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Economic Survey HP 2016: Helios Coaching

Abridged HP Economic Survey 2015-16

Source: http://admis.hp.nic.in/himachal/economics/economicsurvey2015-16.htm

1.The economy of the State is expected to achieve a growth rate of 7.7 percent in the current financial year i.e 2015 -16 . whereas growth rate in 2014-15 was 7.5.


2.The decade showed an average annual growth rate of 5.7 percent, which is at par with national level.

  1. Contribution of Agriculture and allied activities in state G.D.P stands at 10.4 %in 2014-15 as compare to 57.9 % in 1950.


  1. Share of industries in S.G.D.P 43 %.


5.During the year 2014-15 up to December, 2015, 8.19 lakh tonnes of fruits were produced in the state


6.During the year 2014-15, 15.76 lakh tonnes of vegetables were produced


  1. Hydel Projects upto2 MW are reserved for Himachal Private investors whereas preference would be given to the aforesaid for projects upto 5 MW.

8.Himachal Pradesh Working Class Consumer Price Index number during 2015-16 increased by 6.3 percent in December, 2015 as against 6.3 percent at National level


9.The aggregate size of the 12th Five year Plan has been projected at `22,800.00 crore. However, the annual plan for 2016-17 has been proposed at `5,200.00 crore


  1. Priority Given to various sectors in 12th FYP : Social Services > Transport > Agri > Energy


11.To fulfil the commitments towards public, a separate department of Redressal and Public Grievances under the direct supervision of the Hon’ble Chief Minister has been set up in each of the public service oriented Departments to make this more efficient. Himachal Pradesh is the first state in the country to launch e-samadhan for redressal of public grievances.


  1. Social security pension increased from550 to 600.


13.Under the skill development scheme the eligible criteria for the age group16-35 years is 8th pass and an amount of `1,000 is being provided.


  1. Pension to persons above age of 80 is 1100


  1. Best state under Krishi Karmanya Award.


  1. Under Rajeev Gandhi Ann Yojna consumers are being provided 3 Kg wheat and 2 Kg rice every month.


17.Under Tea Development scheme Scheduled Caste tea planters are provided 50 percent subsidy on agriculture inputs.


  1. Weather Based Crop Insurance scheme covers crops of : APPLE , MANGO , PEACH , KINNOW , PLUM .


19.During the financial year 2014-15, 2,097 million units of electricity were generated


  1. Hydro electric potential of H.P : 27,436 MW. Harnessed : 10,264 MW


  1. 10 LED bulbsto each family.


22.Under Matri Shakti Bima Yojna all women in the age group of 10-75 years, living below poverty line are covered in case of their death or disability


23.Sweeper, Auto Rickshaw, Taxi operator, Garbage collector brought under the National Rural Health Mission.


24.BETI BACHAO BETI PADHAO has been started in Una district of the Pradesh which has lowest sex ratio.


25.Inter caste marriage and widow re-marriage grant has also been increased from `25,000 to `50,000.


26.To provide transparency in the government procurement e-GP (E-Government Procurement) has been rolled out in IPH, PWD & Controller of Stores.


27.A uniform income limit of ` 35,000 per annum fixed for eligibility to avail benefit under

various government schemes.


28.The Per Capita Income has touched the level of `1,19,720 in 2014-15 witnessing a growth of 8.6 percent over 2013-14 and is estimated at `1,30,067 in 2015-16.


  1. Largest income Revenue of state comes fromGRANTS IN AIDS .


  1. STATE GDP GROWTH RATE IN 2014-15 : 7.5 %


  1. ESTIMATED GDP GROWTH RATE FOR 2015-16 : 7.7 %








33.Primary sector, which includes Agriculture, Forestry, Fishing, Mining and Quarrying, during 2014-15, witnessed negative growth rate of 1.7 percent, due to decrease in fruit production.


34.The Secondary sector, which comprises Manufacturing, Construction and Electricity, Gas and Water Supply registered a growth of 6.1 percent during 2014-15


  1. TERTIARY sector highest growth rate of 13 %. In its sub sector           transport showed highest growth rate.


  1. HIGHEST GROWTH RATE WAS DURING 7 th FYP ( 1985-90 )i.e   8.8.%.


38.The break-up of the State’s Own Taxes reveals that sales tax of 3,937 crore constitute a major portion i.e. 38.65 percent of total tax revenue in 2015-16


39.Lead Bank responsibility has been allocated amongst three banks viz. PNB in 6 districts, UCO Bank in 4 districts and SBI in 2 districts


40.UCO Bank is the Convener Bank of State Level Bankers Committee


41.As per census 2011, the average population per branch in the State comes to 3,511 against National level of 11,000.


42.The Punjab National Bank has the largest number of 299 branches


43.District Kangra is having a maximum number of bank branches


  1. Pradhan Mantri Jeevan Suraksha Yojna : ( only accidental death or disability covered )

This scheme is providing renewable one year accidental death cum disability cover of ` 2.00 Lakh (`1.00 lakh for partial permanent disability) to all the saving bank account holders in the age group of 18 to 70 years for a premium of `12.00 per annum per subscriber.


PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA- (PMJJBY) : ( death due to any reason covered )

Age limit : 18 to 50

cover : 2 lakh

premium : Rs. 330/.


  1. Atal Pension Yojna : For unorganised sector       monthly pension from 1k-5k


46.Pradhan Mantri MUDRA Yojana (PMMY) rolled out on 8.04.2015.Credit limit under MUDRA is Rs. 10 L.


47.The Lead Banks i.e. UCO Bank, PNB & SBI have set up Rural Self Employment Training Instituttes (RSETIs) in 10 districts of the State.


  1. Government of India had Rural Infrastructure Fund (RIDF) within NABARD in year 1995-96.


  1. RIDF allocation to state : Roads > Irrigation > Drinking Water


50.NABARD has launched a dedicated scheme during the current year with a corpus of `5,000.00 crore, for providing direct loans to public and private sector for construction of warehouses/silos, cold storages and other cold chain infrastructure.


51.Cremica Mega Food Park Pvt. Ltd. Singha, Una is being established


52.Women Self Help Groups programme is being implemented by NABARD, through local NGOs, in two districts viz. Mandi, Sirmaur


53.A Federation of Farmers Clubs has been formed in Sirmaur district and other in Bilaspur district is working for the welfare of farmers.


  1. Water Shed Programmes in H.P stands at : 7 , out of these 6 are funded by NABARD while one under CSR.

Dhundan Watershed project in District Solan ( completed )

Saryanj Sarma watershed project (Full Implementation Phase), District Solan

Daseran WATER shed ( SOLAN )




Sidhchaler watershed project (Full Implementation Phase), District Una

Jubehar watershed project (Interim Phase) in Una district

Ambeda Dheraj watershed project (Full Implementation Phase), District Una




  1. Tribal Development Projects assisted by NABARD in Distt. of UNA , BILASPUR and KINNAUR for establishing WADIS ( ORCHARDS ) and Dairy units.


  1. Indigenous honey bee (Apis cerena)


57.NABARD has been implementing NRM ( natural resource management ) based projects like watershed and wadi projects for the past 16 years under Indo-German collaboration with support from KFW and GTZ.

Govt. of India and Germany have launched an UPNRM (Umbrella project on Natural Resource Management)


  1. NABARD : HQ – Mumbai ; Estb : 1982.


  1. Himachal Pradesh Gramin Bank ,Mandi ensued with issuance of RUPAY CARD and Micro ATM’s.


  1. NABCONS :_ NABARD Consultancy Services


61.NABARD has been designated National Implementing Entity (NIE) for Adaptation Fund (AF), Green Climate Fund (GCF) set up under United Nation’s Framework convention on Climate Change (UNFCCC) and for ‘National Adaptatiion Fund for climate change (NAFCC) set up by the Ministry of Environment, Forests and Climate Change (MoEF &CC).


62.VAT – 70.67 percent of total revenue collected., State Excise – 20 %


  1. P CPI / WPI  base year – 2001-02.


  1. “ APNA STORE ‘’ an initiate byH.P STATE civil supplies corporation     is about opening of mall of uncontrolled items at Bus stands. Till now two APNA STORES have been opened at NAGROTA BAGWAN ( HRTC) bus stand and PALAMPUR bus stand .




  1. Agriculture/ Horticulture provides direct employment to about 62 percentof total workers of the State.

67.About 80 percent of the total cultivated area in the State is rainfed.


  1. Rainfall in H.P : KANGRA > SIRMAUR > MANDI > CHAMBA.


69.For Himachal as a whole, the total rainfall during the entire monsoon season ( 2015 ) was (-) 27 percent below the annual normal rainfall.

only distt. to receive excess rainfall was UNA.


70.Soil testing laboratories have been established in all the districts(except Lahaul &Spiti)


71.The soil fertility map is being prepared by the CSKHPKVV ( Chaudhary Swaran Kumar Krishi Vishvvidyalya )Palampur by using Global Positioning System (GPS).


  1. HP Public Services Guarantee Act – 2011.


73.Out of the total biogas produced in the Himalayas about 90.86 percent is being produced in Himachal Pradesh alone.


  1. Crop Insurance Scheme; started from Rabi season of 1999-2000.

Crops covered :

Wheat, Barley, Maize, Paddy , Potato , Tomato , Ginger and Peas.


  1. Himachal Pradesh Agricultural/ Horticulture Produce Marketing Act,             2005 .

The whole of H.P. has been divided into ten notified market areas


76.Seed Village Programme”, by which sufficient seed multiplication can be achieved in order to meet local seed requirement besides facilitating supply of seeds at reasonable cost and ensuring quick multiplication of new varieties in a shorter time.


77.Dr. Y.S. Parmar Kisan Swarozgar Yojna :

(A). Poly House and Micro Irrigation Inside Poly House.

(B).85 percent project assistance shall be provided to farmers.

(C).creation for water sources individually and collectively by a group of farmers (low /medium lift, pumping machinery)

50 percent subsidy


78.The RKVY aims at achieving 4 percent annual growth in the agriculture sector during the XI Plan period, by ensuing a holistic development of Agriculture and allied sectors.


79.During 12 FYP the National Mission on Agricultural Extension and Technology (NMAET) has been launched. SHARE – 90:10


80.NFSM has been launched in the State from Rabi 2012.


81.Apple is so far the most important fruit crop of Himachal Pradesh, which constitutes about 49 percent of the total area under fruit crops and about 85 percent of the total fruit production.


  1. Production of apple in 2015 – 625.20 thousand tonnes


83.To provide quality packing material to the growers and to adhere standards of apples for different grades, Notification in this regard was issued by the State Government dated 4.04.2015 by specifying maximum weight allowed 24.00 Kgs. and 12.00 Kgs for Standard (Full Box) and Standard (Half Box)


84.To promote flower cultivation two Tissue Culture Laboratories have been established under Model Flower Cultivation Centres at Mahogbagh (Chail, District Solan) and Palampur District Kangra.


  1. Weather Based Crop Insurance Scheme for Apples started in 2009-2010 ( Rabi Season ). Last present WBIS covers – APPLE , MANGO , KINNOW , PLUM , PEACH.


86.To promote protected cultivation in horticulture, the State Government has enhanced subsidy under Poly Houses from 50 percent to 85 percent .


87.Subsidy on Anti Hail Nets from 50 percent to 80 percent.


88.packing houses of Jarol Tikker (Kotgarh), Gumma (Kotkhai), Oddi (Kumarsain), Patlikuhal (Kullu) and Reckong Peo


89.modern vegetable pack house and cold room at Nadaun District Hamirpur


  1. Pack house and cold roomfor packing grading of fruits, vegetables, flowers and culinary herb at Ghumarwin in District Bilaspur


91.Fruit processing plant Parwanoo District Solan ( specialisation in Tetra Packaging ).


  1. Milk availability per capita = 483 gm.


93.Government Sheep Breeding Farms at Jeori (Shimla), Sarol (Chamba), Tal (Hamirpur), and Karachham (Kinnaur)

Jammu Kashmirs Schedule Tribes.

jeori       Karchham    Sarol    Tal.


  1. Ram Centre = Nagawin ( Mandi ).


  1. Marino = a soviet sheep

Rambouillet = American Sheep


96.Angora rabbit farms are functioning at Kandwari (Kangra) and Nagwain (Mandi)


97.Upgradation of indigenous cattle is being carried out by cross breeding with Jersey and Holstein


98.One horse breeding farm at Lari in Lahaul and Spiti


  1. Yak Breeding Centre = Lari ( Lahaul and Siti )


100.Dairy Entrepreneurship Development Scheme (Doodh Ganga Scheme) has been launched in collaboration with NABARD in the State.


  1. Chabro ( chicks ) hatcharies = Nahan , Sundernagar.


  1. Milk Powder Plant = Duttnagar Shimla.( Rohr )


101.Milk Processing Plants of capacity 5,000 litres per day is being set up at Recong Peo,district Kinnaur, Nalagarh, district Solan and Jangal Beri, district Hamirpur.


J = Jangal Beri

R = Rekong Peo

N = Nalagarh


104.A new Mineral Mixture Plant and Urea Molasses Plant are being set up at Bhor, Tehsil Bhoranj, district Hamirpur.


105.Compressed Fodder Plant is being set up at Bilaspur


  1. Cattle Feed Godown =Bilaspur , Una , Hamirpur


107.Nutrimix Manufacturing Plant’ Chakkar (Mandi)


108.Schizothorax, Golden Mahseer and exotic Trouts- fishes found in rivers of Himachal.


109.Central Inland Fisheries Research Institute (CIFRI)- Barrackpore, Kolkata


110.Forests in Himachal Pradesh cover an area of 37,033 square kilo meters and form about 66.52 percent of the total geographical area of the State.


111.Swan River Integrated Watershed Management Project with the assistance of Japan International Cooperation Agency (JICA) in Una District.  Duration -8 years.

sharing cost of the project is at 85:15 ratio


112.Himachal Pradesh Mid Himalayan Watershed Development Project has been launched in the State w.e.f. 1.10.2005 for a period of 6 years.

Project cost is to be borne by the World Bank and the State Government in 80:20 ratio and 10 percent


113 .With the help of KFW Bank of Federal Republic of Germany Himachal Pradesh Forest Eco-system Climate Proofing Project.

period of 7 years in Kangra and Chamba district.


  1. under national adaptation fund for climate change ,30,000 number of farmers ofDistt. Sirmaur will be skilled to adopt the climate smart packages for drought adaptation.


115.All the census villages in the state have been provided with drinking water facilities by March, 1994.


116.The only major irrigation project in the state is Shahnehar Project in Kangra District.


  1. Phinna Singh Medium Irrigation Project – Nurpur ; Kangra.


118.State of Art Industrial Area at Pandoga District Una and Kandrori District Kangra ,

3rd State of the Art Industrial Area at Dabhota, Tehsil Nalagarh, District Solan

PU , KK , DN


  1. Container Parking

Facility for exporting units in Baddi Barotiwala Area




121.cements plants at Sundernagar, Distt. Mandi (M/s Harish Cement (Grasim) Gumma-Rohana, Distt. Shimla (The India Cements Ltd) Alsindi, Distt. Mandi (M/s Lafarge India Ltd.)






122.As per 2011 Census, 30.05 percent of the total population of the Pradesh is classified as main workers, 21.80 percent marginal workers and the rest 48.15 percent as non-workers of the total workers


123.Minimum Wages Act-1948 ; minimum wage in Himachal for unskilled labourers is Rs. 180 /-.


124.The special employment exchange for the placement of physically disabled (visually disabled,hearing disabled and locomotor disabled) persons was set-up in the Directorate of Labour and Employment during the year,1976.


125.Bonded Labour System (Abolition) Act, 1976


126.two Labour Courts-cum- Industrial Tribunals – SHIMLA n DHARAMSHALA


127.Workers Transit Hostel at Dulehad, Distt. Una and Worker Transit Hostel at Ghansot (Nalagarh) District Solan.


128.The Skill Development Allowance scheme provides an allowance `1,000 per month for youth doing skill training and `1,500 per month for 50 percent permanently physically disabled for duration of training (subject to maximum 2 years).


129.potential of 27,436 MW, out of which a potential of about 24,000 MW is harness able


130.To identify new hydro potential, the Government had carried out optimization studies of all five river basins through reputed consultant M/s LIIPL


  1. Hydro Electric Potential of 5 major rivers


Satluj > Beas >Chenab >Ravi >Yamuna


  1. Deen Dayal Upadhaya Grameen Jyoti Yojna

Launched by ministry of Power for electrification of rural households.


133.The award for IT Implementation Agency has been placed to M/s HCL Infosystems Ltd.


134.The Disaster Recovery Center at

Paonta Sahib


135.Restructured Accelerated Power Development and Reform Program

(R- APDRP) – minimising commercial losses ,  digital meters , data centres


  1. Integrated Power Development Scheme – 3 dec 2014. , for electrification of rural households.


137.HPSEBL is implementing Smart Grid Pilot Project at Kala Amb


  1. Uhl Stage 3 project – mandi : 100 MW.

Sai Kothi Hydel Project – Chamba.

Kashang Hydel Project – Kinnaur ( Peo ) , diversion near village -powari village., whereas Power House near village – Ralli.

Shongtong Hydel Project –  450 MW – on river Satluj – Kinnaur

Gyspa Hydel Project – Lahul Spiti ( national importance ) – 300 mw              on river Bhaga a tributary of Chenab.

Sawra Kuddu – Rohru – 111mw.

Sainj HEL – on Baes – Kullu – 100 mw

Renuka Dam Project – Drinking Project for NCR Delhi , on river Giri at Dadahu in Sirmaur district- 40 mw.


Thana Plaun HEP –  on river Beas in distt. Mandi-191MW-Funded by KWF Germany.


Surgani Sundla – Chamba-48 mw


Chanju-III HEP -Chanju nallah, a tributary of Baira river, which in turn is a tributary of Siul river in Ravi basin, in Chamba District of Himachal Pradesh.- 48 mw.


Berra Dol Solar Project(5MW):near Shri Naina Devi ji Shrine, District Bilaspur, (H.P.)


  1. Shimla Kalka Railway Line – 96 km

Joginder nagar – Pathankot – 113 km

Nangal Dam to Una – 33 km

140.To provide nutritious food at affordable price HIM-ANNAPURNA has been started at Hamirpur, Bilaspur, Dharamshala, Palmpur, Mandi and Una Bus stands.

141.The pollution check Post at Vashist, Manali


142.Water Transport in Himachal Pradesh.-Govind Sagar, Lake (Bilaspur), Chamera Dam (Chamba), Koldam (Shimla, Bilaspur & Mandi).


143.The contribution of the tourism sector to the State GDP is 7.2 percent which is quite significant.


144.“SWADESH DHARSHAN,” a scheme of Ministry of Tourism, Government of India


145.Second All India Open Catch-n-Release Trout Angling Championship and Oral Interactive Work Shop at village Jibhi, Teh Banjar, District Kullu, Himachal Pradesh, was conducted.


  1. Paragliding World Cup, 2015was organized at Bir-Billing, District Kangra, Himachal Pradesh, w.e.f. 24.10.2015 to 31.10.2015.

Main sponsor-Air Ports Authority of India.

opening ceremony was held at Sherbaling Monastery

Bir Billing Conducted Pre World Cup in 2013.

Swiss athlete Michael Küffer , winner .

In the women’s category, Japan’s Yuki Sato


147.Big Shimla Carnival (23.12.2015 to 1.01.2016)


  1. Possibility for a Green field Airportis being explored at Goghradhar in District Mandi.


149.According to 2011 census Himachal Pradesh has a literacy rate of 82.80 per cent.

Male/female literacy rate differs considerably in the State as against 89.53 per cent literacy rate for males it is 75.93 per cent for females.


150.Directorate of Primary Education was set up in 1984 and further renamed as ‘Directorate of Elementary Education’ w.e.f. 01.11.2005.


151.Under Mahatma Gandhi Vardi Yojana two sets of uniform is being provided for class 1st to 10th with `200 as stitches charges per year.


  1. Sarv Shikhsa Abhiyan – 6 to 14 yrs of age.

The Net Enrolment Ratio (NER) at the elementary stage of education in Himachal Pradesh is more than 99.


153.Bilaspur and Lahaul Spiti Districts have no out of school children.


154.The dropout rate at Primary and Upper level is 0.65 and 0.90 percent respectively.


155.There are 10 KGBV ( Kasturba Gandhi Balika Vidyalaya) functional in Himachal Pradesh (Eight in Chamba District and one each in Shimla & Sirmour district).


  1. 8th class board exams abolished.


157.This initiative of the State Government for improving quality education has been highly appreciated by an independent agency called SKOCH who has awarded, “SKOCH Order of Merit” India’s best Governance Project-2014 for the assessment survey carried out by SSA in Himachal Pradesh.


158.Dr. Ambedkar Medhavi

Chhatarvrity Yojna: top 1000 sc students provided with scholarship post class 10

Swami Vivekanand Uttkristha Chhatarvrity Yojna : top 2000 gen cat students post 10th class.

Thakur Sen Negi Uttkristha Chhatarvrity Yojna: Top 100 boys and 100 Girls of ST cat , post 10th.

Maharishi Balmiki Chhatarvrity Yojna : Top 25 Girls Childs whose parents are into unclean profession , post 10th upto college.

Indira Gandhi Utkrishtha Chhatervriti Yojna : Top 150 Students , post 10th

Kalpana Chawla Chhatravriti Yojna : top 2000 girls , post 12th.

Mukhya Mantri Protsahan Yojna: This scheme has been started during the year 2012-13 and one time `75,000 will be given to all students of State who are selected and take admission for a degree course in any Indian Institute of Technology or All India Institute of Medical Sciences and post graduate diploma course in any Indian Institute of Management


159.Yashwant Gurukul Awas Yojna : Launched 1999 ; for suitable accommodation of teachers teaching in Tribal areas.


  1. RUSA- 90 % Central funding 10 % State funding.Rajiv Gandhi Government

Engineering College, Kangra at Nagrota Bagwan under RUSA with three disciplines Mechnical, Electronics & Communication and Civil with an intake of 60 students in each discipline.


161.Hydro Engineering College at Bandla in district Bilaspur.


162.women ITI at Bharari in district Bilaspur .


163.Three new medical colleges at Hamirpur, Chamba and Nahan in Government sector has been approved by central Govt.


164.The separate Department of Ayurveda was established in 1984 .


165.Four herbal gardens at Jogindernagar (Mandi), Neri (Hamirpur), Dumreda , chairgaon (Shimla) and Jungle Jhalera (Bilaspur) are functioning in the state..


166.Comprehensive Integrated Scheme named “Sahyog” for persons with disabilities launched during the year 2008-09.


167.Prem Ashram, Una, Astha Welfare Society, Nahan


  1. under ICDS scheme nutrition is provided for 300 days.


  1. women state residential home – Mashobra.


170.Mother Teressa Asahay Matri Sambal Yojna: The aim of this scheme is to provide assistance of `3,000 per child per annum to the destitute women belonging to the BPL families or having income less than ` 35,000 for the maintenance of their children till they attain the age of 18 years. The assistance will be provided only for two children.


171.Mata Shabri Mahila Sashaktikaran Yojna: Gas connections to women below poverty line.


172.Beti Bachao Beti Padhao scheme: launched 22 jan 2015.


173.Beti Hai Anmol scheme is being implemented in the State w.e.f. 05.07.2010.


174.The Swarnjayanti Gram Swarozgar Yojana (SGSY) has been replaced by national rural livelihood mission w.e.f 1.4.2013.


175.Indira Awas Yojana

Indira Awas Yojana is a centrally sponsored scheme. Under this scheme, an assistance of `75,000 per beneficiary is given to BPL families for the construction of new houses. The selection of beneficiaries is being done by Gram Sabha.


176.Matri Shakti Bima Yojana: This scheme covers all women living below the poverty line within the age group of 10-75 years. The policy provides relief to family members/insured women in case of their death or disablement arising due to any kind of accident.


  1. Under swach bharat abhiyan compensation for construction of latrines stand at Rs.12000.


  1. Mahila Mnadal Protsahan Yojna for promotion of sanitaton.


178.Maharishi Valmiki Sampooran Swachhata Puruskar was launched by the State Government in the year 2007-08 .


179.The Mahatama Gandhi National Rural Employment Guarantee Act was notified by the Government of India on September, 2005 and was made effective w.e.f. 2nd February, 2006.


180.The Central Finance Commission has recommended two type of grants namely General basic grant and General performance grant. This grant is being released to ULB’s, 60 percent on the basis of population and 40 percent on the basis of area.

181.Shimla city has been included under the AMRUT (capacity building reform implementation, water supply, sewerage and septage management, strom water drainage, urban transport and development of green spaces and parks )


182.Himachal Pradesh Town and Country Planning Act-1977


183.At present there are 12 Zila Parishads, 78 Panchayat Samities and 3,226 Gram Panchayats constituted in this State.


184.Cess of `1.00 per bottle of liquor sold in the rural area will be collected and transferred to the Gram Panchayat for utilization in the developmental activities.


  1. Pradhans of Gram Panchayats have been appointed as Forest Officers to carry out the issuance of passfor transport of Minor Forest Produce.


186.HIMSWAN was set-up on 5.02.2008.


  1. Himachal Pradesh State Data Centre: Mehali , Shimla.


188.Aadhaar program started in Himachal Pradesh in December, 2010.


189.Himachal is a first state to start DBT in MGNREGA.



Ø  101 online citizen centric services to be provided by the end of 2016-17.

Ø  Targets set to achieve Sustainable Development Goals by the year 2022.

Ø  Amount of “Vidhayak Kshetriya Vikas Nidhi Yojna” increased to ` 1 crore and discretionary grant raised to 5 lakh.

Ø  ` 210 crore proposed for continuing State Food Subsidy Scheme.

Ø  Amendments in control orders under Essential Commodities Act, 1955 proposed.

Ø  New Scheme “Mukhya Mantri Khet Sanrakshan Yojna” to protect farms from wild animals etc. with an outlay of 25 crore.

Ø  ` 80 crore proposed for promotion  of offseason vegetables.

Ø  ` 10 crore proposed for development of Market Yards.

Ø  ` 5 crore earmarked for “Uttam Chara Utpadan yojna”.

Ø  Organic farming will be made more effective and sustainable.

Ø  ` 15 crore proposed for construction of Poly Houses.

Ø  ` 10 crore proposed for “Rajiv Gandhi Micro-Irrigation Scheme”.

Ø  Water Storage Tanks, Flow Schemes and pipes included in 50 percent subsidy scheme under Irrigation .

Ø  ` 15 crore earmarked for Weather Based Crop Insurance Scheme.

Ø  ` 1,115 Crore Himachal Pradesh Horticulture Development Project to be implemented.

Ø  ` 10 crore proposed for purchase of Power Sprayers, Power Tillers and other equipments for farmers.

Ø  40 percent additional subsidy to honey bees colonies.

Ø  ` 12 crore proposed for importing good quality root stocks and new polliniser varieties.

Ø  9 lakh square meter area under anti- hail net and 2 lakh square meter will be brought under protected cultivation of high value Vegetables and flowers.

Ø  ` 10 crore earmarked to improve artificial insemination and breed improvement activities.

Ø  ` 25 crore proposed for development of Sheep and Goat.

Ø  Milk procurement price to be enhanced by ` 1 per litre. P. MILK FED to be provided  Grant-in-aid of    ` 16 crore.

Ø  60 percent subsidy to set up Milk Processing and Chilling Units for Dairy Cooperative Societies.

Ø  ` 226 crore project proposed to rejuvenate the habitats of wild animals. ODF status of whole Himachal proposed by March, 2017.

Ø  New Scheme “Panchayat Pashu Dhan Puraskar Yojna” under which ` 5 lakh award will be given to 2  best Panchayats, where owners do not abandon  their cattle in each Development Block, with an outlay of  ` 80 crore.

Ø  New Scheme- “Mukhya Mantri Awas Yojna” to provide housing subsidy of 75 thousand to each house for  BPL families of general categories with an outlay of  ` 25 crore.

Ø  ` 97 crore earmarked for Rural Housing Schemes.

Ø  ` 130 crore to be released to three tiers of PRIs.

Ø  ` 306 crore to be released to Panchayats under 14th Finance Commission.

Ø  ` 14 crore to be released to Panchayats elected unopposed.

Ø  ` 3 crore for training to elected representatives of PRIs.

Ø  Enhancement of Honorarium of Representatives of PRIs and ULBs.

Ø  ` 10 crore for construction of Alternate Roads in Shimla Town.

Ø  ` 10 crore for construction of Parking for ULBs and ` 10 crore for Children Parks. Special grant of 4.50 crore for Shimla M.C.

Ø  Death caused by electrocution and injuries caused by dog bites, stray and domestic animals covered in Relief Manual.

Ø  New Scheme “Lal Bahadur Shastri Kamgar evam Shahri Ajeevika Yojna” (LAKSHYA) launched in all merged wards of Municipal Corporation and newly created Nagar Panchayats to provide basic civic amenities and livelihood.

Ø  ` 248 crore proposed for Disaster Management.

Ø  ` 338 crore for Minor Irrigation schemes covering 18 thousand hectare to be funded under PMKSY.

Ø  ` 35 crore for installation of Hand Pumps.

Ø  ` 245 crore earmarked for Minor irrigation schemes.

Ø  ` 60 crore allocated to accelerate the completion of Nadaun and Phina Singh Irrigation Projects.

Ø  ` 65 crore for Command Area Development works.

Ø  ` 425 crore earmarked for IPH Department to meet energy charges of water supply and irrigation schemes.

Ø  Capacity addition of 265 MW Hydro power in State Sector in 2016-17.

Ø  5 MW Solar Hybrid Project to be constructed in Kaza.

Ø  ` 410 crore provided to HPSEBL for subsidising electricity to Domestic and Agriculture Consumers.

Ø  “Himachal Bureau of Investment” to ensure speedy clearances to new investments for employment generation.

Ø  ` 10 crore provided to “State Mission on Food Processing.”

Ø  New Scheme “Chief Minister Start Up/ New Industries Scheme” It includes 4 percent Interest subvention upto a loan of ` 10 lakh. Purchase preference to such industries. Stamp duty at the rate of three percent. No inspection of new industries for three years without permission of Head of the Department. Provisional registration within 15 days etc.

Ø  Consent fees for green and orange industries to be reduced. District Employment Exchanges to be converted into Model Career Guidance Centres.

Ø  Exemption of VAT, Registration Fee and Token Tax for Electric vehicles for five years.

Ø  ` 10 crore for construction of New Bus Stands.

Ø  ` 250 crore provided as grant and equity to HRTC.

Ø  ` 8 crore seed money to establish 4 Transport Nagars in PPP mode.

Ø  ` 50 crore for installation of Steel Crash Barriers.

Ø  New Scheme- “Mukhya Mantri Sadak Yojna.” launched to provide last mile connectivity to villages/habitations with an outlay of “` 50 crore.

Ø  Himachal Pradesh Road Project 2nd Phase worth ` 3,200 crore approved.

Ø  All dealers covered under Group Accidental Insurance scheme and insurance cover enhanced to ` 3 lakh.

Ø  Solar Cooker and Solar lanterns will be exempted from VAT.

Ø  VAT on LED lights reduced from 13.5 to 5 percent.

Ø  Small Traders with turnover upto ` 30 lakh covered under lump-sum tax payment scheme at the rate of 1 percent.

Ø  Dealers up to turnover of ` 50 crore covered under Deemed Assessment Scheme.

Ø  Entry Tax for existing Industry and new industry reduced from 2 percent to 1 percent and 1 percent to half percent respectively.

Ø  Entertainment duty on Ropeways and existing cinema halls reduced to 10 percent.

Ø  No entertainment duty on new cinema halls for five years.

Ø  Meritorious Students of 10th and 12th class to be given 10 thousand Net books under“Rajiv Gandhi Digital Yojna.”

Ø  New Scheme “Mukhya Mantri Shikshak Samman Yojna” under which one year extension in service to teachers who consistently give 100 percent results in Board Examinations for a period of five years in the subjects to be notified by the Education Department.

Ø  New Scheme- “Mukhya Mantri Adarsh Vidyalya Yojna” launched to provide State of Art Infrastructural and Teaching facilities in Two Senior Secondary Schools in each Constituency with an outlay of ` 30 crore.

Ø  New Scheme -“Mukhya Mantri Gyandeep Yojna” launched to provide interest subvention of 4 percent to all Himachali Students availing education loan upto ` 10 lakh.

Ø  New Scheme -“Mukhya Mantri Vardi yojna” launched to provide uniform to students of +1 and +2 classes.

Ø  All the vacant posts of DPE/PET and Drawing Master in Senior Secondary School/High Schools.

Ø  The honorarium of Gram Vidya Upasaks(EGS) doubled.

Ø  Primary Assistant Teachers will be regularized on completion training as per NCTE norms.

Ø  Public Libraries will be strengthened in the State.

Ø  ` 100 crore for Skill Development Allowance.

Ø  Voc. courses in ten Colleges.

Ø  Grant-in-aid for District, State and National level fairs enhanced.

Ø  ` 1 crore earmarked for State Youth Board.

Ø  ` 15 crore for Construction of Multipurpose Indoor Complexes at District Headquarters.

Ø  Grant -in-aid to Sports Associations and Medal winners enhanced.

Ø  ` 1 crore for construction of Press Clubs.

Ø  The prize money of Award for Developmental Journalism

Ø  New Scheme -“Himachal Pradesh Patrakar Kalyan Yojna” launched for welfare of serving and retired accredited Journalists.

Ø  New Scheme -“Himachal Universal Health Protection Scheme.” launched to provide Universal Health Care to the people of Himachal Pradesh.

Ø  New Scheme “Panchayat Balika Gaurav Puruskar” of ` 10 lakh each announced to 15 Panchayats where there will be best female birth rate relative to male birth rate.

Ø  ` 1 Crore for Intramural Research Fund.

Ø  Marriage grant under “Mukhya Manrti Kanya Daan Yojna” increased from ` 25 thousand to ` 40 thousand.

Ø  Stamp duty for registration of house in the name of women to be reduced to three percent.

Ø  Marriage grant of residents of “Nari Seva Sadans” increased from ` 25 thousand to ` 51 thousand.

Ø  Cash grant raised from ` 10 thousand to ` 1 lakh to any person providing credible information about illegal female foeticide.

Ø  Life Insurance cover for Safai Karamcharis and persons working in Sewerage Treatment Plants.

Ø  Social Security Pension increased from ` 600 to ` 650 per month.

Ø  Residential institution for 50 Mentally Challenged Children proposed in Shimla.

Ø  Special hostel having capacity of 150 girls to be made operational at Sundernagar.

Ø  Pension to persons with 70 percent disability and persons aged above 80 years increased from ` 1,100 to ` 1,200 per month.

Ø  New Scheme of Monthly pension of young widows with less than forty five years of age with child/children to be enhanced from ` 600 to ` 1,200 per month.

Ø  The lump-sum grant and annuity to recipients of Paramvir Chakra, Ashok Chakra and Mahavir Chakra to be enhanced.

Ø  ` 5 crore provided for War Memorial Museum at Dharamsala.

Ø  Seven Fire Posts to be opened.

Ø  Remuneration to Home Guards enhanced from ` 280 to ` 350 per day.

Ø  National Law University to be opened near Shimla.

Ø  ` 10 crore for Government contribution to Social Security of unorganized sectors.

Ø  More than 13 thousand functional posts in different departments will be filled up.

Ø  6 per cent Dearness Allowance & Dearness Relief to the State Government Employees/Pensioners to be released.

Ø  5 percent Interim Relief to the regular State Government Employees and Pensioners.

Ø  Contract employees completing five years service as on 31 March and 30th September, 2016 to be regularized.

Ø  Enhancement of emoluments of Contract Employees by 50 percent of grade pay.

Ø  Daily Wage increased from ` 180 to `

Ø  Daily Wagers completing seven years of service as on 31st March and 30th September, 2016 will also be regularized.

Ø  Part-Time workers completing 8 years of service as on 31st March, and 30th September, 2016 will be made daily wagers.

Ø  Enhancement in honorarium of Part-time Water Carriers from ` 1,700 to ` 1,900.

Ø  Enhancement of Grant-in-aid to Water Guards from ` 1,350 to ` 1,500.

Ø  Enhancement of honorarium of Tailoring Teachers from ` 2,000 to ` 2,300.

Ø  Grant-in-aid for Panchayat Chawkidars raised from 1,850 to 2,050 per month.

Ø  ` 35 crore for construction of New Government Residential Buildings.

Ø  ` 20 crore for Repair of Government Residential Houses.

Ø  ` 30 crore for Police Housing.

Ø  ` 10 crore for construction of Teshils/Sub-Tehsils and Revenue Housing.

Ø  The budget for 2016-17 proposed for ` 32,593 crore.










Source: http://admis.hp.nic.in/himachal/economics/economicsurvey2015-16.htm


Economics & Statistics Department























(Finance, Plg., and Eco. & Stat.) to the Govt. of Himachal Pradesh.



Contents                                                                                                                   Pages

  1. General Review 1
  2. State Income and Public Finance 9
  3. Institutional and Bank Finances 14
  4. Excise and Taxation 31
  5. Price Movement 34
  6. Food Security and Civil Supplies 36
  7. Agriculture and Horticulture 41
  8. Animal Husbandry and Fisheries 55
  9. Forest and Environment 63
  10. Water Resource Management 67
  11. Industries and Mining 69
  12. Labour and Employment 72
  13. Power 76
  14. Transport and Communication 95
  15. Tourism and Civil Aviation 100
  16. Education 104
  17. Health 118
  18. Social Welfare Programme 124
  19. Rural Development 135
  20. Housing and Urban Development 140
  21. Panchayati Raj 145
  22. Information and Science Technology 148








Economic Situation at National Level


  • THE long term growth prospective of the Indian economy is moderately positive due to its younger population corresponding low dependency ratio, and increasing integration into global economy. The outlook for short term growth is not so good as the Indian economy is not faring well which is evident from the fact that its export has declined in current financial year whereas the oil prices has reduced substantially. The economy having grown 7.2 percent in 2014-15 and expected to grow 7.6 percent in 2015-16.


  • The balance of payments position of Indian economy is quite good due to the 75 percent fall in oil prices which further manages the current account deficit (CAD) in the current financial year. Inflation in terms of Consumer Price Index in this period continued to be above the comfort zone.

With the various measures taken by the

government and the inflation coming off, the economy seems to have shifted to a higher growth trajectory


  • The world views India as the most happening place and every efforts has been made to capitalise this factor. Foreign Institutional Investors find investing in India attractive as the returns are high and assured.


  • The Gross   Domestic

Product (GDP) at constant prices, with new Base year i.e. 2011-12, in 2014-15 is estimated at `105.52 lakh crore as


against `98.39 lakh crore in 2013-14. At




current prices Gross Domestic Product in 2014-15 is estimated at `124.88 lakh

crore as against `112.73   lakh
crore in 2013-14 shows an  increase
of 10.8 percent during the year. The

Gross Value Added (GVA) at basic prices witnessed a growth of 7.1 percent during 2014-15 (Base 2011-12) against the growth rate of 6.3 percent during the previous year. The growth rate in Gross Value Added during 2014-15 has been achieved due to the higher growth in Other Services (11.4 percent), Mining & Quarrying(10.8 percent), Trade, Repair, utility services (8.0 percent) and Financial services (7.9 percent). Agriculture, Forestry & Fishing has shown a decline of 0.2 percent.


Hotels  &  Restaurant  (10.7  percent)

Public administration (9.8 percent),
Electricity, Gas, Water Supply & other

1.5 The per capita income at current prices is estimated at `86,879 in

2014-15 as against `79,412 for the previous year recording an increase of

9.4 percent. The per capita income in real terms i.e at 2011-12 prices, is estimated at `72,889 for 2014-15 as against `68,867 in 2013-14 registering an increase of 5.8 percent.


1.6 The growth rate for the fiscal year 2015-16 is expected around


7.6 percent as per the advanced estimates.


1.7 The inflation management was the key priority. The inflation rate, year–on-year, as measured by the Wholesale Price Index (WPI), remained low in the current financial year (2015 -16) in comparison to the previous years in when it was as high as 7.3 percent. The inflation rate in terms of Whole Sale Price Index was (-) 0.7 percent in the month of December, 2015 against 6.4 percent in the month of December,2014. The All India Consumer Price Index Number for Industrial workers was 6.3 percent in December,2015 as against 5.9 percent during the period December, 2014.



Economic Situation in Himachal Pradesh


1.8 The economy of Himachal Pradesh is dependent upon the


Agriculture and Horticulture and any fluctuation in the production impacts the economy at large. Owing to such situation the State of Himachal has not only emerged as a model of development of hill areas in the country, but has also emerged as a pioneer in various fields of development. The competence and value systems with civilisational heritage, trade liberalisation and other measures to increase the competitive environment in the economy has lead to robust performance of the State. The economy of the State is expected to achieve a growth rate of 7.7 percent in the current financial year .


1.9 The State Gross Domestic Product (GSDP) at factor cost At current prices, the GSDP is estimated at


`1,01,108 crore in 2014-15 as against


`92,589 crore in 2013-14 showing an increase of 9.2 percent during the year.

At constant (2011 -12) prices in 2014 -15 is estimated at `89,050 crore as against `82,866 crore in 2013-14 registering a growth of 7.5 percent during the year as against the growth rate of 7.1 percent during the previous year. The increase in total State Domestic Product is mainly attributed to 14.6 percent increase in Transport and Trade, 13.9 percent in Community & Personal Services sectors, 6.1 percent in Secondary sector, 11.4 percent in Finance & Real estate. Whereas the Primary sector decreased by 1.7 percent. Food-grains production, which was 15.85 lakh MT during 2013 -14 has increased to 16.74 lakh MT during 2014-15 and is expected at 16.19 lakh MT (anticipated) in 2015-16. The fruit production has decreased by 13.2 percent i.e from 8.66  lakh MT in 2013-14 to 7.52 lakh MT in 2014-15 and during 2015-16 (up to December, 2015) production was 8.19 lakh MT.


1.10 The Per Capita Income at current prices witnessed an increase of


8.6 percent as it increased to `1,19,720 in 2014-15 from `1,10,209 in



1.11 As per the advanced estimates and on the basis of economic conditions up to December, 2015, the likely growth rate for 2015-16 will be around 7.7 percent.



Key Indicators

Indicators 2013-14 2014-15 2013-14 2014-15
Absolute Value %age change over previous year
G.S.D.P.(`in crore)
(a)At current prices 92,589 1,01,108 12.5 9.2
(b)At constant prices 82,866 89,050 7.1 7.5
Food grains production 15.85 16.74 2.9 5.6
(lakh tonnes)
Fruit production (lakh tonnes) 8.66 7.52 55.8 (-) 13.2
Gross Value Added from Industrial 23,003 24,109 11.5 4.8
Sector*( ` in crore)
Electricity generated (Million Units) 1,951 2,097 7.5 7.4
Wholesale Price Index 177.6 181.2 6.0 2.1
C.P.I. for Industrial
Workers(HP) 213 225 10.4 5.6

*At current price



  • The economic growth in the State is predominantly governed by agriculture and its allied activities showed not much fluctuations during nineties as the growth rate remained more or less stable. The decade showed an average annual growth rate of 5.7 percent, which is at par with national level. The economy has shown a shift from agriculture sector to industries and services as the percentage contribution of agriculture and allied sectors in total State Domestic Product has declined from 57.9 percent in 1950-51 to 55.5 percent in 1967-68, 26.5 percent in 1990-91 and to 10.4 percent in 2014-15.


  • The share of industries and services sectors respectively has increased from 1.1 & 5.9 percent in 1950-51 to 5.6 and 12.4 percent in 1967-68, 9.4 & 19.8 percent in 1990-91 and to 24.8 and 43.0 percent in 2014-15. However, the contribution of

other remaining sectors showed a favourable shift i.e. from 35.1 percent in 1950-51 to 21.8 percent in 2014-15


1.14 The declining share of agriculture sector do not, however, affect the importance of this sector in the State economy as the state economic growth still is being determined by the trend in agriculture and horticulture production. It is the major contributor to the total domestic product and has overall impact on other sectors via input linkages, employment and trade etc. Due to lack of irrigation facilities our agricultural production to a large extent still depends on timely rainfall and weather conditions. High priority has been accorded to this sector by the Govt.


  • The State has made significant progress in the development of Horticulture. The topographical variations and altitudinal differences coupled with fertile, deep and well drained soils favour the cultivation of temperate to sub-tropical fruits. The region is also suitable for cultivation of ancillary horticultural produce like flowers, mushroom, honey and hops.


  • During the year 2014-15 up to December, 2015, 8.19 lakh tonnes of fruits were produced in the state and it is envisaged to bring 3,000 hectares of additional area under fruit plants against which 3,244 hectares of area has already been brought under plantation and 8.48 lakh fruit plants of different species were distributed up to December, 2015. Growing of off-season vegetables has also picked up in the state. During the year 2014-15, 15.76 lakh tonnes of vegetables were produced as against 14.66 lakh tonnes in 2013-14 recorded a growth rate of 7.5 percent. It is anticipated that the production of off season vegetables will be of the order of 14.80 lakh tonnes in 2015-16.


  • The power is one of the most important input for speedier economic growth and overall development of the State. As a source of energy hydro power is economically viable, non-polluting and is environmentally sustainable. The Power Policy of the State attempts to address all aspects like capacity addition energy security, access and availability, affordability, efficiency, environment and assured employment to people of Himachal. Though the private sector participation in terms of investments in this sector has been encouraging but the smaller projects has been reserved for investors from Himachal Pradesh only (up to 2 MW) and preference will be given for projects up to 5 MW.


  • Tourism Industry in Himachal Pradesh has been given high priority, which has also emerged as a major sector in the development of economy of the State. The Govt. has also developed appropriate infrastructure for its development which includes provision of public utility services, roads, communication network, airports, transport facilities, water supply and civic amenities etc. As a result of high profile media thrust, a significant rise has been noticed in the tourist inflow during last few years as below:-


TABLE 1.2 Tourist arrival (In lakh)


Year Indian Foreigners Total
2005 69.28 2.08 71.36
2006 76.72 2.81 79.53
2007 84.82 3.39 88.21
2008 93.73 3.77 97.50
2009 110.37 4.01 114.38
2010 128.12 4.54 132.66
2011 146.05 4.84 150.89
2012 156.46 5.00 161.46
2013 147.16 4.14 151.30
2014 159.25 3.90 163.15
2015 171.25 4.06 175.31


1.19 Himachal Pradesh has taken a lead in the area of climate change mitigation and has initiated concrete steps for reducing Green House Gas emissions. The development of technologies to conserve the resources and put them to proper use through bio technological innovations which will take Himachal to new heights.


1.20 Information Technology has a great scope for employment generation and revenue earnings. The HIMSWAN provides various G2G, G2C, G2B, e-Procurement and e-Samadhan etc. systems to bring efficiency and transparency in administration.


1.21 Containment of price is on the priority list of government. Himachal Pradesh Working Class Consumer Price


Index number during 2015 -16 increased by 6.3 percent in December, 2015 as against 6.3 percent at National level also, which clearly shows better management of price situation in the State.


  • The aggregate size of thethe efficiency and quality of public


12th Five year Plan has been projected at `22,800.00 crore. However, the annual plan for 2016 -17 has been proposed at `5,200.00 crore which will be 8.3 percent higher than the plan size of current year 2015-16. The Sectoral spread of the proposed outlay for 12th


Five Year Plan (2012-17) is given under:-


Sr. Sector Proposed %age Priority
No. Outlay Share
` in crore
1 Agriculture  and 2906.79 12.75 III
Allied Activities
2 Rural 1276.73 5.60 VI
3 Special Area 155.75 0.68 X
4 Irrigation and 1972.37 8.65 V
Flood control
5 Energy 2805.59 12.31 IV
6 Industry and 224.42 0.98 IX
7 Transport and 4709.88 20.66 II
8 Science, 104.92 0.46 XI
Technology and
9 General 596.59 2.62 VII
10 Social Services 7674.22 33.66 I
11 General 372.74 1.63 VIII
Total 22800.00 100.00


  • To fulfil the commitments towards public, a separate department of Redressal and Public Grievances under the direct supervision of the Hon’ble Chief Minister has been set up in each of the public service oriented Departments to make this more efficient. Himachal Pradesh is the first state in the country to launche-samadhan for redressal of public grievances.


  • The priority of the government has always been for Social


Welfare programmes. Concerted efforts have been made to improve

services delivery.


Major achievements on the path of Socio-Economic resurgence are:-


  • Social security Pension increased from `550 to ` 600 per month.


  • Under the skill development scheme the eligible criteria for the age group16-35 years is 8thpass and an amount of `1,000 is being provided.


  • All persons above the age of 80 years and above are being provided an old age pension of


`1,100 per month irrespective of any income limit except those drawing any other pension.


  • The state has been nominated for the best State under Krishi Karmanya Award 2014-15.


  • 37 lakh Kisan Credit Cards have been issued by the banks.


  • Under National  Food  security Mission Rice in three Districts and Wheat in nine districts have taken to enhance the production.


  • Essential commodities are being supplied on subsidized rates to all the ration card holders in the State so as to save them from the on- slaught of rising prices.


  • Under Rajeev Gandhi Ann Yojna 37 lakh consumers are being provided 3 Kg wheat and 2 Kg rice every month.


  • To achieve faster and more inclusive growth in agriculture sector Dr. Y.S.Parmar Kisan Swarogar Yojna has been initiated.


  • Under Tea Development scheme Scheduled Caste tea planters are provided 50 percent subsidy on agriculture inputs.



  • Under Weather Based Crop Insurance Scheme (WBCIS)

92,423 farmers have been covered in the State and claims to the tune of ` 34.50 crore has been paid.


  • Beside Apple and Mango the WBCIS scheme have been expanded to Peach, Plum and Kinnow by including more blocks.


  • For Integrated  Development  of

Horticulture, the Government of India has approved an action plan of `70.04 crore.


  • Under Kisan Call Center scheme the farmers can get any information on agriculture by dialling toll free number 1800-180-1551 between 6 AM to 10 PM.


  • During the financial year 2014-15, 2,097 million units of electricity were generated.
  • 10,264 MW hydro power has been harnessed out of 27,436


MW identified potential which comes out to 37.41 percent.

  • 10 L.E.D bulbs are being provided to domestic consumers at cheaper rate from market.
  • Investor meets  organized  in Mumbai, Bangluru, Ahmedabad and New Delhi.
  • The industries contribute 24.81 percent to GSDP during 2014-15


and Industrial Package has been extended up to March, 2017 by Government of India.

  • Under Mahatama    Gandhi National Rural Employment Guarantee scheme 147.78 lakh man days were generated and 3,76,265 households were benefitted.
  • To provide shelter to the shelter less rural poor people, 2,128 houses are sanctioned under Indra Awas Yojna.


  • Under Rajiv Awas Yojna 503 dwelling units have been constructed.


  • Swachh Bharat Mission is being implemented in all the 12 districts of the State in project mode and Himachal is considered as a leading State in the field of



  • Under Matri Shakti Bima Yojna all women in the age group of 10-75 years, living below poverty line are covered in case of their death or disability. During this year 118 families were assisted.


  • Special attention is being given to quality education and to achieve the target of universalization of elementary education under Sarva Shiksha Abhiyan is vigoursly implemented


  • Free education is being provided to girl students in the State upto University level.


  • The girl students studying in classes IX to XII belonging to SC, ST, OBC, minority communities and BPL families are being provided with hostel facilities in the educationally backward blocks.


  • Under Post Matric Scholarship to SC/ST/OBC a total of 16,834 students have been benefitted.


  • Under Rajiv   Gandhi   Digital Vidyarthi Yojna the student of 10th& 12th have been provided 10,000 Notebooks.


  • To improve the educational status of the deprived section of the society, various types of scholarships/ stipend are being provided by the State/ Central government at various stages.



  • Under National Rural Health Mission 95 Health Institutions are identified to provide 24 hours emergency services.


  • Sweeper, Auto Rickshaw, Taxi operator, Garbage collector brought under the National Rural Health Mission.


  • Under “BETI HAI ANMOL Yojna” 16,111 girls have been benefitted.


  • BETI BACHAO BETI PADHAO has been started in Una district of the Pradesh which has lowest sex ratio.


  • Under Mukhya Mantri Kanyadaan Yojna 1,516 beneficiaries were covered upto December, 2015.


  • Inter caste marriage and widow re-marriage grant has also been increased from `25,000 to `50,000.


  • Under Indira Gandhi Matritva Sahyog Yojna there is provision

of cash incentive of `6,000 and so far 5,832 women have been benefitted.


  • To provide financial assistance and support services to Rape victims an amount of `75,000 is being provided and 30 women have been benefitted in current financial year.


  • 13 New cities of the State came under notified area committee.


  • Dharmshala is declared Second Municipal Corporation of the State.
  • 25 percent exemption in bus fare for woman in road transport has been started.


  • `90 crore have been spend under Nirmal Bharat Abhiyan.


  • Under Rajiv  Gandhi  Panchyat Sashaktikaran Abmiyan the newly elected representatives of Panchyati Raj Institutions will be provided training.


  • Himachal is the only State which has provided horizontal connectivity to 1,761 government offices in the Country.


  • To provide transparency in the government procurement e-GP (E-Government Procurement) has been rolled out in IPH, PWD & Controller of Stores.


  • Under state Portal and state services Delivery Gateway, 36 G2C services of 11 departments have been made available through this portal at www.eserviceshp.gov.in
· Under Aadhaar scheme
more  than 70  lakh residents
have been enrolled. UID of 67.77
lakh have been generated so far.
· A uniform   income limit   of

` 35,000 per annum fixed for eligibility to avail benefit under various government schemes.

  • Two more   Women   Police Stations has been established in the State
  • Under “Service Guarantee Act 86 services in 15 departments has been implemented for efficient and timely solutions.


  • Public Services Delivery Helpline has been set up for the people of the State.


  • A facility of Toll Free telephone number has been set up for reporting the cases of corruption in the government departments


  • The Per  Capita  Income  has

touched the level of `1,19,720 in 2014 -15 witnessing a growth of 8.6 percent over 2013-14 and is estimated at 1,30,067 in 2015-16.



Receipt and Expenditure of the State Government


(` in crore)

Item 2012-13 2013-14 2014-15 2015-16
(Actual) (Actual) (RE) (BE)
1.Revenue Receipts(2+3+4) 15598 15711 18907 23535
2.Tax Revenue 6908 7612 9063 10185
3.Non-Tax Revenue 1377 1785 1399 1507
4.Grant-in-aid 7313 6314 8445 11843
5.Revenue Expenditure 16174 17352 20445 23488
(a)Interest Payments 2370 2481 2750 2950
6.Revenue Surplus/Deficit(1-5) (-)  576 (-) 1641 (-) 1538 47
7. Capital Receipts 4434 4619 11451 4804
(a) Recovery of loans 21 17 26 17
(b) Other receipts 1042 551 1775 900
(c) Borrowings & liabilities 3371 4051 9650 3887
8.Capital Expenditure 4540 4091 10265 4851
9.Total Expenditure(5+8) 20714 21443 30710 28339
Plan expenditure 4386 4714 6199 6821
Non-plan expenditure 16328 16729 24511 21517
As Percent to the Gross State Domestic Product
1.Revenue Receipts(2+3+4) 18.95 16.97 18.70 21.30
2.Tax Revenue 8.39 8.22 8.96 9.22
3.Non-Tax Revenue 1.67 1.93 1.38 1.36
4.Grant-in-aid 8.89 6.82 8.35 10.72
5.Revenue Expenditure 19.65 18.74 20.22 21.25
(a)Interest Payments 2.88 2.68 2.72 2.67
6.Revenue Deficit/ surplus (1- 5) (-) 0.70 (-)1.77 (-) 1.52 0.04
7.Capital Receipts 5.39 4.99 11.33 4.35
(a) Recovery of loans 0.03 0.02 0.03 0.02
(b) Other receipts 1.27 0.60 1.76 0.81
(c) Borrowings & liabilities 4.10 4.38 9.54 3.52
8.Capital Expenditure 5.52 4.42 10.15 4.39
9.Total Expenditure 25.17 23.16 30.37 25.64
Plan expenditure 5.33 5.09 6.13 6.17
Non-plan expenditure 19.84 18.07 24.24 19.47


Note: GSDP estimates for 2012-13, 2013-14, 2014-15(Q) & 2015-16(Advance)






Gross State Domestic Product


2.1                  Gross   State   Domestic


Product (GSDP) or State Income is the most important indicator for measuring the economic growth of a State. According to quick estimates, the total State Domestic Product for the year 2014-15  is  `89,050  crore  against `82,866 crore in 2013-14 thereby registering a growth of 7.5 percent at constant prices (Base:2011-12).


2.2 As per the quick estimates the value of Gross State Domestic Product of the Pradesh at current prices which was estimated at


`92,589 crore for 2013 -14 (Provisional estimates) increased to `1,01,108 crore during 2014 -15, registering an increase of about 9.2 percent This increase is attributed to the agriculture & allied activities sector besides other sectors of the economy. The food grains production increased to 16.74 lakh MT in 2014-15 from 15.85 lakh MT in 2013-14. Whereas the production of apple decreased to 6.25 lakh MT in 2014-15 from 7.39 lakh MT in 2013-14.


  • The economy of Himachal Pradesh is predominantly dependent upon agriculture and in the absence of strong industrial base, any fluctuations in the agricultural or horticultural production cause some changes in economic growth also. During 2014-15 about 10.4 percent of state income has been contributed by agriculture sector alone.


  • The economy of the state also appears to be in resilient mode in terms of growth. As per advance estimates, the growth rate of GSDP during 2015-16 will be 7.7 percent.


2.5 The table given below shows the growth of economy of Himachal Pradesh during the last three years:-


Table 2.1


Year H.P.
2012-2013 6.4
2013-2014(P) 7.1
2014-2015(Q) 7.5


Per Capita Income


2.6 According to quick estimates (New Series base 2011-12), the Per Capita Income at Current prices increased to `1,19,720 in 2014-15 from 1,10,209 in 2013-14 showing an increase of 8.6 percent. At constant (2011-12) prices the per capita income during 2014-15 is estimated at 1,04,838 against `98,425 in 2013-14 witnessing an increase of 6.5 percent.


Sectoral Contribution


2.7 The sectoral analysis reveals that during 2014-15, the percentage contribution of Primary Sector to total GSDP of the State is 15.91 percent,Secondary Sector 41.08 percent, Transport, Communications and Trade 12.62 per cent and Finance and Real

Estate 15.08 percent, Community and Personal Services is15.31 percent.


2.8 The structural composition of the state economy witnessed significant changes during the decade. The share of agriculture including horticulture and animal husbandry in GSDP had declined from 21.1 percent in 2000 -01 to 10.4 percent in 2014-15, yet the agriculture sector continues to occupy a significant place in the state economy and any fluctuation in the production of food grains/ fruits affect the economy. The share of primary sector which include agriculture, forestry, fishing and mining & quarrying has declined from 25.1 percent in 2000-01  to  15.9  per  cent  during 2014-15.


2.9 The Secondary sector, which occupies the second important place in the state economy has witnessed a major improvement since 1990-91. Its contribution increased from 26.5 percent in 1990-91 to 41.1 percent in 2014-15, reflecting healthy signs of industrialisation and modernisation in the State. The share of the electricity, gas and water supply sector which is a component of secondary sector has also increased from 4.7 percent during 1990-91  and  to  8.6  percent  during 2014-15. Tertiary sector which is comprised of sectors like trade, transport, communications, banking, real estate & business services, community and personal services has also witnessed change in its share. Its share in GSDP. for the year 2014-15 is 43.0 percent.


Sectoral Growth


2.10 Following are the major constituents of the economy which attributed to 7.5 percent growth of state economy during 2014-15.

Primary Sector


Primary Sector 2014-15 %age
(`in crore) Inc. /dec.
1.Agriculture and
Animal Husbandry 9,858 -4.0
2.Forestry & 4,054 3.6
3. Fishing 73 11.6
4. Mining & 232 3.1
Total Primary 14,217 – 1.7


2.11 Primary sector, which includes Agriculture, Forestry, Fishing, Mining and Quarrying, during 2014 -15, witnessed negative growth rate of 1.7 percent, due to decrease in fruit production.


Secondary Sector


Secondary Sector 2014-15 %age
(` in crore) Inc.
1. Manufacturing 21,502 4.5
2. Construction 7,064 4.7
3. Electricity, Gas & 7,471 12.4
Water  Supply
Total Secondary 36,037 6.1


2.12 The Secondary sector, which comprises Manufacturing, Construction and Electricity, Gas and Water Supply registered a growth of 6.1 percent during 2014-15. As compared to the last year’s performance in these sectors the electricity, gas and water supply sector has shown an increased growth in this year .


Tertiary Sector


Tertiary Sector 2014-15 %age
(` in crore) Inc.
1.Transport, Comm. 10,195 14.6
& Trade Hotel
2.Finance and Real 12,287 11.4
3.Community and 12,456 13.9
Personal Services
Total Tertiary 34,938 13.2


2014-15 is 0.32 percent. Table below shows the growth of local body’s in the State.


Percent Contribution of LBs


Year(s) Percent Contribution
2012-13 0.27
2013-14(P) 0.33
2014-15(Q) 0.32



Transport                  Storage,

Communications and Trade


2.13 This group of sectors shows a growth of 14.6 percent during 2014-15. The transport by other means component of this sector has shown a highest growth of 21.8 percent.


Finance and Real Estate


2.14                This   sector   comprises Banking  and  Insurance,  Real  Estate,

Ownership of dwellings and Business Services. It witnessed a growth of 11.4 percent in 2014-15.


Community and Personal Services


2.15 The growth in this sector during 2014-15 is 13.9 percent.


Contribution of Local Bodies in the State Gross Domestic Product (GSDP)


2.16 The overall contribution of local bodies in the GSDP for the year


Prospects- 2015-16


2.17 As per the advance estimates based on the economic performance of State upto December, 2015 the rate of economic growth of state during 2015-16 is likely to be

7.7 percent. The state has achieved growth rate of above 7.0 percent for last two years. The GSDP at current prices is likely to be about `1,10,511 crore.


2.18 According to the advance estimates the Per Capita Income at current prices during 2015-16 has been

estimated at `1,30,067 against
`1,19,720 in 2014-15  showing  an
increase of 8.6 percent.


2.19 A brief analysis of the economic growth in Himachal Pradesh, however, reveals that the State has always tried to keep pace with the all-


India growth rate as shown in Table-2.2 below:-



Table 2.2

Period Average annual growth
rate (Percentage)
Plan Years/Year H.P. All India
First Plan 1951-56 (+)1.6 (+)3.6
Second Plan 1956-61 (+)4.4 (+)4.1
Third Plan 1961-66 (+)3.0 (+)2.4
Annual Plans 1966-67 to 1968-69 .. (+)4.1
Fourth Plan 1969-74 (+)3.0 (+)3.4
Fifth Plan 1974-78 (+)4.6 (+)5.2
Annual Plans 1978-79 to 1979-80 (-)3.6 (+)0.2
Sixth Plan 1980-85 (+)3.0 (+)5.3
Seventh Plan 1985-90 (+)8.8 (+)6.0
Annual Plan 1990-91 (+)3.9 (+)5.4
Annual Plan 1991-92 (+)0.4 (+)0.8
Eighth Plan 1992-97 (+)6.3 (+)6.2
Ninth Plan 1997-02 (+)6.4 (+)5.6
Tenth Plan 2002-07 (+)7.6 (+)7.8
Eleventh Plan 2007-12 (+)8.0 (+)8.0
Twelveth Plan 2012-17
(i) 2012-13 (+)6.4 (+)5.6
(ii) 2013-14 (+)7.1 (+)6.6
(iii) 2014-15 (+)7.5 (+)7.2
(iv) 2015-16 (+)7.7 (+)7.6



Public Finance


2.20 The State Government mobilizes financial resources through direct and indirect taxes, non-tax revenue, share of central taxes and grants-in-aid from Central Government to meet the expenditure on administration and developmental activities. According to the budget estimates for the year 2015-16 (BE) the total revenue receipts were estimated  at  `23,535   crore    as against `18,907 crore in 2014-15(RE).

The     revenue receipts increased by 24.48 percent in      2015-16 over 2014-15.


2.21 The State’s Own Taxes were estimated at `6,341 crore in 2015-16(BE) as against `5,698 crore in 2014-15(RE) and `5,121 crore in 2013-14(A). The State’s Own Taxes




was estimated 11.28 percent  more
in 2015-16 (BE) as   against
2014-15 (RE).


2.22 The State’s Non-tax Revenue (comprising mainly of interest receipts, power receipts, road transport receipts and other administrative service etc.) was estimated at 1,507 crore in


2015-16(BE). The State’s Non-Tax Revenue was 6.40 percent of total revenue receipts in 2015-16.


  • The share of central taxes was estimated at 3,844 crore in 2015-16(BE).


  • The break-up  of  the

State’s Own Taxes reveals that sales tax of 3,937 crore constitute a major portion i.e. 38.65 percent of total tax revenue in 2015-16. The corresponding percentages for the year 2014-15(RE) and 2013-14(A) were 38.29 and 41.26 percent respectively. The revenue receipts from state excise duties is estimated at `1,138 crore in 2015-16 (BE) .


2.25 The percentage of revenue deficit to total GSDP for the year 2013-14 is (-) 1.77 percent and in 2014-15 the percentage of revenue deficit to the total GSDP is (-) 1.52 percent.






  • The State of Himachal Pradesh comprises of 12 districts. The

Lead Bank responsibility has been allocated amongst three banks viz.

PNB in 6 districts, UCO Bank in 4 districts and SBI in 2 districts. The UCO Bank is the Convener Bank of State Level Bankers Committee (SLBC). Up to September, 2015, the State has a network of 1,955 bank branches and branch expansion is continuously increasing. 96 new bank branches were opened during October, 2014 to September, 2015. At present 1,564 branches are located in Rural areas and 302 in Semi-urban areas and 89 are functioning at Shimla, the only Urban Centre in the State classified by RBI.


  • As per census 2011, the average population per branch in the State comes to 3,511 against National level of 11,000. The Punjab National Bank has the largest number of 299 branches, SBI and its associates is having 351 branches and UCO bank is having 168 branches. The Cooperative Bank has a network of 475 branches and Private Sector Banks have a network of 109 branches. In addition a few Urban Cooperative banks are also functioning in the State. District Kangra is having a maximum number of bank branches i.e 390 whereas lowest number of branches 22 is functioning in district Lahaul & Spiti.


  • The Himachal Pradesh State Cooperative Bank Ltd. is an apex Bank of the State, in three tier short term credit structure of the State. Bank is delivering banking services in remotest of the remote areas in six districts with a network of 194 branches and 24 extension counters, all these branches are on CBS mode.

State Co-operative Bank is the first State Co-operative Bank on the National financial switch through which the customers are getting ATM facilities all over the Nation and about 51 own ATMs on strategic locations. Moreover 28 applications are pending with RBI for obtaining licence for opening new places of business. Bank is also providing anywhere money transfer facilities through RTGS/NEFT. The Bank is taking proactive steps towards financial inclusion and has adopted a BC Model in two villages with the help of PACS. Govt. of Himachal Pradesh has authorised the Bank to disburse pension to the retired govt. employees all across the State.The Bank is issuing RuPay KCC Cards, Debit Cards and also providing Moblie Banking, SMS Alerts and Auto renewal of FDRs facilities to its valuable customers.


  • The State is having Regional Offices of RBI, NABARD and controlling offices of PNB, SBI, UCO, SBOP, Canara Bank are operating in the State. The outreach of bank services has further increased by installation of 1,616 ATMs by various banks.


  • The role and responsibility of banks has well recognized as a partner for accelerating the socio-economic growth wheel of the State. The flow of credit in all priority areas has been enhanced. As on September,2015, this network of banks in the State has achieved four National Parameters lending to Priority Sector, Agriculture Sector, Weaker Section and lending to women, out of six stipulated National Parameters by RBI. At present, in total advances extended by Banks in the State, the share of the Priority Sector Advances   have  reached  to  71.82 percent, Agriculture Advances to 21.11 percent, Advances to Weaker Sections and Advances to Women increased by 6.21 percent and 14.90 percent and Credit Deposit Ratio (CDR) at 58.90 percent. The position of National Parameters is given below in the Table-3.1




Position of National Parameters


Sr. Sector %age of %age of National
No. advances advances Parameter
as on as on in %age
30.9.2014 30.9.2015
1. Priority sector advances 73.37 71.82 40
2. Agriculture advances 20.78 21.11 18
3. MSE Advances(PSC) 45.03 41.47
4. Other Priority Sectors(PSC) 26.26 29.12
5. Advances to weaker sections 19.44 14.90 10
6. DRI Advances to total advs. of 0.09 0.10 1
previous year
7. Advances to women 8.29 6.21 5
8. C.D. Ratio 57.07 58.90 60
9. Advances to SC/ST (PSC) 28.89 9.75
10. Advances to Minorities (PSC) 4.30 5.24



Financial Inclusion:


3.6 The effort to include the financially excluded segment of the society into formal financial system in India is not new. The financial inclusion denotes delivery of financial services at an affordable cost to the vast section of the disadvantaged and low income group. For this purpose, a comprehensive Financial Inclusion Campaign- “Pradhan Mantri Jan-Dhan Yojana” (PMJDY) (launched throught out the country on 28th August, 2014) to cover the excluded section of society and the campaign has completed more than one year. It is a National Mission on financial inclusion to provide all households in the country with affordable financial services with particular focus to empower the weaker section of society, including women small and marginal farmers and laborers, both in rural and urban areas.






3.7 In the 1st phase of implementation of the scheme network, banks in the State have covered all the households with at least one Basic Saving Deposit Account of each household. Banks have opened total 9,98,915 new BSBDA accounts up to the end of September, 2015 since the launch of scheme on 28.8.2014. Out of total PMJDY accounts, 8,80,581 BSBDA accounts are opened in Rural areas and 1,18,334 in Urban areas. In the State, banks have issued RuPay Debit Cards to 7.30 lakh customers under this scheme.






3.8 In the 2nd phase of implementation of the scheme, Government of India has launched three Social Security Schemes as a comprehensive social security initiative targeted mainly at the poor and unprivileged. These Social security schemes are launched in the State on


9th of May 2015 and present status is mentioned as below:-






  • Atal Pension Yojana is focused on the unorganized sector and it provides subscribers a fixed minimum pension of `1,000, 2,000, 3,000, 4,000 or 5,000 per month starting at the age of 60 years, depending on the contribution option exercised on entering at the age between 18 and 40 years. Thus the period of contribution by the subscriber under the scheme would be 20 years or more. The fixed minimum pension would be guaranteed by the government. While the scheme is open to the Bank account holders in the prescribed age group, the Central


  • This scheme is providing Government would also co-contribute renewable one yearaccidental death cum disability cover of ` 2.00 Lakh (`1.00 lakh for partial permanent disability) to all the saving bank account holders in the age group of 18 to 70 years for a premium of `12.00 per annum per subscriber. Banks have enrolled 7,38,649 subscribers under Pradhan Mantri Suraksha Bima Yojana (PMSBY) from the date of launch (8.5.2015) till 30.9.2015.





  • This scheme is providing a renewable one year life cover of


` 2.00 Lakh to all the saving bank account holders in the age group of 18 to 50 years, covering death due to any reason for a premium of Rs.330.00 per annum per subscriber. Banks have enrolled 2,71,822 subscribers under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) from the date of launch (8.5.2015) till 30.9.2015.


50.00 percent of the total contribution or `1,000 per annum, whichever is lower for a period of 5 years for those joining the scheme before 31st December, 2015 and are not member of any Statutory Social security scheme and are not income tax payers.


3.12 The State Government has also announced to contribute to the Atal Pension Yojana. The co-contribution from State Government in respect of each account holder of unorganized sector worker would be `1000 per annum for the next three years who joins the scheme between the period 1.6.2015 to 31.3.2016. The State Government has made a budgetary allocation of `10.00 crore to cover 1.00 lakh workers / subscribers under the Atal Pension Yojana in,Himachal Pradesh. The State Government is focusing on MGNREGA workers, Mid Day Meal workers, Agriculture and Horticulture labourers and Anganwari workers to adopt the Atal pension Yojana. In the Atal Pension Yojana (APY), banks have enrolled 3,340 subscribers under the scheme. Banks are putting focus attention on the targeted groups to increase the pace of enrollment under the scheme by conducting financial literacy and awareness campaign.





  • Pradhan Mantri  MUDRA Yojana (PMMY) rolled out on 8.04.2015 in the Country including Himachal Pradesh. The smaller of the micro enterprises mainly consist of non- farm enterprises in Manufacturing Trading and Services whose credit needs are below `10.00 lakh and all the loans given to these segments for income generation will be known as MUDRA loans. All advances granted on or after 8.4.2015 falling under this category be classified as MUDRA loan under the scheme.


  • Banks in Himachal Pradesh are allotted target of `1,236.50 crore in Financial Year 2015-16 under the scheme. As against the target, banks have disbursed total

Mudra loans of `427.41 crore up to the period ended October, 2015, since the launch of Scheme and thus achieved 36 percent of the annual targets.


3.15 Banks have launched financial literacy campaign in the Govt./ Private Industrial Training Institutes (ITIs), Vocational Training Centre and Operational Centers (OCs) imparting Skill training in the State. In Himachal Pradesh, 84 Govt Industrial Training Institutes (ITIs), 135 ITIs in Private Sector, 9 Active Vocational Training Centers (VTCs) and 171 Operating Centers (OCs) are mapped with closest bank branches for

imparting Skill development training under the Financial Literacy campaign with the objective to cover ITI/skill trainees with credit linkages under the scheme.


RBI Roadmap 2013-16


Extension of Banking Services in all un-banked villages with population below 2000 in Himachal Pradesh.

3.16    In  RBI  Roadmap,  total 14,953 unbanked villages are covered by opening of Brick & Mortar branch and Business Correspondents (called Bank Mitra) outlets as of September,2015. Banks have targeted to cover all villages with in March,2016 as per direction of Reserve Bank of India.


Business Volume of Banks:


3.17 The Aggregate Deposits of all banks operating in the State increased from `69,621.00 crore as on September, 2014 to `80,529.97 crore as on September, 2015 with the share of Commercial Bank at 72 percent,


RRB at 4 percent, Co -operative Banks at 18 percent and Private Sector Banks at 6 percent. The Aggregate advances have also increased from `27,128.82 crore as on September, 2014 to `31,159.78 crore as on September, 2015 witnessing growth of 15 percent.


3.18 The overall banking business of banks in the State crossed `1,11,689.75 crore and has witness the growth of 15.44 percent over the last year. The Public Sector Banks occupy market share of 70.18 percent business in the state. The comparative data is as under in the Table-3.2:



Table- 3.2


Comparative Data of Banks in HP


(` in crore)
Sr.No. Item 30.9.2014 30.9.2015 Variation & %age of
growth over September,
absolute %age
  1. Deposit PPD


Rural 43036.06 49758.22 6722.16 15.62
Urban/SU 26584.90 30771.75 4186.85 15.75
Total 69620.96 80529.97 10909.01 15.67
  1. Advances (O/S)


Rural 17186.86 16702.50 (-) 484.36 (-) 2.82
Urban/SU 9941.96 14457.28 4515.32 45.42
Total 27128.82 31159.78 4030.96 14.86
3. Total Banking
Business ( Dep+Adv) 96749.78 111689.75 14939.97 15.44
Investment made by
4. Banks in State Govt. 3389.11 5546.96 2157.85 63.67
5. CD RATIO as per 57.07% 58.90% 1.83 3.19
Throat Committee
Priority Sector
6. Advances (O/S) of 19632.09 22378.75 2746.66 13.99
which under:
I) Agriculture 5637.17 6579.61 942.44 16.72
ii) MSE 8839.35 9281.68 442.33 5.00
iii) OPS 5155.57 6517.46 1361.89 26.42
7. Weaker Section Advs. 5274.68 4643.94 (-) 630.74  (-) 11.96
8. DRI Advances 24.10 44.31 20.21 83.86
9. Non Priority Sec. Adv. 7496.73 8781.03 1284.3 17.13
10. No. of Branches 1859 1955 96 5.16
11. Advances to Women 2248.51 1937.14 (-) 311.37  (-) 13.85
12. Credit to Minorities 1166.84 1172.72 5.88 0.50
13. Advances to SCs/STs 6444.63 2183.33 (-) 4261.3 (-) 66.12



Performance under Annual Credit Plan 2015-16


3.19   Banks prepared  Annual Credit Plan for financial year 2015-16 for disbursement of fresh loan on the basis of potential worked out for various priority sector activities by NABARD. The financial targets under Annual Credit Plan 2015-16 was increased by 21 percent over the last plan outlay and fixed at `15,311.72 crore. Under Annual Credit Plan 2015-16, Banks has disbursed a fresh credit to the tune of `7,470.17 crore upto half year ended September, 2015 and achieved 49 percent of Annual commitment. The Sector-wise target vis-a -vis achievement upto 30.9.2015 is as under in the Table 3.3:







Position as on September, 2015 at a glance


(` in crore)
Sr.No Sector Annual Targets Achievement, %age Ach.
Target Sept., Sept., 2015 Over
2015-16 2015 targets
Fresh Amount
1. Agriculture 5716.29 2858.15 182306 2917.31 102.07
2. MSE 4309.15 2154.58 47953 2355.96 109.35
3. Other Priority Sector 3197.35 1598.67 23727 851.63 53.27
4. Total Priority Sector
(1 to 3) 13222.79 6611.40 253986 6124.90 92.64
5. Non Priority Sector 2088.93 1044.47 29084 1345.27 1128.80
Grand Total ( 4+5) 15311.72 7655.87 283070 7470.17 97.57



Implementation         of    Govt. Sponsored Schemes:


  1. a) Prime Minister Employment Generation Programme (PMEGP)

3.20 Under this scheme 364 projects sponsored by KVIC/ KBIB & DIC are sanctioned by the banks upto September, 2015 against the annual target of 956 units in the State.



  1. National Urban Livelihood Mission (NULM)


3.21 National Urban Livelihood Mission (NULM) has introduced under which loan were given for setting up of Self Employment Ventures, Skill Development and Housing loans to economical weaker section residing in Urban areas. The scheme covers the urban poor. Banks are assigned annual targets of disbursement of ` 10.00 crore under SEP component of National Urban Livelihood Mission (NULM) during the current year covering total 2,400 beneficiaries.


  1. National Rural   Livelihood Mission (NRLM)

3.22 During the current year upto September, 2015, banks have assisted 642 Self Help Groups under National Rural Livelihood Mission (NRLM) with credit of ` 11.04 crore.


  1. Dairy Entrepreneurship Development Scheme (DEDS)


  • NABARD has further introduced the Dairy Entrepreneurship Development Scheme (DEDS) under the centrally sponsored Govt. schemes having capital subsidy from Govt. of India  and  banks  have  disbursed 294.58 lakh to 336 new entrepreneurs under the scheme up to half year ended September, 2015.


  • Banks are providing short term credit to farmers for meeting their production needs through Kisan Credit Cards (KCCs), an innovative credit delivery mechanism to meet the production credit requirements of the farmers in a timely and hassle free manner. So far Banks had issued 6.37 lakh KCCs to needy farmers.





3.25 The Lead Banks i.e. UCO Bank, PNB & SBI have set up Rural Self Employment Training Institutes (RSETIs) in 10 districts of the State. These institutional arrangements are playing a very crucial role in empowering the rural youth. Banks have so far trained total 24,956 rural youths for taking gainful ventures for self sustained growth.


NABARD 3.26 The National Bank for Agriculture and Rural Development (NABARD) has strengthened its association with the developmental process substantially for Integrated Rural Development in the recent years by initiatives encompassing a wide range of activities viz. Development of Rural Infrastructure, Micro Credit, Rural Non-Farm Sector, Minor Irrigation and other agricultural sectors, besides strengthening the rural credit delivery system in the State. The active support from NABARD is generating tremendous social and economic benefits in the rural areas of the state. In addition to its own schemes, NABARD is also implementing centrally sponsored credit linked subsidy schemes of Government of India, like Dairy  Entrepreneurship  Development Schemes (DEDS), Capital Investment Subsidy Scheme for commercial Production Units of Organic Inputs under National Project on Organic Farming, Agri Marketing Infrastructure (AMI), Solar Schemes, National Livestock Mission (NLM), Agri-clinics and Agribusiness centres etc.


Rural Infrastructure

3.27 Government of India had created Rural Infrastructure Development Fund (RIDF) within NABARD in the year 1995-96. Under this scheme, concessional loans are given by NABARD to State Govt. and State owned Corporations for the completion of ongoing projects as also to start new projects in certain selected sectors. This scheme has also been extended to Panchayati Raj Institutions, Self Help Groups and Non-Government Organizations for development of various location specific infrastructures having a direct bearing on society and the rural economy.


  • The development of infrastructure in rural areas through Rural Infrastructure Development Fund (RIDF), since its inception in 1995-96, has emerged as NABARD’s major intervention in partnership with the State Governments. The fund has continued with the yearly allocations in the successive Union Budgets. Under this scheme, loans are given by NABARD to State Governments and State owned Corporations for completion of ongoing projects as also to execute new projects in selected sectors. RIDF initially focused on execution of incomplete projects mainly under irrigation sector, however, financing over the years have become broad based covering 34 eligible activities classified into Agriculture and related sectors, social sector and rural connectivity.


  • From an initial allocation of `15.00 crore under RIDF-I (1995-96), the allocation to the State has now reached the level of `590.00 crore under RIDF-XXI (2015-16). RIDF has played an important role in development of diversified sectors like irrigation, roads and bridges, flood protection, drinking water supply in addition to primary education, veterinary services, watershed development, IT infrastructure etc. In recent years, innovative project for development of poly-houses and micro irrigation systems have been supported, a trend setter for development of agri-business and sustainable farming on commercial lines.


3.30 Financial assistance of `5,467.97 crore has been sanctioned under RIDF for implementation of 5,238 projects (as on 31st December, 2015) to the state with rural roads/bridges accounting for 51 percent share, followed by irrigation 31 percent, rural drinking water 17 percent and balance accounted by others including Education, Animal Husbandry etc. During the current Financial Year 2015-16, an amount of `584.19 crore has been sanctioned under RIDF–XXI upto 31st December, 2015. An amount of `343.60 crore has been disbursed up to 31st December,2015 to the State Govt. raising the cumulative disbursement to `3,897.74 crore. Secondary Schools, 25 I.T. centres and 397 Veterinary Hospitals/Artificial Insemination Centres have already been constructed.


New Business Initiatives


  1. NABARD Warehousing Scheme (NWS) 2015-16

3.33 NABARD has launched a dedicated scheme during the current year with a corpus of `5,000.00 crore, for providing direct loans to public and private sector for construction of warehouses/silos, cold storages and other cold chain infrastructure.

Modernization/improvement of the existing storage projects, leading to scientific/additional storage will also be eligible for support. Under the scheme,


3 projects of modernization of cold stores into CA stores was sanctioned to HPMC at Oddi and Rohru in Shimla district and Patlikhul in Kullu district with a loan assistance of `855.00 lakh under NWS. The projects have now been completed with a cumulative capacity of After the  implementation/      3,480 MT providing services of modern completion of the sanctioned projects, drinking water will be made available to more than 34.83 lakh persons (Ultimate Population) 7,780 km. road will become motorable, 19,997 mtrs. span bridges will be constructed and 1,18,129 hectares land will be benefited through irrigation projects.


3.32 In addition, about 27,180 hectare land will be protected from flood damages through protection measures, 6,219 hectare land will be covered under watershed projects. An area equivalent to 231 hectare of farm lands will be brought under poly -houses with micro irrigation systems on farmer fields. In addition, 2,921 rooms in Primary Schools, 64 Science Laboratories in scientific controlled atmospheric storage to Apple farmers.


  1. NABARD Infrastructure Development Assistance (NIDA)


3.34 NABARD earlier in 2011-12 started a line of credit for State owned institutions/ corporations with sustained income streams, both on-budget and off-budget, for creating rural infrastructure outside the ambit of RIDF borrowing. This opened new avenues for creating rural infrastructure in non traditional areas. In order to further widen the scope of financing rural infrastructure, financing through PPP mode is a major thrust area under NIDA. Infrastructure projects largely benefitting the rural areas and covered in a harmonized list of projects as approved by the GOI/RBI and activities covered under RIDF and Rurban mission are also eligible for funding under the PPP.


  1. c)Food Processing Fund (FPF) 2015-16


3.35 NABARD has established a food processing Fund with a corpus of ` 2,000 crore for the year 2014-15 for providing financial assistance for establishing the designated food parks and also for setting up of individual food/ agro processing units in the designated Food Parks with the purpose to provide impetus to development of food processing sector on cluster basis in the country to reduce wastage of agricultural produce and to create employment opportunities, especially in rural areas. Cremica Mega Food Park Pvt. Ltd. Singha, Una is being established with a financial assistance of `32.94 crore under the fund.


Refinance Support


3.36 NABARD extended financial support amounting to ` 420.44 crore during 2014-15 and `561.10 crore during 2015-16 upto 31st December, 2015 to the banks operating in the state by extending refinance disbursement for diverse activities viz. Rural housing, small road transport operators, land development, minor irrigation, dairy development, self help group, farm mechanization, poulatry, plantation & horticulture, sheep/goat/piggrey rearing, packing and grading house activity and other sectors. In addition, NABARD has introduced a fund “Long Term Rural Credit Fund” in 2014-15 to supplement the resources of cooperative Banks and RRBs Under this fund, NABARD, HPRO


has disbursed an amount of
`116.70  crore in  2014-15  and an


amount of ` 232.30 crore in 2015-16 up to 31st December,2015. NABARD also supplemented the efforts of Coop. Banks and RRBs, for crop loan disbursement in the State by sanctioning ST (SAO) credit limit of `720.00 crore against which the banks have drawn refinance assistance of 720.00 crore on 31.03.2015. During 2015-16 credit limit of `500.00 crore was sanctioned and against it a total disbursement of `396.23 crore has been made as on 31.12.2015.


Micro Credit


  • The Self Help Group (SHG) movements has spread across the state and is now on a firm base. The movement has been unscaled with support in the human resources and financial products. In Himachal Pradesh, the cumulative number of credit linked Self Help Groups were stood at 52,448 covering 6.5 lakh rural households against 13.12 lakh total rural households in the state with a total loan outstanding of `319.26 crore as on 31stMarch, 2015. In addition to this, Women Self Help Groups programme is being implemented by NABARD, through local NGOs,  in  two  districts  viz.  Mandi, Sirmaur with grant support of `29.55 crore and target of formation and credit linkage of 1,500 Women Self Help Groups and 1,455 Women SHGs respectively. As on 30.09.2015, cumulatively 2,628 Women Self Help Groups have been saving linked and 1,541 Women SHGs have been credit linked.


  • The announcement   in Union  Budget  2014-15,  financing  of Joint Farming Groups “Bhoomi Heen Kissan” (landless farmers) has further given credence to effort of NABARD in innovating and reaching out to the landless farmers through Joint Liability Groups mode of financing. As on 31st March, 2015 nearly 2,062 Joint Liability Groups have been provided credit amounting to `223.32 lakh by banks in the State. For propagating “Self Help Groups Bank Linkage Programme” and “Joint Liability Group” scheme NABARD is partnering with about 47 Self Help Promoting Institutions/ Joint Liability Promoting Institutions in the State. Further, NABARD facilitates short duration skill development training for SHG members, having availed more than once credit facility from banks. During 2015 -16 (up to 31-12-2015) 36 number of Micro Entrepreneurship Development Programme (MEDP) have been sanctioned to various SHPI partners, which resulted into 998 SHG members got training for undertaking livelihood activity either individually or in group mode.


Farm Sector Initiatives


3.39 A total number of 3,025 Farmers Clubs have been promoted in the state as on 31st December, 2015 covering 36,949 farmers from 5,863 villages. A Federation of Farmers Clubs has been formed in Sirmaur district and other in Bilaspur district is working for the welfare of farmers.


  1. Watershed Development
3.40 Seven Watershed
development projects on full grant basis

(One project is impleted in CSR mode) have been funded through NABARD’s Watershed Development Fund. Dhundan Watershed project in District Solan has been completed successfully with a grant support of `64.10 lakh. Saryanj Sarma watershed project (Full Implementation Phase), District Solan with a grant of ` 158.03 lakh, Daseran watershed project (Full Implementation Phase), District Solan with a grant of 122.19 lakh, Sidhchaler watershed project (Full Implementation Phase), District Una with a grant of ` 85.67 lakh, Jubehar watershed project (Interim Phase) in Una district with a grant assistance of `108.94 lakh and Ambeda Dheraj watershed project (Full Implementation Phase), District Una with a grant of ` 105.88 lakh are under implementation through NGOs with the direct support from NABARD. Patwa Khad watershed development project has been sanctioned with grant of ` 12.65 lakh under Capacity Building Mode. So far, an amount of ` 383.47 lakh has been disbursed under the above projects against the sanctioned amount of ` 657.47 lakh. During the year 2014-15, an amount of ` 100.00 lakh was released. All the projects cover an area of about 7,687 hectares and 4,908 households from 118 villages. These projects would result not only in raising the water availability but prove to be an important mechanism for environment protection besides increasing productivity and income of the farmers and conserving the diminishing pastures, thus facilitating animal husbandry also.


  1. Tribal Development through the Tribal Development Fund (TDF)

3.41                NABARD,Regional Officer,


Shimla has sanctioned three projects under tribal development fund. First project covers Tribal Development Programme in 4 villages of Amb block viz. Aloh, Suhin, Basuni & Dhargujjran with a grant assistance of `92.81 lakh in District Una and second project on traditional livelihood for tribal families in Baroti, Sanehara, Behri & Tihri villages of Jhandutta block of district Bilaspur with a grant assistance of `104.54 lakh. Third project on Integrated Tribal Development has been sanctioned in Rupi, Chota Kamba and Naptha Panchayats of Nichar Block of Kinnaur District by HARP, Shimla with grant assistance of ` 317.76 lakh and loan of ` 40.50 lakh. These projects aims at setting up of Wadis (small orchards) as well as dairy units in selected villages covering about 680 acres of area and 1,090  tribal families  for  plantation  of Mango, Kinnow ,Lemon, Apple, Walnut, Pear, Wild Apricot with total grant support of ` 515.00 lakh and loan of `40.50 lakh from NABARD. The projects are expected to provide tribals with an opportunity to raise their income level through the wadi and dairy initiatives.


  1. Support through  the  Farm

Sector Promotion Fund (FSPF) 3.42 Under FSPF, 20 projects and 12 seminars/ workshops/ fairs/ Apple calendar have been funded so far with a grant assistance of113.01 lakh. So far, upto 31.12.2015, a grant assistance of `112.15 lakh has been released for the purpose. These projects pertain to validation and promotion of fixed bee hives for rearing indigenous honey bee (Apis cerena), Promotion and Relication of System of Rice Intensification (SRI) method for sustainable live hood, Project for Agricultural Development with focus on System of Wheat intensification, Farmers training and demonstration on production and protection technology of temperate fruits in far flung areas, Validation and promotion of production practices of Exotic vegetables for Susutainable income, Piolt Project on Augmenting Productivity of lead Crop

Activities through Adoption of Sustaionable Agriculture practices, Dissemination of technology for Raising healthy Nursery of vegetable Crops, project on Strengthening of improved fodder cultivation and silage making, Project on ‘Demonstration and promotion of integrated apple crop management technologis with farmers’ participation approaches in apple growing districts, Promotion and popularization of production, protection and marketing techniques for quality vegetables, Project on introduction and propagation of Azolla as an economic feed substitute for livestock, project on ‘productivity enhancement by setting up of ‘Cattle Development Centre’ project on Promotion of commercial cultivation of potential flowering potted plants, on Temprate Region etc. covering Solan, Una, Bilaspur, Shimla, Kullu, Kangra and Mandi districts of the state. Through the projects and seminars/ workshops/ fairs about 28,000 farmers have been benefitted.


  1. Promotion of Farmer Producer Organisation (FPOs)

3.43                Ministry   of   Agriculture, Government of India, has allocated a budget of ` 200.00 crore for formation of 2,000 Farmer Producer Organisations in the country. In the state of Himachal Pradesh, NABARD has sanctioned a grant of `18.49 lakh to 19 NGOs for formation / promotion of 58 FPOs in Shimla, Mandi, Kinnaur, Sirmaur, Chamba, Kangra, Hamirpur, Bilaspur, Kullu and Lahaul & Spiti districts.These

FPOs will undertake production, primary processing and marketing of vegetables, medicinal and aromatic plants and flowers on aggregation basis.


  1. Umbrella Programme on Natural Resource Management (UPNRM)

3.44 NABARD has been implementing NRM based projects like watershed and wadi projects for the past 16 years under Indo-German collaboration with support from KFW and GTZ. With a view to restructure bilateral cooperation in the field of NRM, the Govt. of India and Germany have launched an UPNRM. NABARD and German Development Cooperation have been identified as the two strategic partners in the programme. The objective of the programme is to reduce poverty by creating livelihood opportunities, increasing farm income, strengthening the agriculture value chain and conserving the natural resources. To achieve environmental friendly economic growth across all strata of society, UPNRM supports projects that link natural resource management with livelihood improvements of the rural poor. In the State, upto 2015-16 (31.12.2015) financial assistance of `50.55 lakh has been sanctioned by Himachal Pradesh

Regional  Office  of  NABARD  under UPNRM projects.


Rural Non-Farm Sector


3.45                NABARD  has  identified


Rural Non-Farm Sector as one of the thrust areas of development. It is providing refinance support to Commercial Banks/RRBs and Cooperative Banks for development of

Rural Non-Farm sector in the State. NABARD is also supporting Swarojgar Credit Card (SCC) Scheme by way of refinance, for the benefit of rural artisans and other small entrepreneurs, by keeping provision of timely and adequate credit for working capital or

block capital or both to them. In addition to providing refinance for production and marketing of Rural Non-Farm products, NABARD is providing financial assistance for promotion of skill/entrepreneurship development amongst the Rural Youth, Training by Master Craftsman, Rural Development and Self Employment Training Institutes RUDSETIs, RUDSETI type of institutes engaged in training rural youth in various activities having potential for employment and income generation. Skill Development Initiatives envisage to develop, upgrade or diversify the existing skills of the people in rural areas looking for wage employment or livelihood opportunities both in group mode or individually. The cumulative number of SDPs sanctioned in the State till December, 2015 was 233 involving grant assistance of `120.18 lakh benefiting about 4,832 persons.


Ground Level Credit Flow



(a)       The credit flow at the ground level during 2014-15 for Priority Sector aggregated `10,964.98 crore representing an increase of 17 percent over 2013-14. The target for 2015 -16 has been fixed at `13,222.79 crore for various banks based on Potential Linked Credit Plans prepared by NABARD. Till 30thSeptember, 2015, the achievement against this was ` 6,124.90 crore.


(b)       NABARD has been preparing the district level Potential Linked Credit Plans (PLPs) on an annual basis for all districts of the State which reflect in a realistic way the ground level potentials, as also the credit and non-credit linkages needed for achieving the targets



envisaged. The PLPs are prepared based on detailed discussions/ interaction with various stakeholders viz. State Govt, District Administration, Banks, NGOs, farmers and other related agencies. Broad sector wise PLP projections for 2016-17 has been assessed at `16,124.61 crore for Himachal Pradesh.


Financial Inclusion


  • Financial Inclusion is the process of ensuring access to appropriate financial products and services needed by all sections of the society in general and vulnerable groups such as weaker sections and low income groups in particular at an affordable cost in fair and transparent manner by mainstream institutional players. Government of India constituted two funds viz. Financial Inclusion Fund (FIF) and Financial

Inclusion Technology Fund (FITF) to provide impetus to financial inclusion initiates in the country. Both were merged to create a single “Financial Inclusion Fund” following intervention under FIF & FITF have been made by NABARD in Himachal Pradesh to scale up Financial Inclusion drive.


  • The objective of FIF is to support “developmental and promotional activities” with a view to securing greater financial inclusion, particularly among weaker sections, low income groups and in backward regions/ hither to unbanked areas. NABARD continued to manage FIF for meeting the cost of developmental and promotional interventions. The major interventions taken during 2014-15 as on 31stDecember, 2015 are as under:


  • For spreading awareness regarding financial literacy in the state, 782 financial literacy camps have been organised in the state covering all the districts including Lahaul-Spiti. Sanctioned grant assistance of `  65.60  lakh  to  Regional  Rural

Bank and  Cooperative  banks in State for setting up 13 Financial Literacy Centres (FLC) at district/ block level for spreading financial education among relatively remote

and backward areas.


  • Scaled up financial literacy drive through Jingles/TV scrolling on BIG FM, AIR and Doordarshan.


  • Supported Regional  Rural  Bank (RRB) for promoting PMJDY/ financial literacy through magic shows/ nukkad natak in international “Kullu Dussehra festival” and international “Lavi Fair” Rampur, Shimla.


  • Promoted financial literacy through magic shows/ nukkad natak in all the districts of Himacahl pradesh.


  • Published advertorial on financial literacy in leading newspapers of the state.


  • Supported SLBC, RRB and Coop. Banks for spreading message of financial literacy through literacy material like calendar, diary, guide and posters.


  • Three projects were sanctioned under this fund for issue of 98,600 Rupay KCCs to RRB and


Cooperative Bank in the State. Rupay Kisan Card will enable KCC account holders to access anywhere anytime banking facilities.


  • One project for meeting operational cost i.e., reimbursement of Inter-Change Fee `15.00 and Switching Fee 2.50  per  transaction  of  RuPay KCC Card was sanctioned to Cooperative Bank.
  • An amount of `57.41 lakh has been sanctioned to HPGB, Mandi for issuance of 2,97,394 Rupay Card for the Basic Service Accounts holders.


  • An amount of `28.80 lakh has been sanctioned to HPGB, Mandi for purchase of 100 Micro ATMs which will be deployed with the Business correspondents in the rural area.


As on 31st December, 2015, an amount of ` 353.09 lakh has been sanctioned to all stake holders in the State for various initiatives under FIF.


New Business Initiatives


Financial Assistance to Producers Organisation (PODF)


3.49 In order to support and finance Producers Organisations, NABARD has set up the “Producers Organisations Development Fund”. The fund has been set up to support any registered producers organization viz., Producers Company (as defined under Sec 581 A in part IXA of Company’s Act 1956), Producers Cooperatives, registered Farmer Federations, Mutually Aided Cooperative Societies, Industrial Cooperative Societies, other registered federations, PACS, etc. set up by producers to meet the needs of the producers (farmers, artisans, handloom weavers, etc.) by providing timely credit (mix of loan & limited grant), capacity building of producers, strengthening of Producers’ Organisation.


Financial assistance to PACS for taking up Multi Service Activities


3.50 In order to enable PACS to provide more services to their members and generate income for themselves, an initiative has been taken to develop PACS as Multi service Centres for enabling the PACS to provide ancillary services to their members and for creating additional business avenues and diversify its activities.In the year 2015-16 up to 31.12.2015 financial assistance of ` 87.40 lakh has been sanctioned by Himachal Pradesh Regional Office of NABARD.


Financial Assistance to Federations

3.51   In  order  to  strengthen Marketing Federations/ Cooperatives in the marketing and other agriculture activities a separate line of credit, viz. Credit Facilities to Federations has been made available for the Marketing Federations/ Cooperatives to promote the marketing of agriculture produce and other agriculture activities. Marketing Federations/ Cooperatives having PACS and other producers’ organisations as members/share holders are eligible to avail financial assistance under this scheme. Financial assistance will be available in the form of short term loan for crop procurement under Minimum Support Price Scheme (MSP) and supply of seeds, fertilizers, pesticides, plant protection, etc to the farmers and in the form of long term loan for post harvest handling including sorting & grading, primary processing, marketing etc. Such Federations/ Cooperatives should also be supported for providing agro advisory services and market information through e-agriculture marketing.


Financial Assistance to Cooperative Banks


3.52 NABARD has been traditionally providing refinance support to District Co-operative Banks through State Cooperative Banks. NABARD has designed a Short Term Multi purpose Credit Product for financing the CCBs directly for meeting working capital and farm asset maintenance needs of the individual borrowers and affiliated Primary Agricultural Cooperative Societies (PACS).


Investment Credit


  • The scheme     for Development/    Strengthening    of Agricultural Marketing Infrastructure, Grading and Standardization (AMIGS) and Grameen Bhandaran Yojana, a

Capital Investment Subsidy scheme for Construction/Renovation of Rural Godowns has been formulated by Govt. of India to develop marketing infrastructure in the country to cater to the post-harvest requirement of production and marketable surplus of various farm products. From 1st April, 2014, both these schemes have been merged under “Agriculture Marketing Infrastructure (AMI)”, a sub-scheme under “Intergated Scheme for Agricultural Marketing (ISAM)”. During 2014-15, one unit has been established with total subsidy release amounting to ` 6.16 lakh.


  • With a view to provide sustainable employment opportunities to members of SHGs and rural folks to increase their income level and also to increase milk production in the state by better cattle and milk management, through DEDS scheme of Government of India. During 2014-15 `125.79 lakh subsidy was disbursed to 157 beneficiaries and during 2015-16 up to 31.12.2015 `141.59 lakh subsidy has been disbursed to 171 beneficiaries.


3.55 In addition to this,four more Government sponsored Schemes namely “ Agriclinic and Agribusiness centres Scheme”, “Scheme for commercial production Units of organic inputs under National Project on Organic Farming”, “National Livestock Mission” and “Scheme for promoting solar Photovoltaic (SPV) Water pumping

Systems for Irrigation Purpose” are operational in the state under which subsidy is routed through NABARD.




3.56 NABARD Consultancy Services (NABCONS) is a wholly owned subsidiary promoted by National Bank for Agriculture and Rural Development (NABARD) and is engaged in providing consultancy in all spheres of agriculture, rural development and allied areas. Nabcons leverages on the core competence of the NABARD in the areas of agricultural and rural development, especially multi disciplinary projects, banking, institutional development, infrastructure, training, etc. The broad areas of specific competence in which the consultancy assignments are taken up by NABARD Consultancy Services are feasibility studies, project formulation, appraisal, financing arrangement, project management and monitoring, concurrent and impact evaluation, restructuring of agri-business units, vision documentation, development administration and reforms, institution development and turnaround of rural financial institutions, performance rating of rural agencies, bank supervision, policy and action research studies, seminars on rural development themes, micro finance related training, exposure visits and capacity building, training of trainers and building up training institutions, non-farm enterprise promotion.


3.57 NABCONS has completed study assignment on “Third Party Evalution of Rashtriya Krishi Vikas Yojna-2013-14” for HP Govt. In 2015-16. NABCONS has also taken up evaluation study of Special central Assistance to SCs, OBCs and Minority communities schemes in HP in 2015-16. Besides this, NABCONS has also completed the assignment on “Design Development, Implementaion & Maintenance of Mandi Management Information System (MMIS) in APMCs for Himachal Paradesh State Agriculture


Marketing Board (HPSAMB)”, Feasibility study for setting up of Controlled Atmosphere (CA)/cold stores in HP for HPSAMB”, “Third party inspection of Border Area Development Programme (BADP) projects-2011-12 & 2012-13” for Tribal Development Department, GoHP in Himachal Pradesh. In Addition, NABCONS also taken up appraisal of loans cases for cooperative banks in H.P.


Institutional Development


3.58 NABARD has been extending financial support to Agriculture Cooperative Staff Training institutions (ACSTIs) under SOFTCOB out of Cooperative Development Fund

(CDF) to facilitate effective training delivery and support their training capacities for visible improvements in  the Cooperative Credit System (CCS) with enhancement of skills and capacities of staff available with CCS. Under the scheme the training expenditure as well as capital expenditure of the institutions is reimbursed as per the scheme.


3.59 NABARD has initiated a participative exercise with the help of C-PEC and selected CTIs to bring about an objective improvement in the performance of the CTIs and Linking the same to SOFTCOB assistance. The CTIs must accord priority to training programmes that address to the training needs of Cooperative Banks and PACS in areas such as, core banking solutions, computerisation, financial / profitability aspects and risk management areas, etc. For enhanced competency in financial sector. NABARD extended financial support of `36.49 lakh in 2013-14 and `27.59 lakh in 2014-15 to ACSTI of the State.


NABARD’s initiatives for Climate Change in Himachal Pradesh


3.60 NABARD has been designated National Implementing Entity (NIE) for Adaptation Fund (AF), Green Climate Fund (GCF) set up under United Nation’s Framework convention on Climate Change (UNFCCC) and for ‘National Adaptatiion Fund for climate change (NAFCC) set up by the Ministry of Environment, Forests and Climate Change (MoEF &CC).


3.61 NABARD in its efforts to meet the future challenges of climate change has facilitated the preparation, development and sanction of a project on ‘Sustained Livelihoods of Agriculture Dependent Communities in Drought Prone District of Himachal Pradesh through Climate Smart Solutions’ in Sirmour District from the Executing Entity (EE) i.e. Department of Environment, Science and Technology, Government, of Himachal Pradesh. The MoEF&CC has sanctioned `20 crore for the project in National Steering Committee on climate change, NABARD will coordinate with the EE for execution of the project. This is a big achievement; the state of Himachal Pradesh is one of the first three states who have been able to get the project sanctioned under NAFCC.





4.1 The Department of Excise and Taxation is a major revenue earning department of the Government of Himachal Pradesh.


During the year 2014-15 revenue collected under VAT was `3,660.57 crore which is 70.67 percent of total revenue collected of ` 5,179.78 crore. During the year 2014-15 revenue of `1,044.14 crore has been collected under the head 0039 -State Excise Act against the target of `1,014.81 crore, which is 20.16 percent of total revenue collection and remaining 9.17 percent collection was under the HP Passenger and Goods Tax Act, HP Luxury Tax Act, HP Certain Goods Carried by Road Tax Act and HP Entertainment Tax Act.


4.2 The Department has provided different facilities and the targets fixed for these facilities have been described below:-


  • With effect from 1.04.2015 the quarterly/monthly returns have been merged and the dealer will be required to file only return in Form VAT-XV. This will not only save time but lead to better mapping of the data provided by the dealer.


  • VAT rate of ATF sold to non-scheduled airlines (other than defence) has been decreased from 27 percent to 1 percent w.e.f. 1.05.2015.


  • The taxable quantum for a person running a hotel, restaurant, bakery and other similar establishments, wherein food preparations including tea are served has been raised from ` 00 lakh to ` 8.00 lakh w.e.f. 18.05.2015.


  • Goods vehicles entering the State with full e-declaration of loaded goods are not required to stop at the Barrier w.e.f. 18.05.2015. It is pertinent to mention that outgoing goods vehicles are already not required to stop at the barrier in case they make e-declaration.


  • For general dealers (other than a dealer running a restaurant holding bar license for retail sale of liquor under the Himachal Pradesh Liquor License Rules, 1986 and a dealer dealing in medicine) the cut off turnover is up to `00 lakh. Dealers making inter-state purchases who sell goods exclusively within the State after purchasing them are also allowed to opt for this scheme. The lump sum tax rate is computed at the rate of 1 percent of the taxable turnover during the quarter.


  • The procedure of deemed assessment has been simplified and streamlined, so that the dealers are facilitated and the dealers filing correct and complete returns are covered under the same.


  • VAT on LED bulbs and fabrication of bodies of Trucks and Buses has been reduced from 13.75 percent to 5 percent w.e.f. 25.07.2015.


  • Energy efficient Chullahs certified by The Energy and Research Institute (TERI) or approved by the Ministry of New and Renewable Energy (MNRE) have been exempted from payment of VAT w.e.f. 25.07.2015.


  • E-payment of  tax  under  CST- 1970 and VAT-2005 has been made compulsory w.e.f. 1.10.2015 to facilitate the dealers and to result in better accounting of the tax deposited.



  • With a view to facilitate the dealers for tax payment 40+ Banks have been integrated in Cyber Treasury w.e.f. 6.06.2015.


  • The dealers whose annual return will bear their digital signature will not be required to file hard copy of the same w.e.f. 14.12.2015.


  • With effect from 4.01.2016, the goods on which rate of tax otherwise applicable is more than 4 percent other than Motor spirit, (Petrol including ATF and Diesel), when sold to Central Police Canteen shall be taxable @ 4 percent. Similarly goods when further sold by Central police Canteen directly to their serving and retired Central Armed Police Forces Personals will also be taxable @4 percent.


  • Entry tax for Industrial inputs to new Industrial Units that have commenced commercial production on or after 1.10.2015 has been reduced from 2 percent to 1 percent.


  • Electronic facility for filling e-return and deposit of tax in Cyber Treasury by the registered dealers w.e.f. 01.04.2015 under the Revenue Head 0045 Luxury Tax has been made available, to make the tax administration more smooth and transparent.


  • The power has been granted to AETC/ ETO of the District to authorize the industrialists/ dealers to collect payment of Additional Goods Tax/Certain Goods carried by Road, under the HP PGT Act/ HP CGCR.


  • The Government has reduced CGCR tax on packed drinking water from ` 7.50 per 10 Lt. to `2 per 10 Lt. to make this Industry more competitive.


  • The Government has exempted the registered proprietor of new hotels from payment of Luxury Tax in rural areas, which came into operation after 1.04.2014 for a period of ten years from the date of operation.


  • Magic and Circus shows have been exempted from Entertainment    Duty    from

1.04.2015 for a period of ten years to promote traditional arts.


  • The revenue targets for the year 2015-16 has been fixed at `1,124.10 crore which is expected to be achieved successfully at the closure of this financial year. The State has implemented its own Excise Act-2011 w.e.f. 18.08.2012 under which a specific provision for ‘Confiscation of Vehicle’ being used for the smuggling of liquor has been made. The affixing of Holograms  on  each  bottle  of IMFL and Country Liquor has made compulsory, so that consumer may get qualitative liquor.





Year State Excise Sales Tax PGT OTD Total
2000-01 209.17 302.05 43.05 52.60 606.87
2001-02 236.28 355.08 34.26 63.74 689.36
2002-03 237.42 383.33 31.45 75.10 763.30
2003-04 280.21 436.75 33.96 85.24 836.16
2004-05 299.90 542.37 38.32 97.83 978.52
2005-06 328.97 726.98 42.61 124.14 1222.70
2006-07 341.86 914.45 50.21 118.64 1425.16
2007-08 389.57 1092.16 55.12 137.13 1673.98
2008-09 431.83 1246.31 62.39 169.00 1909.53
2009-10 500.72 1488.16 88.74 197.13 2274.75
2010-11 562.95 2103.39 93.26 283.35 3042.95
2011-12 707.36 2476.78 94.36 294.96 3575.46
2012-13 809.86 2728.22 101.39 331.88 3971.35
2013-14 952.67 3141.09 104.86 326.28 4524.90
2014-15 1044.14 3660.57 110.05 365.02 5179.78
2015-16(upto 790.21 2982.29 87.08 276.47 4136.05
Dec., 2015)






Price Situation


5.1 Containment of Inflation is on the priority list of Government. Inflation hurts the common man most as their income is not indexed to prices. Inflationary tendencies are measured by Wholesale Price Index (WPI). The Wholesale Price Index at National levelduring the month of December, 2014 was 178.7 which decreased to 177.4 (P) in the month of December, 2015 showing an inflation rate of (-) 0.7 percent. The month-wise average Wholesale Price Index Numbers for the year 2015-16 depicting inflation rate is given in the table 5.1 below:-





All India Wholesale Price Index No. (Base 2004-05=100)

Month 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Inflation
April 125.0 138.6 152.1 163.5 171.3 180.8 176.4 -2.4
May 125.9 139.1 152.4 163.9 171.4 182.0 178.0 -2.2
June 126.8 139.8 153.1 164.7 173.2 183.0 179.1 -2.1
July 128.2 141.0 154.2 165.8 175.5 185.0 177.6 -4.0
August 129.6 141.1 154.9 167.3 179.0 185.9 176.5 -5.0
September 130.3 142.0 156.2 168.8 180.7 185.0 176.5 -4.6
October 131.0 142.9 157.0 168.5 180.7 183.7 176.9 -3.7
November 132.9 143.8 157.4 168.8 181.5 181.2 177.6(P) -2.0
December 133.4 146.0 157.3 168.8 179.6 178.7 177.4(P) -0.7
January 135.2 148.0 158.7 170.3 179.0 177.3 ..
February 135.2 148.1 159.3 170.9 179.5 175.6 ..
March 136.3 149.5 161.0 170.1 180.3 176.1 ..
Average 130.8 143.3 156.1 167.6 177.6 181.2 ..


  • Provisional


  • The price situation in Himachal Pradesh remained under constant watch. The Food, Civil Supplies   and   Consumer   Affairs Department  of  the  State  has  been

keeping constant vigil on the price situation and maintained the mechanism of supplying the essential consumer commodities to the public through a network of 4,856 fair price shops. In order to monitor food insecurity and vulnerability issues the Department of Food, Civil Supplies and Consumer Affairs is also implementing Food

Insecurity and Vulnerability Mapping System (FIVIMS) through G.I.S. As a result of various measures by the State Government     the  prices  of essential



commodities remained under  control.
Consumer Price Index (CPI)IW(Base
2001=100) of Himachal Pradesh
increased at lower rate as compared to
the  National level. The C.P.I.  for

industrial workers in H.P. increased by only 6.25 percent in December, 2015 against 6.32 percent at National level. Further, in order to check hoarding and profiteering and other malpractices in the sale and distribution of essential commodities of mass consumption, the State Govt. is vigorously enforcing various Orders/Acts. A system of regular weekly monitoring of prices of essential commodities continued during the year so that effective measures can be taken in time to check undue price rise.



Table – 5.2


Consumer Price Index Numbers for Industrial Workers in H.P. (Base 2001=100)

Month 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Percentage
change over
previous year
April 158 167 185 201 219 227 3.7
May 158 169 185 205 219 229 4.6
June 158 169 186 208 221 230 4.1
July 163 174 192 213 227 233 2.6
August 164 174 195 214 229 234 2.2
September 165 176 195 215 228 236 3.5
October 165 179 195 217 227 239 5.3
November 165 179 196 218 225 241 7.1
December 166 177 196 213 224 238 6.25
January 168 178 198 214 225 ..
February 166 178 199 215 225 ..
March 165 180 199 217 226 ..
Average 163 175 193 213 225 ..



Table- 5.3


Consumer Price Index Numbers for Industrial Workers of All India (Base 2001=100)

Month 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Percentage
change over
previous year
April 170 186 205 226 242 256 5.8
May 172 187 206 228 244 258 5.7
June 174 189 208 231 246 261 6.1
July 178 193 212 235 252 263 4.4
August 178 194 214 237 253 264 4.4
September 179 197 215 238 253 266 5.1
October 181 198 217 241 253 269 6.3
November 182 199 218 243 253 270 6.7
December 185 197 219 239 253 269 6.32
January 188 198 221 237 254
February 185 199 223 238 253
March 185 201 224 239 254
Average 180 195 215 236 251







Targeted     Public  Distribution System(TPDS)


6.1 One of the main constituents of the Government strategy


for   poverty alleviation is Targeted
Public Distribution System  which
ensures availability of essential

commodities like Wheat, Wheat Atta, Rice, Levy Sugar and Kerosene through a net work of 4,856 Fair Price Shops. The total families for distribution of essential items have been divided in two categories viz;

  • National Food Security Act (NFSA) (Eligible Household)
    1. Antyodaya Anna  Yojana (AAY)
  1. Priority Households


  • Other than NFSA (APL)


6.2 In the State, the TPDS, having total ration cards 18,27,900 covering cards population 77,33,519. These card holders are provided with essential commodities through the network of 4,856 fair price shops which constitutes 3,210 Cooperative Societies, 37 Panchayat, 90 Civil Supplies Corporation, 1,513 Individual and 6 Mahila Mandals in the State.


6.3 Distribution of essential commodities during the year 2015-16 upto December, 2015.



Sr. Name of Commodity Unit Distribution of items upto
No. December,2015
1 Wheat/Atta APL M.T. 1,35,699
2 Rice APL M.T. 66,293
3 Wheat BPL M.T. 18,111
4 Rice BPL M.T. 16,259
5 Wheat AAY/NFSA M.T. 84,578
6 Rice AAY/NFSA M.T. 60,927
7 Rice Annapurna M.T. 51
8 Rice M.D.M. M.T. 11,617
9 Levy Sugar/
Sugar NFSA/APL M.T. 38,902
10 Dal Channa M.T. 12,394
11 Urd Whole M.T. 1,607
12 Kabli Channa M.T. 11,019
13 Black Masur M.T. 4,100
14 Ioddised Salt M.T. 10,080
15 Refind Oil K.L. 19,135
16 Mustard Oil K.L. 6,684


6.4 Presently, following food TPDS   &   H.P   State   subsidised
items  are being  distributed  under schemes which is as under :-


Table- 6.2
Sr.No. Per Ration Card Distribution (Quantity)
1 Up to two members One Kg. Dal Rajmah, One Kg. I.Salt and only One litre
2 Three or four members One Kg. Dal Rajmah , One Kg. Dal Chana, One Kg. I. Salt,
Two litres E/Oil.
3 Five & above members One Kg. Dal Rajmah, One Kg. Dal Chana, One Kg. Dal
Black Masur,  One Kg. I.Salt, Two litre E/Oil

Rate of Dal Rajmah @ `30.00 per Kg., Dal Chana@`35.00 per Kg., Black Masur@`45.00 per Kg., I. Salt@ `4.00 per Kg., Edible oil (Refind Oil) @ ` 55.00 per litre,


  • Other than NFSA


i) APL 15 Kg.W/Atta @`8.50 per Kg., 6Kg. Rice @`10.00 per Kg.
Note:- The State Govt. has decided to provide 20 Kg. Atta and 15 Kg.
Rice per family per month to APL category of Tribal Areas of the
ii) BPL The BPL families is being issued additional food-grains to
make good the quantity equal to 35 Kg. per family per
month at BPL rate i.e. Wheat@`  5.25 per Kg., Rice
@` 6.85 per Kg. The quantity of wheat and rice will be
distributed according to the household members for which
detail is as given. For one member family 17 Kg. and 13
Kg., two members family 14 Kg. & 11 Kg., three members
family 11 Kg. & 9 Kg., four members family 8 Kg. and 7
Kg., five members family 5 Kg. and 5 Kg., six members
family 2 Kg. and 3 Kg. respectively.
iii) For Annapurna card 10 Kg. rice free of cost.


  • NFSA


i) For AAY ration card 35 Kg. per family i.e. 20 Kg. Wheat @ `2.00 per Kg. and 15
holder Kg. Rice @` 3.00 per Kg.
ii) For Priority 5 Kg. per member- 3 Kg. Wheat @`2.00 per Kg. and
Households 2 Kg. Rice@ `3.00 per Kg.
6 Sugar For APL ration card holders 600 gms. per member per
month@`19.50 per Kg.


For Non-APL ration card holders 600 gms. per member per month @`13.50 per Kg.



Table 6.3 Items Stocked in the Tribal Areas for Distribution as on December,2015


Sr. Name of Unit Quantity
No. Commodity
1 Wheat/Atta APL M.T. 4,774
2 Rice APL M.T. 3,355
3 Wheat BPL M.T. 417
4 Rice BPL M.T. 166
5 Wheat M.T. 2,394
6 Rice AAY /NFSA M.T. 2,054
7 Rice Annapurna M.T. 1
8 Sugar M.T. 1,393
9 Kerosene Oil K.L. 266
10 L.P.G. 14.2 Kg. No. 1,26,437
11 I.Salt M.T. 500
12 Dal Chana MT 236
13 Black Masur M.T. 149
14 Kabli Chana M.T. 309
15 Edible Oil K.L. 598


Other Activities


Petrol and Petroleum Products: tune of `900.28 crore as compared to `867.90 crore during the corresponding period of last year.


6.7 Presently, the Corporation is also providing other essential items like cooking gas, Diesel/Petrol/Kerosene Oil and life saving drugs/medicines at reasonable rates to the consumers of the State through its 117 Wholesale Godowns, 89 Retail Shops/ Apna Store, 54 Gas Agencies, 4 Petrol Pumps and 36 Medicine Shops. In addition to this, the procurement and distribution, of non-controlled commodities (like sugar, pulses, rice, atta, detergents, tea leaves, excercise note books, cement, CGI Sheets, medicines items under SNP, MNREGA & petroleum products etc.) through wholesale godowns and retail shops, of the Corporation which certainly has played an important role in stabilising prices of these commodities prevailing in the open market. During the current financial Year, 2015-16, up



  • At present, there are 28 to  December,  2015  the  Corporation wholesale kerosene oil dealers, 329 Petrol Pumps and 137 Gas Agencies working in the state.


Himachal Pradesh State Civil Supplies Corporation (HPSCSC)

6.6                The   H.P.   State   Civil Supplies Corporation as a “CENTRAL

PROCUREMENT AGENCY” for all controlled and non -controlled essential commodities in the state is procuring & distributing food grains and other essential commodities to the entire satisfaction of the Government under the Targeted Public Distribution System

(TPDS) and National Food Security Act (NFSA). During the current financial year 2015-16, up to December,2015 the Corporation procured & distributed various commodities under TPDS to the tune of `340.30 crore as compared to `295.64 crore during corresponding period of last year.



6.8 The HPSCSC is arranging the supplies of rice & other supplementary items under the Mid-day- Meal Scheme to Primary and Upper Primary Schools as per the allocation made by the concerned Deputy Commissioners. During the current financial year 2015-16 up to December, 2015 the Corporation arranged the distribution of 11,617 MTs rice as compared to 12,557 MTs during the corresponding period of last year under this scheme. The Corporation is also arranging the supplies of identified Specially Subsidized items (pulses of various kinds, Edible Oil and I.Salt) under the State Sponsored Schemes as per the decisions of the purchase committee constituted by the Govt. During the current financial year 2015-16, upto December, 2015 the Corporation has distributed these commodities under the said scheme to the tune of `277.62 crore as compared to `293.16 crore during corresponding period of last year to the Ration Card holders as per the scale fixed by the state government. During the year 2015-16 for the implementation of this scheme, a budget provision of `210.00 crore has been made as State subsidy. The corporation is likely to achieve a total turnover of `1,419.60 crore during the year 2015-16.


New Sales Centres Sanctioned/ Opened


6.9 The Corporation has sanctioned/ opened one LPG Agency at Kullu during the year 2015-16 in public interest.


Proposal of opening APNA STORE / MALL


6.10 The Corporation has initiated proposal of opening ‘APNA STORE /MALL’ in the identified HRTC’s bus stands in the State. These APNA STORE/ MALL have been made functional at Bus stand Nagrota Bagwan and Palampur in the first phase, for the sale of various non-controlled items. Efforts are being made for opening APNA STORE / MALL in Mandi and Shimla Bus stand. In the Bus stand Kangra this is being made functional very shortly. On the other hand more Medicine Shops are proposed to be opened in the premises of the Govt. Hospitals.


Government Supplies


6.11                H.P. State Civil Supplies


Corporation Ltd., is managing the procurement and supplies of medicines to Govt. hospitals, Cement to Govt. Department/ Board/ Corporation and other Govt. institutions and GI/DI/CI Pipes to I & PH Department of Govt. of H.P, School Uniform to Education Department of Govt. of H.P. During the


current financial year, 2015-16 the
position of Govt. supply remain as
1 Supply of Cement to `101.92 crore
Govt. Deptt./ Boards/
2 Supply of Medicine `1.08 crore
to Heath/ Ayurveda
3 GI/DI/CI Pipes to 65.00 crore
I&PH Department
4 School uniform to `36.49 crore
Total `204.49 crore

MNREGA Cement Supplies


6.12                 During the financial year 2015-16  upto  December,  2015  the

Corporation managed the procurement & distribution of 22,00,489 bags cement amounting to `56.21 crore to various Panchayats used for developmental works of the Panchayats in the State.


Food Security in Tribal and Inaccessible Areas of the State


6.13 The Corporation is committed to provide all essential commodities, Petroleum products including kerosene oil and LPG in tribal and inaccessible areas, where private traders do not venture to undertake these operations due to economic non-viability of the trade. During the current financial year, 2015-16 the supplies of essential commodities and Petroleum products to tribal and snow bound areas were arranged as per the tribal action plan of the Government.


Dividend and Chief Minister Relief Fund


6.14 The corporation is earning profit since its inception 1981. During the year 2015-16 a net profit of `2.06 crore was earned and a sum of `35.51 lakh was paid as dividend to the State Government of H.P. The corporation under the Corporate Social Responsibility scheme made available 14.00 lakh to HPPWD, Dharmshala for construction of community hall and gymnasium and purchase of sports items at Nagrota bagwan for the year 2015-16. In addition to this ` 5.00 lakh for maintenance of State Martyrs Memorial at Dharmshala was provided. For Rehablitation of fire victims village Kotla, District Kullu was provided `5.00 lakh as relief measure. In the Chief Minister relief fund `31.00 lakh were donated during the year 2015-16.


Implementation of National Food Security Act, 2013 (NFSA)


6.15 The HP State Civil Supplies Corporation is playing major role in implementing the scheme through timely procurement, storage & supply of allocated food grains through its 117 wholesale centres to Fair Price Shops for further distribution among the beneficiaries of the State. During the financial year 2015-16 up to December,

2015, 60,925 MTs rice and 84,577 MTs wheat at the rate of `3.00 and `2.00 per Kg per month respectively have been distributed to the identified beneficiaries.

In addition to above, in the absence of separate Warehouse Corporation of the

State Government, the HP State Civil Supplies Corporation is managing storage capacity itself, through 22,910 MTs owned and 36,558 MTs hired godowns in the State. In view of


Capacity is being created and efforts are being made for constructing of godowns at various places ranging from 300 MTs to 1,000 MT capacity for which identification/ transfer of Govt. land in


has provided funds to the tune of `4.00 crore as per the Hon’ble Chief Minister Budget assurance speech 2015-16 for creating additional food grains storage capacity.




6.16                During the financial year, 2015-16, as per initiative taken by the corporation, the Steel Authority of India Ltd.  has  enthrusted  SAIL  Yard  at

Bhattakuffar for the supply of quality steel to various Govt. Department/ Board/ Corporation and upto December,2015 a total quantity of 1,538 MT steel has been supplied.







  • Agriculture is the main occupation of the people of Himachal Pradesh and has an important place in the economy of the State. Himachal Pradesh is the only state in the country whose 89.96 percent of population (Census 2011) lives in rural areas. Therefore dependency on Agriculture/Horticulture is ominent as it provides direct employment to about 62 percent of total workers of the State.


  • Agriculture happens to be the premier source of State Income (GSDP). About 10.4 percent of the total GSDP comes from agriculture and its allied sectors. Out of the total geographical area of State (55.67 lakh hectare) the area of operational holdings is about 9.55 lakh hectares and is operated by 9.61 lakh farmers. The average holding size is about


  • Distribution of land holdings according to 2010-11 Agricultural Census shows that 87.95 percent of the total holdings are of Small and Marginal. About 11.71 percent of holdings are owned by Semi Medium and Medium farmers and only


  • Percent by large farmers. The distribution of land holdings in Himachal Pradesh has been depicted in Table-7.1



Distribution of Land Holdings


Size of Category No. of Area Av.
Holdings (Farmers) Holdings (lakh Size
(hect.) (lakh) hect.) of Holding
Below 1.0 Marginal 6.70 2.73 0.41
(69.78%) (28.63%)
1.0-2.0 Small 1.75 2.44 1.39
(18.17%) (25.55%)
2.0-4.0 Semi 0.85 2.31 2.72
Medium (8.84%) (24.14%)
4.0-10.0 Medium 0.28 1.57 5.61
(2.87%) (16.39%)
10.0-Above Large 0.03 0.51 17.00
(0.34%) (5.29%)
Total 9.61 9.55 1.00


7.3 About 80 percent of the total cultivated area in the State is rainfed. Rice, Wheat and Maize are important cereal crops of the State. Groundnut, Soyabeen and Sunflower in Kharif and Rapeseed/Mustard and Toria are important oilseed crops in the Rabi season. Urd, Bean, Moong, Rajmash in Kharif season and Gram Lentil in Rabi are the important pulse crops of the State. Agro -climatically the state can be divided into four zones viz.:-


  • Sub Tropical, sub-mountain and low hills.


  • Sub Temperate, Sub Humid mid hills.


  • Wet Temperate high hills.
  • Dry Temperate high hills and cold deserts.



The agro-climatic conditions in the state are congenial for the production of cash crops like seed potato, off-season vegetables and ginger.


7.4 The State Government is laying emphasis on production of off-season vegetables, potato, ginger, pulses and oilseeds besides increasing production of cereal crops, through timely and adequate supply of inputs, demonstration and effective dissemination of improved farm technology, replacement of old variety seed, promoting integrated pest management, bringing more area under efficient use of water resources and implementation of Wasteland Development Projects. There are four distinct seasons with respect to rainfall. Almost half of the rainfall is received during the Monsoon season and remaining precipitation is distributed among other seasons. The State received an average rainfall of 1,251mm Kangra district gets the highest rainfall followed by Sirmaur, Mandi and Chamba.


Monsoon 2015


7.5 The performance of agriculture is closely related to the performance of monsoon. During the monsoon season of 2015 (June-September) in Himachal Pradesh the rainfall received was Normal in Hamirpur,Kangra, Kullu, Mandi & Shimla District, Deficent in Bilaspur, Chamba, Kinnaur, Sirmour and Solan,Scanty in Lahaul & Spiti. For Himachal as a whole, the total rainfall during the entire monsoon season season was (-) 27 percent below the annual normal rainfall. The Table 7.2 shows southwest





monsoon performance in various
districts. Table 7.2
Monsoon Season Rainfall
(June-September, 2015)
District Actual Normal Excess or
(mm) (mm) Deficient
Total %age
Bilaspur 704 877 (-) 173 (-) 20
Chamba 725 1406 (-) 682 (-) 48
Hamirpur 931 1079 (-) 148 (-)14
Kangra 1434 1582 (-) 148 (-) 9
Kinnaur 122 264 (-) 142 (-) 54
Kullu 483 520 (-) 37 (-) 7
L/Spiti 146 458 (-) 312 (-)68
Mandi 906 1093 (-) 188 (-)17
Shimla 616 634 (-) 18 (-) 3
Sirmaur 774 1325 (-) 551 (-)42
Solan 759 1000 (-) 241 (-)24
Una 1132 863 270 31
Average 613 844 (-) 231 (-) 27


Table 7.3


Post Monsoon Seasons Rainfall Data for the period from (October-December 2015)


District Actual Normal Excess or
(mm) (mm) Deficient
Total %age
Bilaspur 45 70 (-) 25 (-)35
Chamba 108 127 (-) 19 (-)15
Hamirpur 52 86 (-) 34 (-) 40
Kangra 64 105 (-) 41 (-) 39
Kinnaur 31 102 (-) 71 (-) 69
Kullu 77 98 (-) 21 (-)22
L/Spiti 44 143 (-) 99 (-) 69
Mandi 79 81 (-) 2 (-) 3
Shimla 48 75 (-) 27 (-)37
Sirmaur 16 87 (-) 71 (-)81
Solan 65 89 (-) 24 (-)27
Una 41 72 (-) 31 (-)43
Average 56 103 (-) 465 (-) 46



Normal     =    -19% to +19%

Excess =      20% and above

Deficient=         -20% to –59%

Scanty =      -60% to –99%


Crop Performance 2014-15


7.6                  The economy of Himachal Pradesh is largely depend on agriculture which still occupies a significant place in 2014-15 was generated by agriculture and allied sectors and any fluctuations in the production of food grains affect the economy significantly. During the Eleventh Five Year Plan, 2007-12 emphasis has been laid on production of off-season vegetables, potato, pulses and oilseeds besides cereal crops through timely and adequate supply of inputs, bringing more area under irrigation, approach of watershed development, demonstration and effective dissemination of improved farm technology etc. The year 2014-15 agriculturally remained a normal year. During the year 2014-15, the food grains production is estimated to be at 16.74 lakh MT against 15.85 lakh MT achieved during 2013-14. The production of Potato was 1.81 lakh MT in 2014-15 as against 2.05 lakh MT in 2013-2014. The production of vegetable during the year 2014-15 was 15.76 lakh MT as against 14.65 lakh MT in 2013-14.


Prospects 2015-16.


7.7 The food grain production target for 2015-16 are to be around


16.19 lakh MT The Kharif production mainly depends upon the behaviour of south west monsoon, as about 80 percent of the total cultivated area is rainfed. The sowing of Kharif crops starts from the end of April and goes up to the mid of June. Maize and Paddy are the the principal food grain crops growing during Kharif season. Other minor crops are Ragi, Millets and pulses. An area of 400.00 thousand hectare was sown under different Kharif crops. During this season about 20 percent of area is sown in the month of April-May whereas 70 percent of area is sown in the month of June and July which is a peak Kharif sowing period. Due to normal rain in the most part of the state, the sowing could be done in time and overall crop condition was normal. However, during the season heavy rainfall occurred during the month of July and August,2015 as a result of which crops were damaged to some extent. Rabi Sowing season normally starts in October and November. During this season the percent departure of rainfall was deficient and if the situation is still the same and drought like situation is prevailing in the state. If the rainfall dosen`t occur in near future, it will not be possible to achieve the targets of area as well as production. Vegetables are grown in both rainfed as well as assured irrigated areas. As adequate rainfall was not received during Rabi season,2015 which may also affect the production. The total foodgrains production during 2015-16 is anticipated/ expected to be at 16.19 lakh MT as against tentative final production estimates of 16.74 lakh MT during 2014-15. The production of Potato is anticipated at 1.90 lakh MT and production of vegetables anticipated at 14.80 lakh MT against 15.76 lakh MT during 2014-15 and target for 2016-17 is shown in Table 7.4



Foodgrains Production

(In ’000 MT)


Crop 2013-14 2014-15 2015-16 2016-17
(tentative Final) (Anti.Ach.) (Target)
Rice 128.49 119.17 132.00 131.00
Maize 678.25 752.66 730.00 750.00
Ragi 1.97 3.11 3.00 3.50
Millets 3.60 4.26 4.00 6.00
Wheat 685.45 720.86 690.00 650.00
Barley 35.18 31.63 35.00 38.00
Gram 0.40 0.53 2.50 3.50
Pulses 51.80 41.43 22.50 18.00
Foodgrains 1585.13 1673.65 1619.00 1600.00
II.Commercial Crops
Potato 205.28 181.38 200.00 195.00
Vegetables 1465.96 1576.45 1480.00 1500.00
Ginger(Dry) 1.84 1.84 3.00 5.00




Growth in Food grains Production

7.8 There is limited scope of increasing production through expansion of cultivable land. Like whole country, Himachal too has almost reached a plateau in so far as cultivable land is concerned. Hence, the emphasis has to be on increasing productivity levels besides diversification towards high value crops. Due to an increasing shift towards commercial crops, the area under foodgrains production is gradually declining as the area which in 1997-98 was 853.88 thousand hectares is likely to be declined to 832.60 thousand hectares in 2014-15. Increase in production thus reflects gain in productivity as is evident from the Table7.5



Table 7.5

Food grains Area and Production


Area Produc- Produc-
Year (`000 tion tion per
hect) (’000 hectare
M.T.) (M.T.)
2010-11 795.18 1493.87 1.88
2011-12 788.06 1544.49 1.96
2012-13 786.43 1541.33 1.96
2013-14 774.72 1585.13 2.05
2014-15 832.60 1673.65 2.01
(Ant Ach)



High Yielding Varieties

Programme (H.Y.V.P.)


7.9 In order to increase the production of food grains, emphasis has been laid on distribution of seeds of high yielding varieties to the farmers. Area brought under high yielding varieties of principal crops viz. Maize, Paddy and Wheat during the last five years and proposed for 2015-16 is given in table 7.6.



Area Brought Under High Yielding Varieties

(’000 hect.)


Year Maize Paddy Wheat
2010-11 278.65 75.20 327.00
2011-12 279.05 75.08 330.35
2012-13 279.60 76.90 336.56
2013-14 285.05 76.50 341.35
2014-15 288.00 74.00 352.00



There are 21 seed multiplication farms from where foundation seed is distributed to

stations, 13 potato development stations and 1 ginger development station in the



Plant Protection Programme


7.10 In order to increase the production of crops, adoption of plant protection measures is of paramount importance. During each season, campaigns are organised to fight the menace of crop disease, insects and pest etc. The Scheduled Castes/


Scheduled Tribes, IRDP families, farmers of Backward Areas and small and marginal farmers are provided plant protection chemicals and equipments at 50 percent cost. From October, 1998 the Government has allowed 30 percent subsidy on such material to big farmers also. Achievements and

Targets proposed in distribution of chemicals are shown in Table 7.7


Achievement and targets proposed


Year Coverage of Distribution
Area under of
plant chemicals
protection (M.T.)
(‘000 Hect.)
2012-17 425.000 600.000
(12th Five
Year Plan
2012-13 92.000 161.189
2013-14 120.514 210.900
2014-15 108.000 190.110
2015-16 100.000 175.000


Soil Testing Programme


7.11 In order to maintain the fertility of the soil during each season, soil samples are collected from the farmers field and analysed in the soil testing laboratories. Soil testing laboratories have been established in all the districts(except Lahaul &Spiti), where as four mobile soil testing vans out of which one exclusively for the tribal areas is in operation for testing the soil samples at site. These laboratories have been strengthened with latest equipments. During 2010-11, two static soil testing labs have been strengthened and one mobile lab has also been set up at Palampur in Kangra District. During 2014-15, 1,03,685 Soil Samples were analyzed and about 69,635 number of soil samples are expected to be analyzed during 2015-16. Soil testing programme has been adoped as flagship programme by Govt.It has also been ensured to provide Soil Health Cards to every eligible farmer by the end of 12th Plan which will help farmers to know the soil status and nutrient requirement etc.in their fields and to adopt soil test basis recommendations to use nutrient in their crops/ fields. The soil fertility map is being prepared by the CSKHPKVV Palampur by using Global Positioning System (GPS). The State Government. has also declared soil testing as public service under H.P.

Public Service Guarantee Act, 2011.


Organic Farming


7.12 The organic farming is becoming popular being suitable, environmental friendly and health concern to all concerned. Organic farming is being promoted in the state in a systematic manner by providing trainings, laying out demonstrations, organizing fairs/ seminars to the farmers. It has also been decided to set-up vermi-composting units at every house by the end of 12th Plan. Under this scheme financial assistance of `5,000 per farmer is being provided (50 percent) assistance for construction of Vermin pit size of 10x6x1.5 ft and 2 Kg. of Vermiculture. During 2014-15, in the State 4,14,230 vermin composting units were established. Beside this, incentive is being provided on approved organic inputs. For adoption of Organic Farming, incentive @ `10,000 per hectare (50 percent) and for certification `10,000 per hectare is being provided for 3 years.


Bio-Gas Development programme


7.13 Keeping in view depleting sources of conventional fuel i.e. firewood, biogas plants have assumed great importance in the low and mid hills in the State. Till March,2015 since inception, 44,573 Biogas plants have been installed in the State. Out of the total biogas produced in the Himalayas about 90.86 percent is being produced in Himachal Pradesh alone. During 2015-16 against the target of 150 biogas plant, 89 number of such plants have already been installed upto December, 2015. This programme is at saturation stage which helps in increasing the production to a great extent. The level of fertilizer consumption in 1985-86 was 23,664 tonnes. Now it has increased to 52,649 tonnes in 2014-15. In order to promote balance use of chemical fertilizers, a subsidy of ` 1,000 per MT on complex fertilizers have been allowed, use of water soluble fertilizers is promoted in a big way for which subsidy has been allowed to an extent of 25 percent of cost limited to `2,500 per quintal whichever is less. The subsidy is being provided under the Plan schemes. About 48,500 MT of fertilizers in terms of nutrients are proposed to be distributed during 2015-16.


Agriculture Credit


7.15 Traditionally, non-institutional sources of finance have been the major source of finance for the rural households due to various socio-economic conditions. Some of them have been lending at exorbitant rate of interest and since the poor own few assets, it is unviable for the financial institutions to secure their lending with collateral. However, the Govt. has taken measures to ensure timely and adequate supply of institutional credit to the rural households at reasonable rate of interest. In view of the propensity of the farmers to borrow money, most of whom are marginal and small farmers, credit flow for purchase of input is being made available by the banks.


Institutional credit is being extensively disbursed but there is scope to increase the same particularly in respect of the crops for which insurance cover is available. Providing better access to institutional credit for small and marginal farmers and other weaker sections to enable them to adopt modern technology and improved agricultural practices has been one of the major objectives of the Government. The banking sector prepares crop specific credit plans and the credit flow is monitored urgently in the meetings of the State level Bankers Committee.


Kisan Credit Card (K.C.C)


7.16 The scheme is under successful operation for the last twelve to thirteen years in the State. More than 1,955 bank branches are implementing this scheme. Till date about 6.37 lakh Kisan Credit Cards (K.C.C.) were issued by the various banks in the State.


Crop Insurance Scheme


  • The State  Government has  introduced this scheme from Rabi, 1999-2000 season. The crops covered are Wheat, Barley, Maize, Paddy and Potato. Subsidy on premium in respect of Small and Marginal Farmers was being provided on sunset basis as per provision of the scheme. From Rabi, 2007-08, the subsidy on the premium has been raised from 10 percent to 50 percent to the Small and Marginal Farmers. The scheme is compulsory for loanee farmers and optional for non-loanee farmers. The scheme provides comprehensive risks insurance against yield losses viz drought, hail storm, floods and pests and disease etc. The Agriculture Insurance Company of India

Ltd. (AIC) is implementing the scheme. The claims on account of losses to the crops and the subsidy on premium are shared equally by the state Govt. and the Govt. of India. From Kharif, 2008 season, Ginger crop of district Sirmaur has also been included on pilot basis. Since inception of RKBY, a total of 3,48,294 number of farmers upto rabi,

2014-15 have been covered at an sum insured of ` 693.03 crore and the total claims paid of `18.31 crore. Besides     this   the   State Government has also provided insurance cover to Tomato crop in Solan District and Sadar Block of District Bilaspur. Rabi Potato crop of Kangra District on Pilot basis under the Weather Based Crop Insurance Scheme (WBCIS) during Kharif & Rabi season (upto Rabi 2013-14). From Kharif, 2015 season Crop of Ginger & Peas have been covered under this scheme. This scheme is also implemented by the Agriculture Insurance Company of India Ltd.(AIC) and Private Insurance Company, i.e. ICICI Lombard & HDFC Ergo General Insurance Company.

Under this WBCIS, 12,284 number of farmers have been covered at an sum of

  • 52 crore and the total claim paid of


  • 21 crore upto Kharif, 2015 season.


Seed Certification Programme


7.18 Agro-climatic conditions in the State are quite conducive for seed production. In order to maintain the quality of the seeds and also ensure higher prices of seeds to the growers, Seed certification programme has been given due emphasis. Himachal Pradesh State Seed Certification Agency registered growers in different parts of the State for seed production and certification of their produce.


Agriculture Marketing


7.19 For the regulation of agricultural produce in the State, Himachal Pradesh Agricultural/ Horticulture Produce Marketing Act,


2005 has been enforced. Under the Act, Himachal Pradesh Marketing Board has been established at the State level. The whole of H.P. has been divided into ten notified market areas. Its main objective is to safeguard the interest of the farming community. The regulated markets established in different parts of the state are providing useful services to the farmers. A modernised market complex at Solan is functional for marketing of agricultural produce, besides construction of market yards in different area. At present 10 market committees are functioning and 53 markets have been made functional and in addition 9 other markets are under construction. For the benefits of the farmers,the market fee has been reduced from 2 percent to 1 percent.


Tea Development


7.20                Total  area  under  tea  is 2,300 hectares with a production level of

15 lakh Kgs. Schedule Caste tea planters are provided agriculture inputs on 50 percent subsidy. In the last few years, there is slump in the market and tea industry has been affected badly. It is envisaged to give impetus for effective and remunerative returns of this commodity to the producers. Focus would also be on result and demonstration.


Agriculture Mechanisation


7.21 Under this scheme, new farm implements/ machines are popularized among the farmers. Testing of new machines is also done under this programme. The department proposes to popularize small power tillers and implements suited to hilly conditions. Farmers can get any information on agriculture by dialling toll free number 1800 -180-1551. The service is available from 6 AM to 10 PM on all working days. This is 100 percent centrally sponsored scheme. increasing production and productivity of crops noted is the lack of sufficient quantities of quality seed of improved varieties to be made available to the farmers in time, To overcome this constraint, Govt. of India has started a novel programme known as “Seed Village Programme”, by which sufficient seed multiplication can be achieved in order to meet local seed requirement besides facilitating supply of seeds at reasonable cost and ensuring quick multiplication of new varieties in a shorter time. Under this programme, areas of better seed production will be identified and a compact area approach will be followed. 50 to 150 suitable, responding/willing farmers for the same crop will be identified/ selected preferably in compact area/cluster approach. Foundation/certified seed at


50 percent cost will be made available to these identified farmers. The seeds for half an acre per farmer will be allowed. Training on seed production and seed technology will be imparted to the identified farmers for the seed crops grown in the seed villages.


Soil and Water Conservation


7.23 Due to topographical factors the soil is subject to splash, sheet and Gully erosion resulting into degradation of the soil. Besides this there is biotic pressure on the land. To curb this menace particularly on the Agriculture lands, the Department is implementing two soil and water conservation schemes under state sector. The schemes are:-


  1. Soil Conservation Works.


  1. Water conservation and development.


Water conservation and minor irrigation programme has been accorded priority in order to boost agriculture production. The Department has prepared a plan to harvest rain water by constructing tanks, Ponds, check-dams and storage structures. Besides this, low lifting water devices and efficient irrigation system through sprinklers are also being popularized. In these projects, major thrust would be on soil & water conservation and creation of employment opportunities at farm level.


7.24 In order to achieve faster and more inclusive growth in agriculture sector, Govt. of Himachal Pradesh has started “Dr.Y.S.Parmar Kisan Swarozgar  Yojna”  (Poly  house  and Micro irrigation inside polyhouse). Project components include creation of need based infrastructure and are expected to fulfil objectives of high productivity, quality, safeguard against adverse weather, efficient input use etc. Project components include construction of location specific models of poly houses with micro irrigation facility. For this, 85 percent project assistance shall be provided to farmers. Also for creation for water sources individually and collectively by a group of farmers (low /medium lift, pumping machinery), 50 percent subsidy shall be




provided. A budget provision of `12.00 crore has been made for this components during 2014-15.


Table No. 7.8

Project Components

(2014-15 to 2017-18)


Sr.No. Component Nos. Covered
1 Poly House farmed 4700 835350
structure Nos Sqm.
2. Micro Irrigation( 2150 820050
spinkler/ Drip System Nos Sqm.
Poly Houses as per
3 Low lift, medium lifts 870
& pumping Nos
machinery 1 HP with
poly houses as per
4 Total cost of civil `10178.10 lakh.
5. Farmers `940.45 lakh.
contingency and
Cost Escalation.
6. Total Project Cost `11118.55 lakh.


Rashtriya Krishi Vikas Yojna (RKVY)


7.25 Concerned by the slow growth in Agriculture and allied sectors, the Government of India has launched Rashtriya Krishi Vikas Yojna. The RKVY aims at achieving 4 percent annual growth in the agriculture sector during the XI Plan period, by ensuing a holistic development of Agriculture and allied sectors. The main objectives of the scheme are as under:-


  1. To incentives the States so as to increase public investment in Agriculture and allied sectors.
  2. To provides flexibility and autonomy to states in the process of planning and executing

Agriculture and allied sector schemes.

  1. To ensure the preparation of agriculture plans for the districts