Himachal’s Urban Bodies to Push for Special Grants as 16th Finance Commission Visits Himachal Pradesh.. From Shimla and Solan to Dharamshala and Palampur and Mandi, ULBs have been reeling under a huge resource crunch as they lack funds to increase the ease of living of their citizens.
SHIMLA: On June 24 and 25, 2024, the 16th Finance Commission (FC) will be in Himachal Pradesh for consultations with local urban bodies.
They are eager to secure special grants to tackle the unique financial challenges they face in tough mountain regions of the state.
Himachal Pradesh’s Urban Local Bodies (ULBs) are gearing up to make a strong case during this visit.
ULBs are citing the high costs of infrastructure and transportation due to the state's rugged terrain and challenging weather.
These factors significantly inflate expenses many times compared to cities in the plains.
These ULBs have not sustainable sources of revenue to meet the demand as little they get from the state government is not enough to meet the salaries of the ULBs staff.
In the past, the 15th FC provided untied grants meant to be used flexibly, but state-imposed guidelines have often restricted these funds, making it difficult for ULBs to address their specific needs.
To shed light on these issues, BORDA and the Institute for Municipal Innovation (IMI) have studied two towns in Himachal to understand the distinct challenges faced by hill areas. 
The teams will present their findings to the 16th Finance Commission to get its sustainable share of cake from the commission.
Their findings focus on infrastructure, waste management, and adapting to harsh climatic conditions.
Major Issues to be Highlighted:
-Infrastructure Costs: Building and maintaining infrastructure in the hills is much more expensive than in the plains, and the harsh weather adds to the complexity and costs.
Even when the bridge or road or houses are built, it needs additional financial support to sustain and maintain it in extreme other condition that always threaten their existence- something that is not more pronounced in the low lands, said the experts.
Waste Management: In regions like Lahaul-Spiti, managing plastic waste is a pressing environmental concern.
The season is limited and harsh to accomplish the task.
Local bodies are pushing for dedicated funding for plastic retrieval and recycling initiatives, which are crucial due to the high-altitude logistical challenges.
Financial Flexibility:
ULBs are asking for more control over how they use their funds to better address local needs. They’re also seeking reforms to manage their finances and responsibilities more effectively.
Training and Support:
ULBs want training programs for Panchayati Raj Institutions (PRIs) to improve administrative capabilities, with help from local MLAs.
The consultations will be held at Peterhoff in Shimla, with representatives from Municipal Corporations, Nagar Parishads, and Nagar Panchayats across the state.
Surinder Chauhan, Mayor of Shimla; Gopal Chand Nagi, Mayor of Palampur; and Chaman Kapoor, President of the Municipal Council in Manali, among others will plead their case before the 16th Finance Commission.
They’ll present their perspectives on funding and development needs. They will plead the urgent requirement for funds that reflect the distinctive challenges of urban management in mountainous regions.
Logistical Coordination:
Jagan Thakur, Additional Director at the Directorate of Urban Development, will coordinate the meeting, ensuring smooth logistics and productive discussions.
Impact and Future Steps:
The findings from this visit will play a crucial role in how financial resources are allocated from April 2026 onwards.
Himachal’s local representatives hope that their inputs will lead to financial support tailored to the unique needs of their urban areas, addressing the disparities between hill and plain regions.
As the 16th FC prepares its recommendations, Himachal’s ULBs are keen to ensure that future grants account for their distinctive challenges, paving the way for durable infrastructure and effective urban management.
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