Dharamsala Shimla

Probe into collection of funds by cops
JAWALAMUKHI, Dec 13 — The DSP, Dehra, has started an inquiry into the reported collection of funds for cyclone victims by the local police on behalf of the ruling BJP. A reliable source told this correspondent on the condition of anonymity that he was asked by police officials to "destroy" donation receipts.

Lawyers boycott courts
DHARAMSALA, Dec 13 — Lawyers in Kangra district boycotted courts today in protest against poor medical services and callousness of the local zonal hospital authorities.

HP in grip of fiscal crisis
From Rakesh Lohumi
Tribune News Service

SHIMLA, Dec 13 — The unconventional practice of resorting to huge market borrowings to bridge the revenue deficit and avoiding the option of raising own resources has plunged the Himachal Government into a deep financial crisis over the past five years.

The state's borrowings have increased steeply from 1994-95 as the government started a process of raising debt through public sector undertakings to meet the growing revenue expenditure. Consequently the annual interest liability shot up from Rs 209 crore in 1993-94 to Rs 770 crore in the current year, an increase of almost 400 per cent.

The government also "misused" the small saving loan facility for raising resources by asking financial institution like the UTI to invest in it. While this enabled the government to secure extra loans to the tune of Rs 1104.5 crore up to 1998-99, it ended up paying huge amounts as incentive to secure these deposits. Withdrawal of the deposit over the past two years has resulted in the net accruals in small savings turning negative. This means that the state could not get any small savings loans for at least three years. Thus a valuable resource has been exhausted due to bad fiscal management.

Not only that, the government also resorted to some other unusual methods to meet the revenue expenditure. It drew the equity contribution to the Nathpa Jhakri Power Corporation (NJPC) which was part of the expenditure and kept it in the personal ledger account. Between 1994-95 and 1998-99 Rs 455.34 crore was shown as expenditure on the account in the plan. However, only Rs 318.23 crore were released to the corporation. The rest was deposited in personal ledger account in the treasury. As a result of this practice, the cumulative amount which the government owed to the NJPC had swelled to Rs 153 crore.

Besides, the loans raised through public sector undertakings, daily wage regularisation arrears and passenger insurance fund were also temporarily deposited in post office to get high amount of small savings loans.

The government raised over Rs 912 crore through the state electricity board and the state forest corporation from 1994-95 to 1997-98 at an interest rate from 15.03 per cent to 18.26 per cent. Huge amounts were paid as service charges in raising these loans.

In all, the government paid a whopping Rs 66.02 crore as service charges and incentives in loans raised from 1994-95 to 1997-98.

In contrast, the present government has paid only Rs 61 lakh as arranger fee in raising loans to the tune of Rs 450 crore during the current year. The annual rate of interest is also much lower at 13.06 per cent.

The liability on account of debt servicing will increase sharply over the next five years when the repayment of some outstanding loans will commence. In 2005, the state will have to set apart about Rs 2,500 crore for the purpose. As such the financial position is not likely to ease even with the commissioning of the NJPC project which will fetch a revenue of about Rs 400 crore annually.

The state is not in a position to manage the financial crisis on its own and only a special economic package from the Centre can put in on a sound footing.

Assembly thanks PM for package
Tribune News Service

SHIMLA, Dec 13 — The Himachal Pradesh Vidhan Sabha today unanimously thanked the Prime Minister, Mr Atal Behari Vajpayee, for granting a Rs 400 crore package to the fund starved state.

Cutting across party lines, the Congress Legislature Party leader, Mr Virbhadra Singh and a senior Congress legislator, Thakur Ram Lal, also appreciated Mr Vajpayee's gesture.

The House also thanked the Prime Minister for laying the foundation stone of the Parbati Hydroelectric Project in Kulu district which would initiate the development of the hydel potential in the Parbati basin.

The two resolutions thanking Mr Vajpayee were moved by the Chief Minister, Mr Prem Kumar Dhumal.

Mr Dhumal said the financial package included Rs 200 crore as central assistance and an equal amount as ways and means advance which would be deducted in instalments. However, the ways and means advance of Rs 100 crore would be recovered by the Centre during the next financial year so as to reduce the financial burden on the state.

He said Himachal Pradesh had been benefited from every visit of Mr Vajpayee to the state. Earlier, he had granted a package of Rs 300 crore to the state to tide over the financial crisis.

Mr Dhumal said every state had to take steps for maintaining its financial health. However, as the revenue base of Himachal was very small, it was important to concentrate on the development of hydel generation, tourism and environment friendly industry to make it financially viable. Power projects should be completed within the timeframe to escape price escalation. The projects completed within the stipulated time would be given additional incentives while those getting delayed would be penalised.

The Chief Minister announced that Energy Minister, Mr P.R. Kumaramangalam, had cleared reimbursement of Rs 38 crore which was pending in the Baira-Sieul project.

Replying to certain points raised Mr Virbhadra Singh on the agreement signed by the state government with NHPC for the construction of the Parbati project, Mr Dhumal said 30 per cent executive staff for the project would be taken on deputation of one rank promotion from the HPSEB. As many as 75 per cent Class III and Class IV posts would be filled from Himachal Pradesh. The agreement was an improvement over the other agreements so far signed for various projects.

Mr Virbhadra Singh and Thakur Ram Lal took serious objection to the opposition leaders having not been invited to the foundation laying ceremony of the Prabati project.

Mr Virbhadra Singh said the Rs 400 crore package would come as a relief to the state amidst serious financial crisis.

He said the Centre should ensure some cash flow to the state to reduce the deficit. Various Congress leaders, including, Jawaharlal Nehru, Indira Gandhi and Rajiv Gandhi had always kept the welfare of Himachal Pradesh foremost in their heart while they were Prime Ministers.

Thakur Ram Lal (Cong) said although the Congress had ideological differences with the ruling BJP, by but the grant of Rs 400 crore package by Mr Vajpayee was an appreciable step. Such financial assistance generally came because of cordial relations between the Prime Minister and the Chief Minister.

He said the last decade had been a financially difficult period for Himachal Pradesh. Some long-lasting measures should be taken for creating a sound financial base for the state.

He said that the state government should take steps for the timely completion of the Parbati project.

Mr Mohinder Singh, PWD, Minister, on behalf of the Himachal Vikas Congress, thanked Mr Vajpayee for the Rs 400 crore package and also laying the foundation of the Parbati project.

He said all this would not have been possible without the personal pains which were taken by the Chief Minister.

Dhumal proposes, PM disposes
Shubhabrata Bhattacharya
Tribune News Service

HIMACHAL Pradesh Chief Minister Prem Kumar Dhumal quoted Somerset Maugham in his speech at Sainj, a tehsil headquarter of Kullu district of Himachal Pradesh, to impress upon the Prime Minister, who was there to lay the foundation stone of National Hydroelectric Power Corporation’s Parbati project, to highlight the state’s financial plight. He got a package of Rs 400 crore. However, much of what he demanded was politely brushed aside by Mr Atal Behari Vajpayee and the Union Power Minister, Mr P.R. Kumaramangalam.

In effect, Mr Dhumal, who played the perfect host, got very little. The commitment of Himachal getting 12 per cent of the power generated by the project free is a far-fetched boon — it will come only when the project goes onstream eight years from now. Mr Vajpayee estimated the cost of free power at Rs 200 crore and Mr Kumaramangalam put it at Rs 150 crore — thus the Chief Minister of Himachal Pradesh in the year 2008 can have the consolation of getting this "assistance".

The Chief Minister made three major proposals, none of which were agreed to by the Centre. Mr Dhumal wanted the Centre to allow Himachal to levy generation charges on electricity currently produced in the state and charge it to the user-states. He suggested, that if he is allowed to levy 10 paise per unit then he could mop up Rs 150 crore annually. The Prime Minister did not respond to this, however, during his speech he made a mention of the cost of producing electricity at Bhakra today being eight or nine paise per unit, thus in effect turning down the effort to add a cost of 10 paise over and above the present generation cost.

Mr Dhumal also proposed that there could be a nation-wide power generation cess that could be shared between the Centre and the producing state on a 40:60 basis. Mr Kumaramangalam cited legal hurdles in preventing either this or the introduction of generation charges.

Yet another suggestion made by Mr Dhumal regarding raising of a Himachal regiment too did not elicit any response initially. However, when specifically asked about it, the Prime Minister said he would refer the matter to the Defence Ministry.

It may be noted that in the past 27 years no new regiments have been raised by the Indian Army. In 1971 the Naga regiment was raised and a year later the state para military forces of Jammu and Kashmir were converted into an Indian Army regiment, J and K Light Infantry. The plea for the Himachal regiment therefore may not elicit immediate response from Army Headquarters.

The MP from Mandi, Mr Maheshwar Singh, referred to the proposed tunnel under Rohtang to link Lahaul-Spiti and ultimately Ladakh — a project which would be both development and defence oriented — in his speech. This project, whose estimated cost at today’s prices will be Rs 500 crore, has the potential of not only generating employment but also developing the region apart from being of strategic importance especially after the Kargil conflict. The Prime Minister hinted that this project was under the Centre’s preliminary consideration.

Himachal has been asking for a package to the tune of Rs 1000 crore to tide over its 10-year accumulated financial crisis. Mr Dhumal’s perseverance was praised by Mr Vajpayee, who, referring to the repeated pleas from the Chief Minister said, "Unki lagan ki mein tareef karta hoon". Beyond "tareef" Mr Vajpayee had little to offer to Mr Dhumal on Sunday.

Probe into collection of funds by cops
From Our Correspondent

JAWALAMUKHI, Dec 13 — The DSP, Dehra, has started an inquiry into the reported collection of funds for cyclone victims by the local police on behalf of the ruling BJP.

A reliable source told this correspondent on the condition of anonymity that he was asked by police officials to "destroy" donation receipts.

As the officials concerned are out of station, nothing can be ascertained through departmental inquiry.

It may be recalled that the local police had collected funds from the people by giving them receipts having signatures of the president of the local unit of the BJP, Mr Suresh Chandel.

Although the police had claimed that it was complying with the orders of a minister of the area, the minister had denied the same.

The local unit of the Congress had raised a question following which the SSP, Kangra, ordered an inquiry into the matter.

Dalai Lama not to shift from Dharamsala
Tribune News Service

SHIMLA, Dec 13 — Mr Shanta Kumar, Union Minister for Consumer Affairs and Public Distribution, has discounted press reports that the Dalai Lama was contemplating to shift his headquarters from Dharamsala to Delhi.

Mr Shanta Kumar who accompanied by his wife Santosh Shailja called on the Tibetan spiritual leader in Delhi today discussed the issue with him.

The Dalai Lama told Mr Shanta Kumar that he was feeling comfortable and at home in Dharamsala for the past about 40 years now. He termed reports that he was moving out as "just" rumours.

Mr Shanta Kumar told the Dalai Lama that the people of Himachal Pradesh and particularly of Kangra district, felt proud that he had made their state his home in exile and that they would like to see him off only to return to his homeland Tibet and not anywhere else.

The Dalai Lama clarified there was a proposal but no decision had yet been taken to shift some administrative offices from Dharamsala to Delhi which had to liase with the Government of India on a day-to-day basis. He would continue to stay at Dharamsala as before.

Lawyers boycott courts
Tribune News Service

DHARAMSALA, Dec 13 — Lawyers in Kangra district boycotted courts today in protest against poor medical services and callousness of the local zonal hospital authorities.

The lawyers were protesting against failure of the hospital authorities in providing a mortuary, where the bodies could be protected from wild animals. The boycott call was given by the Kangra Bar Association following an incident where wild animals ate away parts of the body of a 23-year-old woman kept in the mortuary.

President of the association Subodh Burathoki said the hospital authorities should improve the condition of the mortuary.