Shimla: Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu stated on Friday that the hill state, which contributes ecological services worth approximately ₹90,000 crore annually to the nation, is receiving insufficient compensation from the Central government. He made these remarks on World Environment Day in Shimla, emphasizing the state’s crucial role in maintaining ecological balance.
Information was available with The Chenab Times indicating that the Chief Minister articulated that while Himachal Pradesh plays a vital role in providing clean water and fresh air to North India, often referred to as the “Lungs of North India,” the financial returns for these services are inadequate. Sukhu highlighted that the state bears significant costs for conservation efforts, while the benefits are shared nationwide. He reiterated the demand for a structured “Green Bonus” to compensate Himachal Pradesh for its substantial ecological contributions.
State’s Environmental Efforts and Financial Demands
The Chief Minister further elaborated on the state’s commitment to becoming a “Natural and Green State,” noting that a technical and scientific assessment is underway to quantify the annual value of Himachal Pradesh’s ecological services, which preliminary estimates suggest could amount to around ₹90,000 crore. This initiative aims to scientifically evaluate services such as carbon sequestration, water security, and climate regulation provided by the state.
Sukhu pointed out that the state government has been actively promoting clean and green transport, with plans to convert the Himachal Road Transport Corporation’s (HRTC) fleet to electric vehicles. Tenders have been issued for 297 electric buses, with an additional 500 planned for the upcoming fiscal year. Charging stations are also being established across the state to support this transition. Initiatives like the Rajiv Gandhi Swarojgar Start-up Yojana are also in place, offering subsidies for the purchase of e-taxis to provide employment opportunities for the youth.
Financial Strain and Budgetary Adjustments
The demand for a Green Bonus comes at a time when Himachal Pradesh is facing considerable financial challenges. The Chief Minister had previously indicated that the state’s financial distress was significant, comparable to the Sri Lankan crisis. This situation has been exacerbated by the discontinuation of the Revenue Deficit Grant (RDG) by the Central government, which the state estimates will result in an annual loss of approximately ₹8,105 crore. Consequently, the state government presented a reduced budget for the fiscal year 2026-27.
In response to the financial crunch, the Himachal Pradesh government decided to implement a temporary deferment of a portion of salaries for ministers, MLAs, and top bureaucrats for six months. This measure, ranging from 3% to 50% cuts, is intended to conserve funds during the challenging period. The Chief Minister himself will receive 50% of his salary, while cabinet ministers and MLAs will see 30% and 20% of their salaries deferred, respectively. Similar deferments have been applied to top-tier bureaucracy.
Broader Context of Ecological Services and Compensation
The concept of a Green Bonus seeks to provide financial compensation to states that actively preserve forests, biodiversity, and natural resources, thereby contributing to national environmental stability. States like Himachal Pradesh and Uttarakhand have long argued that stringent environmental regulations often limit their industrial growth and revenue generation capabilities, even as they provide essential ecological services. This compensation mechanism is viewed as a way to offset this imbalance and reward states for maintaining ecological balance, acknowledging the opportunity cost associated with limited industrialisation.
The state government has also set targets to increase its forest cover to 32% by 2030, implementing schemes like the Mukhya Mantri Van Vistar Yojana to transform barren hills into green landscapes. Public participation in tree plantation activities is also being encouraged through initiatives like the Rajiv Gandhi Van Samvardhan Yojana and the Green Adoption Scheme. The Chief Minister has consistently stressed that safeguarding the state’s interests and fighting for its rightful claims remains a priority, with these issues to be raised at prominent national forums.
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The Chenab Times News Desk
