State Focus

HIMACHAL PRADESH - FROM PENURY TO PROSPERITY

A silent and steady socio-economic revolution has been sweeping Himachal Pradesh since its inception 57 year ago on 15 April, 1948. The change is simply astounding when we see the vastly improved living standard in rural areas where overwhelming majority of the people of this state live. The most of the villagers today are educated, awakened and better informed. They are confident about themselves and their future.

In 1948, when the state came into being, there was picture of isolation, neglect, poverty, illiteracy and ill-health. Today, it has not only emerged as a pioneer in hill areas development but also as most progressive state of the country in providing social services. It has carved a niche in providing best health services and education to its people. After having earned a name of `Apple state' it is poised to become `Fruit Bowl' of the country.

Jean Dreze and Amartya Sen, world-renowned Economist and Nobel Laureate, in their book `India Development and Participation' has also appreciated the development that the state has made. An extract from the book says, "Himachal Pradesh provides a remarkable illustrations of phenomenal development. In the fifties and sixties, the region known today as Himachal Pradesh was widely considered as one of the most under-developed area of the country and its people were commonly described as extremely poor and conservative in outlook, but now the living conditions in Himachal Pradesh seems to have been radically transformed for the better."

In Human Development Report of the Planning Commission also the achievements of the State in the field of Education and Health have been rated the best. The credit for it goes to the hard-working, peace-loving and progressive minded people of the state on the one hand and also to the contributions made by those who remained at the helm of affairs during all these years. State's spectacular achievements today is also due to the right direction given by the successive Congress Governments which ruled the state for most of the period and played a significant role in getting the proper shape and status to the state.

We owe a debt of gratitude to those who helped us in maintaining state's separate entity and granted us proper status. Sir Fazal Ali, Chairman of the States Reorganisation Commission appreciated the political needs of the people of the State by dissenting Himachal's merger with Punjab. The first Prime Minister of India, Pt. Jawaharlal Nehru whose love for the hill people was proverbial, helped in keeping state's separate entity. Smt. Indira Gandhi granted us the statehood. Shri Rajiv Gandhi during his short stint as Prime Minister liberally helped the state in its growth. Today, Smt Sonia Gandhi, the chairperson of the United Progressive Alliance and Prime Minister, Dr. Manmohan Singh are equally concerned about the well-being of the people of Himachal Pradesh.

On this auspicious day, we will be failing in our duty, if we forget to remember Dr. Y.S. Parmar, the architect of the state who led the people of the state in their long struggle for attaining the statehood and safeguarding the interests of the people of Himachal Pradesh during the vicissitudes through which they have to pass in their journey to attain the statehood.

There has been tremendous expansion in the field of education. In 1948, there were only 331 educational institutions in the state whereas today state has a network of over 14,500 educational institutions. Literacy rate has made a quantum jump from 7.1 percent in 1948 to 77.4 percent according to 2001 census. The number of health institutions has also risen from 88 in 1948 to 3,835 in 2004. The veterinary institutions have risen from 33 to 2,071. The food production has gone up from 1.99 lakh MT in 1948 to 14.50 lakh MT in 2004. The fruit production which was 1.20 metric tonnes has gone up to 6.90 lakh metric tonnes in 2004. The per capita income which was Rs. 240 in 1948 has gone up to Rs. 24,903 in 2003-04.

The pace of development has been accelerated further in the state in last two years. We have visualized a prosperous, self-reliant Himachal Pradesh. Emphasis has been laid on generating resources for the development of the state. Our firm belief is that road to prosperity of Himachal Pradesh lies in the utilization of its immense hydel power potential. We are working on a plan to realize this. The state has identified hydel potential of 21,000 MW, which comes to over 20 percent of the entire country. Out of this, only 6,045 MW has been harnessed so far.

The Government is of the opinion that industrial development of the state can also be one another sector which could contribute substantially in raising income to the state and creating employment opportunities to the local people. For harnessing industrial potential of the state, emphasis is being given for setting up of environment friendly, income generating and employment oriented industries.

Sincere efforts are afoot to create an investor friendly environment so as to encourage entrepreneurs to invest in the state. Despite being a hilly state, Himachal Pradesh has of late established itself as a Model Hill State where all-round economic development has taken place, especially in the field of industry. Today, industrial sector is contributing about 15 percent of the State's Domestic Product and this share is expected to increase further in years to come.

The package of incentives offered by the State Government coupled with the package of incentives given by the Central Government in 2003 has made a positive impact on the pace of industrialization, evident from the investment coming to the State. The established groups of industries have evinced interest in setting up of their units in the State. The Government of India in special package of incentives for the State of Himachal Pradesh has provided the incentives of hundred percent Excise Duty exemption for a period of 10 years for units coming into production up to 31.03.07, hundred percent income tax exemption for a period of five years and thereafter 30 percent exemption for companies and 25 percent exemption for other than companies for a further period of five years of units coming into production upto 1^st April, 2012 besides capital investment subsidy. These incentives are available to the new units as well as to the existing units for their substantial expansion.

For facilitating the entrepreneurs in getting various kinds of clearances for setting up of industrial units expeditiously, the Single Window Clearance and Monitoring Agency under the Chairmanship of Chief Minister has been set up which since its inception on 22.1.04 has held 10 meetings and cleared 239 Medium and Large Scale Project with an investment of Rs. 3863 crores and employment potential of about 30,000 persons.

Nature has blessed Himachal Pradesh with immense scenic beauty, pollution free environment and varied climatic conditions which the visitors could hardly get anywhere else. The Government intends to harness tourism potential of the State with twin objectives of generating income to the State exchequer and employment to the local people.

Government is also looking for private sector participation in the development process of the State under `Partnership H.P,' some of the projects which the State Government intends to take up are: Rs. 1000 crores tunnel and over-bridge project between Kalka and Shimla, an express corridor between Una and Mandi, an expressway between Una and Dharamsala costing about Rs. 750 crores, an expressway between Solan, Yashwant Nagar _ Rohru costing about Rs. 1250 crore. One integrated tourist development project each for the Pong lake in Kangra district, the Gobind Sagar in Bilaspur district and Chamera lake in Chamba district involving sanctuaries, water sports, resorts, etc., costing between Rs. 200 crores to Rs. 1,600 crores each, an Himalayan Ski village in the catchment of Allian-Dohangon streams at a cost of about Rs. 1,200 crores, etc.

The Government is ensuring best and specialized medical care facilities at the door steps of the people. During last two years about 250 doctors, 181 nurses and a number of para-medical personnel have been appointed in far-flung areas of the State. Development of Dr. Rajendra Prasad Medical College at Tanda has been given special attention. Rs. 100 crore is being spent on essential component of the building of the College and hospital.

Education is on top of the Government's priority. There has been tremendous expansion in the educational institutions in the State in last few years. Steps are afoot to achieve the universalization of Elementary Education for which Rs. 532 crore `Sarva Shiksha Abhiyan' is being implemented in the State.

The Government is committed to provide transparent, responsive and corruption-free administration to the people of the state besides ensuring welfare of all sections of the Society and to accelerate the pace of development further so that Himachal Pradesh can soon emerge as one of the prosperous State of the country.