LADA funds used to buy vehicles, office furniture and pay salaries

The Himachal Pradesh government disclosed in the Assembly on Friday that Local Area Development Authority (LADA) funds, traditionally intended for local development projects, are being used for administrative expenses, including salaries and office costs in various district offices such as those of Deputy Commissioners (DC) and Block Development Officers (BDO).

This information was provided in response to a query raised by Congress MLA Chandershekhar, with Chief Minister Sukhvinder Singh Sukhu offering detailed insights into the current use of LADA funds.

The Chief Minister informed the House that approximately ₹11.39 crore from LADA funds were allocated for salaries and operational expenses in the districts of Kullu, Kangra, Chamba, and Kinnaur. These changes in fund utilization have occurred over the past few years, reflecting a shift in how LADA resources are managed.

Beyond administrative costs, LADA funds have been utilized for various development projects. Sukhu provided a breakdown of expenditures, including ₹1.30 crore for the construction of a badminton hall at Dhalpur in Kullu district and ₹13 lakh allocated to the Executive Engineer (Civil) at BSNL Kullu for building a LADA room. Additionally, interest generated from LADA funds was used to purchase a vehicle for the DC office in Kullu, furnish libraries in Nirmand Block and GP Chanon, and install a DG set for the Tehsil office in Sainj.

The Chief Minister also discussed the broader context of hydroelectric projects in the state. He pointed out that despite some concerns, 10 hydroelectric projects with a total capacity of 339 MW have been commissioned in the private sector over the last three years, generating ₹138.50 crore from pre-commissioning Local Area Development Funds (LADF) and ₹137.04 crore from post-commissioning LADF.

Sukhu emphasized the government’s commitment to ensuring that these projects benefit the state. He mentioned that if power producers do not agree to provide the state with 12%, 18%, or 30% free power, and return the projects after 40 years, the state may consider canceling them. He also noted that the Himachal Pradesh Power Corporation is set to execute a 300 MW pump storage project.