report card
More duel than deed in HP
As CM Virbhadra Singh completes a year in office, there is little to show for achievement as political battles keep him busy.
By Pratibha Chauhan

THERE is little to cheer about the one-year performance of the Virbhadra government, afflicted by severe financial crunch; and to make matters worse, practically no help is coming from the Congress-led UPA regime.

The woes of the state could worsen in the coming days unless some drastic fiscal prudence is exercised. Notwithstanding the financial woes of the state, the political climes however remained electrified with the Congress regime taking on its opponents by instituting a Vigilance inquiry into the Congress chargesheet against the Dhumal regime and taking on the HP Cricket Association headed by MP Anurag Thakur.

The catastrophe that hit Uttarakhand cast its shadow on Himachal also, leaving a trail of destruction. The state suffered Rs 2,892 crore losses but help from the Centre is still awaited. With the government walking a tightrope on the financial front, little has been achieved on the promises made in the election manifesto.

Barring a monthly Rs 1,000 skill development allowance to educated unemployed youth, free bus travel facility for schoolchildren, marginal enhancement in social security pensions and some welfare schemes for women, the achievements are not many.

With little being delivered as the government remained more occupied ordering transfers of employees and getting allegations in its chargesheet probed, people feel much more needs to be done on the development front.

With the top two political families trading charges and personal allegations flying high, the stage is set for a bitter political battle in the run-up to the Lok Sabha elections in the coming days.

INDUSTRY
Hoping to do a Punjab

Promised: The state failed to get the Central industrial package, which had lapsed in March 2010, enhanced, despite several promises to investors.

Achieved: A common application form was introduced to ensure grant of mandatory clearances to projects within 90 days. Land banks have been developed in major industrial areas of Solan, Sirmaur and Una districts. A tool room and container parking at Baddi has also been approved.

With barely 14 new industrial units being approved in the current year and 48 existing ones, with a total investment of Rs 1,757 crore, coming forward to enhance their capacities, industrial growth remained much below expectations.

Awaited: Investors are waiting for the new industrial policy with provision for sops. Though announcements like ‘industry by invitation’ were floated to attract investors, little has been achieved in drawing big investment.

Even the announcement by Union Minister for Commerce and Industry Anand Sharma, claiming extension of the capital investment and freight subsidy till March 2017, failed to be notified.

Since incentives available under the 2003 Central industrial policy like capital investment and freight subsidy came to an end early this year, several units closed down. About 40 units have shut their plants across the state.

New industrial policy will turn it around

We will be holding investors’ meet at various places in the country to attract entrepreneurs. Several big names in the industry like the Tatas and Vardhman group have proposed huge investment in Himachal as we have created an industry friendly environment. Our biggest asset is easy availability of reliable and uninterrupted power. The new industrial policy is also in the pipeline, in which several initiatives will be proposed to attract industry. Mukesh Agnihotri, industry minister

FINANCE
Debt, deficit mount

Promised: The Congress had assured efficient fiscal management by increasing revenue sources and improving fiscal deficit. To maintain long-term stability, it had promised to seek augmentation of the 12th Five Year Plan with the help of the Centre.

Achieved: There is hardly anything to cheer about on this front. The only saving grace is that Uttar Pradesh paid its Rs 157 crore dues towards power.

Awaited: Himachal’s plea to the Centre for financial assistance has not yielded any result. Green tax and generation tax have not been approved. The state had sought Rs 10,000 crore from the 13th Finance Commission as compensation for protecting forests and environment. It is reeling under the grossly underestimated grant of Rs 21,000 crore against Rs 69,000 crore sought by it. The state has got the least increase of 56 per cent among all states. The last and final year of 2014-15 is likely to be the most harsh.

The financial health of the state is set to worsen with expected revenue from major sectors like power barely touching Rs 900 crore against the target of Rs 1,470 crore for 2013-14. The debt burden which was Rs 28,000 crore during the last financial year has touched Rs 30,000 crore and the interest on loans is a whopping Rs 850 crore. The salary burden of 2.71 lakh government employees is Rs 7,574 crore, which is 35.53 per cent of the total budget.

Satisfied with Central assistance

The Centre has always come to our rescue though there may have been delays. The Calamity Relief Fund for the damage from rains has been approved, but there is delay because we sought an enhancement. I am quite satisfied with the assistance. Notwithstanding financial constraints, we have accelerated the pace of development to strengthen Himachal’s position as a model hill state. Our flagship programmes — subsidised ration and monthly Rs 1,000 skill development allowance — have provided relief to people. We have opened more schools, colleges, health institutions and improved road connectivity so that people get quality services right on their doorstep. Focus is on improving the wellbeing of the weaker sections of society. We are trying to promote tourism and hydro-power generation to ensure good revenue generation.

Chief Minister Virbhadra Singh, who also holds finance & education portfolios

SOCIAL SECTOR
Subsidised items, but where’s food?

Promised: Houses for the aged and abandoned women, enhancement in social security pension from Rs 450 to Rs 600, and sewing, embroidery and computer centres in every panchayat were promised. Subsidised ration was to be strengthened and improved.

Achieved: Subsidised ration — for which Rs 237 crore has been provided — is fraught with shortcomings as sugar, pulses and oil in fair-price shops under the PDS are not available. Housing subsidy under state schemes has been enhanced from Rs 48,500 to Rs 75,000; and 11,815 houses have been constructed under Indira Awas Yojna. Marriage grant for destitute women is now Rs 25,000 and inter-caste marriage grant Rs 50,000. State Women Welfare Board has also been constituted.

Awaited: A better PDS, regular supply of food items and better road network is needed.

Will ensure availability

We have taken steps to ensure the availability of good quality food items like pulses, sugar and cooking oil to the people

GS Bali, civil supplies minister

POWER
Revenue target missed

Promised: Anticipating good returns by harnessing power from the 23,000 MW hydro-power potential of the state, the government intended to ensure timely completion of hydel projects. The aim was not just to cut down on cost and time overruns, but more importantly, ensure revenue through early commissioning of the projects. It was also proposed to generate 5,000 MW in five years, a target which seems too farfetched considering the disinterest of investors.

Achieved: Very little has been achieved except revenue from some already commissioned big projects like Nathpa Jhakri and Karcham Wangtoo. Agreements to set up six micro-hydro electric projects have been signed this year. The revenue from power generation this year will barely touch Rs 900 crore against an expected revenue of Rs 1,470 crore.

Awaited: Slump in the power market is probably the biggest unanticipated setback the state has suffered due to practically no buyers. The completion of a majority of projects has been delayed for this very reason.

With the per unit rate of power touching an all-time low of less than Rs 2.50, investment in this sector has slowed down. The department of energy has been desperately looking for buyers, with little success. With an eye on the grim power market, those who have allotted projects too seem disinterested in expediting work, thus delaying the expected revenue to the exchequer.

Negotiating with states

Projects like Kol Dam are expected to start generation and bring in revenue. UP has cleared its dues, and hopefully the power market will improve as demand from other states will go up. Efforts are on to negotiate with states for selling surplus power.

Sujan Singh Pathania, power minister

HEALTH
Looking up

Promised: Free healthcare and medicines at public health centres. Thrust was to develop Indira Gandhi Medical College (IGMC) and Dr Rajendra Prasad Medical College at Tanda, Kangra, as super-speciality centres. All below poverty line families were to be brought under the national health insurance scheme. Malnutrition was to be eliminated.

Achieved: Last week, the state was awarded for good health work. A programme to ensure availability of 424 generic medicines through civil supplies medicine stores was launched and prescription audit introduced to ensure doctors prescribe affordable generic drugs. Another 1.5 lakh families were brought under the national health insurance scheme. Anaemia control programme was also launched for six lakh kids. To tackle shortage of doctors, 142 medical officers were appointed. A campus of the IGMC has been proposed at Ghanahatti, near Shimla. It will have a 100-bedded hospital and a dental and nursing college. Besides this, 60 ambulances were added to existing fleet.

Awaited: More needs to be done to strengthen health services as complicated cases are referred to the PGI, Chandigarh. Paucity of doctors is afflicting health institutions, especially in remote areas.

More medical seats

Efforts are afoot to strengthen facilities at the IGMC and Tanda to bring them on a par with the PGI and AIIMS. The intake of students in MBBS and MD courses has been enhanced to meet the shortage of doctors and provide quality services to the people.

Kaul Singh Thakur, health minister

HORTICULTURE, AGRICULTURE
Some progress, but much to cover

Promised: To enhance three times the 50 per cent import duty on apples to save local apples in the face of stiff competition from China, New Zealand and the USA. It was also promised to include apple in the special category under the WTO. It was envisaged to have horticulture and agriculture-based processing units in the growing areas so that farmers could get good prices.

Achieved: Anti-hail nets have been provided to horticulturists on 80 per cent subsidy and 50 to 85 per cent subsidy is being given for greenhouse. Procurement price of apple, mango, kinnow, malta and galgal has increased by 50 paise per kg and 27.11 lakh fruit plants have been disbursed to growers.

With marketing yards being developed at various places, the problem of transportation, glut and resultant slump in prices has been tackled to a great extent.

Awaited: Much needs to be done to reduce the post-harvest losses that growers suffer due to inadequate infrastructure and near-absence of warehouses, integrated cold chains, grading and agro and food-processing and packaging units. Enhanced marketing facilities for modern retail trade could help farmers.

Import duty on apple is still a meagre 50 per cent, resulting in stiff competition to Himachal apples.

Revival plan for HPMC

We are trying to provide quality plant material and imported rootstock to enhance productivity of not just apple but other fruits as well. A major revival plan has been proposed for the HPMC along with modernisation of cold storages, controlled atmospheric stores and better marketing facilities.

Vidya Stokes, horticulture minister

EDUCATION
Not in letter & spirit

Promised: The Congress had promised employment opportunities through BPOs and job-oriented training. Students were to get free bus passes. Net books were promised to 5,000 meritorious students of classes X and XII under Rajiv Gandhi Digital Student Scheme.

Achieved: Free travel facility and uniform have been provided to government school students. The 149 de-notified schools have been reopened.

Awaited: Students suffer in the absence of toilets and libraries. Large-scale vacancies in remote and rural area schools have not been filled.