Himachal Pradesh: The central government has provided a significant boost to the development of the country’s hill states under the “Pride of the Hills” scheme.
Under this scheme, the central government has released financial assistance of 25,000 crore rupees to nine hill states and 3,920 crore rupees to Himachal Pradesh.
This amount was released under the Special Assistance to States for Capital Investment (SASCI). This is considered a major relief for the Himachal Pradesh government, which is facing a severe financial crisis, as the central government has discontinued the state’s Revenue Deficit Grant (RDG) after April 1, 2026.
This will result in a loss of approximately ₹8,000 crore annually for Himachal. The closure of the RDG has put Himachal in a difficult position, as the state government’s debt burden has reached approximately ₹1.05 lakh crore.
Following the closure of the RDG, Chief Minister Sukhwinder Singh Sukhu wrote to Prime Minister Narendra Modi, informing him of the state’s financial situation and requesting a special package.
Will Help in Improving Financial Condition
Meanwhile, the central government today released this special assistance under the “Pride of the Hills” scheme, taking into account the geographical and economic challenges of hill states. This scheme will help states increase capital expenditures and strengthen infrastructure. This assistance, provided during difficult times, will also help improve states’ financial positions and balance their liabilities.
State-wise Allocation Details
After Arunachal, Himachal got the most help
Arunachal Pradesh has been allocated the highest amount of Rs 4900 crore, Himachal Pradesh Rs 3920 crore, Uttarakhand Rs 3460 crore, Tripura Rs 3450 crore, Nagaland Rs 3880 crore, Manipur Rs 2400 crore, Meghalaya Rs 2070 crore, Sikkim Rs 820 crore and Mizoram Rs 100 crore.
This is a big relief for Himachal.
This package is considered particularly important for Himachal Pradesh, which has long struggled with financial pressure and limited resources. The funds are expected to accelerate road, health, education, and other infrastructure projects.
Political Reactions and Responses
The Leader of the Opposition expressed his gratitude
Meanwhile, Leader of the Opposition Jai Ram Thakur thanked Prime Minister Narendra Modi for providing financial assistance of ₹3,920 crore under the “Pride of the Hills” scheme. He said that this amount released under SASCI will play a vital role in Himachal’s development. This will increase capital expenditure in the state and help strengthen infrastructure.
He urged the state government to use the central assistance for the purposes for which it was provided. Jairam Thakur had previously met with Prime Minister Modi in Delhi on March 24th.
Symbol of PM’s affection towards hill states: Bindal
Himachal BJP President Rajeev Bindal also expressed his gratitude to PM Modi. Bindal said that this assistance is not just a financial package, but a symbol of Prime Minister Modi’s special affection and sensitivity towards Himachal.
He said that the hill states face many obstacles in development due to geographical difficulties, limited resources, low population density and limited revenue sources, understanding which the Central Government has taken this historic decision.
