Chandigarh, July 19: Chief Minister Sukhvinder Singh Sukhu on Saturday said the implementation of the Goods and Services Tax (GST) has severely impacted Himachal Pradesh's revenues, reducing annual earnings from industrial areas from around ₹4,000 crore to just ₹150–200 crore. He said the state government is framing a new industrial policy and will offer cheaper electricity to attract fresh investment.
Addressing the Chandigarh Leadership Conclave and the 23rd Annual General Meeting of TiE Chandigarh, Sukhu said the new policy has been tailored to suit Himachal Pradesh's geographical conditions and will focus on reviving industrial growth through lower power tariffs and investor-friendly measures.
Highlighting the state's power surplus status, the Chief Minister announced that Himachal Pradesh will sign a three-year Power Purchase Agreement (PPA) with Punjab to supply electricity. Calling Punjab Himachal's "elder brother", he said the state would continue to strengthen its longstanding partnership by meeting Punjab's power requirements.
Inviting entrepreneurs to invest in Himachal, Sukhu said the state offers a favourable ecosystem for the IT sector. He said an IT park is being developed at Kandaghat in Solan district, while the government is also working to establish data storage infrastructure in the state.
The Chief Minister said Himachal is emerging as a hub for green energy, with BioChar plants being established across the state and a geothermal energy project already operational in Kinnaur. He expressed confidence that Himachal would become a national leader in green hydrogen production in the coming years.
Referring to recent natural disasters, Sukhu said climate change has increased incidents of cloudbursts across the country. However, he maintained that Himachal Pradesh remains safe for tourists during the monsoon, advising visitors only to avoid rivers and seasonal streams.
He also said the state was pursuing its 7.19 per cent share in Chandigarh through continuous dialogue and informed that the Chandigarh-Baddi rail project, with Himachal sharing 50 per cent of land acquisition and construction costs, is expected to be completed within three years, benefiting industries in Baddi and Nalagarh.
The Chief Minister added that the expansion of Kangra Airport, development of heliports and the introduction of helicopter services to district headquarters would further improve connectivity, boost tourism and support industrial growth.
Senior government officials, legislators and representatives of TiE Chandigarh and the industry were present on the occasion.
