Tapovan, Dec 21,
Himachal Pradesh, devastated by the monsoon of 2023, may prepare to approach the Supreme Court to secure pending financial assistance from the Central Government for reconstruction and rehabilitation.
Responding to a government resolution by Congress member Chandershekhar (Dharampur) during the last day of the session on Saturday, Chief Minister Sukhvinder Singh Sukhu highlighted the extensive damages caused by the disaster. The calamity, which resulted in damages exceeding ₹12,000 crore, claimed 275 lives, including 112 deaths due to landslides and 19 from floods. Additionally, 16,568 livestock perished, over 3,500 houses were destroyed, and more than 11,041 houses were partially damaged.
Public infrastructure also suffered heavily, with 97 bridges damaged and 19 washed away, disrupting connectivity across the state. The total losses to infrastructure, livelihoods, and key sectors like tourism have been estimated at ₹9,905.77 crore in direct damages, with indirect losses further compounding the toll.
Despite the scale of devastation, the Central Government has sanctioned only ₹633.73 crore from the National Disaster Relief Fund (NDRF), releasing ₹597.98 crore. This is significantly below the ₹1,658.35 crore Himachal Pradesh is entitled to under NDRF norms.
The state government conducted a Post-Disaster Needs Assessment (PDNA) and estimated ₹9,042 crore is needed for comprehensive reconstruction. Although the Central Government notified PDNA norms in August 2024, Himachal Pradesh has not received any funds under this framework.
Adding to the financial strain, the 15th Finance Commission has steadily reduced the Revenue Deficit Grant (RDG), dropping from ₹11,431 crore in 2020-21 to ₹6,258 crore in 2024-25, with further cuts to ₹3,257 crore projected for 2025-26. This decline has made it challenging for the state to manage regular expenses and fund recovery efforts.
Repeated appeals to the Centre for PDNA funds have yielded no results, prompting Chief Minister Sukhu to state that the Himachal may take legal recourse if the relief is not forthcoming. Even, Deputy Chief Minister Mukesh Agnihotri criticized the opposition for not standing with the government on this critical issue and emphasized the administration’s commitment to securing the state’s rights. He also stated that the council of ministers is prepared to escalate their demands in Delhi if necessary.
The state’s recovery is further constrained by a central cap of ₹2,944 crore on external borrowing for the period from 2023-24 to 2025-26. Himachal Pradesh has requested the removal of this restriction, citing its special category status and limited resources.
With reconstruction efforts hampered by inadequate financial support, the state government has reiterated the urgent need for the release of ₹9,042 crore under PDNA. Without timely intervention, Himachal Pradesh’s recovery and economic stability remain at significant risk.
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