, Food Products and Processing Systems Parala is producing Apple Juice Concentrate (AJC) in Aseptic packaging.
i) For the sale of the Corporation's products, the Corporation's Kiosks have also been opened at metro stations
Marketing Plan:A Marketing Plan has been created by HPMC. The main objective of this scheme is to ensure aggressive sales of HPMC products through various channels. This plan presents the format to establish the HPMC brand in the State and the Country. HPMC's Marketing Plan is implementing various activities to lead HPMC products in the market. The following are the main parts of the Marketing Plan:
i) The Marketing Plan envisages doubling the sales during FY 2023-24 by leveraging various channels of retail marketing.
ii) The sale of the Corporation's products will be ensured through various Government undertakings and institutions and Canteen Stores Department/Central Police Canteen canteens.
iii) A distribution system is being developed to strengthen the Corporation's position in the retail market.
iv) To increase sales of AJC agreement with institutional customers.

Traditionally, animal husbandry was an integral part of the subsistence farmer's way of life. It involved not only the production of food required by the family but also the provision of fuel, fertilizer, clothing, transport, and draught power. The primary focus was not on killing the animal for food; rather, it involved harvesting various products such as wool, eggs, and milk while the animal was still alive, whenever possible.
The livestock sector plays a key role in the economy, with direct contribution to growth of the poor. Additionally, it significantly contributes to improving livelihoods, increasing farmers' income, and fostering rural development in the country. Livestock rearing is an integral aspect of farming communities as it supplements the income of agricultural households. This sector has immense potential for generating self-employment in rural areas with minimal investment.
Inclusive Growth through Livestock :"Animals", serving as the backbone of rural households, provide nutrient-rich food products, organic manure in the form of dung, domestic fuel, hides, and skins. They function as a regular source of cash income, considered a natural capital that can be easily reproduced. Livestock operates as a living bank, with offspring serving as interest, and stands as the best insurance against the uncertainties of nature.
In Himachal Pradesh, the activities under animal husbandry have been oriented towards improving the health of the livestock, increasing the production of milk, meat and eggs, and providing bullock power for agricultural operations. In this regard, several schemes have been formulated in the State in pursuance of the national policies to improve livestock production, fight protein hunger, improve the 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:
i) Livestock Population: Livestock farming plays a significant role in meeting the rising needs for fat and protein of people. Livestock industry is a major source of non-government employment in the country. Domestic animal husbandry is widespread in Himachal Pradesh. Nineteen out of twenty homes have some kind of livestock, with cows and buffaloes being the most common. The livestock sector is rapidly emerging as one of the most promising and income-generating sectors for rural and semi-urban areas in the region. Common Property Resources (CPRs) in Himachal Pradesh encompass forests, water bodies, grazing pastures, and agricultural land.
As per the Livestock Census 2019, the 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 the poultry population was 13.42 lakh. In Himachal Pradesh, cattle form the largest share of the livestock population comprising 18.28 lakh of the total population, followed by Goats, Sheep and Buffaloes (Figure 7.1). The percentage share of exotic/crossbred cattle in the total cattle population has been on an increasing trend in the State. The Crossbreed cattle population in the State rose by 8.64 per cent in the 2019 Livestock Census compared to the 2012 Census. The share of crossbred cattle has reached 58.48 per cent of the 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.
Milk Production and Per Capita Availability of Milk:Government-initiated welfare schemes for dairy, sheep, and poultry units, coupled with the establishment of forward and backward linkages and organized marketing channels, have played a vital role in supporting rural communities. These efforts have not only helped bridge income gaps but have also contributed to the conservation of domestic biodiversity. Importantly, these practices offer a means of food production in arid lands without depleting groundwater resources.
Livestock insurance coverage has been extended to a significant number of families owning sheep and goats, providing a safety net for unforeseen challenges in the sector. Overall, the growth and development in Animal Husbandry have not only contributed to economic prosperity but have also aligned with sustainable practices, promoting both rural livelihoods and environmental conservation The increasing trend of milk production in Himachal Pradesh from 2012-13 to 2023-24 is depicted in Table 7.1 It shows that milk production in the State has grown from 11.39 lakh tonnes in FY 2012-13 to 16.54 lakh tonnes in FY 2023-24 (estimated), at a CAGR of 3.5 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 the share of goat milk is 3.0 per cent. Species-wise share of milk production to total milk production between 2011-12 to 2023-24 is shown below in Figure 7.2.
The per capita availability of milk in the State has increased from 455 grams per day in 2012-13 to 650 grams per day in FY 2023-24. This is higher than the national average of 427 grams per day in FY 2023-24. There is still a scope for increasing milk production and productivity through the adoption of good agricultural practices to increase farmer’s income.
Meat and Poultry Production:Egg production in Himachal Pradesh has increased marginally from 10.50 lakh in 2011-12 to 11.00 lakh in 2023-24.
There has been a decrease in meat production in the State from 2011-12 to 2023-24 as seen in Figure 7.4.
Growth of Livestock sector: Livestock rearing is an important sub-sector of agriculture and allied activities. It contributes 1.31 per cent of total Gross State Value Added (GSVA) and 10 per cent of agriculture and allied sector GSVA in FY 2023-24. 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 FY 2018-19 to ₹6,979 crore during FY 2023-24 Advance Estimates (AE). The contribution of various components of the Livestock sector is depicted in Table 7.2. The livestock sector witnessed a growth of 4.1 per cent in 2023-24 (AE). Throughout 2018-19 to 2023-24, the livestock sector recorded an average growth of 6.7 per cent, as compared to 3.6 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:
i) Animal Health and Disease Control
ii) Cattle Development
iii) Sheep Breeding and Development of Wool
iv) Poultry Development
v) Feed and Fodder Development
vi) Veterinary Education
vii) Livestock Census Under the Animal Health and Disease Control Programme, the total number of the institutions in the state as on 31st December, 2023 in (Table 7.3): 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.
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 FY 2023-24, the wool production is likely to be 1,500 tonnes. Angora rabbit farms are functioning at Kandwari (Kangra) and Nagwain (Mandi) for the distribution of rabbits to the breeders To ensure the continuation of the Spiti breed of horses, a horse breeding farm has been set up at Lari of Lahaul-Spiti district. This farm has been home to 84 horses from the beginning of the FY 2023-2024 year to the end of December, 2023. In the same location as the horse breeding farm Lari, a Yak breeding farm has been established there. During the FY 2023-2024, up to December, 2023, the total number of Yaks was 59. Under the feed and fodder scheme, 13 lakh fodder roots, and 2 lakh fodder plants have been distributed during FY 2023-24 up to 31st December, 2023.
Welfare Scheme for the Livestock Owners:
a) 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, 15,761 farmers have benefited under this scheme. The scheme's primary purpose is to:
i) Increase the milk production.
ii) To reduce inter calving period.
iii) To improve the health of pregnant cows.
b) “Uttam Pashu Puraskar Yojana”:The Uttam Pashu Puraskar Yojana is being implemented in FY 2022-23, with a provision of ₹100.00 lakh for farmers who have milch cattle/buffaloes with milk output of 15 litres or more per day. This plan provides a ₹1,000 reward per beneficiary per animal. The target has been achieved for FY 2022-23.
Poultry Development Scheme:To improve the poultry sector in Himachal Pradesh, the department has implemented the following poultry development projects, particularly in rural areas:
i) Backyard Poultry Project: 10-100 numbers of chicks of 3-week-old Low Input Technology (LIT) birds are distributed among the poultry breeders on the cost price. During FY 2023-24 till Dec. 2023 under this Scheme, 3,42,000 chicks were distributed among the 7,980 beneficiaries against the target fixed for distribution of 4,10,000 chicks.
ii) Him Kukkut Palan Yojana: A budget of ₹ 487.08 lakh has been set up for the establishment of 123 poultry units in the State, for FY 2023-24 the beneficiaries receive 3 thousand day-old broiler chicks, feed, feeders, and drinkers. Beneficiaries receive 60 per cent subsidy on both capital investment (shed building, feeders and drinkers) and recurring costs (Cost of chicks, feed etc.) up to December, 2023 101 beneficiaries have been selected. Subsidy of ₹177.12 Lakh will be released.
Rashtriya Gokul Mission (RGM):RGM is critical for increasing milk output and bovine productivity 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:
a) Nationwide Artificial Insemination Scheme (NAIP): The goals of the scheme are delivering quality artificial insemination services at farmers' 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 for five years, from 2021-22 to 2025-26, and will include all breedable cattle and buffalo populations. Till date 9,26,771 Artificial insemination has been carried out.
b) 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 veterinary institutions, with the following goals:
i) 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.
ii) To construct a genetic assessment and selection system for bull moms and bull sires for the production of future generations of bull calves.
iii) To generate the requisite number of genetically assessed bull calves for semen stations through progeny testing
A ₹373.25 lakh has been received from the Government of India (GOI) through the National Diary Development Board (NDDB) for the initiative, with ₹334.62 lakh already spent on various components.
c) 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):
a) 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.
Training:Under NLM ₹ 29.16 Lakh has been spent for the training of farmers for Goat / Sheep rearing and other activates.
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). During the FY 2017-18 to 2022-23 ₹209.46 Lakh was allocated for this scheme. To date, 2,738 beneficiaries have been covered under this scheme.
a) Objectives of the Scheme:
i) Genetic improvement of indigenous sheep breeds and dissemination of superior Germplasm amongst the migratory flocks of sheep in Himachal Pradesh.
ii) To improve the quality and quantity of meat and wool being produced in the state, ensuring better economic returns to sheep breeders.
iii) To resolve the problem of inbreeding amongst the migratory sheep flocks of sheep breeders of all categories.
Krishak Bakri Palan Yojana: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) at a subsidy of 60 per cent to goat farmers 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 FY 2018-19 to 2022-23, a budget of ₹1122.15 lakh has been allocated for the programme. 5,480 units have been distributed till date.
Assistance to State for Control of Animal Diseases:The GoI allocates cash based on a 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. A total vaccination under HSBQ 11.18 Lakh, ET 2.49 Lakh and ARV 0.42 Lakh against the target of respectively 13.00 Lakh, 2.50 Lakh and 0.50 Lakh.
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:
i) To estimate season-wise and annual milk, egg and wool Production.
ii) To work average population and yield estimates
iii) To estimate dung production
iv) To work out average feed and fodder consumption
v) To study the trend of population, yield and production
This survey work is carried out in the State as per the guidelines of the Indian Agricultural Statistical Research Institute (AHS Division) New Delhi. It provides a reliable database relating to livestock products and livestock population.

HP Milk Fed was registered in 1980, and its operations commenced on October 2, 1983, with the transfer of Dairy Development Activities by the Government in the districts of Mandi, Bilaspur, Hamirpur, Sirmour, Solan, and part of Shimla Districts. Una district was subsequently transferred to the Federation on May 1, 1988. The functional activities of milk collection and sale in the remaining parts of the State were also transferred to this Milk Federation and were taken over from September 1, 1988, to July 1, 1992.
The main objectives of the organization are to organise Milk Producer's Cooperative Societies and to provide a remunerative market to the Milk Producers for their surplus milk at their doorsteps and to ensure the availability of milk and milk products in adequate quantity and reasonable prices to the Urban milk consumers.
The Dairy Development Activities in Himachal Pradesh are based on the two-tier structure of the Dairy Cooperatives. The basic unit of Anand Pattern is a village dairy cooperative society where the surplus milk of the milk producers is collected and tested and payment is made based on the quality. Himachal Pradesh Milkfed has 1,107 milk producers co-operative societies. The total membership of these societies is 47,500 At present Milkfed is running 22 milk chilling centres having a total capacity of 91,500 litres of milk per day and 11 milk processing plants having a total capacity of 1,30,000 litres of 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 1,11,000 litres per day from the villages through village dairy co-operatives in FY 2022-23 and ₹128 crore is transferred annually as the cost of the milk. H.P. Milkfed has collected approximately 406 lakh liters of milk during 2022-23 & 300 lakh Liters till November, 2023 for the current financial year. For the year 2024-25, the H.P. Milk Federation has kept a tentative target to procure 510 lakh litres of milk from milk producers.
At present H.P. Milkfed is running 11 Milk Processing Plants with a total processing capacity of 1,30,000 litres per day Mandi 50000 litres per day, (Shimla, & Kangra 20,000 litres per day, Chamba, Nahan, Lalsinghi (Una), Nalagarh, Jangal Beri(Hamirpur), Reckong Peo, Rohru & Mohal (Distt Kullu) 5,000 litres per day respectively).
Under the brand name 'Him', Milkfed also produces Milk Powder, Ghee, Butter, Dahi, Paneer, Curd and Flavoured Milk, Skim Milk Powder, Whole Milk Powder, Sweetened Flavoured Milk, Khoa and Bakery biscuits. All these products are free from insecticides and pesticides.
New Innovations of Himachal Pradesh Milkfed:
i) Himachal Pradesh Milkfed under the Integrated Child Development Scheme (ICDS) Project, produces Panjiri, Bakery Biscuits, Sevian and Pasta for the Welfare Department. During FY 2022-23, Milkfed made and distributed 16,341.83 quintals of Fortified Panjiri, 4,020.36 quintals of Skimmed Milk Powder (SMP), 23,703.77 quintals of Fortified Bakery Biscuit, and 8,587.52 quintals of Wheat Seviyan to the Anganwadis of the State.
ii) During FY 2022-23, a new factory with a capacity of 50,000 litres of milk per day became operational at the Milk Processing Plant in Mandi, therefore benefiting the state's dairy cooperative.
iii) A new plant with a capacity of 50,000 litres per day is being constructed at Milk Processing Plant MPP Duttnagar which will help the state's dairy cooperative.
iv) Milkfed has increased the purchase rate of cow milk by ₹ 6 per litre and has started 15-day milk payment cycles to milk producers in the state instead of a monthly cycle w.e.f 01.01.2024.
v) H.P Milkfed has initiated the Him Ganga Scheme announced by the H.P Government on a pilot basis in Districts Hamirpur and Kangra in the first phase during the year 2022-23.

Wool is a type of fabric derived from the hairs of various animals. While most people associate the word “wool” with sheep, there are, in fact, a variety of distinct types of wool that producers derive from animals other than sheep.
To make wool, producers harvest the hairs of animals and spin them into yarn. They then weave this yarn into garments or other forms of textiles. Wool is known for its durability and thermally insulating properties, depending on the type of hair that producers use to make wool, this fabric may benefit from the natural insulative effects that keep the animal that produced the hair warm throughout the winter.
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 FY 2023-24 up to November 2023, 73,167 sheep were sheared benefiting 412 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.

Fish are a very high source of proteins and have great nutritional value. Fish production was initially dependent on fish capturing. However, most of the captured fish were used for industrial purposes and were hardly consumed by man. Therefore, an alternative method to increase fish production was devised that includes farming and husbandry of economically important aquatic organisms. This is known as aquaculture.
The fishery is a crucial sub-sector within the primary sector of the State. The government has given priority to the promotion of pisciculture, and to facilitate this, the State has introduced the Himachal Pradesh Fisheries Rules 2020. The region is blessed with abundant river water, trout waters, and reservoirs, providing rich potential for fishery resources.
By strategically harnessing these resources, the state aims to significantly increase fish production through capture, culture, and culture-based capture fisheries. This expansion is intended to meet the demands of both the domestic and export markets. In addition to boosting the economy, the development of the fisheries sector is expected to create employment and income-generating opportunities, particularly for the rural poor, women, and youth.
The downstream journeys of the Beas, Satluj, and Ravi rivers in the region bring in several streams that harbor valuable cold-water fish species such as Schizothorax, Golden Mahseer, and exotic Trout. The state's coldwater resources have shown great promise, highlighted by the successful completion of an ambitious Indo-Norwegian trout farming project. The hill population has demonstrated a keen interest in adopting advanced technologies related to fish farming.
Economically significant fish species thrive in the reservoirs of dams like Gobind Sagar, Pong, Chamera, and Ranjeet Sagar. These reservoirs have become valuable assets for the local populace. The success of the fisheries sector in these areas not only contributes to the economic well-being of the community but also showcases the potential for sustainable and profitable cold-water fish farming.
The adoption of advanced technologies and successful projects not only enhances fish production but also promotes the conservation and sustainable utilization of cold-water resources. This, in turn, supports the economic growth of the region while maintaining the ecological balance of the rivers and their ecosystems. The integration of modern practices and local enthusiasm for fish farming bode well for the continued development of the fisheries sector in the state.
Fish production:About 6,020 fishermen in the State depend directly on reservoir fisheries for their livelihood. During FY 2023-24, up to December, 2023, cumulative fish production was 11337.28 MT valued at ₹17949.23 lakh. Around 7.72 tonnes of trout has been sold from the State farms and ₹57.57 lakh has been earned as revenue from Trout Farms during the current FY 2023-24 (up to December, 2023). The production and sale of fish is shown in Table 7.7. There has been a significant rise in total fish production in Himachal Pradesh in the last decade. Fish production more than doubled between 2012-13 and 2023-24 and registered a CAGR of 2.3 per cent between the same periods. Table 7.7 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 17,026.09 MT in 2022-23 and is expected to reach 11,337.28 MT during FY 2023-24. The value of the production also increased from ₹5,818.13 lakh to ₹17,949.23 lakh in the same period.
Table 7.8 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 7.9 The total export of fish from all sources, increased between 2012-13 and 2022-23. The total import of fish from all sources increased between 2012-13 and 2022-23. Year-on-year growth rates of import and export of Fish production are depicted in Figure-7.5 and 7.6.
Growth and contribution of Fishery sector:The fishery sub-sector constitutes 0.15 per cent of total GSVA and 1.1 per cent of agriculture and allied sector GSVA at current prices in 2023-24. The growth of the fishery sector has been encouraging over the last five years. The Fishery sub-sector is estimated to grow at 7.0 per cent in 2023-24 against 9.1 per cent in 2022-23.

To meet the needs of reservoirs, rural ponds, and commercial farms across the public sector, the Department of Fisheries has established carp and trout seed production facilities in the State. The State has produced a total of 20.48 lakh fingerlings of 70mm and above of common carp, 2.82 lakh fingerlings of Indian Major Carp (IMC) and ₹3.57 lakh Rainbow Brown Trout by the end of December, 2023. The total value of seeds generated is around ₹45.18 lakh.
Insurance and Welfare Schemes:The Department of Fisheries has taken proactive steps to uplift fishermen through various welfare schemes. One significant initiative involves providing insurance coverage for fishermen. Under this scheme, in the unfortunate event of death or permanent total disability, fishermen receive financial assistance amounting to 5.00 lakh. Additionally, the government extends support to fishermen by compensating for losses incurred to their gear and crafts. This compensation is provided to the extent of 50 per cent under the Risk Fund Scheme.
These welfare schemes play a crucial role in safeguarding the interests of fishermen and their families. The insurance coverage helps provide financial security in times of unexpected adversity, such as accidents or disabilities. The compensation for losses to gear and crafts under the Risk Fund Scheme is a valuable support mechanism, acknowledging the challenges and risks faced by fishermen in their profession. By implementing these welfare measures, the government aims to improve the socio-economic conditions of fishermen, recognizing their contribution to the fisheries sector and ensuring their well-being in the face of uncertainties inherent to their livelihoods.
A contributory saving scheme has been initiated by the State Govt. and matching the State's share of deposited savings is provided to them during the close season. The amount so generated is paid to fishermen in two equal monthly instalments. During the year 2023-24 an amount of ₹120.38 lakh (₹40.13 lakh contributed by the fishermen plus ₹80.25 lakh as financial assistance from the State and Centre Government) will be provided to 2,675 fishermen 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 (PMMSY).
Trout Livestock Insurance Scheme:The State Government has introduced a program for the fiscal year 2023-24 aimed at providing insurance coverage for the livestock of cold-water fish producers in the state. Under this initiative, 65 per cent of the insurance premium is covered by the State Government, while the remaining 35 per cent is borne by the recipient. The comprehensive insurance coverage is provided by the United India Insurance Company Limited.
In the preceding fiscal year (FY 2022-23), the government insured the construction of five trout units owned by five trout farmers. Each trout unit, with a premium of ₹19,175 per year, is insured at a maximum input cost of ₹2.50 lakh per annum. This project directly benefits 694 trout farmers, encompassing 1,323 raceways or units.
The insurance program serves as a supportive measure for cold-water fish producers, mitigating risks associated with livestock and construction investments. By providing financial assistance and risk coverage, the government aims to promote the sustainability and growth of trout farming in the state, benefiting the livelihoods of numerous farmers involved in this sector.
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 several projects totalling ₹12,972.86 lakh. The approval for the various projects ₹2,643.90 lakh has been received. Table 7.10 shows the achievement of the fisheries sector for FY 2023 (December 2023), as well as the targets fixed for FY 2023-24.

Himachal Pradesh, situated in both the Trans-Himalayan and Himalayan biogeographic regions, owes its rich diversity of flora and fauna to the existence of the Shiwaliks, Western Himalayas, and Trans-Himalayan mountain ranges within the State. 15,443 square kilometres (sq. km)-or 27.74 per cent of the State is under forest. 37,948 sq. km (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 8 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 environmental protection under the Constitutional framework, the Government of Himachal Pradesh has been taking several initiatives to protect its forests and biodiversity and minimize the harm 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 Forest Department aims to enhance the forest cover in the State from 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: The total forest area in Himachal Pradesh spans 37,948 square kilometres, accounting for 68.16 per cent of the state's total geographical area. The actual forest cover is reduced, primarily because substantial portions consist of alpine meadows or are located beyond the tree line.
Approximately 15,443 square kilometres (27.74 per cent) is designated as an actual forested area, characterized by varying density levels ranging from 10 per cent to 70 per cent and above. This includes 3,163 square kilometres of highly dense forests with a crown density of 70 per cent and above, 7,100 square kilometres of moderately dense forests with a crown density between 40 per cent and 70 per cent, and 5,180 square kilometres of open forests with a crown density between 10 per cent and 40 per cent. Additionally, 322 square kilometres are classified as shrubs. Table 8.1 gives an overview of the forests as per the crown density.

In FY 2023-24, the forestry and logging sub-sector added ₹7,228 crore accounted for 27.32 per cent of the Gross Value Added (GVA) by the Agriculture & Allied sector and 3.74 per cent of the total Gross State Value Added (GSVA) in the State (Figure 8.3).
The GVA at constant (2011-12) prices by the forestry and logging grew from ₹4,719 crore in FY 2018-19 to ₹5,380 crore in FY 2023-24, an absolute increase of ₹661 crore. During FY 2023-24 forestry and logging sector is expected to grow by 1.6 per cent.

The planned 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 initiatives are underway through diverse state-level programs, including the Compensatory Afforestation Fund Management and Planning Authority (CAMPA), as well as centrally sponsored initiatives such as the "National Afforestation Programme" and the National Mission for Green India. Additionally, forest plantation efforts are being conducted through External Aided Projects.
Pasture and grazing lands of the state are being managed under the 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 the New Forestry Scheme (Sanjhi Van Yojana).
For the FY 2023-24 plantation target of 10,000 hectares including CAMPA and Centrally Sponsored schemes has been fixed out of which 7,636 hectares targets stand achieved and the remaining target will be achieved up to 31st March, 2024.
Forest Management: The state's forests face growing biotic pressure due to rising human populations, evolving animal husbandry practices, and developmental activities. These forests are vulnerable to risks such as fires, unauthorized logging, encroachments, and other forest-related 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.
A 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 to silviculture green felling of three species, Khair, Chil and Sal, on an 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 FY 2023-24 maintenance of areas is being carried out as per recommendations of the Supreme Court Monitoring Committee. The Hon’ble Supreme Court has allowed the felling of Khair trees and the activities of enumeration and marking of trees, eradication of lantana etc. in respect of ten forest divisions as per the approved working plan is also being carried out.
Besides encouraging regeneration of forests aimed at achieving mixed species forest; the same will provide livelihood opportunities to the locals as well. To date, approximately 13,000 khair trees have been marked for felling and have generated 33,272 man-days of work. Expected revenue which will be deposited in government exchequer from the felling of these marked trees is ₹9.65 crore.
New Schemes:To raise awareness among local communities, students, and the general public regarding the significance of forests and their role in environmental conservation, as well as to promote sustainable harvesting, handling, and value addition, the following new schemes have been introduced:
a) Mukhya Mantri Van Vistaar Yojana:In August, 2023 Mukhya Mantri Van Vistaar Yojana was launched to expand the green cover of the state to difficult sites through integrated site-specific afforestation, to provide forest ecosystem services and livelihood opportunities to the local population. Under this yojana plantation has already been carried out over an area of 232 hectares of forest land during monsoon season 2023 in the 11 districts of Himachal Pradesh. The scheme shall be upscaled in the coming years.
b) Engaging of ‘Van Mitra’:To promote Community Forest Management and Planning 'Van Mitra’ scheme has been launched by the Government of HP during October, 2023. Van Mitras' engagement would be associated with all forestry operations of the Forest department throughout the year. In a phased manner ‘one’ Van Mitra shall be engaged per Forest Beat. The process of engagement of 2,061 Van Mitra has already started from 30th November, 2023.
Other Initiatives/Achievements:
i) Setting up of a large Zoo in Bankhandi:A large zoo at Bankhandi in Kangra district is being set up at an estimated cost of ₹600 crore which will boost tourism and provide employment opportunities to the locals. The Zoo shall be constructed in three phases over an area of 180 hector with a provision of ₹60 crore in 2023-2024.
The Zoo design & construction will incorporate eco-friendly technologies, renewable energy sources viz. solar energy and efficient waste management systems. To minimize ecological footprint recycling and sustainable procurement practices will be adopted. The first phase of the Zoo is proposed to be operational in 2024-25. Preparation of DPR cum detailed design is in progress, while an agency has been selected for construction of boundary wall access path and water harvesting structure.
ii) Recruitment of Forest Guards:The government has approved the filling up of 100 vacant posts of Forest Guards on a contract basis in the Forest Department. The process of recruitment will be undertaken soon.
iii) Eco-Tourism:To give a boost to Eco-Tourism in Himachal Pradesh, it has been decided to outsource the Management and Operation of Eco-Tourism activities on 93 prioritized Eco-Tourism sites in a phased manner. In the first phase Request for Proposal (RFP) for design, development, management/ providing services to run ecotourism activities at 12 eco-tourism potential sites in Himachal Pradesh was floated in January 2024.
iv) Adoption of National Transit Pass System:For the unhindered movement of forest produce exported from Himachal Pradesh State has adopted the National Transit Pass System. This system will expedite the issuance of transit permits for timber, bamboo and other minor forest produce without physically going to forest offices and replaces manual paper-based transit system with an online transit system. There shall be seamless movement across state borders from origin to destination through the help of a Mobile App. This will also prevent hardships for timber and bamboo producers, farmers and transporters in obtaining permits and saving transportation costs and time which will benefit farmers & traders.
v) Standard Operating Procedure (SOP) for Enumeration marking, extraction and disposal of unattended salvage trees from the forest area: SOP has been made operational for the timely disposal of salvage trees to minimize revenue loss due to timber deterioration. The end user will benefit as he will get the timber in log form, the waste can be used by them as fuel wood or can be utilized for other purposes. The end user will also get benefit from the availability of timber at the local level. The SOP prescribes for provisioning of timber for local sale in range depots and roadside depots, which will generate employment at the local level and will boost the revenue collection on account of timber disposal.

Centrally Sponsored Schemes

Himachal Pradesh Forest Eco-systems Climate Proofing Project (KfW assisted):The Himachal Pradesh Forest Ecosystems Climate Proofing Project, supported by KfW Bank (Credit Institute for Reconstruction), Germany, is currently underway in the Chamba and Kangra districts of the state. The project, spanning seven years from the fiscal year 2015-16, has a total budget of ₹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 ₹50.00 crore has been kept for the current financial year 2023-24 out of which ₹13.62 crore have been spent.
Himachal Pradesh Forest Ecosystems Management and Livelihood Improvement Project: The "Himachal Pradesh Forest Ecosystems Management and Livelihood Improvement Project," valued at ₹800 crore and spanning 10 years, is being financially supported by the Japan International Cooperation Agency (JICA).
The implementation of the project is taking place across Bilaspur, Kullu, Mandi, Shimla, and Kangra, as well as in the tribal areas of Kinnaur and Lahaul-Spiti. The project headquarters are situated in Shimla, with regional offices established in Kullu and Rampur Bushahar. The objectives of the project are to conserve the forest and mountain ecosystem and improve the 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 the Financial Year 2023-24, the Government has provided ₹55.00 crore under this project out of which ₹54.37 crore has been spent up to 31st December, 2023 and an additionality ₹25.00 crore has been sought from the Government.
World Bank Aided Integrated Project for Source Sustainability and Climate Resilient Rain-fed Agriculture: The World Bank has approved an additional project with a budget of $100 million (₹ 650 crore), known as the Integrated Project for Source Sustainability and Climate-Resilient Rain-fed Agriculture. The funding distribution for this project is set at 80:20, and its duration is 7 years. The project would be implemented in 900 Gram Panchayats in Shiwalik and Mid Hills agro-climatic zones spread across various watersheds in the state. The key outcomes under this project include:
i) Comprehensive Treatment of around 2 lakh Ha non-arable and 0.20 lakh Ha arable lands in the project area.
ii) Water productivity/efficiency enhancement by 30 per cent of the project area.
iii) Production enhancement of Milk by 20 per cent
iv) 25 per cent of the vulnerable Households covered under livelihood improvement
v) Increase productivity of agricultural crops by 25 per cent
vi) Increase the income of farmers through agri-business/enhanced production by 30 per cent.
For the Financial Year 2023-24, the Government has provided ₹70.00 crore under this project out of which ₹52.61 crore has been spent up to 31st December,2023 and an additionality ₹45.00 crore has been sought from the Government.
Wildlife-Human Interface:Throughout history, the state and its biodiversity have existed in harmony. Over the years, more than 600 local plants have been utilized by people for various purposes such as healthcare, food, fruit, fibre, fodder, fuel, gums, oil, resin, and more. These plants play a significant role in supporting 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, the prohibition of hunting has resulted in a rise in the population of wild animals. The expansion of agriculture, combined with heightened human intervention in previously untouched regions, has consequently increased the instances of human-animal conflicts. 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.
Wildlife managers are currently developing a comprehensive, long-term policy to address the growing challenges posed by human-wildlife conflicts. In response to these concerns, the State Government is providing financial compensation for instances involving the loss of domestic animals or injuries to, as well as the loss of human life caused by wild animals. The inseparable nature of forests and animals is evident, as both constitute vital components of the environment.
Environment Forestry and Wildlife: An important part of the forest ecosystem is the presence of trees and plants. Clean air and shelter are essential for life on the planet. Forests also aid in the preservation of biodiversity.
In addition to regulating global temperatures, forests protect soil from erosion and provide a haven for more than 80 per cent of the world’s animal species and biodiversity on land. They also contribute to a country’s socio-economic development. The term “wildlife” refers to the non-domesticated species of animals. This means that any living creature that lives in the forest is linked to wildlife. One of the most widely distributed species, it can be found in a wide range of environments. Wild animals play an important role in the stability of our environment, either directly or indirectly, through their role in natural processes. It doesn’t matter if an organism is a producer, a consumer or a decomposer; they all play a role in the food chain and depend on each other for survival.
Our ecosystem would be incomplete without the diversity and abundance that wildlife provides.
i) For their medicinal properties, wild plants account for more than a third of our pharmaceutical needs. In addition to the requirements for large-scale production of antibiotics and other medicines for therapeutic purposes, forests offer significant potential for medical science and technology breakthroughs.
ii) Contributes to the health of our environment by preventing sea levels from rising sharply by maintaining global temperatures and thus combating the greenhouse effect.
iii) The interdependence of plants and animals is critical to preserving ecological harmony.
iv) Economic value: The use of fossil fuels from forests contributes to the country’s economic growth, which in turn improves the quality of life for its citizens.
v) Thousands of species find refuge in these massive forests, which aids in the preservation of biodiversity.
vi) Nitrogen fixation is facilitated by microorganisms in wildlife, increasing soil fertility.
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 is working with a broad objective to improve the effectiveness of environmental management, protect vulnerable ecosystems and enhance the sustainability of development.
In recognition of the critical issue of climate change, the government has undertaken a significant step by renaming the Environment Department to the Department of Environment, Science, Technology and Climate Change. This strategic move reflects a heightened commitment to addressing environmental challenges through a comprehensive approach that incorporates scientific advancements and technological solutions. The Department of Environment, Science, Technology and Climate Change now stands as the primary and nodal agency representing the State in all affairs about climate change.

Government Initiatives

Currently, the State confronts significant environmental challenges, particularly due to the intricate relationship between environmental degradation and economic growth. These challenges revolve around the condition of environmental resources, encompassing 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:Plastic pollution is one of the major challenges to the environment and the State Government has banned the use of certain items of polythene and littering of plastic items from time to time under Himachal Pradesh Non-Biodegradable Garbage (Control) Act, 1995. The initiatives taken by the department are as follows: Furthermore, it has been acknowledged that the challenging and cold climate conditions in the State render the use of biodegradable bags ineffective in degrading. Consequently, an amendment to the Act was introduced in December, 2023, which may lead to the prohibition of biodegradable bags within the State in future. As per the provision of the Act, A fine of ₹10.24 lakh has been collected from 1,138 violators in the year 2023. Under this Act, one-time use such as disposable plastic cups, glasses and plates, polythene carry bags, plastic and thermocol cutlery use of plastic spoons, bowls, stirring sticks, forks, knives, and straws have been completely banned in Himachal Pradesh. A ban has also been imposed on non-woven carry bags having < 80GSM from October, 2022. Under the Plastic Buy-back Policy, about 20,902 kg of plastic waste has been purchased at ₹75 per kg during 2023-24 and properly disposed of in the construction of approximately 112 km of plastic road in the State.
Creation of Model Eco Villages:The Department of Environment, Science & Technology is actively implementing the Model Eco Villages scheme in the State. This scheme is focusing towards the perspective of developing a low-impact lifestyle to reduce the "ecological footprint" by as much as 50 per cent from the base assessment since the scheme's inception. 19 villages have been included under this scheme and a total budget of ₹3.00 crore has been utilized up to the FY 2023-24, a provision of ₹32.00 lakh has been made under this scheme for implementation.
Research and Development (R&D) Projects:To promote R&D, "Himachal Pradesh Specific Research and Development Projects 2023-24" are being funded to develop academic institutions, National laboratories and other recognized R&D Institutions in different fields of the State. Under this scheme, out of a total of 32 R&D projects, 6 projects have been approved. An amount of ₹17.00 lakhs has been earmarked for these projects during the financial year 2023-24.
To facilitate the implementation of the budget announcement 2023, the process of setting up of R&D centre at Appropriate Technology Centre, Shahpur, Kangra has been initiated to carry out research to use biodegradable material including making plates and cutlery from plant leaves. Pattal and dona machines have also been installed and made functional for providing training and capacity building of women self-help group members and local artisans.
Schedule Caste (SC) Development Plan:This scheme is being implemented to strengthen the capacity of marginal SC families/farmers to meet energy requirements for irrigation, water lifting, heating and space lighting through demonstration of solar power plants, restoration and mechanization of traditional water mills (Gharats), revival of natural springs of marginal SC families/communities. A dedicated amount of ₹1.00 crore has been allocated for the FY 2023-24.
State-Level Environment Leadership Awards:The Himachal Pradesh Environment Leadership Awards scheme is one of the regular schemes of the Department of Environment, Science & Technology. This year 14 awards were conferred, recognizing and celebrating innovative actions across various sectors of the economy. These awards symbolize a commendable acknowledgement of outstanding efforts and contributions towards sustainable practices and environmental stewardship within the region.
World Environment Day 2023:The World Environment Day is celebrated annually on 5th June in the State. This significant event was presided over this year by the Chief Minister, who flagged off the Clean Shimla Drive, themed "Plastic Hatao Paryavaran Bachao Abhiyan”. Additionally, a Cycle Run took place, emphasizing the themes #Mission LIFE and #Beat Plastic Pollution. As part of this event, an initiative was undertaken, wherein 20 Solar lights and 8 machines for making Pattals and dona were distributed free of cost to empower economically disadvantaged women to enhance their livelihoods, economic well-being and sustainability.
Environment Impact Assessment & Clearances:The Department of Environment, Science, Technology & Climate Change holds the pivotal role of being the State-level secretariat responsible for managing Environment Impact Assessment (EIA) and Environmental Clearances. In the FY 2023-24, the department, through the Environment Impact Assessment, Authority, Himachal Pradesh successfully granted Environment Clearance to 40 projects. This underscores the department’s commitment to ensuring a thorough and responsible evaluation of projects to mitigate environmental impacts.

Climate Change Initiatives

Himachal Pradesh Knowledge Cell on Climate Change (HPKCCC):Under the National Mission for Sustaining Himalayan Ecosystems (NMSHE), the Department of Environment, Science and Technology and Climate Change Himachal Pradesh has established Himachal Pradesh Knowledge Cell on Climate Change (HPKCCC). The HPKCCC has successfully organized various capacity-building programs focused on climate change adaptation. The Climate Change Vulnerability Assessment and Adaptation Plans for Kinnaur & Lahaul-Spiti districts have been completed and plans for Shimla, Kullu & Mandi districts are in progress.
Climate Adaptation and Finance in Rural India (CAFRI) project:CAFRI project is implemented in the State under Indo-German Technical cooperation between the German Development Co-operation (GIZ) and the Ministry of Environment, Forest and Climate Change (MoEFCC). About 10 million euros shall be spent on adaptive capacity development for approximately 5,000 women farmers in drought-prone and climate change areas of the State between the year 2023-2026.
Convention on Climate Change: The United Nations (UN) annual climate change conference, is commonly referred to as the 'Conference of the Parties' or 'COP'. This conference provides a forum for negotiating parties, which include Governments that have endorsed international climate agreements such as the UN Framework Convention on Climate Change (UNFCCC), the Kyoto Protocol, and/or the Paris Agreement. Himachal Pradesh represents its initiatives during COP in the year’s actively participated in the event. (The team assumed leadership roles during key sessions, specifically steering discussions on a) Climate Change Vulnerability in the Himalayan Region: Impacts and, Implications, and b) Climate Resilient Development Strategy for the Indian Himalayan Region (IHR)–Green Resilient Mountain Communities.) This significant engagement took place from 3rd to 6th December, 2023, highlighting the state’s commitment and involvement in shaping discussions related to climate change impacts and strategies for resilient development in the Himalayan region.

The Himachal Pradesh Council for Science, Technology and Environment (HIMCOSTE), is the nodal agency for the promotion of Science and Technology and the creation of Environment Awareness in the State.

Major achievements/policy initiatives

Centre for Science, Learning and Creativity:The Centre for Science Learning and Creativity was inaugurated by the Chief Minister on 7th October, 2023, in Bhog, Anandpur, Shoghi near Shimla. This centre’s establishment aims to spark curiosity in the minds of youth towards science and enable them to comprehend scientific principles more effectively. It eliminates the need for students in the state to go outside for the study and experience of science. The centre includes institutional and hostel blocks. Sixty interactive science exhibits and information displays have been installed in the institutional block. Accommodation facilities have been arranged for children and teachers from remote areas in the hostel. Construction of a modern planetarium has commenced at this centre, which is expected to be made operational by the end of 2024.
Appropriate Technology Centre, Shahpur at District Kangra:The Appropriate Technology Centre, Shahpur, was operationalized in the year 2023 by the Himachal Pradesh Council for Science, Technology, and Environment. The main objective of this centre is to test, monitor, and evaluate suitable mountain technologies, create facilities for demonstration, training and development raise awareness and provide training to artisans.
Registration of Kangra Tea as a Protected Geographical Indication (PGI) in the European Union (PGI-IN-0672):
In March 2023, the Himachal Pradesh Council for Science, Technology, and Environment successfully achieved the registration of Kangra Tea as a Protected Geographical Indication in the European Union. This is the second Indian product to receive protection in the European Union. This will enable tea producers to legally sell their products directly in European markets, thereby supporting their economic and social development. The Council has also applied for registration of other traditional products, such as Sirmauri Lohiya, Kullu Caps, Kinnauri Caps, Mandi Sepuvuadi, Kinnauri Apple, Kinnauri Jewellery, and Pangi's Thangi, as geographical indications under the Geographical Indications of Goods Act, 1999, at the Geographical Indications Registry Office of the Government of India in Chennai. The registration of these products is in the final process at the Chennai office of the Government of India.
Himachal Pradesh Children Science Congress:The HIMCOSTE has been organizing the Children's Science Congress for the students of 10-17 years of age group every year since 1993. This event is organized at the Sub-Division Level, District level and State Level. This year 26,674 Students were registered for the event in which six activities like Science Quiz. Scientific Project Report, Mathematical Olympiad, Innovative Science Model, Science Activity Corner and Science Skit were organized.

The Jal Jeevan Mission, launched by the Union Government on August 15, 2019, is dedicated to achieving the objective of providing Functional Household Tap Connections (FHTC) to every rural household in India by the year 2024. The estimated nationwide cost for implementing this program is ₹ 3.60 lakh crore. The mission is centered on establishing a household-level service system, ensuring a consistent supply of water at the prescribed quality, with a target of 55 liters per capita per day.
Among the total 17.09 lakh rural households in Himachal Pradesh, 7.63 lakh households already possessed Functional Household Tap Connections (FHTCs) prior to the initiation of the Jal Jeevan Mission. The remaining 9.46 lakh rural households in Himachal Pradesh have been included under the Jal Jeevan Mission (JJM), resulting in the state achieving 100 per cent Functional Household Tap Connection (FHTC) saturation for rural households. This surpasses the national average of 72.05 per cent.
The state currently holds the 9th position nationwide in ensuring potable water to households with 100 per cent tap water coverage. Additionally, it secures the 1st position among hill states in achieving complete tap water coverage.
Urban Water Supply Schemes: Himachal Pradesh has a total of 60 towns/ULBs local bodies. Jal Shakti Vibhag oversees the water supply system for 58 of them, excluding Anni town. Shimla Jal Prabhandan Nigam manages the water supply in Shimla Town, while HIMUDA oversees Parwanoo Town. Out of the 58 schemes, 46 are complete, and there are ongoing projects for new water supply schemes and the improvement of existing ones in various towns.
DPRs for upgrading/providing water supply to left-out areas of 17 towns have been sanctioned under AMRUT 2.0. Some of these projects have received approval and are in progress, while others are awaiting technical sanction.
Status of Sewerage Schemes: In the urban areas, sewerage facilities have been provided in 35 towns, with 13 having complete systems and 22 partially covered. The Jal Shakti Vibhag has installed 61 sewage treatment plants (STPs) of 89.143 MLD capacity, serving various urban local bodies. Construction of new sewerage schemes in 9 towns is in progress, and approvals for sewerage systems in other towns are being processed.
In the rural sector, sewerage facilities are in progress, with partial coverage in 8 rural areas, and work on schemes in 15 other rural areas is ongoing. In addition, the sewerage schemes in rural areas have also been included for funding as MLA priority, NABARD Tribal Head etc. Total of 16 sewerage schemes have been approved under NABARD for amounting to ₹ 220.77 crore.
Command Area Development:In the FY 2023-24, the Himachal Pradesh government allocated ₹57.91 crore for Command Area Development, focusing on minor irrigation schemes. The goal is to bridge the gap between potential created and utilized, with a physical target of 3,670 hectares of Culturable Command Area (CCA). By October 2023, 1,508.08 hectares have been covered for ₹ 20.67 crore.
Hand Pump Programme:The government actively implements a hand pump program to address water scarcity during the summer season. As of December 2023, a total of 41,835 hand pumps have been installed.
Irrigation:Himachal Pradesh has a total land area of 5.567 million hectares, however only 0.583 million hectares are farmed, with an estimated irrigation potential of 0.335 million hectares through major and medium irrigation projects 0.050 million hectares are irrigated and the remaining 0.285 million hectares can be irrigated through minor schemes. As of October 2023, 0.303 million hectares are currently irrigated.
Major Irrigation:The Shahnehar Project in Kangra District stands as the significant irrigation project in the state, covering 15,287 hectares of land. By October 2023, the Command Area Development team brought 10,042 hectares of land under CAD operation out of the total 15,287 hectares.
Medium Irrigation:Projects like the Balh Valley Left Bank Irrigation Project, Sidhatha Kangra Irrigation Project, and Changer area Bilaspur Irrigation Project cover 2,780, 3,150 and 2,350 hectares respectively of land. CAD efforts have expanded to include 2,750 hectares of land in the Sidhatha area by October 2023. The Phina Singh Cultivated Command Region and Nadaun area in district Hamirpur are 4,205 and 2,980 hectares respectively both of which are undergoing development as a part of a medium-scale irrigation project.
Minor Irrigation:For FY 2023-24, ₹322.44 crore has been allocated to provide irrigation infrastructure for an area of 5,740 hectares. As of October 2023, ₹ 94.77 crore has been spent to cover 2,332.21 hectares.

The Industry sector has been leading the way in global economic expansion and enhanced labour efficiency since the dawn of the Industrial Revolution in the 16th century. South Korea, Singapore, and Taiwan serve as prime examples of recently industrialized nations that have harnessed industrial policies and industry support to attain swift economic progress. These nations currently rank among the wealthiest in the world.
Himachal Pradesh has seen good industrialization in recent years. Over the previous six years, the industry sector of the state has contributed 43 per cent 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 laid significant emphasis to public-private partnerships as a mean 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 in generating job. Industry Sector (including Mining and Quarrying) at current prices as per Advance Estimates (AE) for the FY 2023-24 is estimated at ₹82,658 crore.
The manufacturing sector contributes 68.34 per cent of the nominal Gross Value Added (GVA) to the overall value added by the industry sector, with the remaining 31.66 per cent contribution coming from the sub-sectors of construction, mining and quarrying, and electricity and other utilities.
The contribution of the industry sector (including Mining and Quarrying) at current prices to Gross State Value Added (GSVA) is 42.80 per cent in FY 2023-24 of which 29.25 per cent comes from the manufacturing sector, 7.44 per cent from construction and 5.76 per cent in electricity, water supply and other utilities services.
The contribution of mining and quarrying sector in GSVA at Current Prices has increased from 0.31 per cent in the year 2019-20 to 0.36 per cent in FY 2023 -24.
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 FY 2022-23 and at the national level, the industry sector's GVA surged by 4.1 per cent in constant terms during the same period. The rapid growth in GVA of the State’s industry sector implies that the COVID times 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 FY 2023-24, the manufacturing sector is expected to grow at 8.9 per cent which is the second-highest growth rate in the industry sector (Figure 9.2). Between 2012-13 to 2023-24, manufacturing sector experienced higher CAGR of 7.8 per cent among sub-sectors of industry sector demonstrating Himachal Pradesh’s rapid manufacturing development and its capacity to draw in investment through business reforms, the provision of better infrastructure and competitive financial concessions to prospective investors.
ii) Construction sector:Growth of the construction sub-sector is critical for increasing income of organised as well as unorganised sectors and also necessary for the infrastructure development of the State. The construction sector anticipated the highest growth rate in the industry sector during FY 2023-24 which is 12.9 per cent (Figure 9.2).
iii) Electricity, Water Supply and Other Utility Services Sector :During FY 2023-24, the electricity, water supply and other utility services sector is expected to grow at 6.7 per cent which has the third highest growth rate in the industry sector (Figure 9.2).
iv) Mining and Quarrying Sector:The mining and quarrying sector is expected to grow at 5.8 per cent in FY 2023-24.
Employment Contribution: 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) 2021-22, 20.12 per cent of the state's working adults were employed by the industry sector which decreased to 17.28 per cent in 2022-23, PLFS. There are approximately 10,32,528 working adults in the State engaged in the industry sector.
Construction and manufacturing are two sub-sectors within the industry sector that provided the largest share of employment to the workforce in the State employing 8.41 per cent and 6.93 per cent of the State's working adults respectively. The other two sub-sectors together employ 1.46 per cent of the state's workforce. From Figure 9.4, it is visible that the manufacturing sector's share in employment improved to 41 per cent in 2022-23 from 38 per cent in 2021-22, while the share of electricity and other utilities increased to 7 per cent in 2022-23 from 4 per cent in 2021-22.
Sector-wise distribution of Working Population: Percentage distribution of usually working persons by industry of work for Himachal Pradesh (out of the total workforce) has been presented in Figure 9.5 which shows that 58.71 per cent, 16.94 per cent and 24.35 per cent are employed in the Primary, Secondary and Tertiary sector respectively (PLFS, 2022-23). In Himachal Pradesh under secondary sector working population on employed in urban and rural area is 34.19 and 15.7 per cent respectively.
Figure 9.6 displays the gender-based differences in the labour force between rural and urban areas. While just 5.4 per cent of rural women are engaged in the secondary sector, 25.2 per cent of men in the labour force in rural areas are gainfully employed in this sector. Comparatively, only 27.35 per cent of women in urban areas are engaged in the secondary sector (21.95 per cent higher than in rural areas), whereas 37.07 per cent of men in urban areas are gainfully employed in the labour force.

The industrialization of the State is a relatively recent development, which began to draw attention only after achieving statehood. Before achieving Statehood in 1971, the key industrial establishments in the region included the Nahan Foundry in Nahan (Sirmour), Mohan Meakins Breweries in Kasauli (Solan), Salt Mines in Drang (Mandi), Rosin and Turpentine Manufactures in Nahan and Bilaspur, along with four minor gun factories in Mandi. Recognizing the pivotal role of an Industrial Policy in bolstering investor confidence and fostering industrial growth, the State Government acknowledged its significance. The initial set of incentives for industries was introduced in 1971 and underwent revisions in 1980, 1984, 1991, 1996, 1999, and 2004, adapting to evolving circumstances. Subsequent modifications occurred in 2009, 2015, and 2017, reflecting the state's responsiveness to changing economic and industrial landscapes.
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 one of the preferred destinations for investment". In 2022-23, industrial policy 2019 was extended from December, 2022 to December, 2025 to provide a favourable industrial development environment, especially for Micro, Small and Medium Enterprises. If this strategy is implemented, it will help accomplish its goals by
i) EoDB will be ensured by the simplification of laws and processes, the adoption of self-certification, and the rapid digitization of all approvals.
ii) Building a new industrial infrastructure, or improving upon an existing one, and establishing a private Land Bank.
iii) The provision of reliable, cost-effective electricity.
iv) Streamlining the distribution of State-provided incentives, concessions and facilities, investment in the State may be maintained and speed up.
v) By providing incentives, facilities and concessions with the condition of employment to 80 per cent Bonafide Himachlies at all levels. Enterprises employing above 80 per cent of Bonafide Himachlies regularly are being incentivized on additional employment generated over and above 50 per cent Bonafide Himachlies.

To promote the growth of manufacturing sector and boost employment opportunities in Himachal Pradesh, the state government has identified and prioritized eight specific industries to focus 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. These eight sectors are as follows:
Agri-Business, Food Processing and Post-Harvest Technology: The State has an abundance of raw materials 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.
Feature of Agri-Business, Food Processing and Post Harvest Technology
i) Fruit Bowl of India- Ranks 2nd in Apple and Almond Production.
ii) One of the largest producers of off-season vegetables and exotic fruits.
iii) 4 Agro-Climatic Zones and 9 varieties of soil.
iv) Adequate Infrastructure for Agri & Food Processing Business.
v) Presence of the World's Leading Food Processing Players in the State.
Manufacturing and Pharmaceuticals:The state has undergone a remarkable shift from an agrarian to an industrial economy, experiencing a substantial increase in the industry sector's contribution to the Gross State Domestic Product (GSDP). In 1950-51, the industry sector contributed only 7.0 per cent to the GSDP, but by 2023-24, this figure has surged to an impressive 42.80 per cent. To promote equitable and balanced industrial development throughout the state, the Industrial Investment Policy of 2019 provides higher incentives for investors establishing businesses in the "B" and "C" categories of the state. Sector Highlights of Manufacturing and Pharmaceuticals are stated under the following points:
i) The State has 60 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.
ii) 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.
iii) 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 the 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", the central Govt has given its initial share of ₹30.00 crore and the State Government has released ₹74.95 crore as a State share. For "Bulk Drug Park", the State Government has released ₹50.54 crore as an initial State share and ₹225.00 crore has been released as a Central Share. With the commissioning of these 2 parks, the State will get a boost in investment and employment opportunities.
Present Status of ID clusters under the MSE-CDP scheme: Under the MSE-CDP scheme of the Ministry of MSME, Government of India (GoI), three Infrastructure Development Clusters have been granted final approval by the GoI. The total cost of these three ID projects is ₹3,234.67 lakh. Furthermore, the GoI has provided a Grant-in-Aid (GIA) amounting to ₹2,339.93 lakh for these projects. The status of the project in the State is tabulated below:
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.
Investment projects in Tourism, Hospitality and Civil Aviation
i) Ropeways Project at Shri Anandpur Shaib to Shri Naina Devi Ji, Shikari Devi (Mandi), Neugal (Palampur), Shahtalai to Deothsidh,
ii) Mcleodgang to triund (Kangra) and Narakanda to Hathu peak Shimla.
iii) High Class tented accommodation at Triund, Pong Dam, Birbilling (Kangra), Kasauli, Chail (Solan), Dalhousie (Chamba), Janjehli, Shikari Devi-Thunag Kamrunag (Mandi) and Glamping in Baga Sarahan, Nirmand Kullu.
iv) Heli taxi service Chandigarh, Shimla Dharmshala, Mandi, Heli tour in Kinnaur, Lahual Spiti and Shimla region.
vi) Ski resort with ski lift facilities at Chanshal (Shimla).
vii) International level of hotel management at Jhatingri (Mandi) and Dharamshala.
viii) International level convention centre with other allied services at Dharamshala (Mcleodgang).
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 of providing ayurvedic treatments and is home to various luxury wellness resorts.
The Sector Highlights of AYUSH, Wellness and Healthcare Sector
i) Favorable climate: Pleasant weather across all seasons
ii) Clean air: Air Quality Index less than 50 in cities and < 10 across Himachal Pradesh
iii) Well-established infrastructure of Wellness Resorts across Himachal Pradesh
iv) 66 per cent (2/3rd) of the geographical area is designated forest cover
v) Himachali Black Cumin: Recently acquired Geographical Indication (GI) status & strengthens the immunization system and reduces belly fat.
Housing, Urban Development, Transportation and Infrastructure:Shimla and Dharamshala both have been selected as two of the hundred Indian cities to be developed as Smart Cities under the Smart Cities Mission. Significant investment has been made in Public Private Partnership (PPP) mode in the areas of infrastructure, Technology, Solid Waste Management, Housing and Community facilities.
Investment projects in the Urban Development sector:
a) Smart City, Dharamshala (Project worth ₹ 679.86 Crore): McleodGanj re-development project, Theme Park- Mini, Himachal - Charan Khad, Funicular at Bhagsu, Convention centre – Mcleodganj, Smart Parking at 22 locations (Including commercial at 10 locations), Waste to Biogas plant, Public e- toilet, Redevelopment of Kachahri Adda, Kotwali Bazar, Recreational Clubs, Indoor sports complex, Cultural centre, e-library.
b) Smart City, Shimla (Project worth ₹1274.63 Crore): Construction of lifts/ escalators, Development of new parking, Development of bus stand at Dhalli, bus parking at new ISBT, Ice skating ring, Service Apartments, Hotel and Commercial Space development, Installation of solar panels including net meteri.
c) Solid waste Management Project worth ₹15 crore (5 crore each): To cater the 10 – 20 per cent of left out waste, the Department of Urban Development (DoUD) proposes to set up a landfill in three areas i.e Bhariyal, Totu-Tara Devi bye-pass, Shimla (area of 9,923 Square Metres), Old Kangra to Brigeshwari Temple road, Kangra (area of 3,53,633 Sq. Mtrs) and Badala village, Una (28,000 Sq. Mtrs).
The sanitary landfill can be developed in PPP mode and the developer will provide a tipping fee based on the quantum of waste received at the site and disposed of in the regional sanitary landfill.
d) Affordable housing project (Project worth ₹544.50 crore): Affordable housing in Shimla, Baddi, Nahan, Mandi, Dharamshala, Nurpur, Sundernagar, Nerchowk, Sarkaghat, and Narkanda.
Information Technology (IT), Information Technology Enabled Services (ITeS) and Electronics Manufacturing:India is setting its sights on achieving a 1 trillion-dollar digital economy within the coming years, capitalizing on prospects in IT, IT-enabled services, e-commerce, electronics manufacturing, digital payments, and cyber security. The government of Himachal Pradesh is committed to seizing this opportunity by investing in the IT, IT-enabled services, and electronics manufacturing sectors, as well as enhancing governance practices to bring about a transformative impact on the state.
The State government of Himachal Pradesh has developed an e-governance roadmap to boost the IT, ITeS and electronics ecosystem in the State. The initiatives under the e-governance road map include integrated enterprise architecture, setting up of IT parks, cyber security measures, connectivity in tribal areas, data centre and command and control centre etc.
Sector Highlights of IT, ITeS and Electronics Manufacturing
i) High-quality communication infrastructure such as State Data Centre, State Wide Area Network (HIMSWAN) with e-district etc.
ii) Local preferential purchase for companies operating from Himachal Pradesh
iii) 217 G2C (Government to Citizen) services provided through e-district portal
iv) A State-of-the-art centre will be established as ‘Lok Suraksha Kendra’
v) The State has won 9 National e-Governance and 3 Web Ratna awards
vi) Introduced many path-breaking e-governance programs such as Common Service Centres, E-office, Wi-Fi Choupal and E-Procurement.
Education and Skill Development:The State has demonstrated exceptional performance in the realm of education, excelling not only in attaining commendable standards in educational benchmarks but also in introducing groundbreaking initiatives such as the "Sameeksha Program": A Technology-based Integrated Review and Monitoring System” and “Continuous Learning Programme: Refresher Training for In-Service Teachers” for exemplary implementation of the programmes through Samagra Shiksha in the Department of Education.
Renewable Energy:The pivotal driver of economic growth in Himachal Pradesh lies in the development of hydropower, making substantial contributions to the economy through revenue generation, the creation of employment opportunities, and the improvement of overall quality of life.
Harnessable 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 a 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 a robust transmission and distribution network in place ensuring 100 per cent electrification in the State.
Central/State Government’s Initiatives for Renewable Energy
i) Declaring large Hydropower projects as renewable energy sources.
ii) Tariff rationalisation for bringing down Hydropower tariff.
iii) Budgetary support for flood moderation for storage hydroelectric projects.
iv) Budgetary provisions for meeting the cost of enabling infrastructure.
v) Hydropower Purchase Obligation(HPO) is notified as a separate entity within non-solar renewable purchase obligation Government of Himachal Pradesh initiatives.
vi) Deferment in Free Power Royalty: Deferment of 12 per cent free Power Share for a critical period of 12 years for Allotted Projects.
vii) 12 per cent uniformly for the entire agreement period for projects to be allotted in future.
viii) Reduction in upfront premium and capacity addition charges from ₹20 Lakh/ MW to ₹ 1 Lakh/ MW and Reduction in Land Lease amount to ₹1 Payment Security Mechanism.
ix) Mandatory purchase of power by Distribution Company (DISCOM) for projects having a capacity of up to 25 MW.
x) Exemption in Transmission Charges: In open access charges for projects having capacity up to 25 MW.

Rationalization of Regulatory Compliances (RRC):The 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 the Chief Secretary with other Administrative Secretaries as members to minimize the various regulations in the State. The 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 burdensome compliance, minimize physical touch points between Government to Business (G2B)/ Government to Citizen (G2C) and provide hassle-free delivery of services by the Government. Under the minimizing Regulatory compliance Burden exercise initiated by DPIIT GoI, a total of 2310 compliances (1115 business-centric compliances and 1195 citizen-centric compliances) have been reduced by Himachal Pradesh.
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 the youth of Himachal Pradesh. The scheme has been made available online with the provision of a 60 per cent "Front Loading" subsidy.
The scheme has been recently amended by adding activities related to agriculture, animal husbandry, sericulture and mining to provide benefits to rural youth. The age limits for women have been revised from 18-45 years to 18-50 years so that more women could take the benefit of the scheme and become self-dependent. This scheme is being regularly monitored at a higher level and is very popular amongst the youth.
Under MMSY, from 2018-19 till now, 6,031 projects have been sanctioned with an employment of 15,074 persons and the subsidy released is ₹262.88 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), and 35 per cent (Women and Divyangjan-led enterprises) is given up to a maximum ceiling of ₹ 60.00 lakh in Plant and Machinery. Investment subsidy of 5 per cent for 3 years on loan up to ₹ 60.00 Lakh is also given.
During the year 2023-24 till December 2023, 608 cases have been sanctioned by the Banks and a subsidy of ₹23.52 crore (approx.) has been released.
Himachal State Food Mission (HPSFM):The Ministry of Food Processing Industries (MFPI) initiated the National Mission on Food Processing (NMFP) as a Centrally Sponsored Scheme (CSS) during the 12th Plan (2012-13). This scheme aimed to be implemented through States/Union Territories (UTs). The Government of India subsequently approved the continuation of the Mission for the remaining period of the 12th Five-Year Plan (2013-17). The primary goal of NMFP is to decentralize the implementation of the Ministry's schemes, fostering active involvement of State governments and Union Territories.
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 a 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:Himachal Pradesh has a growing Startup ecosystem, supported by the "Chief Minister's Startup/ Innovation Projects/ New Industries Scheme". The key objectives of this Scheme are as follows:
i) Self-employment or employment generation and income generation.
ii) Promotion of new ideas, products, and processes suitable for commercialisation through Startups.
iii) Establishment of Incubation Centres in the State.
iv) Handholding new enterprises and entrepreneurs.
v) Assistance in gaining knowledge, expertise, and support from various schemes implemented by the State, Central Government and other institutions.
vi) Facilitation and promotion of innovation.
vii) Support for Startups and Innovation Projects.
viii) Creation of incubation space.
ix) Facilitation of adequate investment for Startups.
x) Facilitation of venture capital funding.
xi) Promotion of Human Capital development.
xii) Promotion of Industrial development in the State.
By the policy, the Department of Industries is constructing a robust ecosystem that complies with the policy requirements. The initiative envisions numerous incentives for startups to help entrepreneur's 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) Yojana, 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:
i) To meet the demands of prospective start-up companies, the State Government has authorised a total of twelve business incubators for providing Handholding support, working space and other facilities along with free-of-cost incubators for start-ups with plug-and-play facilities to operate throughout the state.
ii) A total of 329 startups have been selected for incubation. Out of these, 281 startups have completed their incubation period, while 49 startups are currently under incubation. These startups operate in various sectors such as Food Processing, Information Technology, Tourism, Agriculture, and Horticulture. Notably, over 80 of these startups have been commercialised. The funds of ₹6.54 crore have been disbursed to incubation centres for infrastructure development.
iii) 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. A sustenance allowance of ₹4.97 crore has been disbursed to the selected start-ups.
iv) In July 2022, the Ministry of Commerce and Industry, Consumer Affairs, Food and Public Distribution, and Textiles released the third edition of the Ranking of States on Support to Startup Ecosystems. According to this report, Himachal Pradesh, along with seven other states, was declared an 'Aspiring leader'.
v) The fourth edition of the exercise was launched in 2022 wherein the ranking framework comprised 7 reform areas with a total of 25 action points with a score of 85 marks and an overall score of 100 marks including that of the feedback exercise. This edition saw the maximum participation across all editions, of 33 States and Union Territories. The states and union territories were divided into Category-A (Population more than 1 crore) and Category-B (Population less than 1 crore) to establish uniformity and ensure standardization in the ranking process.
vi) On 16th January 2024 the Ministry of Commerce and Industry, Consumer Affairs, Food and Public Distribution, and Textiles announced the results of the 4th edition of the States' Startup Ranking 2022 at an event held in New Delhi at Bharat Mandapam. Himachal has been recognized as the ‘Best Performer’ state under the STATES’ STARTUP RANKING 2022 in the B category (Population less than one crore).
Ease of Doing Business (EoDB):Under the Business Reform Action Plan (BRAP) mandate of Ease of Doing Business (EoDB), the State has achieved an implementation score of 99 per cent with implementation of 347 out of 352 reform points under the BRAP 2022 exercise. This is the highest implementation score by the State of Himachal Pradesh since the framework was introduced by DPIIT in 2014. The State was ranked at the top position of the "Achievers Category" in the EoDB (BRAP-2020) ranking. Previously, the State had registered a quantum jump of 9 points i.e. from 16th position to 7th position in the EoDB-2019 rankings which made Himachal a "Top ranking State amongst Hilly States" of the Country.
To strengthen the business ecosystem in Himachal Pradesh, the State has developed a Single Window System (Emerging Himachal Portal) for investors/business-centric services wherein 117 services of 27 departments have been integrated. The State Single Window System of Himachal Pradesh is also integrated with the National Single Window Portal of GoI. Similarly, a one-stop solution for all citizen-related services i.e. Himachal Online Seva is also developed in the State wherein, 217 services of 39 different departments are integrated with the portal. Both these portals serve the objective of providing hassle-free services and making Himachal a more competitive and favourable destination for investment.

Prime Minister Formalization of Micro Food Processing Enterprises (PMFMFPE): PMFMFPE is a centrally Sponsored Scheme in which the 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, the PMFMFPE scheme has been launched, to assist Food Based Micro Enterprises of the unorganized sector and bring them to the organized sector. It promotes the formalisation of the food processing sector to SHGs/FPOs/ Co-operatives & Individual enterprises.
In November 2023, the Ministry of Food Processing Industries hosted a global food event. During this event, seed capital amounting to ₹ 50.31 Crore was distributed to 13,427 members of Self-Help Groups (SHGs) in Himachal Pradesh under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme. HP also received the award for ‘outstanding performing state' under the PMFME scheme during the event.
The overall outlay for India is ₹10,000 crore for 5 years 2020-21 to 2024-25. For Shimla district under the One District One Product (ODOP) approach, Apple is selected as ODOP. Existing units of individuals and groups are to be supported even if not for ODOP products and new units would only be supported for ODOP products.
Prime Minister’s Employment Generation Programme (PMEGP): Prime Minister's Employment Generation Programme (PMEGP) is a credit-linked subsidy programme of the Central Government. This scheme was launched on 15th August, 2008 by merging two schemes, Prime Minister Rozgar Yojana and Rural Employment Generation Programme.
Under the scheme, the maximum cost of the project in the manufacturing sector is ₹50.00 lakh and ₹20.00 lakh under the Service Sector. If the total project cost exceeds ₹50.00 lakh or ₹20.00 lakh for the Manufacturing and Service/Business sectors respectively, the balance amount may be provided by Banks without any Government subsidy. General Category Candidates 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 categories, candidates get 25-35 per cent depending upon the location of the proposed venture/unit and their contribution is only 5 per cent.
This scheme is being implemented by the industries department, Himachal Pradesh Khadi and Village Industries Board (HPKVIB) and Khadi and Village Industries Commission (KVIC) State Offices. During 2023-24, 160 projects/ persons have been assisted with a margin money assistance of ₹6.30 crore to set up their chosen ventures. Till now approximately 11,280 persons have set up their ventures since inception of PMEGP.
The objectives of PMEGP are:
i) To generate employment opportunities in rural as well as urban areas of the country through the setting up of new self-employment ventures/projects/micro enterprises.
ii) 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.
iii) To provide continuous and sustainable employment to a large segment of traditional and prospective artisans and rural and urban unemployed youth in the country, to help arrest migration of rural youth to urban areas.
iv) To increase the wage-earning capacity of artisans and contribute to an increase in the growth rate of rural and urban employment.

Sericulture has developed as an important agro-based village cottage industry in the State. Which has been adopted as a subsidiary occupation to augment the income of the agrarian community.
The State is predominantly a bivoltine silk-producing area and has a salubrious climate to produce quality bivoltine cocoons for quality silk. Currently, Sericulture provides a fairly remunerative occupation to some 10010 families in 1728 villages and its major concentration is found in Bilaspur, Mandi, Hamirpur, Kangra, Una and Sirmour Districts. Among the districts practising Sericulture, district Bilaspur is the biggest producer of Silk Cocoons, sharing 35 per cent of production followed by district Mandi (25 per cent), District Kangra (22 per cent) and Hamirpur (16 per cent).
The Department of Industries has set up Eight Sericulture Divisions in 11 districts in the State under which 79 Govt. Sericulture Centres–cum-Chawki Rearing Centres and 64 mulberry farms are functioning. These Govt. Sericulture centres conduct young-age rearing and distribute Chawki-reared silkworms to the farmers for late-age rearing for the production of silk cocoons and also distribute HYVs of mulberry saplings and provide technical guidance to the Stakeholders. The Physical achievements industries are as under:
I. Mulberry sector:
a) Mulberry Plantations: The State Govt. has established a State Mulberry Production-cum-Demonstration and Training Centre at Nalagarh on 32 bighas of land, where 5.00 lakh of High yielding varieties suitable for H.P. have propagated in this winter season.
b)Seed Requirement: A total of 7.50 lakhs of Silkworm seed were distributed to farmers under which 2.50 lakh of Silkworm seed were produced in the State Silk Seed Production Centre Palampur, District Kangra and the rest of the seed have been procured from Central Silk Board, GOI during 2023-24.
The State Government has established the Seri- -Entrepreneurship Development & Innovation Centre at Bali Chowki, Distt., Mandi to promote Himachal silk as a brand by blending the silk with Wool and Pashmina by producing value addition products on handlooms. Table 9.4
II. Oak Tasar Activities:
a) 30000 saplings of Quarcus Serrate (Manipur banj) have been distributed to 200 farmers of development block Seraj.
b) Basic silkworm seed production – cum – preservation centre was established at Gadagussain at a cost of ₹30.00 lahks for the production of oak tasar seed.
c) 350 farmers were trained in oak tasar sericulture and 2 awareness camps were organized by Central Silk Board, GOI.
III. Eri Sericulture:
a) A study tour and exposure visit of officers was conducted to study the Ericulture in the North East States.
b) One day workshop on Ericulture was organized for the technical staff.
c)Eri Silkworm rearing was successfully conducted at CRC Nalagarh.
d) Castor Plantation farm at Ghumarwin and Ladda, Distt Bilaspur, Dhaulakuan, Distt. Sirmour and Nadaun, Distt. Hamirpur will be established, and a CRC building will be constructed on these farms.
e) At present 225 farmers have been identified for Sericulture in Distt, Bilaspur.

To promote transparency and efficiency, the entire process of approving mining leases has been digitized. The government has also implemented a boost in royalty rates for the extraction of minor minerals such as sand, stone, boulder, and bajri. The royalty rate has been increased from ₹60 per tonne to ₹80 per tonne, aiming to generate additional revenue for the state. Furthermore, to facilitate the operations of brick kiln units, a specific exemption has been introduced. The removal of clay/soil up to a depth of 1.5 meters from the general ground level for agricultural land and plot development on private land will no longer be categorized as a mining activity. This measure is designed to support and streamline the functioning of brick kiln units while encouraging responsible land use practices.
Comprehensive measures have been implemented to curb illicit mining, including a substantial increase in the penalty for such activities from ₹25 thousand to ₹5 lakh. Furthermore, the provisions for imprisonment have been strengthened, allowing for a term of up to 2 years or a combination of both penalties. The government remains steadfast in its commitment to combat illegal mining and enforce stringent regulations. Simultaneously, earnest efforts are being undertaken to ensure the availability of mining materials for lawful activities.
The border districts of the state, namely Kangra, Una, Solan, and Sirmaur, face a significant challenge of illegal mining. To address this issue, a comprehensive ban on granting mining leases for open/free sale has been implemented in the border areas of Kangra District, Una District, the Nalagarh sub-division of Solan District, and the Paonta Sahib area of Sirmaur District. Additionally, the establishment of five mining check posts in Una District and one in Solan District aims to monitor and prevent illegal mining activities and overloading. Over the past six years, the department has successfully auctioned more than 232 mining sites through the tender-cum-auction mode as part of ongoing efforts to regulate and control mining activities in the region.
In Addition to the above, the State Government is committed to ensuring the legal supply of minerals scientifically and systematically to enhance the revenue to the State Exchequer by using the available resources up to the optimum level in an environment-friendly effective manner. To achieve the above, the Govt. has made the provisions that "stone crushers for Hydel Projects and road constructions shall be allowed to be installed and mineral material generated during the development activities in road construction and Hydel projects and also muck generated during the construction of tunnel shall be allowed to be utilized by such stone crushers after paying an additional amount equivalent to 75 per cent of royalty payable on every tonne of mineral as a processing charge." Also, a complete ban in the State has been imposed on mining operations during the night hours as there is always an apprehension of illegal mining during the late night hours. Further, for the calculation of royalty to be charged from the stone crusher units, the rate of electricity consumption has been revised from 7 units per tonne to 5 units per tonne w.e.f. 16.11.2023.
Further, the Govt. of Himachal Pradesh is introducing the Himachal Pradesh Minor Mineral Policy, 2023, after a gap of more than 10 years which shall guide the mining wing and other stakeholders to develop minerals in a systematic, scientific and sustainable manner and will be technique driven. The basic intent of this policy shall be to mitigate the adverse impact on the environment and ecology along with meeting the demand for minerals in the State by replacing absolute measures with the intervention of new effective measures. This policy will help enhance revenue in the state exchequer and further augment the prosperity of the State and its people. The socio-economic emancipation of the State along with the conservation of mineral resources will be the priority of this policy. This policy will be a guiding factor for the Geological Wing of the State in its future endeavours.

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 several 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 9.5). The revised characterization of MSMEs is poised to foster their expansion and advancement. This adjustment is expected to generate economies of scale, thereby boosting productivity, while ensuring that MSMEs continue to benefit from various government incentives. These incentives encompass market assistance, support for exports, preferential procurement in the public sector, as well as advantages under programs like the Micro Small Enterprises-Cluster Development Programme (MSE-CDP), PMEGP, and Scheme of Fund for Regeneration of Traditional Industries (SFURTI), alongside the facilitation of information technology ecosystems. This supportive framework is designed to encourage healthy competition and prevent stunted growth among MSMEs.
The Government has implemented several initiatives to enhance the business environment for Micro, Small, and Medium Enterprises (MSMEs), with the introduction of the Udyam Registration Portal in July 2020 being a significant step. The registration procedure is now entirely online, digital, and paperless, relying on self-declaration. This streamlined registration process has significantly improved the ease of doing business for MSMEs by reducing both transaction time and costs.
As of 15th January, 2024, 1,36,015 enterprises have registered on the Udyam portal in the state, out of which 1,32,412 (97.35 per cent) are Micro, 3,227 (2.37 per cent) are Small and 376 (0.28 per cent) are Medium enterprises. District-wise data of registration on the Udyam portal including manufacturing and services enterprises is listed in Figure 9.8.

The Khadi and Village Industries Commission (KVIC) is a statutory body instituted by the Government of India in April 1957, as part of the Second Five-Year Plan, by the 'Khadi and Village Industries Commission Act of 1956.' With its state section located in Shimla, KVIC oversees the operations of 13 active Khadi Institutions across the state. The current production and sales figures for KVIC-affiliated/registered Societies and Institutions are presented in Table 9.6. Aside from the Khadi Programme, the Khadi and Village Industries Commission (KVIC) is actively executing the Prime Minister's Employment Generation Programme (PMEGP). This program involves a Credit Linked Back-ended Subsidy Scheme implemented nationwide, in collaboration with the Khadi and Village Industrial Board (KVIB) and the Directorate of Industries in each respective state. Since 2009, KVIC has been steadfastly carrying out the PMEGP scheme, collaborating with local government agencies and banks to create employment opportunities for both educated and uneducated youth. Table 9.7 illustrates the current status of industrial units, subsidy utilization, and employment generation under this initiative. KVIC has also identified clusters for the 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, 3000 artisans are being covered involving a 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 was subsequently amended during the years 1981 and 1987. The objectives of the board are broadly given as under:
i) The social objective of providing employment.
ii) The economic objective of producing saleable articles.
iii) The wider objective of creating self-reliance amongst the poor and building up a strong rural community spirit.

HPSIDC has expertise in the construction of roads, bridges, stadiums, government colleges, govt. polytechnic colleges, school buildings, water supply, street lighting projects, sewerage infrastructure in the state. Common facility centre at Bathu, skill development centre at Palkawah (Una) labour hostel Bathu and transit workers hostel Dulehar (Una) are some of the state-of-the-art projects developed by HPSIDC. The corporation has also developed many industrial Areas/Estates/ Parks for the State Government. The Corporation has its industrial Plots (424 Bighas) at Baddi and Davni. The Corporation has successfully executed civil works under the Modified Industrial Infrastructure Upgradation Scheme (MIIUS) and successfully built "State of the Art" Industrial areas at Kandrori and Pandora.
It also owns Sheds at Paonta Sahib and Parwanoo. HPSIDC is an authorized dealer of Indian Oil Corporation and M/s Bitchem Asphalt Ltd. for cold mix products and a trader in Himachal Pradesh for steel products (M/s SAIL India/TATA Steel). In addition to this, the Corporation has been appointed a state implementing agency for setting up of Medical Device Park at Nalagarh, Distt Solan, H.P. The Corporation is also playing a pivotal role in creating infrastructure under "Bulk Drug Park" situated at Distt. Una, H.P. The Corporation is in the process of developing Unity Mall at Distt. Kangra, H.P. It will be built up as a flagship program of one District product of Central Govt.

The Himachal Pradesh Infrastructure Development Board (HPIDB) was established on 28.01.2002 under Section 2 of the Himachal Pradesh Infrastructure Development Act, 2001. Initially, the main function of the HPIDB under the Act was to act as a Special Purpose Vehicle (SPV) to raise resources to finance the development expenditure under the State Plan on behalf of the State Government. Thereafter, HPIDB started acting as a Public Private Partnership (PPP) cell of the State Government in addition to its existing activities.
Physical and Financial Achievements/policy Initiatives undertaken:
i) HPIDB has successfully awarded 24 projects on PPP mode in different sectors i.e. 15 projects in the Urban Sector, 7 projects in Tourism Sector and 2 projects in Environment Sector.
ii) The bidding process for the maintenance of Book Cafes constructed at Chotta Shimla, New Shimla and Chaura Maidan at Shimla and the Operation Management and Maintenance of the Food Court in Front of Versling Complex near Lift, Shimla of Municipal Corporation, Shimla are at the final stages
iii) The Consultant/Transaction Advisor has been appointed for the development of the Shri Anandpur Sahib Ji to Shri Naina Devi Ji Passenger Ropeway Project of the Tourism Department from Village Rampur, District Rupnagar in Punjab to Naina Devi Ji Temple, District Bilaspur, H.P
iv) The Digitalized Museum Gallery and other recreational public activities for Bantony Castle, Mall Road, Shimla of Language and Culture (LAC) department and setting up of Waste to Energy Plant at Kufri, District Shimla of Department of Environment Science, Technology and Climate Change are at bidding stages for selecting Consultant/Transaction Advisor.
v) The Expression of Interest (EOI) for the appointment of a Transaction Advisor for the development of Fossil Park, Suketi at Nahan, Sirmour of the Tourism Department is under process and shall be issued shortly.
vi) The proposal for the development of a Car Parking cum Commercial Complex with 1000 car spaces facility at Hanumani Bagh, Ward No. 9, Kullu in Himachal Pradesh on PPP mode, is under process/in the pipeline.
vii) Further, HPIDB shall continue providing advisory services to different departments for the development of ongoing projects which are at various stages of PPP mode etc.

IIP is a yardstick for measuring industrial growth; it includes the relative change of physical production in the field of Industry during a specific period as compared to the previous period. The main objective of this index is to estimate the contribution of the 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, based on quarterly indices, annual indices have been worked out and are shown in Table 9.8. The General Index has increased from 221.9 to 235.3 in the FY 2021-22 and to 248.6 in the FY 2022-23 showing an increase of 6.0 per cent and 5.7 per cent respectively. As regards the indices for FY 2023-24, these have been worked out based on two quarters i.e. June, 2023 and September 2023. Based on these two quarters the increase in the General Index of 17.4 per cent has been observed over the previous year, whereas on comparing the Index of these two quarters with the Index of the same quarters of the previous year i.e. 2022-23, there was a decrease of 0.8 per cent due to the slight decrease in the production of electricity, on the other hand, the indices of other two sectors i.e. Mining and Manufacturing has increased in these quarters of the year 2023-24, which is a healthy sign for growth in the manufacturing sector as well as in the economy of the state. Note: Box 9.1 Based on Occasional Paper No- 216, Himachal Pradesh: A Possible Export Strategy (March 2023), Export-Import Bank of India

Himachal Pradesh is known for its abundant water resources, making it conducive for the generation of hydroelectric power. The state has several hydroelectric power projects that harness the energy of its rivers and contribute significantly to the region's power supply. Himachal Pradesh has a large number of hydroelectric resources, about 25 per cent of the national potential 24,000 MW of hydroelectric power can be generated in the state by the construction of various hydroelectric projects on the five perennial river basins. Out of the total hydroelectric potential of the state, 11,209 MW have been harnessed so far, of which 7.6 per cent is under the control of the Himachal Pradesh Government while the rest is exploited by the Central Government.
Table 10.1 below depicts the status of consumption of Energy by the various categories of consumers in the state: Table 10.1 indicates that industries are the largest consumers of electricity in the state, with domestic consumers following closely behind. This distribution of electricity consumption suggests that electric power plays a significant role in the overall demand for the industrial sector.

The Directorate of Energy in Himachal Pradesh is entrusted with the management and optimization of the state's energy resources. The State is projected as a Power State in the Country and the Directorate of Energy is instrumental in achieving this milestone. The Directorate of Energy was created during 2009. Before, it was part of the Himachal Pradesh State Electricity Board. The Directorate of Energy is the nodal office of the 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. 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 and safety aspects for all large Dams for the State.
Capacity Addition: One project with capacity of 1 MW namely Sethu SHEP (1 MW) in district Kangra has been commissioned between 01.04.2023 to 31.12.2023, whereas three projects of aggregate capacity 39 MW namely Lambadug HEP (25 MW) in district Kangra, Holi-II SHEP (7 MW) in district Chamba and Soldan SHEP (7 MW) in district Kinnaur respectively are likely to be commissioned between01.01.2024 to 31.03.2024.
Government’s Power Entitlements: The details of various projects in Himachal Pradesh where GoHP has entitlement to power are as under: Table 10.2 shows that the Government of Himachal Pradesh (GoHP) has entitlement of free and equity power aggregating of 1426 MW in various Central Sector, Joint Sector and Private Sector projects in the State. Out of 1426 MW, capacity aggregating to 160 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.
GoHP has earned revenue of ₹1434 crore during the FY 2023-24 (up to 31st December 2023) and anticipated revenue upto March, 2024 is ₹242 crore from royalty on power sales and sale of State Government share of power in the hydel projects

The Himachal Pradesh State Electricity Board was constituted on 1st September, 1971 by the provisions of the Electricity Supply Act (1948) and has been reorganized as Himachal Pradesh State Electricity Board Ltd. under the Company Act 1956. 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 10.3. During FY 2023-24 HPSEBL has generated the highest number of units of electricity from its powerhouses situated in district Kinnaur, followed by district Mandi. HPSEBL does not have Power Houses in five districts of the State namely Solan, Una, Kullu, Hamirpur and Bilaspur.
Hydro Electricity Generation: In HPSEBL, 27 HEPs with a total installed capacity of 489.35 MW are operational. During FY 2022-23, 2,157.46 MU of energy was generated by these HEPs. In FY 2023-24, 1,513.86 MU of energy has been generated upto December 2023 by these HEP’s and additional 234.418 MU of generation is anticipated upto March, 2024.
Uhl Stage-III (100 MW) HEP, is under construction by Beas Valley Power Corporation Limited (BVPCL), a subsidiary company of HPSEBL.
Transmission: The transmission wing of HPSEBL has installed 58Extra High Voltage(EHV) Sub-Stations with a transformation capacity of 5,214.85 Mega Volt Ampere(MVA) and 3,659.70 Circuit Kilometres (CKM) EHV lines upto 31.03.2023.
During FY 2023-24 upto December, 2023, 1 No. EHV sub-station with a capacity of 10 MVA has been installed and 3.584 Ckt. Km EHV lines have been commissioned.
New Hydro Electric Project under HPSEBL: The Government of Himachal Pradesh has allotted 4 Nos. projects to HPSEBL i.e. Devi Kothi HEP (16 MW), Sai Kothi-I HEP (15 MW), Sai Kothi-II (18 MW), Hail HEP (18 MW) for implementation in the Tissa region of District Chamba.
SCHEMES S.I. SCHEME FOR LOW VOLTAGE POCKETS IN HIMACHAL PRADESH: In order to resolve low voltage problem of the people residing in remote areas of the State, a scheme amounting to ₹158.00crore was sanctioned during FY 2019-20 and is under implementation throughout the State. Under this scheme 960 DTRs, 615.340 km HT Lines and 380.88 km LT lines have been installed till 31st December, 2023. For the 2nd phase of scheme an amount of ₹25.08 crore has also been sanctioned & implementation of which is under progress. As of December, 2023, 40 DTRs have been installed along with 48 KM HT lines and 28 KM LT lines.
I.T. INITIATIVES:HPSEBL is committed to ensure 24x7 power distributions for around 27.50 lakh consumers in Himachal Pradesh. Around 17.50 lakh domestic consumers in the state with monthly consumption below 125 units receive a zero electricity bill. Key achievements in the Computerization, Metering-Billing-Collection and Consumer Services is stated as under:
i) 100 per cent Computerized billing in the State has been achieved and around 95 per cent of consumers are being provided with monthly electricity bills at their doorsteps as well as through SMS and E-Mails. Also, the bills are being made available on website and Mobile App for payments through various digital and online modes.
ii) Developed and launched a dedicated Consumer Portal for various electricity consumers in the State for ensuring various consumer related services through digital and electronics platforms in a time bound and paper less manner. Services being provided include application for new connection, change of name, change of category, change of load and demand, temporary revisions of contract demand, online PAC application. Besides this the portal also provides basic services such as payment of bill, viewing the consumption and payment history, complaint registration etc.
iii) Consumers are provided with multiple options for making the electricity bill payments such as Common Services Centres (Lok Mitra Kendra), Digital Payments using Internet Banking/Credit/Debit Cards/UPI/BHIM etc., e-CMS, Mobile App etc. As a result around 92 per cent of monthly electricity bill payment is being realized via digital transactions only.
iv) HPSEBL has Launched HPSEBL-Smart Meter Mobile App for Shimla and Dharamshala smart city consumers to monitor their consumption pattern and power quality etc. on real time basis.
v) Enterprise Resource Planning (ERP) system has been successfully implemented and integrated across all locations of HPSEBL, and currently, all business transactions are exclusively processed through SAP-ERP across the organization.
vi) HPSEBL has developed and implemented various online Utilities and modules for ensuring paperless and time bound delivery of various services in transparent and efficient manner besides fixing the accountability across all levels. The developed Utilities mainly include Vendor Invoice Management System, Online Guest House Booking Utility, Budget Management and Control Modules, Centralized Security Refund Utility, Transfer and Posting Utility, Pension Utility and Online Employee Portal for providing various employee related services.
vii) 24x7 IVRS (Interactive Voice Response System) and Consumer Complaint Centre for registration and resolution of consumer complaints and grievances on priority.
viii) Implementation of Facial Recognition Attendance System (FRAS) for promoting discipline, efficiency and accountability of various officer and officials across all offices of HPSEBL.
ix) Transitioning to an electronic office, or a digital/paperless setup, brings benefits like heightened efficiency, cost-effectiveness, improved collaboration, and a more sustainable environmental impact.

HPPCL, established in December 2006 under the Companies Act of 1956, is tasked with planning, promoting, and coordinating all aspects of hydroelectric power production. HPPCL possesses technical and organizational capabilities on par with those of esteemed entities such as National Thermal Power Corporation Limited (NTPC), Satluj Jal Vidyut Nigam Limited (SJVNL), and National Hydroelectric Power Corporation (NHPC).
Projects currently in operation / under execution stage:HPPCL has the following projects for hydropower:
Other areas of Power development:The Himachal Pradesh Power Corporation is strategically expanding its power development initiatives beyond hydroelectric power to encompass additional renewable sources, notably solar energy. This forward-thinking approach aims to address the escalating energy requirements for the state and contribute to the nation's overall growth.
i) 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 40.73 MU has been generated from the project upto December, 2023 and the target of generation up to 31st March 2024 is 41.27 MU.
Financial Achievements in Respect of Projects under Construction/Implementation Stage:The following table presents the achievements of the projects under construction/implementation stage of Himachal Pradesh Power Corporation Limited are hereunder: HPPCL generated 775.23 million units electricity from four projects in FY 2023-24 (up to December, 2023). Revenue generated by the sale of electricity from hydro projects is₹256.29 crore (HPPCL share) and revenue generated from the sale of power from Solar projects is ₹2.64 crore.

This corporation of the Government of Himachal Pradesh, aims to enhance the transmission network and facilitate the efficient evacuation of power from upcoming generating plants. The tasks assigned to the Corporation by the Government of Himachal Pradesh encompass the execution of all new projects, including both Transmission Lines and Sub-Stations with a voltage rating of 66 kilovolts (K.V) and above. This involves formulating, upgrading, and implementing the Transmission Master Plan of Himachal Pradesh, aimed at strengthening the transmission network and facilitating the efficient evacuation of power.
HPPTCL is discharging the functions of a State Transmission Utility (STU) and coordinating the transmission issues with the Central Transmission Utility, Central Electricity Authority, Ministry of Power (Government of India), Himachal Pradesh Government and HPSEB Ltd. The government of India has approved (Asian Development Bank) ADB loan for implementation of transmission projects covered in the Power System Master Plan (PSMP) of Himachal Pradesh. Table no. 10.7 presents the details of commissioned projects by HPPTCL up to FY 2023-24. In addition to above, Green Energy Corridor Phase-I (GEC-I) has been initiated to develop an economical transmission system to encourage green renewable energy Generation. The scheme has been funded partly (40 per cent) as a grant from the Ministry of New and Renewable Energy (MNRE) and partly (40 per cent) as low fixed interest rate loan from the German Development Bank, KfW (Kreditanstalt für Wiederaufbau) and the rest from equity. Under GEC-I, eleven projects were to be constructed by HPPTCL. Out of which, seven projects have been commissioned and one project is ready for charging whereas, the balance three projects are likely to be commissioned by 31st March 2024. Completion of all these projects shall result in the addition of 846.5MVA (Megavolt Ampere) transformation Capacity and 183.88ckt Km (Circuit Kilometres) of Transmission line in Himachal Pradesh.
With financial assistance from Rural Electrification Corporation Limited, HPPTCL has commissioned five projects. Completion of these projects has resulted in the addition of 163 MVA Transformation Capacity and 102Ckt Km of Transmission line in the existing state transmission network of districts of Kangra, Kullu, and Sirmaur. In addition, another five projects are under implementation with the financial assistance of Rural Electrification Corporation Limited and out of these five projects, four projects are likely to be commissioned before 31st March 2024.
Major Achievements:In the FY 2023-24 up to 31st December 2023, HPPTCL has completed & commissioned three projects (i.e. two Sub-Stations, one augmentation work of Sub-Station) with an estimated cost of ₹148.15crore resulting in the addition of 326 MVA Transformation Capacity to the existing transmission network in the state. HPPTCL has incurred approximately ₹97.39 crore as overall Capital Expenditure for various transmission projects (completed & ongoing) during FY 2023-24 up to 31st December 2023).
In addition to the above, seven transmission lines have a total length of approx. 107ckt km with an approximate cost of ₹92.92 crore and five EHV Sub-Stations having a total transformation capacity of 531.5 MVA with an approximate cost of ₹246.27 crore are on the verge of completion and targeted for completion by 31st March 2024. Details are shown below in Table 10.8. The commissioning of the above transmission projects shall facilitate constraint-free power evacuation of several Hydro Power Projects and will also improve the quality and reliability of power supply in the State.

HIMURJA was constituted in the year 1989, to promote renewable energy programmes in the State with financial support from the Ministry of New and Renewable Energy (MNRE) and the State Government. The major programs being implemented in the State are Solar Power Projects, Grid-connected rooftop Plants, Solar Photovoltaic off-grid Systems, Solar Thermal Systems, and Small Hydroelectric Projects (up to 5 MW capacities).
Achievements during the FY 2023–24 (up to December, 2023) and anticipated up to March 2024 are as follows:
SOLAR PHOTOVOLTAIC PROGRAMME:
a) Solar Power Projects/Plants:
i) Ground Mounted Solar Power Projects: Under Phase-I, provisional registration letters have been issued to 131 Solar Power Project Developers for Solar Projects of 157.95 MW (Mega Watt) capacity. Out of these, 93 applicants have deposited the EMD for 131.40 MW capacity. Connectivity Agreement signed with 65 applicants for 80.75 MW capacity.
Under the Phase-II scheme, 116 applicants have been allotted Solar Power Projects of 93.46 MW capacity. Out of these, 45 applicants have deposited the EMD for 45.07 MW capacity. Connectivity Agreement has been signed by 8 applicants for 5.05 MW capacity Solar Power Projects. During FY 2023-24, 1.25 MW capacity Ground Mounted Solar Power Projects have been commissioned upto December, 2023. Each unit within these projects has a capacity ranging from 250 kilowatts to 500 kilowatts.
b) Grid-connected Solar Roof Top Power Plants: Grid-connected Solar Power Plants of 1.862 MW capacity have been commissioned upto December 2023 and anticipated achievement upto March, 2024 will be about 2.00 MW.
c) Off—grid Solar Power Plants:
i) Solar Power Plants of 288.50 kWp (Kilowatt Peak) capacity have been installed upto December, 2023 and anticipated achievement upto March, 2023 will be about 400 kWp.During FY 2023-24, 839 No. Off-grid Solar Power Plants of 250 watt capacity each, will be provided to the BPL families in the Tribal areas.
ii) SPV Street Lighting System: 20,919 Nos. of SPV (Solar Photovoltaic) Street Lighting Systems have been installed under different programmes upto December, 2023 and anticipated achievements upto March, 2024 will be about 25,000.
iii) SPV Domestic Light: 1,691 Nos. Solar Home Lighting Systems have been provided to the SC BPL families in the State upto December, 2023 and anticipated cumulative achievement upto March, 2024 will be about 2,000.
SOLAR THERMAL PROGRAMME:
i) Solar Water Heating System: Solar Water Heating Systems of 1,100 litres per day capacity have been installed upto December, 2023 and anticipated achievement upto March, 2024 will be about 20,000 litres per day.
ii) Solar Cooker: 19 No. Box type/ Dish type Solar Cookers have been provided up to December, 2023 and anticipated achievement upto March, 2024 will be about 30 No. Box type/ Dish type Solar Cookers.
SMALL HYDROELECTRIC PROJECTS UPTO 5 MW CAPACITIES: During FY 2023-24, 2 Hydro Electric Projects with an aggregate capacity of 5.90 MW have been commissioned upto December, 2023.

Employment has remained one of the top challenges for policy planners of the country as well as for the States. This challenge has become more complex over time with the improvement in literacy and schooling, attainment of higher education and skills and vocational education. Economic development, according to the Annual Report of the Ministry of Labour and Employment 2022–23, Government of India, means not only the creation of jobs but also working conditions in which one can work in 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, the 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. 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.

The Government of India started the Periodic Labour Force Survey (PLFS) in 2017, replacing the quinquennial employment and unemployment surveys of the National Sample Survey Organization (NSSO), now the 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 the 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 National Sample Survey Office (NSSO) has published the sixth Annual Report, based on the Periodic Labour Force Survey conducted from July 2022 to June 2023.
Labour-Force-Participation Rate:Labour force and work status are generally examined based on two indicators of employment viz. Usual Status (US) which includes principal economic activity and subsidiary economic activity of employment and Current weekly status (CWS). It is important to understand the difference between the two indicators. The economic activity status on which a person spends a relatively long time (major time criterion) during the 365 days preceding the date of the survey is the principal activity status (PS) of the person. Such persons might have also pursued, in addition to his/her principal status, some economic activity for 30 days or more during the reference period of 365 days preceding the date of the survey. Such status is known as Subsidiary Status (SS). PS+SS together known as Usual Status corresponds to employment for longer duration.
Some persons who are employed for the majority of the days in a year may not be employed in the period other than the majority of days due to various reasons. This is ascertained by looking at the current weekly activity status obtained for a person during a reference period of 7 days preceding the date of the survey. A person is considered working (or employed) as per CWS status if he/she worked for at least one hour on at least 1 hour on at least one day during the 7 days preceding the date of the survey or if he/ she had worked for at least one hour on at least one day during the seven days preceding the date of survey but did not do the work. Given the definitions of US and CWS above, it can be concluded that CWS captures the current status of employment/ unemployment while the US captures longer-duration employment.
The labour force includes persons who were either working (or employed) or those available for work (or unemployed). Some persons in the labour force abstain from work for various reasons. Subtracting that number from the labour force gives the number of actual workers. These workers are further categorized as persons who are engaged in any activity as self-employed or regular wage/salaried and casual labour. The difference between the labour force and the workforce gives the number of unemployed persons.
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. The LFPR is defined as “the percentage of persons in the labour force among the persons in the population”.
Table 11.1 presents the LFPR in Himachal Pradesh, Uttarakhand, Punjab, Haryana, and all India in 2021-22 and 2022-23 as per the PLFS. In 2022-23, LFPR (all ages) for Himachal Pradesh (61.3) is higher than Uttarakhand (42.5), Punjab (42.3), Haryana (36.3) and all India (42.4). For females, it is more than double that of all these states (except Uttarakhand) and all of India (Figure 11.1). LFPR in Himachal Pradesh is higher than in other adjoining states because agriculture is still the mainstay of the State's largely rural economy, and predominantly agricultural economies tend to have higher labour force participation rates. In 2022-23, LFPR (between 15 and 59 years of age) for Himachal Pradesh (81.3) is higher than Uttarakhand (60.1), Punjab (57.9), Haryana (52.8) and All India (61.6). For Himachal Pradesh, both rural and urban LFPR are higher than those from all these states and all of India (Figure 11.2). The rural LFPR in Himachal Pradesh is approximately 19.4 percentage points higher than Uttarakhand and 21.8 percentage points higher than in All India, while the urban LFPR in the state is approximately 14.0 percentage points higher than Uttarakhand and 8.5 percentage points higher than in All India.
Worker Population Ratio (WPR):WPR is an indicator used for analyzing the employment situation and knowing the proportion of the population actively contributing to the production of goods and services in the economy. "WPR is defined as the percentage of employed persons in the population". Table 11.2 shows the worker population ratio in Himachal Pradesh, Uttarakhand, Punjab, Haryana, and India. For all ages, the WPR of Himachal Pradesh in 2022-23 (58.6) is better than Uttarakhand (40.6), Punjab (39.7), Haryana (34.1) and India (41.1). It is evident from the survey results that more women (54.8 per cent) in Himachal Pradesh are actively participating in economic activities than their counterparts, at all India level and among neighbouring states Figure 11.3.
Unemployment Rate:“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 2022-23 (table 11.3), unemployment under usual status (ps+ss) for persons of all ages among the neighbouring states and India, shows that Himachal has an unemployment rate of 4.4 per cent compared to India’s rate of 3.2 per cent, Uttarakhand’s 4.5 per cent, Punjab’s 6.1 per cent, Haryana’s 6.1 per cent.
The unemployment rate in Himachal Pradesh has risen from 4.0 per cent in 2021-22 to 4.4 per cent in 2022-23. The unemployment rate in the usual status (ps+ss), was 3.3 per cent for males and 3.8 per cent for females in rural areas, while the rates were 6.3 per cent for males and 30.6 per cent for females in urban areas.
Distribution of workers in usual status (ps+ss) by status in employment: 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 11.4 presents the percentage distribution of workers by status in employment for Himachal Pradesh, Uttarakhand, Punjab, Haryana and India in the year 2021-22 and 2022-23 According to the report for the year 2021-22, more females in Himachal Pradesh are self-employed as own account workers, employers (46.0 per cent), and unpaid helpers in-home enterprises (38.7 per cent) than in neighbouring states and all India level. This proportion of the same activities of the females in the state has increased to 46.4 and 40.1 per cent respectively in the year 2022-23, which is again more than their counterparts except for Uttarakhand (unpaid helpers in-home enterprises (55.5 per cent). This is because most of the females in Himachal Pradesh. are engaged in agriculture and allied sectors. On the other hand for the year 2021-22, only 11.9 per cent of females in Himachal Pradesh are in status of regular wage /salary earner as compared to Uttarakhand (18.0), Punjab (37.1), Haryana (30.8) and all India (16.5). The proportion of females has remained the same i.e. 11.9 per cent for the year 2022-23. The Government of Himachal Pradesh intends to increase the proportion of 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 much less (3.4 per cent) than its neighboring states and all of India in the year 2021-22. Further, in a similar status, the proportion of females has decreased to 1.7 per cent in the year 2022-23, which is less than its neighbouring states and all India.
Estimates of key labour market indicators in usual status (PS+SS):
a) Increasing Trend in Labour Force Participation Rate (LFPR) in usual status (ps+ss) for persons of age 15 years and above.:In rural areas, LFPR increased from 63.5 per cent in 2017-18 to 79.2 per cent in 2022-23, while for urban areas it increased from 52.9 per cent to 58.0 per cent. LFPR for males in Himachal Pradesh increased from 75.8 per cent in 2017-18 to 83.1 per cent in 2022-23 and a corresponding increase in LFPR for females was from 49.6 per cent to 71.4 per cent.
b) Increasing Trend in Worker Population Ratio (WPR) in usual status (ps+ss) for persons of Age 15 years and above.:In rural areas, WPR increased from 60.2 per cent in 2017-18 to 76.5 per cent in 2022-23, while for urban areas it increased from 48.3 per cent to 49.8 per cent. WPR for males in Himachal Pradesh increased from 71.0 per cent in 2017-18 to 80.3 per cent in 2022-23 and a corresponding increase in WPR for females was from 47.5 per cent to 67.6 per cent
c) Mixed Trend in Unemployment Rate (UR) in usual status (ps+ss) for persons of age 15 years and above:
Estimates of Key Labour Indicators in Current Weekly Status (CWS):
a) Increasing Trend in Labour Force Participation Rate (LFPR) in Current Weekly Status (CWS) for persons of age 15 years and above: In rural areas, LFPR increased from 58.8 per cent in 2017-18 to 72.4 per cent in 2022-23, while for urban areas it increased from 52.0 per cent to 55.6 per cent. LFPR for males in Himachal Pradesh increased from 74.9 per cent in 2017-18 to 79.0 per cent in 2022-23 and a corresponding increase in LFPR for females was from 42.1 per cent to 62.8 per cent.
b) Increasing Trend in Worker Population Ratio (WPR) in current weekly status (CWS) for persons of age 15 years and above.:In rural areas, WPR increased from 53.9 per cent in 2017-18 to 68.1 per cent in 2022-23, while for urban areas it increased from 46.0 per cent to 48.0 per cent. WPR for males in Himachal Pradesh increased from 67.4 per cent in 2017-18 to 73.8 per cent in 2022-23 and a corresponding increase in WPR for females was from 39.6 per cent to 58.7 per cent.
c) Mixed Trend in Unemployment Rate (UR) in current weekly status (CWS) for persons of age 15 years and above:In rural areas, UR decreased from 8.2 per cent in 2017-18 to 6.0 per cent in 2022-23, while for urban areas it increased from 11.5 per cent to 13.7 per cent. UR for males in Himachal Pradesh decreased from 10.0 per cent in 2017-18 to 6.7 per cent in 2022-23 and a corresponding increase in UR for females was from 6.0 per cent to 6.6 per cent.

Three Regional Employment Exchanges, nine District Employment Exchanges, two University Information and Guidance Bureaus, 65 Sub Office Employment Exchanges, one Special Employment Exchange for the Physically Handicapped, and a Central Employment Cell all offer employment assistance and information services to job seekers. All 77 Employment Exchanges have been automated and made available online to provide youth with vocational guidance and employment counselling as well as information about the employment market.
Minimum wages: Himachal Pradesh Government has constituted a Minimum Wages Advisory Board under the Minimum Wages Act-1948 to advise 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 the unskilled category of workers from ₹350 to ₹375 per day or ₹10,500 to ₹11,250 per month w.e.f. 1st April, 2023, working in all existing 19 scheduled employment under the provisions of the Minimum Wages Act, 1948.
Employment Market Information Programme: At the district level, employment data has been collected under the Employment Market Information Programme since 1960. The total employment in the State as of 31st March, 2023 in the Public Sector was 2,81,097 and in the private sector was 2,12,030. The number of establishments in the Public Sector and Private Sector were 4,472 and 2,032 respectively.
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, 2023) 39,109 youth were provided vocational guidance and career counselling.
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 2023-24. Under this scheme, assistance is provided to employment seekers, in finding suitable jobs in the 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, 2023 Central Employment Cell has organized 5 job fairs and 315 Campus Interviews wherein 6,948 candidates have been selected.
Special Employment Exchange for Specially Abled: This special employment exchange helps specially-abled candidates in the field of vocational guidance and also provides employment assistance in the Public and Private Sectors. The Physically disabled persons who are among the weaker sections of society have been provided several 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 FY 2023-24 (up to December, 2023) 1,410 specially-abled persons were brought on the Live Register of the Special Employment Exchange bringing the total number to 16,954 and 34 specially-abled persons were provided employment.
Skill Development Allowance Scheme: During this FY, the provision of ₹92.50 crore has been made under the Skill Development Allowance Scheme, 2013. This programme offers financial assistance to the State's qualified unemployed youths 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 FY 2023-24 (up to December, 2023) ₹29.70 crore Skill Development Allowance has been disbursed amongst the 68,130 beneficiaries. The department is also implementing the Industrial Skill Development Allowance Scheme, 2018. During the current financial year, a budget provision of ₹1.50 crore has been made under the Industrial Skill Development Allowance Scheme. Under this scheme, there is a provision allowance to the eligible employed youth engaged in the private industrial establishment of the State for their job skill gradation and better employment opportunities. The disbursement criteria under this scheme are the same as for the Skill Development Allowance Scheme 2013 and under this head, an amount of ₹0.22 crore was disbursed among 354 beneficiaries.
Unemployment Allowance Scheme: During this FY 2023-24, a budgetary provision of ₹30.00 crore has been made under the Unemployment Allowance Scheme. Under this scheme, there is a 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, 2023, 22,593 people have benefitted under this scheme and ₹19.34 crore has been disbursed.
Employment Exchange Information: During the current FY (up to December, 2023) 1,09,083 applicants were registered under the Employment Exchange Scheme. The consolidated number on live registers of all employment exchanges as of December, 2023 is 7,44,771. The district-wise registrations and placements done by the employment exchanges with effect from April to December, 2023 are given in Table 11.11 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) the Asian Development Bank (ADB) assisted Himachal Pradesh Skill Development Project (HPSDP) and (ii) the state-managed Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 2.0 and 3.0.
Asian Development Bank (ADB) Assisted Himachal Pradesh Skill Development Project (HPSDP): HPSDP became operational in May 2018 and will end in June 2024. The 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 ₹413.00 crore was claimed as disbursement against ADB Share and a total ₹76.00 crore has been utilized against the state share. Currently, the enrolments of candidates under various skill training programmes are 73,168 (82 per cent) candidates, out of which a total of 46,587 candidates (i.e. 64 per cent achievement) have been certified.
i) Setting up of Center of Excellence (CoE):
To create an institutional framework for the long-term skill development needs of the State, a Center of Excellence (CoE) is being set up at Waknaghat, Solan with an estimated cost of ₹68.00 crore on Civil Works. A total of 750 candidates will be trained over 5 years, with a budget of ₹64.00 crore allocated for the training program. The first batch, consisting of 61 candidates, has already completed their training and is currently undergoing the placement process. The second batch comprises 115 students and has undergone a soft launch on 27th November, 2023. These students are being trained in domains such as Food Production, F&B Operations, Hotel Operations and Management and Fitness and Wellness.
ii) Short Term Training Programmes through Government Industrial Training Institutions (ITIs) of Himachal Pradesh: HPKVN under its HPSDP has started short-term upskilling and multi-skilling training in 70 ITIs more than 21,000 students have been enrolled and more than 13,000 have been certified in various sectors such as Automotive, Construction, Plumbing, IT-ITes, Capital Goods, Apparel & Made-ups, Electronics & Hardware etc. against training targets of 21,236.
iii) Graduate Add On Training Programmes: To enhance 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 various sectors, namely: i) BFSI (Banking Finance Securities and Insurance), ii) IT-ITeS, iii) Apparel & Made-ups, iv) Hospitality & Tourism, and v) Media & Entertainment. Against the target of 7,500 students 8,217 have been enrolled and 6,868 have been certified.
iv) National Skill Qualification Framework (NSQF) aligned Recognition of Prior Learning (RPL) Training: Under the Recognition of Prior Learning (RPL) component of the Himachal Pradesh Skill Development Project, 10,622 candidates have been enrolled and 8,181 candidates got certified.
v) Short-Term Training Programmes through Training Service Providers (TSPs): Short Term Training in industry-relevant skills is being imparted across various sectors/job roles to the Himachali youth and presently more than 4,832 candidates have been certified.
vi) Bachelor of Vocation (B.Voc) Degree Programme: The program is a collaborative effort between HPKVN and the Department of Higher Education (DoHE). This three-year full-time degree program is being implemented under the state component of the Himachal Pradesh Skill Development Project (HPSDP). The B.Voc. program was initially launched in 12 colleges across two sectors, Retail Management and Tourism & Hospitality, starting from the academic session 2017-18. It was further expanded to an additional 6 colleges in the 2021-22 academic session and an additional 2 colleges in the 2023-24 academic session. As of the present date, 6,762 candidates have been enrolled against the target of 2,880, and 2,354 candidates have been certified.
vii) Skill training for Persons with Disability (PwD’s): To generate livelihood opportunities for Persons with Disabilities (PwD) candidates of the state and keeping in view the mandate of Himachal Pradesh Skill Development Project (HPSDP) to impart skills and related training to the Specially abled candidates, HPKVN intends to skill 300 more candidates in collaboration with Skill Counsel of Person with Disabilities (SCPwD), training is being conducted in Retail and Tourism and, Hospitality Sectors with 219 candidates, as a part of the mandatory outcome of Design, Monitoring, framework of H.P. 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 equipments for Women Polytechnic Rehan and Government Engineering Colleges. The procurement for the upgradation of all the above-mentioned technical training institutes is envisaged to be completed during FY 2023-24.
ix) City Livelihood Centers (CLCs), Rural Livelihood Centers (RLCs), Model Career Centers (MCC) and other aligned infrastructure: To provide institutional support for skill development activities across the State the construction of 6 CLCs, 7 RLCs and 11 MCCs are under progress with the budgetary provisions of ₹174.00 crore. Besides, Women Polytechnic at Rehan, Kangra with a construction cost of ₹37.00 crore, has been completed and training in 3 trades with enrolment of 283 candidates commenced. One ITI at Chattri has been completed with a construction cost of ₹21.00 crore.
Pradhan Mantri Kaushal Vikas Yojana (PMKVY): The Scheme Pradhan Mantri Kaushal Vikas Yojana was launched on 2nd October 2016. HPKVN is the implementing agency for the state component of PMKVY 2.0 (2016-20) and 3.0. (2020-21) To meet the said mandate, HPKVN has enrolled more than 16,500 youth under PMKVY 2.0 since the FY 2018-19 in various job roles across 22 Sectors. PMKVY 3.0 was launched in December 2020 and training commenced during the financial year. All the trainings under PMKVY 3.0 were conducted wherein the enrolment was 501 candidates, and 394 were certified under short-term training. Similarly, COVID crash courses had an enrolment of 80 candidates and 68 were certified and Recognized Prior Learning (RPL) had an enrolment of 1,664 candidates and certified 1,235. PMKVY 4.0 has also been launched and the proposal has been submitted to the Ministry of Skill Development and Entrepreneurship for seeking fresh targets.
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 mechanisms and skilling ecosystem across the state.
MoUs with reputed Government Training Institutions: 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 (NIFT) and National Institute for Entrepreneurship and Small Business Development (NIESBUD) and Central Institute of Petrochemicals Engineering & Technology (CIPET) for imparting training to around 15,206 Himachali youth in higher aspiration industry driven job roles. At present More than 15,213 candidates have been enrolled and 12,044 got certified for the said training.
English, Employability and Entrepreneurship (EEE) Training: HPKVN, in association with the Directorate of Higher Education (DoHE), introduced the English, Employability, and Entrepreneurship (EEE) Programme in a total of 56 Government Degree Colleges of Himachal Pradesh during the academic session 2022-23. The objective is to facilitate the development of English language speaking, employability, and entrepreneurial skills among the 5,000 final-year graduating students of Government Degree Colleges. Consequently, Memorandums of Understanding (MoUs) have been extended for the academic session 2023-24 with four existing training service providers, targeting an additional 5,000 students across 56 government degree colleges. Currently, 3,107 students have been certified for the academic session 2022-23, and an additional 4,231 students have been enrolled for the academic session 2023-24.
Flexible Memorandum of Understanding (Flexi-MoU): In the pilot phase with a training target of a total 1,000 numbers of candidates in 11 sectors, the Flexi MoU Scheme has been introduced with a minimum 70 per cent placement outcome and 70 per cent of payment milestone after the successful placement of the certified candidates In the first phase 2 industry/ Organization &in second phase 2 industry/ Organization have been selected respectively for 400 numbers (100 each firm)out of which 236 Candidates are Trained/ Certified and 184 Candidates were Placed till date and in fourth Phase 4 industry/Organizations have been selected for the implementation of trainings of 400 numbers (100 each firm).
MoU’s with Government Industrial Training Institutes (ITIs) for Drone Service Technician Training: Given the introduction of industry 4.0 courses, under NSQF-aligned short-term training of Drone Service Technician Job Roles total of 230 candidates have been enrolled in 11 Government Industrial Training Institutes (ITIs) across the State against the target of 430 candidates.
Memorandum of Understanding (MoU) with 21 Sector Skill Councils: Himachal Pradesh Kaushal Vikas Nigam has entered into a Memorandum of Understanding with 21 Sector Skill Councils (SSC) under the Himachal Pradesh Skill Development Project (HPSDP) to provide training and employment opportunities to the youth of Himachal Pradesh in futuristic skills for Industry 4.0. As of the present date, 6,085 students have been enrolled, 3,817 are undergoing training, and 1,546 have been certified, against the allocated target of 10,880 students across 21 sector skill councils.
New Interventions/policies proposed to be undertaken by the department towards the improvement of service delivery to the general public or the benefit of poor and needy people:
a) Skill Training for Persons with Disabilities (PwDs): HPKVN intends to skill 500 more candidates in collaboration with the Directorate of Empowerment of SCs, OBCs, Minorities Affairs and the Specially Abled, Himachal Pradesh, to generate livelihood opportunities for Persons with Disabilities (PwD) candidates in the state and keep in mind the mandate of HPSDP to impart skills and related trainings to the Specially Abled candidates.
b) MoUs with Sector Skill Councils (SSCs) registered bodies of the National Skill Development Corporation (NSDC) for Drone Flying Training and Electric Vehicles Training:
i) Drone technology is increasingly being used in a wide range of disciplines, including Agriculture (spraying pesticides, insecticides, nutrition, detecting 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, wildlife monitoring, land surveying etc. HPKVN intends to impart skill trainings in Drone Technology in collaboration with concerned SSCs in the following job roles:
ii) The Government of Himachal Pradesh's focus is to promote electric vehicles for public and private travel, which requires a competent local workforce in charging station management and electric vehicle servicing and maintenance. Currently above requirement is being met by human resources outside the state and no training is being imparted in the state by any department. HPKVN intends to impart skill trainings in Electric Vehicles in collaboration with concerned SSCs in the following job roles:
iii) Flexible Memorandum of Understanding (Flexi-MoU): The Scheme envisage an Employer/Industry skills model where the prospective Industry/Organization imparts skilling to prospective employees/trainees/ candidates with a 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 the addition of 500 training numbers for the Flexi-MoU Scheme under the State Budget is proposed.
iv) Organizing Job Fairs every month: HPKVN organizes Job Fairs/Placement Drives every month 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 the 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), several 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, to operationalize the training centres 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 inculcate ideas and spirit of entrepreneurship by covering the final year graduating students of Government Degree Colleges of Himachal Pradesh in the second phase. Keeping in view the initial response of the students in the first phase, HPKVN intends to impart EEE training to an additional 5,000 final-year graduating students in the academic year 2023-24 under the state budget.

The Himachal Pradesh Building and Other Construction Workers (BOCW) Welfare Board was set up on 2nd March 2009, as a result of the Building and Other Construction Workers (Regulation of Employment and Condition of Service) Act, 1996, an ACT Of Parliament. BOCW Welfare Board is functioning in Himachal Pradesh with the prime motive to give various benefits to all the unorganized sector workers engaged in Building and other construction works.
For registration in the BOCW Welfare Board, every building worker who has Completed 18 years of age but has not completed 60 years and who is not a member in any other welfare fund established under any law for the time being in force and who has completed 90 days of service as a building worker in the year immediately preceding shall be eligible for the membership in the fund.
The Board runs various welfare schemes like Marriage Assistance Scheme, Maternity-Paternity Assistance Scheme, Education Assistance Scheme, Medical Assistance Scheme, Pension Assistance Scheme, Disability Pension Assistance Scheme, Death-Funeral Assistance Scheme, Female Child Birth Gift Scheme, Disabled Children Benefit Scheme, Widow Pension, Hostel Facility Scheme for children of construction workers and additional benefits for the beneficiaries of MMAY/PMAY scheme for the welfare of the registered workers of the Board. The financial assistance under the above-mentioned schemes is being provided to two children of the registered beneficiaries of the Board. The benefit in favour of the beneficiaries is deposited in the worker's bank accounts through RTGS mode.
The board has developed the e-Kamgar Vavyastha online portal for the registration of the workers and disbursing the claim of the beneficiaries. The Board has registered a total of 4,47,833 workers since inception up to 30.11.2023. As of 30.11.2023, there were a total of 3,19,407 live workers. Further, the benefits amounting to ₹1.92 crore have been disbursed to 376 eligible beneficiaries and Cess amounting to ₹94.21 crore has been collected in the year 2023-24 from various establishments.
The board is organizing awareness camps through Labour Welfare Officers of H.P. BOCW Welfare Board in the entire State to publicize various welfare schemes amongst the people of the State.

The Tourism Industry in Himachal Pradesh has a high priority and the Government has developed infrastructure for its development which includes the provision of public utility services, roads, communication networks, airports, transport facilities, water supply civic amenities, etc. The Government is poised to transform the State into "A Destination for All Seasons and All Reasons".
The tourism sector in Himachal Pradesh has been recognized as one of the most important sectors of the economy as it is a major engine of growth and the contribution of the tourism sector to the State GDP is significant. The State is endowed with necessary resources necessary for tourism activities like geographical and cultural diversity, a clean and peaceful environment, beautiful streams, sacred shrines, historic monuments and friendly and hospitable people.
The State has a rich treasure of places of pilgrimage and of Archaeological value. At present, about 4,610 hotels having bed capacity of about 1,25,862 are registered with the department. In addition, there are about 3,870 Home Stay units registered in the State, having about 23,846 beds.
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. Despite the huge potential of the sector and global tourism studies show that the benefits from tourism in many places are overestimated. The State does not figure among the top 10 tourist destinations in the Country for domestic as well as foreign tourist arrivals, as per the Statistics released by the Ministry of Tourism, Government of India in 2022.
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 USD 2 billion in 1950 to USD 637 billion in 2021. The World Economic Forum (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. The Hotel & Restaurants sector contributed 0.85 per cent to the state’s Gross State Value Added (GSVA) in 2023-24(AE) with a growth of 9.0 per cent over the last year’s growth of 6.6 per cent.
Tourism constitutes 7.0 per cent of Himachal’s GDP and contributes around 14.42 per cent of direct and indirect employment to the total employment in the State.

The State Government notified the Interest Subvention Scheme on Working Capital Loan for the Hospitality Industry on 2nd July, 2020 to support business investment and economic growth affected due to Covid. Further, revised Interest Subvention Scheme was notified on 17th June, 2021 and was valid till 30th September, 2022. To date, a sum of ₹60.01 lakh has been released to the beneficiaries as interest subvention and a total number of 38 Tourism Units have been benefitted.

The Department of Economic Affairs, Government of India (GOI) has approved an ADB loan for the Tourism sector under the Infrastructure Development Investment Programme for Tourism (Project 2) in the 122nd Screening meeting held on 30th November, 2021. The total project cost is US $291.04 Million (₹2357.42 crore, US $1=₹81) to be availed in two Tranches. Out of this ADB's share will be US $233 million (₹1885.94 crore) and the State share is US $58.04 (₹471.48 crore). The ADB & State share is in the ratio of 80:20 respectively. The new ADB Project will have two Tranches i.e. Tranche-1 & Tranche-2.
The ADB in consultation with the Department of Tourism & Civil Aviation, Himachal Pradesh approved the list of sub-projects of Tranche-1 of the new Project of ₹1311.20 crore on 27th February, 2023. The sub-projects proposed under Tranche-1 are for Shimla, Mandi, Kullu, Kangra and Hamirpur districts. The Project Management Unit (PMU) and Project Implementation Unit (PIU) have been set up.
The PMU, Himachal Pradesh Tourism Development Board (HPTDB) is in the process of selecting the Project Management Design and Supervision Construction Consultant (PMDSC). The Request for Proposal (RFP) document has been issued for the submission of Technical and Financial Bids. The PMU, HPTDB will shortly invite Notice Inviting Tender (NIT) for the sub-projects of Tranche-I.

The Ministry of Tourism, Government of India has revamped its “Swadesh Darshan Scheme” as Swadesh Darshan 2.0 with the vision to develop Sustainable tourism destinations in the country. Pong Dam has been selected as a Tourist Destination under Swadesh Darshan 2.0. The State Government has designated Department of Tourism & Civil Aviation as its implementing agency which has entered into an agreement with M/S Voyants Solutions Pvt. Ltd. JV IDeCK Ltd. appointed as Project Development and Management Consultant (PDMC) for the State of Himachal Pradesh for providing end to end support to the State Implementing Agencies for planning, development and management of identified destination i.e. Pong Dam.

At present, there are 3 existing airports in Himachal Pradesh i.e. Shimla Airport, Kullu Airport & Kangra Airport. A Greenfield Airport at Nagchala, Mandi is also proposed for development /construction.
The present status of 3 Airports i.e. Jubberhatti (District, Shimla), Bhunter (District, Kullu) and Gaggal (District, Kangra) is as under:
i) Shimla (Jubberhatti) Airport: The runway dimension of Shimla Airport is 1189M X 30M, which is only suitable for the landing of Air Transportation Rack (ATR)-42 with load penalty. Runway End Safety Area (RESA) work is completed by the Airport Authority of India (AAI). Air services on the Shimla-Delhi-Shimla route were resumed by the State Government on 26th September, 2022 through M/S Alliance Air Limited and the flight operations are being operated on the Shimla-Dharamshala-Shimla sector all seven days a week for which 100 per cent Viability Gap Funding (VGF) is being borne by the State Government Apart from that, Alliance Air has also started flights between Shimla-Amritsar-Shimla (3 days a week).
ii) Kullu (Bhunter) Airport: Kullu Airport has a runway of 1,128 meters with a width of 30.5 meters which is suitable for the landing of Air Transportation Rack (ATR) 72-seater aircraft with load penalty. Flight operation is being conducted by Air India through ATR-72. The proposal for the fulfilment of minimum security/widening of Kullu Airport is under consideration, for which the Forest Conservation Act (FCA) case has been uploaded on the Parivesh portal of the Ministry of Environment, Forest and Climate Change Government of India for 1st stage clearance. New flight operations have been started between Kullu-Amritsar-Kullu under Regional Connectivity Scheme (RCS) UDAN Scheme from October, 2023 (3 days a week).
iii) Kangra (Gaggal) Airport: The expansion work of Kangra Airport will be carried out by the Airport Authority of India (AAI) and bidding/tendering process will be done by AAI, for which a draft Master Plan has been received from the AAI on 07th October, 2021. As per the draft Master Plan Kangra Airport can be developed in two phases i.e. in 1st phase runway length is planned to be extended from the existing 1,376 to 1,900 mtrs. and in the 2nd phase 1,900 mtrs. to 3,010 mtrs.
State Government has conveyed the consent of the Draft Master Plan received from AAI vide letter No. TSM-F(6)-1/2015-II dated 03rd February, 2023 and District Administration has also identified land measuring 147-75-87 hectares out of which 122-66-23 hectare land is private land. Social Impact Assessment (SIA) notification for acquisition of land to be acquired for the expansion of Kangra Airport was issued by the Government on 28th February, 2023 and the work was awarded to SR ASIA for SIA through SIA unit HIPA. The appraisal report submitted by the Multi-Disciplinary Expert Group was approved by the cabinet and thereafter the notification under section 11 of the Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement Act, 2013 was issued on 7th July, 2023 by the Government for acquisition of land for expansion of Kangra Airport. The work regarding facilitation in the implementation of land acquisition and Resettlement & Rehabilitation for the expansion of Kangra airport has also been awarded to Consultant for Rural Area Development Linked Economy (CRADLE) through the Himachal Pradesh Road & Infrastructure Development Corporation Limited (HPRIDCL). The work of Techno-Economic Feasibility study for the proposed expansion of Kangra Airport was awarded to WAPCOS Ltd. For assessing the cost of land acquisition, Rehabilitation & Resettlement Plan is being prepared by Deputy Commissioner, Kangra.
iv)Greenfield Airport at Nagchala, Mandi: Pre-feasibility study was carried out by the Airport Authority of India (AAI) from 7th May, 2018 to 10th May, 2018 and the site was found feasible. The Airport Authority of India also conducted the Obstacle Limitation Surfaces (OLS) survey from 3rd December, 2018 to 15th December, 2018.
As per Greenfield Airport Policy, Site Clearance has been obtained from the Ministry of Civil Aviation, Government of India. The feasibility of the 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). Social Impact Assessment (SIA) notification has been issued by the Government.

5 New Heliports i.e. each in (Kangnidhar), district Mandi, Defence Geoinformatics Research Establishment (DGRE) (SASE Manali) (District, Kullu), Baddi (District, Solan) and 2 in (Sanjauli and Rampur) (District, Shimla) are being developed in Himachal Pradesh to give boost to the tourism industry of the State under Regional Connectivity Scheme (RCS) (UDAN-2) Scheme of Government of India.
The construction work of Shimla, Baddi and Rampur Heliports has been completed and the final Directorate General of Civil Aviation (DGCA) inspection is awaited for license to operate.
16 new heliports are being developed by the Government in all District Headquarters as well as in tribal areas out of which 9 are being developed in the first phase i.e. Sasan (District Hamirpur), Rakkar & Palampur (District Kangra), Sultanpur (District Chamba), Alloo Ground Manali (District Kullu), Sharbo (District Kinnaur), Jispa, Sissu & Rangrik (District Lahaul & Spiti) and rest of the Heliports will be covered under second phase i.e. Pangi & Holi, (District Chamba), Auhar, (District Bilaspur), Dharkiyari, (District Sirmaur), Chansaldhar, (District Shimla), Jankaur Harr, (District Una) and Galanag, (District Solan).

The Government has introduced a new fund for the Development of Tourism in the State called “Paryatan Vikas” with a budget provision of ₹398.71 crore. The department intends to develop Kangra as "Tourism Capital" by developing a Golf Course/ Thematic Green park in Chharol Arli, Mauja Garli, Sub Tehsil Paragpur,(District Kangra). The department has sanctioned/released a sum of ₹48.72 crore till 30th November, 2023 for the development of various sites and destinations in the State including establishment of a "Tourist Village" at Narghota, District Kangra, development at Nagrota, Norakhud and Banooti Patwar Circle Niri District Shimla (Rural), Development of Ice Skating Rink at District Shimla, Manali and Dharamshala etc.

Tourist arrival is one of the main indicators of the demand for tourism in a particular destination. Table 12.1 presents the data on the foreign and domestic tourist arrivals in Himachal Pradesh from 2012 to 2023. After the COVID-19 pandemic, 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 and 160.05 lakh in 2023 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 sustainably. The 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 the 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 the ban on international flights. Figure 12.1 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. It reached to 75.43 per cent in 2021, 167.87 per cent in 2022 and 6.00 per cent in 2023.

The Himachal Pradesh Tourism Development Corporation (HPTDC) is a pioneer in the development of tourism infrastructure in Himachal Pradesh formed in 1972. It provides a 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 56 hotels having 1,109 rooms with 2,485 beds.
As the tourism industry of the state was looking to bounce back from the pandemic's aftermath, the floods and heavy rainfall in July, 2023 not only reduced the footfall of tourists in the state but also caused severe damage to the infrastructure on which the tourism activities rely. HPTDC is making all-out efforts to revive these losses. The corporation has started the operation of a newly constructed café at Auhar, District Bilaspur, 40 commercial rooms at Willy's Park, District Shimla, along with the upgradation and renovation of the Hotel Peterhof, District Shimla and Restaurant at Hotel Holiday Home. The HPTDC has generated an income of ₹71.41 crore up to November, 2023 and the anticipated income for the period December, 2023 to March, 2024 is ₹32.63 crore against the target of ₹110.00 crore for the Financial Year, 2023-24

Roads are a very vital infrastructure for the rapid economic growth of the State. The development of important sectors of the economy such as Agriculture, Horticulture, Industry, Mining and Forestry depends upon an 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 hilly States like Himachal Pradesh. Starting almost from scratch the State Government has constructed 41,975 Kilometers (km.) of motorable roads (inclusive of jeepable and track) till December, 2023. The State Government has been assigning a very high priority to the road sector.
Himachal Pradesh State has a good road network. There are 19 National Highways with a total length of 2,576 km. In the State 15,561 villages are connected with roads. 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. 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 2023-24 and achievements made up to December, 2023 are given as under in table 12.4. In the State 15,561 villages as shown in Table 12.5 are connected with roads as of December, 2023:

A total of 19 National Highways have a length of 2,576 Kilometers in the State. The Himachal Pradesh Public Works Department has the responsibilities for the development and maintenance of 1,008 km. and the Ministry of Road Transport & Highways (MoRTH) is upgrading 214 km. length as Green National Highways Corridor under World Bank Assistance. The National Highway Authority (NHA) of India is developing a 4-laning stretch of 785 km. length and Border Road Organization (BRO) having responsibilities for developing and maintaining 569 km. length in the State.

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 endeavours to provide an efficient, adequate and economical 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 department to the Government in the shape of taxes on motor vehicles.

a) Revenue Generation: The revenue collection of the department is as under: b) Enforcement of Vehicles:The officers of the Transport Department enforce the Motor Vehicle Act strictly and the summary of which is as under: c) Registration of Vehicles:There are 22,43,524 numbers of vehicles (Transport and Non-Transport) have been registered in the state up to 31st December, 2023. District-wise detail up to 31st December, 2023 is as under:

The Department of Transport Government of Himachal Pradesh has the following achievements during the year 2023-24:
Inspection and Certification Centre: The Ministry of Road Transport and Highways (MoRTH) has sanctioned a project for setting up of Inspection and Certification Centre for vehicle fitness in favour of Himachal Pradesh at Baddi, District Solan. The cost of the project is ₹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 (MoRTH) vide letter dated 14th November, 2018.
After completion of all formalities, the civil work was awarded through an e-tender process in favour of M/S Combined Promoters and Infrastructure Pvt. Limited for ₹ 920.11 lakh and the vendor/contractor started the civil work in March, 2020. Due to a 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 to the project and eventually, the project cost inclusive of GST arrived at ₹1219.60 Lakh.
Till date Gross amount of ₹8.84 crore (including taxes) stands paid/processed to the Contractor and work at the Site is underway. Currently, about 75-80 per cent of the Civil work has been completed at the site.
Creation of Transport Nagar: The land for construction of Transport Nagar in 6 districts of the State i.e. Shimla, Kangra, Hamirpur, Sirmaur, Solan & Una has been identified.
The District wise status is as under:
i) Shimla: The case for transfer of land in the name of the Transport Department is under process.
ii) Solan: In Nalagarh, the case for transfer of land in the name of the Transport Department is under process.
iii) Sirmaur: The case for transfer of land in the name of the Transport Department is under process.
iv) Kangra: The land has been transferred in the name of the Transport Department. Proposal was sent to the State Government on 25th October, 2023 for Administrative Approval of the project and to float a Request for Proposal (RFP) to hire consultancy services from any agency specified in Central Motor Vehicle Rules, (CMVR) 1989.
v) Hamirpur: The land has been transferred in the name of the Transport Department. The proposal has been sent to the State Government for administrative approval.
vi) Una: The case for the transfer of land in the name of the Transport Department has been sent to the State Government/Divisional Commissioner, Kangra.
Driving Training School (DTS) and Pollution Check Centre: The details of the Driving Training School and Pollution Check Centre are as below:
Employment Generation: The Transport Department has provided employment to 33,967 people up to 31st December, 2023 by granting various categories of permits to the un-employed youth. The details are as under:
Electric Vehicle Policy:The State has notified “Himachal Pradesh Electric Vehicle Policy, 2022” to develop Himachal Pradesh as a model State for Electric Vehicle and has accorded top priority to the introduction of Electric Vehicles in the State to save environment by promoting clean modes of mobility and to create a conducive environment for the shift from Internal Combustion Engine (ICE) vehicles to Electric Vehicles. To attain this objective State Government in collaboration with various stakeholders viz. Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) etc. is progressing towards establishing Electric Vehicle Charging Stations across the State. In the first phase 107 locations (54 Government sites + 53 Petrol Pumps) have been identified for setting up Electric Vehicle Charging Stations on the following six Green Corridors notified by the State Government:
i) Parwanoo-Nalagarh-Una-Hamirpur-Dehra-Amb-Mubarikpur-Sansarpur Terrace-Nurpur.
ii) Paonta-Nahan-Solan-Shimla.
iii) Parwanoo-Solan-Shimla-Rampur-Peo-Pooh-Tabo-Kaza-Losar.
iv) Shimla-Bilaspur-Hamirpur-Kangra-Nurpur-Banikhet-Chamba.
v) Mandi-Jogindernagar-Palampur-Dharamshala-Kangra.
vi) Kiratpur-Bilaspur-Mandi-Kullu-Manali-Keylong-Zing-Zing Bar.
Out of 53 Petrol pumps Charging Infrastructure has been installed on 17 petrol pumps (14 IOCL+ 3 BPCL). Further, an Expression of Interest (EoI) has been floated for 45 Government sites for setting up Charging Stations along with wayside amenities, which is under process.
Guidelines for Safe Transportation 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 the achievement of 100 per cent target for checking vehicles ferrying School children and the same is monitored in the Directorate level.
Rent a Motor Cycle & Motor Cab Scheme: The rent Motor Bike scheme is notified Scheme under the provision of the 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. The State Transport Authority granted 3,592 Permits to the Applicants and 2,792 Motor Cycle have been registered till day for the purpose.
Fleet Strength of Private Buses and Taxies: The total strength of Private Stage Carriage Buses in Himachal Pradesh is 3,364, the Strength of Taxies (Seating Capacity 4+1) is 28,431, Maxi (6+1 and above) is 13,265 up to 31st December, 2023. The District wise and Regional Transport Office (RTO) wise Details are as under:

Road Transport is the mainstay of economic activity in 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 3,059 buses, 110 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/benefits remained in operation during the year:
i) Green Card Scheme: Green cardholder is allowed a 25 per cent discount on fare if the journey undertaken by the passenger is 50 km. The cost of this card is ₹ 50 and its validity for two years.
ii) Smart Card Scheme: The Corporation has introduced the Smart Card Scheme. The cost of the card is ₹50 and its validity for two years. This 10 per cent discount in fare and also valid in HRTC Ordinary, Super Fast, Semi Deluxe and Deluxe buses. In Volvo and AC Buses, the discount is allowed from 1st October to 31st March.
iii) Samman Card Scheme for Senior Citizens: The Corporation has introduced the Samman Card Scheme for senior citizens of the age of 60 years or more. Under this scheme, a discount of 30 per cent on fare is allowed in ordinary buses.
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 the occasion of "Id" and "Baker Id".
v) Discount on fare to Women: The Corporation has also allowed a 50 per cent discount on fare in ordinary buses within the State to 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 persons 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 medical treatment on referral slips issued by the Doctor within and outside the State.
viii) Free Facility to the Special abled persons: The Corporation provides free travelling facility to special abled persons having disability of 70 per cent or more along with one attendant within the 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) 3X2 Ordinary Air Condition (AC) Buses: Fare of ordinary 3x2 AC buses was reduced by 15 per cent.
xi) 24X7 Helpline: Toll-free helpline No.1100 has been started by HRTC for the convenience of the public 24X7 within the State and helpline No.18001808185 outside the State.
xii) Taxies on sealed roads: Taxies Services have also been introduced by the Corporation in Shimla Town for the 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 places: The Corporation has introduced electric buses for tourists and visitors to 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 persons at Bus Stands: For the benefit of special abled persons, wheelchair has been provided at 42 Bus Stands.
xvii) Development of a public information system at the bus stands of the corporation: Development of a public information system provided at Bus Stands, so that passengers can get information related to the departure of buses.
xviii) Under Shimla smart city project, 18 Crysta Innova, 12 Tempo Traveller, and 20 Electric buses and under Dharamshala Smart City 15 Electric buses were included in the fleet of HRTC. Beside 11 Volvo buses and 186 ordinary buses were also included in the Corporation fleet.
xix) Himachal Pradesh Bus Stand Management & Development Authority (HPBSMDA) completed the construction of a new bus stand in Haripur (Dehra) District Kangra at a cost ₹3.00 crore. It was made functional on 26th May, 2023. For the convenience of the public, the HRTC operates buses with a Scheme called the Religious tourist circuit bus service.
xx) The HRTC has started 36 new bus services. The routes of 45 buses were extended and the routes of 28 buses were diverted.
xxi) The HRTC has started a new luggage policy (with passenger/without passenger) for the convenience of the public.

Education is the transmission of knowledge, skills, and character traits and comes in many forms. Education is a wide phenomenon that applies to all age groups and covers formal education as well as non-formal and informal education. Fundamentally, education socializes children into society by teaching cultural values and norms. It equips them with the skills needed to become productive members of society. This way, it stimulates economic growth and raises awareness of local and global problems.
Upon achieving full Statehood, the literacy rate in the State stood at a modest 31.96 per cent. Nevertheless, the State has undergone substantial advancements in both education and the economy, primarily attributable to concerted efforts in expanding educational infrastructure. The surge in school enrollment and literacy rates is a testament to the collective commitment of political leadership, administrative engagement, and societal initiatives. The inclusion of Article 21A in the Indian Constitution through the 86th Amendment underscores this commitment. This article mandates that the State must provide free and compulsory education to all children aged 6 to 14, as prescribed by relevant laws. The Right of Children to Free and Compulsory Education (RTE) Act of 2009 further solidifies this commitment, ensuring that every child receives free and compulsory education until completion of elementary schooling.
As per the Census results the literacy rate in Himachal Pradesh was 82.80 per cent in 2011, which was 8.8 per cent higher than the national average of 74.0 per cent. The male literacy rate was 89.53 per cent, while the female literacy rate was 75.93 per cent. According to the National Family Health Survey (NFHS)-5 conducted in 2019-21, the literacy rate in Himachal Pradesh has increased to 93.3 per cent. The male and female literacy rates are now 94.9 per cent and 91.7 per cent, respectively, with a 3.2 per cent gender disparity.

As of December 31, 2023, Government had 10,370 Primary Schools and 1,850 Middle Schools, reflecting a commitment to providing foundational education. Recognizing the shortage of trained teachers, ongoing initiatives prioritize regular recruitment of teachers to address this challenge, effectively.
Special attention is dedicated to meeting the educational requirements of specially-abled children, to create an inclusive learning environment that accommodates diverse needs. The government's policies in the realm of elementary education are strategically implemented with the following overarching objectives:
i) To achieve the goal of universalization of Elementary Education.
ii) To ensure that all children have access to a high-quality elementary school education.
iii) Access to education for every child in the State.

State-Sponsored Scholarship Schemes

The following incentives were provided during the year 2023-24:

As of 31st December, 2023, in the Government sector, there are 960 High schools, 1,984 Senior Secondary Schools and 148 Degree Colleges including 8 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 society, various scholarships/stipends are being provided by the State/Central Governments at various stages. The scholarship schemes are as per table 13.2:

The State and Central Governments are persistently working to advance Sanskrit education, with ongoing initiatives aimed at its promotion. Detailed specifics are outlined below:
i) Award of scholarships to students of High/ Senior Secondary Schools studying Sanskrit.
ii) Modernization of Sanskrit Schools.
iii) Grant for various schemes for the promotion of Sanskrit and research/ research projects.

During 2023-24 the SCERT, Solan and Government College of Teacher Education Dharamshala, Himachal Pradesh organized online Training Programmes in which 1,474 teaching and non-teaching staff of Schools and colleges have been given training.

The State Government provides free textbooks to all students of 9th and 10th classes. 1,41,956 students have been benefited under this scheme during 2023-24.

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 the university level also.

Free education, without any tuition fee, is being provided to girl students in the State up to the University level.

Information Technology education is offered in all Government Senior Secondary Schools on a self-finance basis, with students choosing it as an optional subject. The department charges an Information Technology fee of ₹110 per month per student. Students from SC (BPL) families receive a 50 per cent fee concession. In the academic year 2023-24, a total of 81,804 students are enrolled in Information Technology education, and 5,654 students from SC (BPL) backgrounds have availed themselves of the fee concession under this scheme.

The main emphasis of the integrated scheme is on improving the quality of school education by focusing on the two T’S- Teacher and Technology. The strategy for all interventions under the Scheme is to enhance the Learning Outcomes at all levels of schooling. Samagra Shiksha is running in a sharing pattern of 90:10 (90 per cent Government of India and 10 per cent state Government).
following schemes are running under Samagra Shiksha:
i) Information and Communication Technology (ICT) Project: To improve and strengthen the teaching and learning activity by using smart classrooms and multi-media teaching aids, the department has successfully implemented ICT in 2,555 Government High/ Senior Secondary Schools up to 2022-23 and 239 Government schools are being covered during the current financial year.
ii) Vocational Education: Under the National Skill Qualification Framework Scheme (NSQF), vocational education is being provided in 1,154 schools and recruitment of vocational trainers in 120 newly approved vocational schools from 2023-24 is in progress and vocational education will be imparted in these schools from April, 2024. 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 the State Government to provide vocational education in the State.
iii) Inclusive Education for Children with Special Needs (CwSN): Under this scheme, 12 model schools have already been established in all the districts out of which 4 schools are with residential facilities and 32 CwSN students are residing in these schools. In Himachal Pradesh, 5,115 CwSN have been identified as per U-DISE+ data. About 97 CwSN at the pre-primary level 3,707 CwSN at the elementary level and 1408 CwSN at the secondary level have been integrated in formal schools in the FY 2023-24. Home-Based Education Programme has been implemented at the elementary level for 1464 severe and profound CwSN for the age group of 6-18 years in Himachal Pradesh with the help of Non-Government Organizations and Special Educators. In FY 2023-24, Medical assessment camps for Children with Special Needs were organized in 140 blocks of all the districts of Himachal Pradesh.
iv) Kasturba Gandhi Balika Vidyalaya (KGBV): In Himachal Pradesh, there are 14 KGBVs. out of 14 KGBVs, eleven are in district Chamba one in district Shimla and two in district Sirmour. All 14 KGBVs are fully functional and are being managed through SSA. Currently, 830 girls are residing in all KGBVs. All these hostels are attached to Government Senior Secondary Schools or Government High Schools. Girls belonging to SC/ST/OBC/IRDP are residing in the hostel. Girls studying in Kasturba Gandhi Balika Vidyalaya in Himachal Pradesh are mostly from Scheduled Castes, Scheduled Tribes and Backward Classes.

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).

The process of procurement of 10,000 nos. of Smart Phones under Srinivasa Ramanujan Digital Device Yojana, to meritorious students of class 10th, 12th and College students of Final year (B.A., B.Sc. and B.Com.) for the year 2023-24 is underway.

The objective of the scheme is to assist meritorious students of Himachal Pradesh, whose families' income does not exceed ₹2.50 Lakh, by providing them coaching for the 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 Defense Academy (NDA)/ Union Public Service Commission (UPSC)/ Staff Selection Commission (SSC)/Banking etc. During the year 2023-24, the scheme remained under process.

To provide safety and security to the students and bring transparency in Government Educational Institutions, 100 Government Schools have been covered under CCTV Surveillance System during the year 2023-24.

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 to participate in sports activities under this Yojana, during the year 2023-24 selection process is underway.

The department has started the process to provide financial assistance of ₹1.00 lakh each to the top 100 meritorious students of the 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 and during the FY 2023-24 the distribution of payment is under process.

Under CV Raman Virtual Classroom Yojana, the process of establishing virtual classrooms in 20 Government Senior Secondary (GSS) schools and 13 colleges is underway in the current FY 2023-24.

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 uploaded on the “Har Ghar Pathshala Portal” every Saturday and Sunday.

B.Voc Degree Program started in 20 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 3,050 students are under training/ enrolled during the academic session 2023-24.

Chief Minister, Himachal Pradesh has announced in the Budget Speech for the year 2023-24 to open one “Rajiv Gandhi Government Model Day-Boarding school” in each legislative Assembly Constituency (AC) of Himachal Pradesh. Rajiv Gandhi Government Model Day-Boarding school will be constructed in each constituency having the capacity to accommodate at least 900-1000 students in classes from pre-primary to 12th. Other facilities like Hi-tech Smart classrooms, play fields, indoor stadium/playgrounds and other facilities like swimming pool etc. will also be provided subject to the availability of the resources. At present approval has been accorded by the Government for 18 sites in 18 Assembly Constituencies of the state for which budget provision of ₹25.00 crore has been made for the year 2023-24.

Apna Vidyalaya the Himachal School Adoption Programme has been notified by the Government of Himachal Pradesh on 3rd January, 2024 with the objective to create a synergistic partnership between public representatives, administrative leaders and skilled professionals to contribute collectively to the improvement of government schools. Himachal has consistently focussed on education and the people of the State have internalised the importance of education. State Government has invested huge amounts of money over the decades to address the issue of access, enrolment, gender parity and retention. Now there is a need to shift our attention and focus on the learning outcomes. It has been observed that poor student performance is one of the major challenges that we face today. It is a fact (as indicated in the annual ASER reports) that a significant percentage of students, even in advanced grades, struggle to attain proficiency in reading and writing in their native languages, let alone in English. Additionally, over half of these students lack the foundational skills to perform basic arithmetic operations such as addition or subtraction. This critical deficiency in fundamental skills is particularly evident among students progressing through higher grades, indicating a substantial gap in the present system.
It will not be out of context to state that in a large number of government schools, children of marginalised sections of society have remained. The rest have migrated to the so-called "private schools" which have become aspirational. Anyone who has surplus disposable income wants his/her child to go to an English-medium private school. As a result, the community support for government schools has declined. Recognising the critical role of schools in shaping the future, the concept of “Adoption of Government Schools” emerges as a unique initiative to enhance the quality of education in alignment with the National Education Policy (NEP) 2020. This initiative proposes the voluntary adoption of government schools by political leaders, senior bureaucrats, retired personnel and skilled individuals, fostering a collaborative approach to uplift the education landscape.
Objective of the School Adoption Programme:
i) To create a synergistic partnership between public representatives, administrative leaders and skilled professionals to contribute collectively to the improvement of government schools. The overarching goal is to enhance the learning environment, infrastructure and overall educational experience for students.
ii) To address the learning gaps in the State Government Schools, various Reports/Surveys (including NAS, 2021, PGI and ASER 2022) record a declining trend in the performance of the students of Government Schools. These studies and surveys highlight that a school's underperformance is closely tied to a lack of ownership and support within the public education system.
iii) To address infrastructure and resource gaps in schools through community support.
Four Streams of the School Adoption Programme:
a) “Schoolpatron” Campaign
b) “School Mentor” Campaign
c) “My School-My Pride” Campaign:
i) School’s Academic Support Team
ii) School Support Team: Non-Academic
iii) Financial Adoption
iv) S.A.M.V.A.D. Campaign
Advantages of Apna Vidyalaya:
i) Fostering Civic Duty
ii) Strengthening School Vision and Community Engagement
iii) Impacting School Infrastructure and Services
iv) Mentoring Schools
v) Developing a sustainable model for educational improvement

The department is offering Technical Education, Vocational, and Industrial Training in Himachal Pradesh. It has now reached a stage where students aspiring to pursue Engineering/Pharmacy can enroll in diploma and degree programs, along with certificate courses, in various institutions across the state.

Himachal Pradesh Skill Development Project involves the collaboration between Himachal Pradesh Kaushal Vikas Nigam (HPKVN) and 68 Government Industrial Training Institutes (ITIs). They have formalized this partnership through a Memorandum of Understanding (MoU) to offer Short-Term Skill Training aligned with the National Skill Qualification Framework (NSQF) to the youth of Himachal Pradesh. The training programs or courses provided under this initiative have varying durations, ranging from 200 hours to 1,000 hours.
i) 19,663 trainees are proposed to be trained by the 68 ITIs in three years. Till December, 2023 13,589 trainees have been enrolled for short-term training courses, out of which 10,143 were certified by the concerned sector skill council after due assessment.

Under the STRIVE Centrally Sponsored Project, 19 ITIs have been selected for the enhancement of their facilities, aimed at providing students with high-quality training. A sum of ₹30.71 crore has been allocated for this initiative. For the FY 2023-24, ₹4.88 crore has been sanctioned and disbursed to the respective ITIs based on their allocation.
Furthermore, funds amounting to ₹36.68 lakh have been received through the State Apprenticeship Monitoring Cell (SAMC) for the Industry Cluster (IC) BBNIA-IC in the year 2023-24. Additionally, two more Industry Clusters, namely JLUS Bilaspur and HCCI Paonta Sahib, have been included in the project. Each of these clusters has received ₹14.95 lakh during the FY 2023-24

i) Short-Term Training in Robotics, Semi-conductor Eco-System. Machine Learning and Management Development Programme etc. have been provided to 77 Faculties and 43 students in eminent Institutions such as IITs and IIMs.
ii) The Faculty Development Programme, run by the National Institute of Technical Teachers Training and Research (NITTTR) Chandigarh/Bhopal and the Institute of Himachal Pradesh Public Administration (HIPA) has educated more than 390 faculties through online/ offline mode.
iii) 1258 Faculty & 8954 students have been registered/ attended the Massive Open Online/Swayam courses.
iv) New age courses i.e. Computer Science & Engineering (Artificial Intelligence & Data Science) degree courses at Government Hydro Engineering College Bandla, Diploma in Computer Engineering & IOT course at Government Polytechnic Rohru and diploma in Mechatronics at Government Polytechnic Chamba has been started along with starting a new Government College of Pharmacy at Sullah (Kangra).
v) 49 trainees under National Apprentices Training and 15 trainees under National Apprentices Promotion Scheme in Engineering Colleges, Polytechnics & Pharmacy Colleges have been engaged, wherein the stipend is provided to each trainee during their training period.

The ASER (Annual Status of Education Report) Report for the year 2023 presents an analysis based on data collected from 1,360 youth residing in 1,202 households in Himachal Pradesh, specifically from the rural areas of Kangra District. The study encompasses 60 villages within this district. The report highlights key findings through various Figures, shedding light on crucial aspects of the education status in the region. The above figure illustrates the enrolment status of youth in terms of percentage. Enrolment of male students is more in schools up to Standard X (38.9 per cent) as compared to female students (33.5 per cent) in the age group of 14 to 18. In the similar age group in senior secondary level i.e. Std. XI and XII, female students' enrolment are greater (43.4 per cent) as compared to male students (41.3 per cent). In the case of Undergraduate or other (youth who are enrolled in college to pursue an undergraduate degree or a certificate or diploma course), again female students' enrolment is higher (16.2 per cent) than male students (8.1 per cent). Moreover, in the category of Not enrolled which includes youth who never enrolled or dropped out, there are 11.7 per cent males and only 6.9 per cent females. The percentages in the above figure depict the reading ability of children by standard, as reading itself is a progressive tool. While analysing the Basic Reading parameters, the percentage of female youth has shown an increasing trend in both age groups (14 to 16 years and 17 to 18 years) in reading at least a Std.II level text. Whereas in the case of category of all both male and female youth have equal percentage i.e. 88.6 per cent, who can read at least a Std. II level text. Figure 13.3 presents the Basic English reading ability, by age group and sex of youth in terms of percentage. The percentage of female youth who can read easily English sentences is 90.4 as compared to male youth which is 84.2 per cent under the age group of 14 to 16 years. On the other hand in another age group of 17 to 18 years, there is a slightly higher percentage of male youth (84.9 per cent) as compared to female youth (84.2 per cent) in the English sentence reading capabilities. Figure 13.4 presents a brief analysis of youth who can do everyday calculations in terms of percentage. This reveals that the male youth percentages are more than the females in all the specified tasks i.e. calculating time, adding weights, measuring length, and applying the unitary method in all age groups. The above figure shows the access and ownership of digital devices among rural youth in Himachal Pradesh in terms of the percentage. A brief analysis of the availability & use of Smartphones shows that in all (14–18 years) 99.5 per cent of youth can use a smartphone, 98.6 per cent of youth have a smartphone at home, 89.5 per cent of youth can bring a smartphone to do digital tasks (setting an alarm, browsing for information, using google maps, finding and sharing a Youtube video) and 40.0 per cent of them are those who can use smartphone and have their smartphone.

The concept of health has undergone a transformative journey over time. Initially rooted in the biomedical perspective, early definitions of health centred around the body's functional capacity, considering health as the normal state that could occasionally be disrupted by disease. Similar to the evolution in perceiving disease as a process rather than a static state, the definition of health also underwent a parallel shift.
World Health Organization (WHO) has played a pivotal role in steering this evolution by championing health promotion movements. According to the WHO, health is now defined as "a condition of complete physical, mental, and social well-being, rather than only the absence of sickness or disability." This holistic perspective emphasizes a comprehensive state of wellness encompassing various aspects of an individual's life. Universal health care has also been stressed by the United Nations (UN) under its Sustainable Development Goal #3 which declares to "Ensure healthy lives and promote wellbeing for all at all ages" by 2030. Health sector includes a very diverse set of activities that not only include services that detect diseases but also prevention and awareness.
Recognizing the intrinsic link between health and economic growth, there is credence to the notion that investing in healthcare contributes to improved overall well-being, leading to a more productive populace and fostering an efficient workforce. Consequently, this investment significantly propels social and economic progress within a country.
Himachal Pradesh has made significant investment in its health infrastructure, which is among the best in the country in terms of availability per capita. These investments were effective in terms of outreach, despite the hilly terrain. Data from the National Family and Health Surveys (NFHS) indicates that 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 substantial number of people in Himachal Pradesh use public health facilities.
It's commendable that the State Government of Himachal Pradesh has prioritized the well-being of its citizens and has articulated a clear vision for ensuring good health. The focus on providing comprehensive health services, eliminating both communicable and non-communicable diseases and expanding healthcare services demonstrates a commitment to improving the overall health of the population.
Quality healthcare infrastructure is an essential indicator of the State’s progress in the social sector, in general and the health sector, specifically. State Government has undertaken concerted efforts to develop quality health infrastructure to offer comprehensive healthcare services to its citizens. The Health and Family Welfare Department with the presence of a well-established network of healthcare facilities, including 115 Civil Hospitals, 104 Community Health Centres, 580 Primary Health Centres, 16 ESI Civil Dispensaries and 2,114 Health Sub Centres has adopted a systematic approach to delivering curative, preventive, and rehabilitative services. Successful delivery of extensive health services has resulted in to significant positive outcomes. These include an increase in life expectancy, a decrease in Infant Mortality Rate, Neonatal Mortality Rate, and Under-5 Mortality Rate. Additionally, there has been notable improvement in delivery care, immunization rates and maternal health, as illustrated in the accompanying Figures below: Life expectancy at birth in Himachal Pradesh has been on an increasing trend over the years and is currently higher than the national average (Figure 14.1). The overall life expectancy has increased from 72.9 in 2014-18 to 73.5 in 2016-20. During 2016-20, the male and female life expectancy stood at 70.3 and 77.5 years, respectively. Higher female life expectancy over male life expectancy follows the national trend. Life expectancy in Himachal Pradesh is better than in many other states as Madhya Pradesh, Uttar Pradesh, Jharkhand, Chhattisgarh, and Assam.
Improving performance in Infant Mortality Rate (IMR), Under-5 Mortality Rate (U5MR) and Neonatal Mortality Rate (NNMR): The incidences of NNMR, IMR, and U5MR, have been on a declining trend indicating an improvement in the child health scenario in Himachal Pradesh. The IMR for Himachal Pradesh reduced from 36 to 25.6 during 2005-06 and 2019-21. Similarly, U5MR per 1000 live births dropped from 42 to 28.9 during the same period. The IMR, U5MR and NNMR of State is less than the India (Figure 14.2, Figure 14.3 and Figure 14.4). The decline in infant and child mortality rates has largely been an outcome of the State's active interventions through various health programmes such as the IMR Mission (2001) and Home Based Care for Young Child (2019). In addition, the implementation of corrective strategies such as the creation of New-born Care Corners, New-born Stabilisation Units, Sick New-born Care Units, Nutrition Rehabilitation Centres, etc. also played a key role in enabling these outcomes.
Improved Delivery care resulted in high Institutional Delivery Rates: Institutional delivery is crucial for the prevention, detection, and management of delivery complications as well as to reduce MMR and IMR. The institutional delivery rate in the State has significantly increased from 43.1 per cent in 2005-2006 (NFHS-3) to 88.2 per cent (NFHS-5) and is now almost equal to the national average (Figure 14.5). The implementation of Government policy initiatives like Janani Suraksha Yojana (JSY), Janani Shishu Surakha Karyakaram (JSSK) the Free Drug Scheme, Pradhan Mantri Surakshit Matritav Abhiyan (PMSMA), 108 ambulance services and other health programmes have contributed to improving the state’s institutional delivery rates.
A progressive step towards full Immunisation:The Government is undertaking several programmes to fully immunise children in the State. As a result, 89.3 per cent of children aged 12-23 months were fully immunised in 2019–21 which is a remarkable improvement from 74.2 per cent during 2005-06 (NFHS 3). To digitalize the immunization record the U-WIN platform is also being utilized in Himachal Pradesh thus by increasing the full immunization coverage in the State (Figure 14.6).
Improvement of Maternal Health in the State:Himachal has achieved significant progress on maternal and reproductive health indicators owing to the implementation of key interventions like Janani Suraksha Yojana and108/102 Janani Express Ambulance services, Maternal Mortality Ratio (MMR) in the State has been on a declining trend, absolute number of maternal deaths during FY 2022-23 from April, 2022 to March, 2023 were 54 and during FY 2023-24 from April, 2023 to December, 2023 were 31. Total Fertility Rate (TFR) is used to measure the childbearing capacity of a woman during her fertility period. TFR in Himachal Pradesh dropped over time and is less than the national average (Figure 14.7). A brief detail of Health and Family Welfare programmes during FY 2023-24 is shown below:

Presently, the Directorate of Medical Education and Research (DME) regulates six medical colleges, one dental college, one Atal Medical and Research University, and the 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), All India Institute of Medical Sciences (AIIMS) has been established in Himachal Pradesh in Bilaspur. The institution-wise budgetary allocation and expenditure of funds during FY 2023-24 up to 11th January, 2024 is given in the table 14.4:

Academic achievements in Medical Education and Research are as follows:
i) Bachelor of Medicines and Bachelor of Surgery (MBBS) and Post Graduate (PG): During the academic session 2023-24, 870 MBBS seats were filled in the Government and Private Sector (720 in Government and 150 in Private Sector). Similarly, 333 postgraduate (MD/MS) seats in various specialities were allotted in Government (241 seats) and Private Medical Colleges (92 seats).
ii) Bachelor of Dental Surgery (BDS) and Master of Dental Surgery (MDS): 295 Bachelor of Dental Surgery (BDS) seats filled in Government and private sector (75 in Government dental College and 220 in the private sector). Similarly, 100 Master of Dental Surgery (MDS) seats were filled in both the Government and Private sectors (23 in Government Dental College and 77 in private Dental Colleges) during Academic Session 2023-24.
iii) Nursing: During the academic year 2023-24, 334 seats for the Auxiliary Nurse Midwife (ANM) training course, 1,590 seats for the General Nursing and Midwifery (GNM) course, 1,940 B.Sc. Nursing, 655 Post Basic B.Sc Nursing and 201 seats for M.Sc Nursing Degree courses have been approved in various Government and Private institutions.
iv) Scholarship/Stipend: The State Government has enhanced the stipend for Bachelor of Medicines and Bachelor of Surgery (MBBS) from ₹17,000 to ₹20,000 per month.
v) Diplomate of National Board (DNB) Courses: During the academic session 2023-24, 28 DNB seats were allotted in Government Medical Colleges of the state i.e. in Dr. Rajindra Prasad Government Medical College & Hospital, Kangra at Tanda ( Post MBBS DNB 2 seats in one speciality), Sh. Lal Bahadur Shastri Government Medical College & Hospital, Mandi Nerchwok ( Post MBBS DNB 14 seats in 7 specialities), Dr. Radhakrishnan Government Medical College & Hospital, Hamirpur ( Post MBBS DNB 10 seats in 5 specialities) and Pt. Jawahar Lal Nehru Government Medical College, Chamba ( Post MBBS DNB 2 seats in one speciality). Similarly, Diploma Seats were allotted in Government Medical Colleges of the State i.e. Sh. Lal Bahadur Shastri Government Medical College & Hospital, Mandi Nerchwok (Diploma DNB 8 seats in 5 specialities), Dr. Radhakrishnan Government Medical College & Hospital, Hamirpur (DNB Diploma 6 seats in three specialities).
vi) Super Specialty Courses: During the academic session 2023-24, 7 seats in super speciality courses were filled up in different specialities in Indira Gandhi Medical College (IGMC) and Hospital Shimla and 4 seats were allotted to Dr Rajinder Prashad Government Medical College (Dr RPGMC) and Hospital, Kangra at Tanda under DNB super speciality courses (DNB Neurology 2 seats and DNB Cardiology 2 seats).
The Institution wise major achievements up to December 2023 are given in table 14.5:

Initially, the Department of Health & Family Welfare was responsible for the management of all Institutions of Ayurveda in the state, besides allopathic. Ayurveda is widely acceptable in the State. Indian systems of Medicine and Homoeopathy have played a vital role in the Health care systems of the State of Himachal Pradesh. This department includes the Ayurveda, Yoga, Unani, Siddha and Homoeopathy systems of medicines. In the Government of India this department has now been named AYUSH. In the state, this department is also known as AYUSH.
AYUSH Vibhag is an important part of the Himachal Pradesh Health Care System. Health care services being provided to the general public through AYUSH health infrastructure are given in table 14.6:

a) units of herbal gardens have been established in different Ayurvedic Institutions in the state for which 37,000 medicinal plants were provided by the State Medicinal Plant Board from its herbal gardens and nurseries.
b) A project proposal entitled “Nation-wide campaign on Withania somnifera (Ashwagandha)” – “Ashwagandha- A Health Promoter" has been approved by the National Medicinal Plants Board, Government of India.
c) The project proposal entitled "Setting up of Herbal Garden in schools under Education Department of Himachal Pradesh" amounting to ₹39.75 lakh for setting up these gardens in 75 schools of the state has been approved by the National Medicinal Plants Board, Government of India.
d) Specific Medicinal Plants Corridors were established in four departmental herbal gardens, each herbal garden covering 5 Bighas of the area as per the following details:
i) Tejpatta corridor in Herbal Garden, Joginder Nagar, District Mandi.
ii) Arjun corridor in Herbal Garden, Neri, District Hamirpur.
iii) Moringa corridor in Herbal Garden, Jungle Jhalera, District Bilaspur.
iv) Taxus corridor in Herbal Garden, Dumreda, District Shimla.

In Himachal Pradesh, government is dedicated to the well-being of socially and economically marginalized groups, including women, children, senior citizens, individuals with special needs, Scheduled Castes (SCs), Scheduled Tribes (STs) and Other Backward Classes (OBCs). The success of the welfare agenda hinges on meticulous program implementation, tailored to the specific needs of various sections ensuring that deliverables align with the government's strategic social.

The Directorate for Empowerment of SCs, OBCs, Minorities Affairs, and the Specially Abled (ESOMSA) has the responsibility of empowering underprivileged and marginalized segments of society. The department's programs are oriented towards enhancing socio-economic conditions of these groups, aiming to foster their seamless integration into the broader societal framework. ESOMSA places a concerted emphasis on the social, educational, and economic advancement of these target groups. The tangible outcomes of these initiatives are evident in the substantial improvement in the well-being of these groups.
Social protection is instrumental in addressing extreme deprivation, risks, and vulnerabilities, as relying solely on market forces and economic growth does not effectively tackle inequality. Beyond addressing social hazards such as illness, old age, unemployment, and social exclusion, social protection encompasses programs that offer income support for the economically disadvantaged. Various pension schemes are being actively implemented to enhance the overall welfare of the population.
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.
Disability Relief Allowance: Under this Scheme, social security is provided to Divyangjans having 40 per cent and above disability so that they can meet the basic needs of their life.
Widow / Deserted / Ekal Nari Pension: Widow / Deserted / Ekal Nari Pension plan provides for quarterly financial help to ensure a safe and improved living environment.
Rehabilitation Allowance to Lepers: Leprosy sufferers get quarterly Leprosy Rehabilitation Allowance. There is no age or income restriction for them.
Transgender Pension: Transgender pension is given to persons who have been issued a certificate 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 quarterly financial support.
Indira Gandhi National Widow Pension: This programme helps widows living in rural regions and ensures that they get government financial benefits if they come in the BPL category.
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 an advance quarterly pension to Divyangjans having 80 per cent and above disability to meet out basic daily needs of their life.
Details of the Social Security Pension Schemes are given in the table 15.1:
National Family Benefit Scheme: As part of this programme, Below Poverty Line (BPL) household gets ₹20,000 in the unfortunate event of the passing away of primary breadwinner, between 18 to 59 years. As of December 2023, 482 households were assisted.
The Indira Gandhi Mahila Samman Nidhi Yojana : To provide ₹1500 per month to women of Lahaul-Spiti has been announced under, “Indira Gandhi Mahila Samman Nidhi Yojana 2023”. A budget provision of ₹120.39 lakh has been made and 803 women were assisted.
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 details of loans given by the Corporations up to December, 2023 are given in Table 15.2:
Scheduled Caste Development Plan: In the State Development Plan of 2023-24, 25.19 per cent of the Development Plan allocation is earmarked for the Scheduled Caste (SC) Development Plan, focusing on individual beneficiary programs and infrastructure development in SC-concentrated villages. The outlay for the SC Development Programme is ₹2399.05 crore, with an additional outlay of ₹879.71 crore from the Central Development Budget. A detailed breakdown of expenditures is as under:
Scheduled Tribe Sub-Plan: The ST sub-approach plan for economic growth is area-based. For FY 2023–24, under ST Development Plan ₹857.14 crore are earmarked. Under the ST Development Plan, ₹130.57 crore was spent up till September, 2023, for the welfare of STs. Figure 15.2 below shows a breakdown of expenditures by year.
Welfare of Scheduled Castes, Scheduled Tribes, Other Backward Classes: The important schemes implemented during 2023-24 are as under:

Government is actively implementing a range of measures designed to promote welfare and empowerment of women across various sectors. These programs are geared towards narrowing wage gap between men and women, elevating household incomes, and bolstering women's negotiating capabilities. Government has taken significant strides in empowering women through Self Help Group (SHG) organizations and by providing financial assistance. Complementing these efforts, the government is also executing Centrally Sponsored Schemes, including initiatives like 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.
Established in 2011, the Directorate of Women and Child Development operates as an integral part of the Department of Social Justice and Empowerment.
State Home cum Protective Home Mashobra: The primary objective of the scheme is to provide support to vulnerable groups, including young girls, widows, deserted individuals, those in economic hardship and women facing moral risks. The comprehensive assistance encompasses free shelter, food, clothing, education, healthcare, medication, counselling and vocational training. Currently, the Mashobra State Home accommodates 21 residents. Upon their departure from the State Home, financial aid of up to ₹25,000 per woman is provided for their rehabilitation. Additionally, these women are further supported with a grant of ₹51,000 for marriage.
One-Stop Centre: The Centrally sponsored One Stop Centre program is designed with the primary objective of providing comprehensive support to women who have encountered violence in both private and public settings, within a single facility. This initiative aims to streamline access to a range of services, including immediate medical, legal, psychological, and counselling support for women, in both emergency and non-emergency situations. Presently, each district headquarter in Himachal Pradesh is equipped with a dedicated "One Stop Centre" to facilitate assistance to women in need.
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 implementation of various programmes being run by different departments for upliftment and empowerment for the protection of girl child/adolescent girls against crime.

Rural Development includes measures to improve rural infrastructure, livelihoods, cleanliness, water conservation and enable ease of living for people living in rural areas especially poor marginalized and economically weaker sections. This transformation is brought about through various schemes such as Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM), Deen Dyal Upadhyaya-Grameen Kaushalya Yojana (DDU-GKY), Watershed Development Programme (WDC-Pradhan Mantri Krishi Sinchayi Yojana-2.0, Swachh Bharat Mission–Gramin (SBM-G), Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA), Pradhan Mantri Awaas Yojana (Gramin), Mukhya Mantri Awaas Yojana (MMAY), Saansad Adarsh Gram Yojana (SAGY), and Matri-Shakti Bima Yojana.

The Ministry of Rural Development's (MoRD) Government of India launched the National Livelihood Mission (NRLM) by restricting Swarnjayanti Gram Swarozgar Yojana (SGSY) w.e.f. 1st April, 2013.NRLM named DAY-NRLM (Deendyal Antodaya Yojana-National Rural Livelihood Mission) w.e.f. 29-3-2016 and is the flagship programme of the Government of India for reducing poverty by giving low-income households access to chances for productive self-employment and skilled wage jobs for long-term subsistence.
The main features of this programme are under:
a) The National Rural Livelihoods Mission aims to reach out to all poor families, mobilize them into Self-Help-Groups (SHGs) link them to sustainable livelihood 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 Households (HHs) under NRLM are covered through their women members. These women are firstly organized into SHGs and thereafter into Village/ Block / District federations to assist them by the guidelines of the Government of India.
b) 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 Participatory Identification of Poor (PIP) and Socio Economic and Caste Census (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:
Financial Inclusion: NRLM facilitates universal access to affordable, cost-effective and reliable financial services to the poor. These include financial literacy, bank account, savings, credit, insurance, remittance, pension and counselling 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”.
To facilitate bank linkages, State Level Bankers' Committees (SLBC) would constitute exclusive sub-committees for SHG bank linkages and financial inclusion in NRLM activities. Similarly, District Level Coordination Committees and Block Level Coordination Committees would review SHG-Bank linkages under NRLM.
a)Recently a Master Circular issued by the Reserve Bank of India (RBI), has been notified that all the SHGs will get loan/credit through the banks on 7 per cent interest in all the districts in the state. The condition of the Category-I and II districts has been removed by the RBI. This will help the SHGs to get credit at an affordable rate of interest from the banks to start or expand their livelihood activities.
Farm Livelihoods Scheme:
a) In FY 2023-24, Farm Livelihood scheme has been implemented in all the blocks of Himachal until now Farm Livelihood was only implemented in the Farm intensive blocks. The outreach of Farm Livelihood Intervention in 4,458 villages wherein 83,512 Mahila Kisans have been identified and 736 Farm Livelihood Community Resource Persons (CRPs) (Krishi Sakhi and Pashu Sakhi, Krishi Udyog Sakhi) have been identified and trained on Agro-Ecological Practices and Sustainable Livestock Practices. The identified Mahila Kisans are being trained on Agro-Ecological Practices and Sustainable Livestock by the Farm Livelihood CRPs and helped in the establishment of Backyard Kitchen Gardens/Agri Nutrition Gardens, Preparation of Bio Fertilizer i.e. Beejamrit, Jeevamrit etc.
b) The funds amounting to ₹6.00 crore have been released for the establishment of 125 (25 under DAY-NRLM and 100 under WDC-PMKSY 2.0) Custom Hiring Centres in FY 2023-24 from where SHG Women can take Farm Equipment on rent. These CHCs will be operated and managed by Livelihood Sub Committees of Village Organizations formed under DAY NRLM.
c) 13,463 Agri Nutri Garden Kits comprising 2 types of gardening tools, 10 types of summer vegetable seeds and 1 Agri Nutri booklet have been distributed in convergence with the WDC-PMKSY 2.0 in watershed areas.
d) 868 Krishi and Pashu Sakhis have been trained on agro ecological practices i.e. Agri Nutri Garden (importance, crop calendar and layout etc.), Soil (soil pH, types and methods of maintaining soil etc.) and water and its conservation.
e) 220 Krishi and Pashu Sakhis have been trained on millets, preparations of recipes and cuisines of millets and millets for food security by the experts of the Agriculture Department at Farmer Training School Sundernager.
f) 60 Krishi and Pashu Sakhis have been trained on the “Dharti Ka Doctor” soil testing kit by the experts of the Divya Yog Mandir Trust Patanjali. It is a portable soil testing kit that enables the Krishi and Pashu Sakhis to test the soil health of their farm holding their own.
g) 237 Producer Groups have been formed and 5,214 Mahila Kisan have been covered in the PGs.
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 the non-farm sector in the state. The major activities and programmes that are being implemented in the State for providing sustainable livelihood under non-farm are:
a) 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 customers. To increase the market reach of SHG products brand “Him-Ira” and its logo have been registered to sell all the SHG products under a single umbrella.
Registration of brand has helped:
i) Given new recognition to SHG products
ii) Enhanced product recognition
iii)Increased market reach.
iv) Help in-built brand loyalty
v) Aid in the introduction of new products in the range
vi) Build brand equity
vii) Enhanced credibility and ease of purchase.
b) HIM-IRA SHG Shops: To provide a sustainable livelihood opportunity to the SHG members & market linkage to the products produced by Self-Help Groups, Himachal Pradesh Government in the budget 2023-24 has announced to open the 50 model shops which will be managed and operated by the women SHG members. To date, 93 Him Ira shops have been made operational in the State. In FY 2023-24 till date- Out of 93 Him Ira shops, 17 shops have been identified as Model Him Ira shops and up to ₹5 lakh has been released for renovation of these model shops. For the FY 2023-24 total sales recorded by these Shops is ₹1.70 crore
c) HIM-IRA Weekly Market:
i) Himachal Pradesh State Rural Livelihood Mission (HPSRLM) has planned to organize a weekly Market under the brand name Him Ira, where Self Help Groups in the local area can participate and sell their products.
ii) 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, 75 blocks host Him Ira weekly markets. FY 2023-24 (April-December). The total sales reported in these weekly Markets in the same time frame is ₹1.87 crore.
d) HIM-IRA Canteen: HIM-IRA Canteen provides an option for rural SHG women to generate additional income. The objective 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 to give high-quality meals to officers, personnel, students, and guests, among others, at a fair price and with excellent service. There are now 17 Him Ira canteens operating in Government Institutions.
e) 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. In this regard, funds have been disbursed to District Rural Development Agency (DRDA) Sangrah district Sirmaur, Haroli district Una, Baijnath district Kangra, Kullu Nagar, Basantpur district Shimla and these 5 blocks are operating Him Annapurna Food Van being such by SHG women.
f) Prime Minister Formalisation of Micro Food Enterprises (PMFME):
i)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.
ii) To date, an amount of ₹3.59 crore has been disbursed to 79 Community-Based Organizations (CBOs) in the state, consisting of 155 SHG beneficiaries and 13,200 SHG beneficiaries’ proposals have been approved by the Ministry of Food Processing Industries (MoFPI) totalling ₹49.41 crore till November 2023.
g) Start Up Village Entrepreneur Programme (SVEP):
i)SVEP is a centrally funded initiative with the primary goal of assisting the rural poor in establishing their businesses by constructing a sustainable paradigm for village entrepreneurship promotion.
ii)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 for four years. 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 FY 2023-24.
h) Institutional Building & Capacity Building: NRLM organizes all poor households (women) into aggregate institutions of the poor (SHGs/ Village Organizations (VOs)/Cluster Level Federation (CLFs) that provide them with voice, space, and resources. These platforms ‘of the poor’ and ‘for the poor’ would partner with local self-governments, public service providers, banks, the private sector, and other mainstream institutions to facilitate the delivery of social and economic services to the poor.
Social Inclusion and Social Development:
Social Inclusion: Category-wise inclusion of SHGs under Social Inclusion has so far been recorded in the following table:
i) Under this component, 110 Elderly SHGs and 80 special PwD SHGs have also been formed to date up to December, 2023. Revolving Fund (RF) ₹15,000 per SHG has been released to 1,105 vulnerable SHGs till date. One batch of 40 ESHG members of Dev. Block Chopal & Tutu has been trained in Food Processing. Apart from this 50 ICRPs were identified & trained on social Inclusion during the year.
ii) To date, 137 Vulnerability Reduction Plans (VRP) have been developed, and ₹188.50 lakh has been allocated as Variable Refrigerant Flow (VRF) to 126 VOs at a rate of ₹1.50 lakh per VO. Two Elderly CLF-SHGs of Chopal and Tutu participated in Saras Fair and the Food Carnival at Ridge Maidan, Shimla and sold Millets, Apple products, Ginger Candies etc. for ₹3.50 lakh and ₹20.00 lakh tentative amount has been spent on Social Inclusion activities during the year.

This component established 180 Community resource persons (Health, Nutrition, and Gender) (CRP HNG) who have been taught and are working to implement FNHW in 27 blocks. Information Education Communication (IEC) on Anemia Menstrual Hygiene and Menopause has been developed and delivered to all the CLFs, VOs and SHG for dissemination and awareness.
“Him Vayanjan” Pustika developed and delivered to all the Districts, Blocks and cadre. Apart from these Food, Nutrition, Health and WASH (FNHW) Visioning- 3 exercises have been initiated at 3 CLF immersion sites during the year. During the POSHAN Maah- 2023, About 40,000 SHGs participated in this event at their place under all the development blocks of the State and 60,000 Kitchen Gardens were prepared.
On the occasion of the International Year of the Millets 2023, the Him Ira Food Carnival was organized by HPSRLM from 2nd to 18th December, 2023 at Ridge Maidan Shimla. Traditional dishes and coarse grain products were served by 2 Self Help Groups from each of the 2 development blocks of all the districts of the state and business of ₹35.00 lakh was done in the carnival. The approximate amount spent on FNHW activities during the year is ₹42.00 lakh.

a) Under this component, 180 Community Resources Persons- Health, Nutrition and Gender (CRP-HNG) have been trained and working for the rollout of Gender in 27 blocks. In addition to this, 4 CLFs level & 90 VOs level Social Action Committees have been trained by CRP-HNG on Gender. A total of 610 Gender Point Persons (GPPs) have been trained for the same. Apart from this Gender Visioning -3 exercise has been initiated at 3 CLF immersion sites during the year.
b) National Gender Campaign on “Gender Based Violence” launched on 25th November to 23rd December, 2023 with the support of the line department in the State. 50 participants from HPSRLM participated in the launching of the campaign in Delhi. IEC compiled a booklet developed and delivered to all the District, Block and CBOs.
c) Gender Awareness Centre in Him Ira Food Carnival organized by the State Rural Livelihood Mission from 2nd to 18th December 2023 at Ridge Maidan Shimla. Gender awareness booklets were also distributed at the stall and about 2,000 local people and tourists every day were made aware. A tentative ₹55.00 lakh amount has been spent on GENDER activities during the year.

HPSRLM has signed a memorandum of understanding (MoU) with National Research Organisation Kudumbashree Kerala to roll out the Panchayati Raj Institutions (PRIs) and Community Based Organisation (PRI-CBO) Convergence project in 148 Gram Panchayats in four blocks, Rajgarh, Theog, Mashobra and Kandaghat. A total of 340 Local Resource Group (LRGs) cadre and 3 District Resource Persons (DRP) were trained and deployed in the above 4 Blocks.
In addition, 3,509 Village Poverty Reduction Plans (VPRPs) are being developed by 3,192 Resource Persons / Community Resource Persons (RPs/CRPs) through mobile based App among 40,000 SHG. In 3,184 Gram Panchayats of the State using a mobile-based app, which will be integrated into the Gram Panchayat Development Plan (GPDP) total 3,062 PRI’s oriented on VPRP during the year. The approximate amount spent on PRI-CBO Convergence efforts throughout FY is ₹101.00 lakh.

Deen Dyal Upadhyaya-Grameen Kaushalya Yojana (DDU-GKY) is a flagship scheme run by the Ministry of Rural Development, Government of India. It is an employment–oriented skill training programme, the main objective of which is to provide free training to rural youth aged 15-35 years through various popular trades and job roles and to provide them assured employment of more than the minimum monthly wages.
Training benefits and Rights of candidates under Deen Dyal Upadhyay-Grameen Kaushalya Yojana (DDU-GKY): i) Free training of 3-12 months in multiple popular trades and job roles. ii) Free training, food and accommodation. iii) Training through training partners recognized and approved by the Government of India. iv) Free 160 hours of training in spoken English, communication skills and Information Technology. v) For every candidate Computer labs and Digi-tables for learning. vi) Industry experience through on-the-job training. vii) Post-placement support for 2-6 months after getting employment as per programme guidelines i.e. ₹1270 per month.
Achievement under Deen Dyal Upadhyay-Grameen Kaushalya Yojana (DDU-GKY): In Himachal Pradesh from the inception of Deen Dyal Upadhyay-Grameen Kaushalya Yojana (DDU-GKY) (September, 2017) till 8th January, 2024, under the scheme, a total of 16,027 beneficiaries were selected for training through various trades and job roles and out of which 13,705 beneficiaries got completed their training and 8,092 youths were employed in various companies and out of these appointed candidates, 3,205 youths are considered as placed (as per the guidelines of the programme if a beneficiary completed 3 regular months of job and submitted 3 months salary slip and Bank statement considered as placed).

The watershed development project is being operated in the state to rehabilitate 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 entry point activities commenced.
Evolution of Watershed Development: The approach to watershed development has gradually evolved, 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 the watershed's boundaries.
Objectives of Watershed Development Projects:
i) To improve the productive potential of rainfed/degraded land through integrated watershed management;
ii) To strengthen community-based local institutions for the promotion of livelihoods and watershed sustainability, and
iii) 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.
a) 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. The total works proposed under Entry Point Activities amounting to ₹271.00 Lakh have been completed in all the Development Blocks under WDC-PMKSY 2.0.
b) Amrit Sarovar: Mission Amrit Sarovar was inaugurated on National Panchayati Raj Day, 24th April, 2022, to conserve 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: The initial target in the Annual Budget 2022-23 was to construct 93 Amrit Sarovar by 15th August, 2023 while later department has completed 97 Amrit Sarovars in 10 Districts, 18 Blocks. Out of these 97 Amrit Sarovars, 96 have been completed while 01 is ongoing which will be completed by 15th March, 2024.
c) Institution and Capacity Building (I&CB): To increase the capacity of the Junior Engineers, Agricultural Experts, Technical Assistants, Gram Rozgar Sevak (GRS), Panchayati Raj Institutions (PRIs) and Other Non-Technical Staff engaged in the WDC-PMKSY 2.0 project, and to strengthen their ability to execution Watershed and Springshed Development projects in the future, the department has been organizing various training programs under the scheme. The department has conducted a total of 59 trainings with 1687 personnel trained so far.
d) Springshed Management in Himachal Pradesh:
i) The Springshed Management Programme is operational in 23 Project Areas across 12 Districts in Himachal Pradesh.
ii) A total of 414 springs have been identified under the project area and classified based on the descending order of dependability of the population on a particular spring.
iii) Out of 414 springs, works of 88 springs are completed, 51 are ongoing and 275 works will be completed till the completion of the project.
e) Types of Works in Springshed Management: The primary activities for recharging the aquifer are carried out in the selected spring sheds such as:
i) Trenches / Toe Trenches Construction
ii) Plantation
iii) Bawdries Construction and its Renovation
iv) Beautification of springs
v) Check Dams and Gabions
vi) Recharge well
e) Livelihood Convergence with NRLM:
i) The task of promoting farm livelihood in project areas has been assigned to the NRLM.
ii) Under the WDC PMKSY 2.0 26 project areas of Himachal Pradesh have been selected which cover 13463 SHG women, 93 Village organizations formed under NRLM.
iii) Custom Hiring Center (CHC): 62 CHCs have been set up out of 132 under the Livelihood Convergence Plan with NRLM and rest are being planned. List of tools available at CHCs: Food Processing Machinery, Grading Machine, Packaging Machine, Pattal Making Machine, Oil Extraction Machine, Solar Dryer, Power Thresher, Grass Cutter, Wood Cutter, Power Sprayer etc.
iv) Agri Nutri Garden Kits: Distribution of Agri Nutri Garden Kits to 1790 active SHGs in all the 130 Gram Panchayats under WDC-PMKSY-2.0
v) Strengthening of community cadre under NRLM like Krishi Sakhis and Pashu Sakhis through Training and capacity building. SLNA and HPSRLM have collaborated with CSIR-IHBT Palampur to provide training and set a way forward for undertaking modern technological interventions in the project areas.
e) Plantation/Horticulture activities:
i) As per Guidelines WDC-PMKSY 2.0, “Plantation, including horticulture, is to be taken up to 20 per cent of the watershed project areas.”
ii) Under Plantation, including horticulture activities, a total of 84,448 plants are planted and the total area covered under the plantation is 422.93 hectares.
iii) Species Planted: Walnut, Apple, Persimmon, Plum, Pear, Pomegranate, Peach, Royal Delicious, Red Velox, Granny Smith, Scarlet Spur, Red Lumgala, Black Amber, Forest Plants, Plum Black Amber, Kiwi Hayward, Apple Jeromine, Amla, Jamun, Mango, Lemon, Silver rock, Neem, Ashoka, Harad, Amla, Moringa, Alstonia, Moringa, Dragon Fruit.

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 FY 2019-20, this plan provides financial aid of ₹1.50 lakh per recipient for the construction of a house. FY 2019-20, 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 has approved 13,804 numbers of houses under the special project for the Implementation of rehabilitation/ relocation of affected households in the State, out of which 10,023 numbers of houses have been sanctioned by 31st December, 2023.

The State Government announced this plan for all categories living below the poverty line. A budget of ₹802.00 crore is projected for the financial year 2023-24, with 533 (under MMAY 512 target & 21 Indigent Cases) several dwellings units, out of which 361 houses have been sanctioned and 1st instalment of ₹1.61 crore has been released to 247 number of beneficiaries by 31st December, 2023.

The Saansad Adarsh Gram Yojana’s (SAGY) main aim 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 mobilization, and enhanced social capital. To date 1131 works are included in the village development plan, out of which 343 numbers of works have been completed, 168 numbers of works are in progress and 620 numbers of works are yet to be started. During the current financial year 2023-24, a total of 05 numbers of Gram Panchayats have been selected by Hon’ble Members of Parliament under this scheme. Village Development Plan of 01 Gram Panchayat Ghunehad, Development Block Baijnath has been prepared and 18 numbers of works have been sanctioned.

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 childbirth/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:
i) Death ₹2.00 lakh.
ii) Permanent total disability₹2.00 lakh.
iii) Loss of one limb and one eye or both eyes and both limbs ₹2.00 lakh.
iv) Loss of one limb/one ear ₹1.00 lakh.
v) In case of death of husband₹2.00 lakh.
During FY 2023-24, the Yojana offered financial support to 63 households totaling ₹1.26 crore till 31st December, 2023.

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:
i) Nonlinear Rigid Block Normal-Mode Analysis Method (NoLB), Individual Household Latrines, Construction of Community Sanitary Complexes (IHHL, CSCs)
ii) Solid Waste Management (Non-Biodegradable and Bio-degradable)
iii)Liquid Waste Management (Grey Water and Black Water)
iv) Gobardhan Projects
v) 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 2023-24:
i) 100 per cent of villages have been declared as ODF+on 3rd September, 2023, out of 16,243 villages, 5,792 villages Aspiring, 9,393 villages Rising and 1058 villages are in the ODF+ Model category.
ii) During the FY 2023-24, 8,144 number of Individual Households latrines have been constructed.
iii) A total of 937 community Sanitary Complexes (CSCs) have been constructed during the financial year 2023-24.
iv) A total of 12,554 villages have been covered under Solid& Liquid Waste Management.
v) Work on 9 sites for Plastic Waste Management Units is completed.
vi) A total of 19 sites for the Gobardhan Project have been identified, out of which work on 8 sites is in progress and 5 plants have been completed and are operational.
vii) More than 4,965 Officers/Officials/ representatives of PRIs/Field Officers have been trained in 123 trainings.

On 05th September, 2005 the Government of India notified the MGNREGA.Progress accomplished during FY 2023-24 (up to 10th January 2024) is as follows

The main objective behind launching Himachal Pradesh Mukhyamantri laghu Dukandar Kalyan Yojana is to encourage small shopkeeper and businessman to invest in their business by taking loan. Benefits provide under Himachal Pradesh Mukhyamantri Laghu Dukandar Kalyan Yojana are:
i) Subsidy on interest will be provided up to loan of ₹50,000.
ii) Himachal Pradesh Government will pay the 50 per cent amount of interest on loan. Remaining 50 per cent will be borne by the applicant.

This state has 12 Zila Parishads (ZP), 81 Panchayat Samities, and 3,615 Gram Panchayats. The following are the department's main accomplishments:
a) The implementation of the 15th Finance Commission began in FY 2020-21. Under the 15th Finance Commission, a sum of ₹332.00 crore has been sanctioned for this State for FY 2023-24, of which ₹52.59 crore has been issued by the Government of India and distributed to Panchayat Raj Institutions.
b) A grant of ₹430.00 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 FY 2023-24.
c) A new estimate and design has been prepared for the construction of Gram Panchayat Ghar, according to which ₹1.14 crore is being sanctioned for the construction of new Panchayat Ghar. During the year 2023-24 ₹24.18 crore for construction of 180 New Panchayat Ghar and ₹19.72 crore for construction/upgradation/repair of 140 old Panchayat Ghar has been released in the State.
d) The Revamped Rashtriya Gram Swaraj Abhiyan (RGSA) Grant-in-Aid of ₹67.38 crore as 1st Installment was received for the FY 2022-23. The following targets have been achieved:
i) Funds and construction of 536 common Service Centers, 101 new Gram Panchyat Bhawans and 08 PLCs have been disbursed to the implementing agencies i.e. Gram Panchyats and Executive Engineers (RD&PR). The construction work of these units is in progress.
ii) Training to 17,455 Elected representatives and functionaries of PRIs has been imparted during the year 2023.
iii) 05 Workshops on E-Gramswaraj, Two on 09 themes of LSDGs, PESA and PDI have been organised at the state level.
iv) For FY 2023-24 Central Empowered Committee of the Ministry of Panchayati Raj (MoPR), has approved the Annual Action Plan (AAP) under the RGSA scheme for ₹95.19 crores. Grant as per approved AAP is still awaited from the MoPR, Government of India. Further course of action/targets will be planned as per receipt of the grant.
e) The State Government has increased the honorarium of elected representatives of Panchayati Raj institutions from 01.04.2023 and is providing an additional annual honorarium of ₹15.91 crore.
f) The daily wage rate of Panchayat Chowkidar working on daily wage has been increased from ₹350 to ₹375 w.e.f 01.04.2023. The monthly remuneration of part-time Panchayat Chowkidar has also been increased from ₹6200 to ₹6700.
g) The State Government has increased the monthly remuneration/honorarium of Tailoring Teachers working on a contract basis from ₹8000 to ₹8500 and the amount of daily wager Tailoring Teachers working in Gram Panchayats has been increased from ₹396 to ₹424 w.e.f 01.04.2023.
h) The department has developed several apps through which the general public may access different online services such as the Parivar Nakal, Marriage Certificate, and so on. This may be applied through the e-district HP online seva portal.

The recent report on National MPI was based on National Family Health Surveys 4 (2015-16) and 5 (2019-21). Owing to a lack of data for the years between 2005-06 and 2015-16 and after 2019-21 concerning the incidence of poverty levels, headcount poverty ratios for 2013-14 and 2022-23 have been estimated based on the compound growth rate of the reduction in the incidence of poverty levels between 2005-06 & 2015-16 and 2015-16 & 2019-21 respectively. Multidimensional poverty in Himachal Pradesh was found to decline from 10.14 per cent in 2013-14 to 3.88 per cent in 2022-23 with about 4.67 lakh people escaping poverty during this period (Table 16.13).

Jan Gehl, Danish architect and global leader in urban design famously said that first we shape cities, then they shape us. People shape cities by creating built environments that boost liveability, productivity and connectivity, eventually attracting more people from all around to these cities. Urbanisation- the movement of people from rural to urban areas- leads to fast-paced growth, which is accompanied by creation of job opportunities, infrastructure development and better economic, political and social mileages compared to rural areas. However, urbanisation also brings with it challenges such as congestion, population and traffic, housing shortage, growth of slums, inadequate civic amenities and jobs and environmental pollution. Urban policies aim to minimize these costs while maximising the benefits of the cityscape and ensuring that gains are fairly distributed across genders and social classes.
The Himachal Pradesh Government, through the Housing and Urban Development Authority (HIMUDA), is offering homes, flats, and plots to suit the housing needs of individuals of all economic levels. In the current FY 2023-24, an expenditure of ₹19.83 crore was incurred up to December, 2023. During the current year, there is a target to construct 312 flats and to develop 152 plots of different categories. Construction work on 64 flats has been completed. In addition, 148 plots have also been developed. HIMUDA intends to develop new housing colonies in Sohala (Sirmaur), Chettrra (Una) and a commercial complex in Shimla. 851 plots, 704 flats and would come up in these colonies. Apart from the 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 Sanjauli, Sproon, 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 4,44,870 man-days of wage employment during the FY 2023-24.

Himachal Pradesh has 60 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 ₹192.62 crore has been released to the ULBs during the current FY 2023-24, fund amounting to ₹154.10 crore (Basic Grant) has been released to the ULBs during the FY 2023-24 and ₹38.52 crore (Performance Grant) is yet to be released to the Urban Local Bodies after fulfilling certain conditions. This includes development grant and gap filling grant between income and expenditure.
Figure 17.1 illustrates a rise in the number of Urban Local Bodies (ULBs) across the State, reaching a cumulative total of 60 ULBs during FY 2023-24 compared to FY 2001-02.
Maintenance of Roads in Municipal Areas: 60 ULBs manage about 3,349 km of roads, pathways, streets, and drainage. The government has allocated ₹6.00 crore for these roads in the current FY 2023-24.

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 is the progress made in 2023-24:
i) 337 Self Help Groups (SHGs) have been formed.
ii) 39 Area Level Federations and 22 City Level Federations have been formed. Individual loans amounting to ₹3.59 crore have been provided to 270 beneficiaries and 252 SHGs have been provided a loan of ₹6.76 crore through banks 5790 street vendors were identified and Certificate of Vending to 4320 street vendors has been provided. Also 44 Regular Town Vending Committees (by election) have been formed.
iii) Vendor market amounting to ₹80.00 lakh has been constructed in Municipal Corporation Solan. Also, vendor markets in Municipal Corporation Una for ₹1.03 crore is being constructed.
iv) 5144 beneficiaries have been provided first term (₹10 Thousand) loans under PM SVANidhi Scheme. Also, 2506 beneficiaries have been provided 2nd term (₹20 Thousand) loan and 1012 beneficiaries have been provided 3rd term (₹50 Thousand) loans.

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 the 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 ₹171.00 crore for FY 2023-24. In addition, the budget has also allocated a Health Sector Grant amounting to ₹5.93 crore under 15th Finance Commission to the ULBs of the state during the current financial year. The 2nd installment of both (Untied and Tied) grants amounting to ₹81.00 crore for the FY 2022-23 has been released to the ULBs and CBs during the current FY 2023-24.

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. The total size of the State Annual Action Plan is earmarked to ₹304.52 crore, which includes 75 projects. Out of total 75 projects, 66 worth ₹219.01 crore have been completed and the remaining 09 worth ₹85.50 crore are expected to be completed by March, 2024.
AMRUT 2.0: The AMRUT 2.0 Mission was launched on 1st October, 2021 by the Prime Minister to make the cities 'water secure' and 'self-sustainable' through a circular economy of water. The mission will focus on water supply, sewerage and septage management, recycling/re-use of treated wastewater, rejuvenation of water bodies and creation of green spaces. The mission period is from FY 2021-22 to FY 2025-26 and the funding pattern is a 90:10 ratio (Centre and State) with a proposal to cover all Statutory Towns (60 ULBs + 7 CBs). The total allocation for the project is ₹280.00 crore (₹252.00 crore from the Centre and ₹28.00 crore from the State). State Water Action Plan (SWAPs) was to be submitted in three (3) tranches. After the approval of State Level Technical Committee (SLTC) and State High Powered Steering Committee (SHPSC), 1st, 2nd and 3rd Tranche (including O&M) amounting to₹170.57 crore, ₹39.01 crore, ₹112.08 crore respectively submitted to GoI, MoHUA and all three tranches have been approved.

Smart City Mission was launched in June, 2015 and Municipal Corporation, Dharamshala was approved by Gol under the mission. In 2017-18, Municipal Corporation, Shimla was also selected under SCM by Gol. During the current FY 2023-24 there is a budget provision of ₹0.08 crore under this Mission. In addition, the Gol has released a Central share of ₹196.00 crore. In Shimla Smart City Limited (SSCL) out of 53 projects, 28 most do-able projects have been identified. These are further bifurcated into 210 components of which 143 components have been finished and for 67 are in progress. Out of 81 projects in Dharamshala Smart City Limited (DSCL) 52 projects have been completed and 29 more have been initiated.

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. The following actions/ progress has been made under the Mission:
i) Funds have been disbursed to ULBs for the construction of individual household toilets and Community/Public toilets to provide adequate toilet facilities in towns. Till date, more than 6,715 individual toilets for 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 sumof₹17.02crore 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 regularly throughout the State to make the general people aware through Swachhta pakhwada, hoardings/banners, nukkad nataks, print and electronic media etc.

A mission “Housing for all” (Urban) has been launched by the GoI effective from 17th June, 2015 to 31st March, 2024. This scheme aims to provide houses for slum dwellers under the 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 the construction of beneficiary houses through subsidy for beneficiary-led individual house component. For the current FY 2023-24, 476 houses have been completed and 406 new houses have been approved.

To solve the parking problems in the urban areas of the Pradesh ₹5.00 crore has been provided during the current FY 2023-24. The funds under this scheme are released in the ratio of 75:25 (i.e. 75 per cent is provided by the Government and 25 per cent by the concerned ULBs).

The Government has started the scheme to encourage ULBs, under which the best performing top one Municipal corporation, top three Municipal Councils and top three Nagar Panchayats are given cash rewards. The top performing Urban Bodies 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 in table 17.1:

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. 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 the municipality office. Under this scheme, 16,827 beneficiaries have benefited with a total of 6, 31,506 man-days amounting to ₹14.26 crore disbursed to date.

To ensure functional, sustainable and planned development, the Himachal Pradesh Town and Country Planning Act (HPTCP Act), 1977 has been enforced in 57 Planning Areas (1.60 per cent of the total geographical area of the State) and 36 Special Areas (2.06 per cent of the total geographical area of the State).
Initiatives
i) The State Government has carried out an amendment in the Notification No.TCP-A(3)-5/2019-loose, dated 04.07.2023, issued by the state government, provision has been made to permit the attics for residential purposes. This amendment will effectively augment the available space within buildings, offering substantial benefits to the general public. A premium Floor Area Ratio (F.A.R) of 0.25 will be given to those who have fully utilised their permissible Floor Area Ratio (F.A.R.).
ii) During the monsoon season of 2023, the State experienced unprecedented rainfall, resulting in significant damage to life and property. To prevent the recurrence of such situations in the future, a proposal for the inspection of building drainage systems and structural building design has been submitted to the government vide letter dated 01.09.2023. This proposal will soon be officially notified.
iii) To reduce physical touch points and footfall of applicants 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.
iv) The Development Plan of the Mehatpur Planning Area and Hatkoti Special Area have been notified by the State Government vide notification dated 27.05.2023. Further, the Development Plan of Shimla Planning Area was notified on 20.06.2023 and the Development Plan of Kullu Valley Planning Area was notified on 06.12.2023. This will facilitate planned and regulated development within these Planning/Special Areas.
v) The State Government planned and regulated growth in the vicinity of the four lanes, the State Government has constituted a Four Lane Planning Area vide Notification No.TCP-F05/6/2023 dated 28.06.2023. The roads covered under the Four Lane Planning Area are Parwanoo-Shimla National Highway, No. 05, Kiratpur-Manali National Highway, No. 03, Shimla-Mataur National Highway No. 88, and Pathankot-Mandi National Highway No. 154.
vi) The State Government vide Notification dated 28.06.2023 enforced the provisions of the HPTCP Act, 1977 in the North Portal of the Atal Tunnel and constituted the Atal Tunnel Planning Area to curb likely un-authorized and unplanned development activities due to the opening up of Lahaul valley for large no. of visitors as a result of improved connectivity through Atal tunnel.
vii) The State Government vide notification dated 26.10.2023 has amended the provisions of Appendix-9 of HPTCP Rules related to communication infrastructure. The amendments to HPTCP rules enhance communication infrastructure planning, ensuring structural stability for towers and promoting in-building solutions.
viii) The GIS-based development Plan for Shimla Planning Area for the horizonyear 2041 has been notified vide notification dated 20.06.2023. Hon’ble Apex Court vide its judgement dated 11.01.2024 permitted to proceed with the implementation of the Development Plan.
Population of the Shimla Planning Area will increased from 3,11,429 in 2011 to 6,25,127 in 2041. The Development Plan has been prepared to keep in view the increased population in 2041.

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 178 Real Estate Projects and 111 Real Estate Agents up to 31st December, 2023. About 65 complaints have been registered with the authority so far out of which 23 have been disposed off and hearings in the remaining 42 are under process. RERA has taken the initiative to settle the matters of complaints amicably between parties. As a result which sum of ₹1.55 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 every quarter and on this basis, annual indices have been worked out as shown in the table 17.2: As per the above table, the material cost index has increased from 140.82 to 146.53 in FY 2022-23 which increased further to 148.15 in FY 2023-24. The labour cost index has also risen from 140.29 to 145.99 in FY 2022-23 and to 148.29 in FY 2023-24, 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 140.30 to 148.92 in FY 2022-23, and increased to 150.92 in FY 2023-24. The rise in all these indices has led to an increase in the overall BCCI from 140.63 in 2021-22 to 148.67 in FY 2023-24.

The Department of Information Technology was created in the year 1999 and was merged with the Department of Industries in the year 2002. The Department of Information Technology was delinked from the Industries Department & merged into the Science & Technology Department along with Bio-Technology in the year 2004. The subjects of Bio-Technology and Science & Technology were delinked from IT Department on 13th April, 2007 and an independent Information and Technology Department came into existence. However, with the changing times many of the things dealt with by the department had become obsolete and many new things had to be added.
In tune with the changing times of Digital Technologies and Digital Transformation, the Department of Information Technology, Himachal Pradesh has changed its name to the Department of Digital Technologies and Governance. The approval to this effect has been given by the Himachal Pradesh Cabinet recently. With this, Himachal Pradesh becomes the first state in India to have this nomenclature reflecting its commitment to transforming the state into a digitally advanced and modern state.
The vision of the new Department of Digital Technologies and Governance is to achieve digital transformation of Himachal Pradesh involving advanced digital technologies, reliable data and connectivity for effective governance and inclusive development aiming at digital transformation of Himachal Pradesh.

Mukhya Mantri Seva Sankalp Helpline @1100 (MMSS): The Mukhya Mantri Seva Sankalp (MMSS) helpline @1100 is proving to be an effective mechanism for the timely redressal of the grievances of the citizens of the State. A total of 1,11,237 complaints have been registered through MMSS Helpline in FY 2023-24 as of 21st December, 2023 out of which 1,00,341 (90 per cent) complaints have been disposed of, including 75,269 (68 per cent) complaints which are satisfactorily closed after taking feedback from concerned citizens. Overall, since the launch of the MMSS Helpline, a total of 6,15,086 complaints have been received through the MMSS Helpline till 21st December, 2023. Out of which 6,03,796 (98 per cent) complaints have been disposed of, including 4,33,109 (70 per cent) complaints that are resolved to the satisfaction of the concerned citizens.
Further, the Himachal Road Transport Corporation (HRTC) Helpline has been started in integration with MMSS, which will provide immediate assistance to passengers travelling through HRTC Buses. A total of 1,569 cases are registered through HRTC Helpline, out of which 1,568 cases have been closed. Disaster Helpline has also been integrated with MMSS Helpline on 1st December, 2023. A total of 60 cases were registered through the Disaster Helpline.
To further improve accessibility and enhance citizens' experiences with the MMSS Helpline @1100, a Whats App Chatbot facility is being implemented in the MMSS Helpline System.
E-Office: The need for effectiveness and transparency in Government processes and service delivery mechanisms is a long-felt one. The physical file movement of official files & documents takes a lot of time and requires continuous monitoring from desk to desk before the final decision is made by the senior officials. Consequently, many crucial decisions get delayed due to the slow movement of files and/or the unavailability or absence of senior officials in the office to clear these files. Theft and missing files are also not uncommon in most government offices. The immediate need in such a scenario was to have a system in place where an authorized employee could locate the required documents/files in the shortest possible time, update and share them with other relevant users and eventually store them with proper references. The e-office is a step forward into an era of paperless administration in Himachal Pradesh. The beauty of going paperless is that it not only saves the environment but it also saves organizations a lot of money It is an initiative of the Government of India to transform the traditional paper-based office environment into an efficient digital one. The e-office system enables the government to automate its internal processes, reduce paper usage, increase transparency, and improve the overall efficiency of the government's administrative procedures. The e-office platform provides a range of features, including document management, file tracking, task management, workflow automation, e-signature, and communication tools. It is designed to facilitate easy collaboration among government officials, eliminate the need for physical movement of files, reduce the time and cost of administrative tasks, and improve the quality of decision-making.
On 5th June, 2019 e-Office project conferred “पर्यावरण उत्कृष्टता पुरस्कार”. At present, the following offices are on-boarded on e-Office: In addition to this, being a web-based application, the e-Office application could be accessed from anywhere anytime by using Success and Forti-client through any network. All Directorates upgraded to bandwidth 100 megabits per second (Mbps) capacity for a seamless experience while using the e-Office application. Recently, the e-Sign facility has been provisioned for signing noting and drafting letters to all e-Office users of the State.
Himachal Online Seva (e-District) Portal: To reduce the footfall in Government offices and to facilitate the citizens of the state with different government services at their doorsteps, thereby obviating the unnecessary expenditure on transport thus saving time and cost for the common citizens, Himachal Online Seva Portal has been created where the common mass can access government schemes/services most easily and transparently.
During this FY 2023-24, the Department has added 104 services in the Himachal Online Seva portal for online delivery. Now, 217 online services of various departments including Revenue, Women & Child Development, Panchayati Raj, Rural Development, Urban Development etc. are being provided through this portal. There are on average 4,500 transactions for various services through the Himachal Online Seva Portal daily. In the FY 2023-24, a total of 10,83,825 transactions have been done till November, 2023.
Aadhaar: The Unique Identification Authority of India's (UIDAI) mandate is to issue every resident a unique identification number linked to the resident's demographic and biometric information, which they can use to identify themselves anywhere in India and to access a host of benefits and services. There are 74,68,000 residents in the State (projected population 2023) as of 31st October, 2023. A total of 104.29 per cent (LIVE) Unique Identification (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 4th rank and 1st in the 0-5 year age group in the Country with regards to the Aadhaar generation. To cover the left-out population and Aadhaar updation, currently 420 Permanent Enrolment Centers (PECs) are functioning covering all the districts and blocks in the State through the Department of Digital Technologies and Governance and Common Services Centres (CSCs) a Special Purpose Vehicle (SPV).
Direct Benefit Transfer (DBT): To deliver the financial benefits of government schemes and programmes to citizens on a real-time basis ensuring zero pilferage, Direct Benefit Transfer (DBT) is being implemented in the State. The Department of Digital Technologies and Governance has identified 161 (Centre-76; State-85) schemes with concerned departments during FY 2023-24, out of which DBT has been implemented in 48 schemes (Centre-19; State-29). During FY 2023-24, an amount of ₹1157.10 crore has been transferred through DBT to 30.25 lakh beneficiaries under 48 schemes till November, 2023.
Himachal Pradesh State Wide Area Network (HIMSWAN): Under the National e-Governance Plan (NeGP), the Department of Digital Technologies and Governance, Himachal Pradesh created a secure network called Himachal Pradesh State Wide Area Network (HIMSWAN). HIMSWAN provides secured network connectivity to all State Government Departments up to block level and provides efficient electronic delivery of G2G (Government to Government), G2C (Government to Citizen) and G2B (Government to Business) services. HIMSWAN was set up in February, 2008 and now, 2,526 Government Offices across the State are connected through this network. Considering the growing demand, the bandwidth has been upgraded with the latest Multiprotocol Label Switching (MPLS) technology. It has played a vital role during the COVID-19 pandemic. Several Government meetings with field functionaries were held virtually using HIMSWAN. The minimum Bandwidth is now at 8 Megabits per second (Mbps). However, all the directorates and offices having high internet usage offices at the District level have been upgraded to 100 (Mpbs). The category-wise status is placed as under:
Bharat Net: Bharat Net is an initiative of the Government of India to provide broadband services to the Gram Panchayats of the country. It aims to provide broadband connectivity, especially in rural areas. It is the world's rural connectivity scheme to be connected by an optical fibre network. There are a total of 3,615 Gram Panchayats (GPs) in HP which are to be covered under the Bharat Net project. In Bharat Net Phase-1, only 409 GPs of the State have been covered so far (252 GPs through Optical Fibre Cable (OFC) and 157 remote GPs using Very-Small-Aperture Terminal (VSAT) Satellite-based connectivity.
The State Government has been following up with the Government of India for the execution of the 2nd phase of Bharat Net for covering the remaining 3,206 GPs for network creation, 252 existing GPs for up-gradation and 15,538 villages for last-mile connectivity.
Himachal Pradesh State Data Centre (HPSDC): Himachal Pradesh State Data Centre (HPSDC) is one of the core Information and Communications Technology (ICT) infrastructures created by the Department of Digital Technologies and Governance (DDT&G) to consolidate services, applications and infrastructure to provide efficient electronic delivery of Government to Government (G2G), Government to Citizen (G2C) and Government to Business(G2B) services. A total of 194 websites/ applications of various departments/ boards/ corporations are hosted at the HP State Data Centre. 17 applications are hosted in the staging environment of HPSDC, which is undergoing security audits. All State Government websites/applications hosted at HPSDC undergo cyber security audits from time to time, and no website portal or application can be hosted at HP State Data Center without security audit and compliance.
During FY 2023-24, 19 new applications/websites of various departments have been hosted in HPSDC. The present capacity of HPSDC is fully utilized. A new agency has been selected through an open tender for the expansion and Operation & Maintenance (O&M) of the HP State Data Centre for the next 5 years.
CM Dashboard: To monitor the progress of key projects/schemes by the Hon'ble Chief Minister, a 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 Directorate of Health Services (DHS), National Health Mission (NHM) & Directorate Of Medical Education (DME) were identified for integration with CM Dashboard and total 81 Key Performance Indicators (KPIs) were identified in consultation with concerned departments. Accordingly, Application Programming Interface (API) integrations have been done and all data entry forms, reports and departmental dashboards have been developed. User Acceptance Test (UAT) of the same has already been done at the departmental level.
Multiple trainings for updating the 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. Each department can monitor the performance to the base level of their hierarchy provided at the time of consultation. Efforts shall be made to launch the portal in FY 2023-24.
HIM Parivar: Department of Digital Technologies and Governance (DDT&G) Himachal Pradesh is developing its Social Registry (Him Parivar) over the existing Parivar Register which will act as a single source of truth for proactive benefit delivery in the State. Major activities have been carried out in the development of the technical framework required for the Him Parivar project. Unique Identifiers (Unique IDs) have been generated for every individual resident of Himachal Pradesh. Data cleaning and verification activities are being carried out in coordination with the Rural Development and Panchayati Raj (RD&PR) department. Mukhya Mantri Himachal Health Care Scheme (HIMCARE), SAHARA, Mukhya Mantri Awas Yojana (MMAY), e-Sharm, e-Kalyan & Project Management Information System (PMIS) have been successfully integrated with Him-Parivar. Data cleaning activities using different departmental datasets are being carried out to increase the coverage of seeding in the integrated schemes.
A survey mobile app and web portal have been developed for the Urban Development Department under the Him Parivar project, to survey creating family registers in urban areas. Single Sign-On (SSO) application has been developed under Him Parivar and integration with departmental applications is currently in progress. The schemes of Urban Development, Empowerment of Schedule Caste (SC), Other Backward Class (OBC), Minority & Specially Abled (ESOMSA), Land Record, Agriculture, Himachal Pradesh Board of School Education (HPBoSE), Labour & Employment, Education, Jal Shakti and Health will be targeted in the next 6 months for the integration. Follow-up is being done with the concerned departments.
Litigation Monitoring System (LMS): The Department of Digital Technologies and Governance has developed generic software for the monitoring of court cases of government departments pending in various courts. Using this software, Administrative Secretaries/ Head of Department and Departmental Officers can easily monitor the status of their court cases such as total number of pending cases, timely filing of reply, personal presence required in the case, present stage of the case etc.
The following features are included in the software:
i) To enter case details online on the Litigation Monitoring System.
ii) Cases listed for hearing, replies to be filed in a time-bound manner - 0-7, 8-15, 16-30 days pendency report generated.
iii) Cases requiring personal presence
iv) Court-wise pending cases report
v) The pendency of Cases can be easily monitored by supervisory offices
A total of 80 departments are on boarded and 45,137 cases are registered online on the LMS application.
Revenue Court Management System (RCMS): Revenue Court Management System (RCMS) is a comprehensive software developed by the data-driven Testing Department of Digital Technologies and Governance in close coordination with the Revenue Department. RCMS is a digital solution designed to modernize and streamline revenue court operations in Himachal Pradesh. As a part of this initiative revenue court processes, case management, and record-keeping are digitised. Citizens and advocates can avail all information about their cases free of cost. Such information includes case profile, case status, interim orders, final orders, cause list, etc. A total of 76,122 cases are registered online on RCMS, out of which 24,606 cases have been disposed off.
Revenue Relief Application Portal: The Revenue Relief Application Portal is a digital solution designed to simplify and expedite the management and disbursement of relief funds in Himachal Pradesh. It serves as a comprehensive platform for processing relief applications, tracking their progress, and ensuring transparency and accountability in relief operations. The module simplifies the application process, integrates with the treasury system for direct fund disbursement, and provides real-time status updates to applicants and authorities. Additionally, it generates insightful reports to facilitate data-driven decision-making. A total of 51,980 applications have been received online through Revenue Management System (RMS)-Relief, out of which 19,105 applications have been approved.
Policy Initiatives Undertaken: Amendment of State Right of Way (RoW) Policy, 2021: Recently, the Government of India (GOI) has launched "5th Generation" (5G) Technology to implement 5G connectivity across the Country and notified amended GoI Indian Telegraph Right of Way (RoW) Rules 2016 as amended in 2017, 2021, 2022 & 2023, amendment has been done in HP Right of Way Policy, 2021 for the same. RoW Policy of the State is being aligned with the latest GoI Rules for faster rollout of 5G services and is awaiting approval by the cabinet. A deemed approval facility is implemented in the portal if the file crosses 60 days. Investors can now track their file's movement. A Short Message Service (SMS) and email are sent to investors as the file moves in the system.
The Himachal Pradesh Public Services Guarantee (HPPSG) Act, 2011: To provide for the delivery of public service to the people of the state within the specified time limit, the State government enacted the HPPSG 2011 which came into force on 23rd September, 2011. To carry out the provision of the act, the Government notified from (November, 2011). To date a total of 254 services notified across the 35 State Government departments and Designated Officer (DOS) / Appellate authorities besides specific time for providing such services for the general public. With such concrete measures, the State Government was ensuring that administrative machinery was sensitive to the needs of the common man in beneficially delivering goods.

HP State Electronics Development Corporation Ltd. is functioning under the administrative control of the Department of Information Technology, Himachal Pradesh. The main activities of the Corporation are to supply quality computer hardware and allied services, packaged software hardware office automation and Medical, and other electronics equipments to the Government Departments and PSUs in HP, and to ensure proper maintenance of supplied hardware through respective OEMs/Vendors/ASP. Further to diversify its activities to provide value addition in terms of implementation of IT and e-governance, manpower deployment, and police recruitment projects in different departments of State Government. However, to initiate activities in this area, some of the basic components of the above broad activities are as under.-
a) To conduct systems and feasibility studies for Departments.
b) To develop software packages for identified application areas
c) To suggest and procure the optimum hardware keeping in view the overall standardization of hardware throughout the state.
d) To ensure proper maintenance of supplied hardware through respective OEMs/Vendors/ASP.
e) To develop a site for the installation of computer hardware including LAN electrical and civil work
f) Conduct training of the user department in implementing IT/E-Governance Projects.
g) Website development of Government departments/ organizations (Static as well as dynamic websites with database integration)
h) Data Entry and document scanning jobs.
i) On-premises handholding and training on the system (Computer basics, MS Office etc.)
j) Supply of resources as stated below:
i) e-Governance Projects, Software development
ii) Project execution on turn-key basic etc.
iii) Manpower Deployment.
iv) Procurement through the GeM Portal
Financial Achievements: The Corporation rendered various services during the FY 2022-23 and achieved the turnover as stated below: The Profit and Loss account of Himachal Pradesh State Electronics Development Corporation, Shimla for last year’s: