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Annexure “A”

IMPORTANT ISSUES PERTAINING TO THE GOVERNMENT OF HIMACHAL PRADESH THAT REQUIRE NITI AAYOG’S INTERVENTION FOR RESOLUTION.

The State Government requests NITI Aayog’s intervention on the following issues on which the action at the level of Government of India is required:

1. Agriculture and Irrigation

As was mentioned by the Hon’ble Member, NITI Aayog arresting and reversing the declining trend in the growth rate of agriculture is of utmost importance as it would ultimately facilitate in upliftment of economy of small and marginal farmers of Himachal Pradesh. Moreover, liberal funding under different Centrally Sponsored Scheme from Govt. of India level will also be helpful in arresting and reversing the declining trend in the growth rate of agriculture.

i. Enhancing the allocations under Rashtriya Krishi Vikas Yojna (RKVY), if the farmer’s income is to be doubled in five years: For the year 2017-18, the allocation to the tune of Rs.22.94 Crore (Central Share) has only been received from Govt. of India, which is lowest ever and hence needs to be suitably enhanced keeping in view the performance of our State and past allocations made. The enhanced allocation would also facilitate doubling the farmer’s income by 2022. It is also pertinent to mention here that the allocation was Rs. 99.93 crore during 2011-12, under RKVY to H.P against the allocation of Rs. 22.94 crore communicated by the GoI for the year 2017-18.

ii. Keeping in view the uncertainty of weather in Himachal Pradesh, there is need to reconsider the period of damage to the crops due to natural calamities under Rashtriya Fasal Bima Yojna: This is necessitated because Himachal Pradesh consist of different climatic zones and hence there is a lot of variation in sowing of cash crops specifically that of tomatoes and peas. Therefore, there is dire need to extend or specify zone wise period of damage in the State under Reconstructed Weather based Crop Insurance Scheme so as to cover more farmers under the scheme.

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iii. Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)

(a) Release of Central Assistance

During the year 2015-16, the Government of India had launched the Pradhan Mantri Krishi Sinchayee Yojana' (PMKSY). Erstwhile Accelerated Irrigation Benefits Programme (AIBP) has also been merged in the PMKSY focusing on faster completion of Major and Medium Irrigation· including National Projects. The ongoing as well as new minor irrigation schemes and CADWM programme are covered under the component "Har Khet Ko Pani" of PMKSY.

As per the guidelines of PMKSY, Himachal Pradesh government adopted a dynamic annual fund allocation methodology that mandates states to allocate more funds to irrigation sector for becoming eligible to access PMKSY funds. Accordingly, the District Irrigation Plans for all the 12 Districts and State Irrigation Plan were prepared and approved by State Level Scheme Sanctioning Committee for years 2015-16 to 2019-20, which were further uploaded on the website of Agriculture, Cooperation & Farmer Welfare, Ministry of Agriculture & Farmer Welfare, New Delhi.

During the year 2015-16 State Level Scheme Sanctioning Committee (SLSC) in its meeting held on 15-01-2016 had approved the State Annual Plan for PMKSY for Rs. 121.73 crore pertaining to IPH Department.

Accordingly, the Department submitted the proposal for release the eligible central assistance (including previous dues of Rs. 51.00 crore in respect of old AIBP ongoing schemes) for Rs. 160.55 crore to Secretary to the concerned Ministries, Government of India, New Delhi during February, 2016. However, neither any project was included/sanctioned under the programme nor any central assistance released to the State.

Similarly, for the year 2016-17, State Level Scheme Sanctioning. Committee (SLSC) in its meeting held on 27-05-2016 approved the State Annual Plan of PMKSY for Rs. 235.16 crore for IPH Department.' Proposal was sent to Secretary' Ministry of Water Resources, RD&GR to the Government of India New Delhi during July 2016 for release the eligible/ central assistance of Rs. 189.64 crore to execute the works of projects , proposed under the programme to ensure their completion by stipulated date i.e. up to March 2020. But, the proposals were again not approved/sanctioned by the Ministry of Water Resources, RD~GR, New Delhi and accordingly no funds were released for the submitted shelf. However Rs.1.13 crore out of the previous dues of old ongoing

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schemes under AIBP (39 MIS shelf) was released during the year. It is pertinent to mention here that the other stakeholder departments of PMKSY i.e. Agriculture, Horticulture and Rural Development are getting the central assistance under PMKSY since 2015.

Pending Central Assistance of Rs.395.71 crore for the years 2015-16 and 2016-17 needs to be released to the state of Himachal Pradesh.

(b) Inclusion of Ongoing Projects of State in list of Prioritized list of Projects:

During the year 2016-17, a list of 99 irrigation projects was prioritized for funding under PMKSY -Accelerated Irrigation Benefits Programme (AIBP) for completion by December 2019 by Ministry of Water Resources, RD&GR, GOl. However, no medium irrigation projects of state of Himachal Pradesh was included in priority list of 99 prioritized projects although the state Government had proposed the medium irrigation projects namely MIP Nadaun Area district Hamirpur amounting to Rs. 156.31 crore and MIP Phina Singh in district Kangra amounting to Rs. 204.51 crore for inclusion under AIBP funding since 2012. It is requested to consider the above projects, which qualify the eligibility criteria for funding under AIBP, for inclusion in the list of prioritized projects for funding under PMK$Y for completion by December 2019.

(c) Release of pending Central Assistance for Flood Management Programme (FMP)

Central assistance of Rs.129.00 Cr. is pending w.e.f. 2014-15 in respect of ongoing FMP projects of Swan Channelization and other projects of state, which is requested to be released at the earliest.

(d) Allocation for the state under National Rural Drinking Water Supply Programme

Allocation for the state under National Rural Drinking Water Supply Programme of Ministry of Drinking Water and Sanitation has also been drastically reduced. There is a deficit of about Rs. 148.00 crore in allocations w.e.f. 2014-15 to 2017-18, which, needs to be released immediately for early completion of ongoing schemes.

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2. Forests

i. Diversion of forest land for non-forestry purposes

The State Government had issued a notification under section 29 of Indian Forest Act, 1927 in the year 1952, whereby provisions of chapter-IV of the Act were made applicable to all wastelands in Himachal Pradesh which are the property of the Government or over which the Government have proprietary rights. Consequent to this notification, all the Government wastelands have become “Protected Forest”. In our State, 66.5% of the total geographical area is forestland. About 40% of this area has tree cover which comprises 26.30% of the geographical area. 16.2% (5989 Sq.Kms) of the forest area falls within the definition of wastelands. With the enactment of Forest (Conservation) Act, 1980, the diversion of even such wastelands for developmental purpose now, require the approval of the Government of India. Resultantly, the developmental activities viz; construction of roads, hydel projects, irrigation projects etc. on such wastelands get adversely affected and suffer cost and time overruns.

The general permission for approval for diversion of forest land for non-forestry purposes for certain specific activities involving up to 1 hectare forest land has been given by the MoEF, GoI, vide letter No. 11-9/98-FC, dated 03.01.2005 does not really address the development aspirations of the State. Government of India may consider enhancing the powers of approval for diversion of forestland for non forestry developmental purpose up to 10.00 hectares. This has also been recommended by the “Committee to Study Development in Hill States Arising from Management of Forest lands with Special Focus on Creation of infrastructure, Livelihood and Human Development”, formed by the then Planning Commission.

Although the Ministry of Environment and Forest, Government of India, vide its letter F. No. 11-9/98-FC dated 13th February, 2014 has authorized the State Government for diversion of forest land measuring not more than one hectare for creation of critical development and security related infrastructure in respect of 13 categories, it does not take care of the educational institutions other than schools. The Ministry may consider replacing the category ‘schools’ with ‘Educational Institutions’ enabling the State government to clear the projects related to all kinds of educational institutions in addition to enhancing the delegation of powers from the existing limit of one hectare to ten hectares.

ii. Diversion of forest land under the Forest Conservation Act-1980

The guidelines issued by the Ministry of Environment & Forests (MOEF) require prior settlement of all claims and rights over the Traditional forest land under the provisions of the Scheduled Tribes and other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 before granting forest clearance. In

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Himachal Pradesh, the rights and concessions on forestland throughout the State, including the tribal areas, have long been settled and recorded. These rights are inheritable through succession and local people/right holders have been enjoying them without any infringement, since their admission.

Given the above position, it would be seen that the guidelines of the MoEF are adequately complied with in Himachal Pradesh. However, certificate issued by the Collector-cum-Deputy Commissioner of the District concerned that no claim under the Scheduled Tribes and other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 is pending in respect of forest land and submitted alongwith the specific proposals for environment/forest clearance is not being considered by MoEF as sufficient evidence to meet the procedural requirement of the Act. This is unduly delaying clearance of many development projects.

The MoEF on 5.7.2013, has prescribed a specific format for the requisite certificate to be issued by Deputy Commissioners in which the recommendations of the Gram Sabha for the proposed forest land for diversion, proceedings of the Forest Rights Committee, Sub-Divisional Level Committee and District Level Committee are required to be attached as annexure with the Certificate of Deputy Commissioner. Due to this cumbersome procedure developmental activities have come to a standstill. In order to intensify the pace of development, request be made to GoI to review these onerous and impractical requirements which are becoming a serious impediment to growth.

The GoI may consider issuing necessary directions to the MoEF, for expeditious clearance of those proposals for diversion of forestland under the Forest Conservation Act-1980 on the basis of certificate issued by the Collector-cum-Deputy Commissioner.

iii. Delegation of powers to accord environmental clearance for the Hydro Projects

Himachal Pradesh is endowed with a large hydel power potential. However, execution of even the run-of-the-river hydel power projects is being delayed inordinately despite being the source of cleanest energy, due to the delays in environmental clearances from the MoEF. Hence, the Government of India was requested to delegate the powers to accord environmental clearances for hydel projects to the State Governments.

In reference to our request, the Government of India responded that “the Environmental Clearance (EC) to any Hydel Power Project is issued under Environmental Protection Act, 1986. Projects needing Environmental Clearance are divided in two categories ‘A’ and ‘B’ based on type and size of the project. ‘A’ category projects are cleared by Ministry of Environment & Forest (MoEF)

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when submitted by the project proponent through the State Government and ‘B’ category projects are cleared by the State Government itself.

Hydroelectric projects less than 50 MW can be cleared by the State Government, whereas projects more than or equal to 50MW capacity can only be cleared by MoEF. However, complete procedure for Environmental Clearance of ‘A’ category projects takes 210 days from the time project is submitted to MoEF. Further, delegation of power to the State for Environmental Clearance, as suggested, needs amendment in the Environmental Act 1986.”

However, the State Government is of the viewpoint that the stance taken by the MoEF, that delegation needs amendment in the Environmental Protection Act, 1986 does not appear to be correct.

The plea of the State Government in this regard is that the same provisions of the Act, which authorizes State Governments to accord environmental clearance to the hydro projects upto 50 MW may be invoked to enhance the delegation of power to accord environmental clearance for all run-of-the-River Hydro Projects.

iv. During the 7th meeting of the REC of Regional Office, North Central Zone Dehradun, a clarification was sought to ascertain the correctness of the certificate of the Chief Secretary about non-availability of Forest land outside the control of the Forest Department or non forest Government land for carrying out Compensatory Afforestation (CA) with respect to each diversion proposal seeking diversion of forest land for non forest purposes under the provision of Forest Conservation Act, 1980. Currently, the certificate issued by the Chief Secretary in this respect is not being accepted by the MoEF resulting in delays in the execution of HEPs and Mining Projects.

The total geographical area of the State of Himachal Pradesh is 55,673 sq.km. out of this 37,033 sq.km. is forest area and is under the control of Forest Department which is 66.55% of the total geographical area. The State of HP fulfils the criteria of having forest land more than 3% of the total geographical area. Certificate regarding non-availability of non-forest land for creation of Compensatory Afforestation is applicable and should be acceptable in view of the GoI guidelines issued vide MoEF & CC letter No. 1-317/2014-FC (Pt.) dated 25-08-2014. It is worthwhile to mention here that non-forest land is not available in most of the districts of the State for raising Compensatory Afforestation. Moreover, being characterized by predominantly hilly terrain, the geographical features of Himachal Pradesh limit the availability of large pieces of land for undertaking Compensatory Afforestation.

In view of the facts given above, the Ministry of the Environment & Forests, Government of India may be requested to consider the proposal of the

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Government of Himachal Pradesh for processing them and they should not be held up for want of availability of non-forest land for raising Compensatory Afforestation.

3. Tourism

i) Considering vast potential of tourism as a major source of revenue generation in the State, the State Government has already given tourism the status of an industry and all the incentives which are available for the industries in the State are also being extended to the tourism related activities. The Government of India may also consider conferring the status of an industry to tourism.

ii) The tourism in Himachal Pradesh can get a major boost by attracting more international tourist if an international airport is established in the State. The Airport Authority of India and the Ministry of Civil Aviation have been insisting on the State to bear the cost of land free of all encumbrances for establishing Airport in the State. In a hilly State, the cost of land development is huge as any piece of land in the hilly terrains requires cutting through mountains to make land suitable for establishing an International Airport. It is not possible for the State Government to bear the cost of land development for the purpose. Hence, the financial assistance is also requested from the Government of India for meeting the cost of land and its development for establishing an International Airport in Himachal Pradesh to give boost to tourism.

4. Pradhan Mantri Gram Sadak Yojana (PMGSY)

i) Inclusion of NPV and making it a part of overall cost of the roads under Pradhan Mantri Gram Sadak Yojana

Most of roads which are eligible for funding under PMGSY pass through forest land and hence involve payment of huge amount on account of CA and NPV to Forest Department. Presently, the funds for CA & NPV are being paid by the State which has meagre resources of funds by this component. In view of tight financial position of the State, the Govt. of India may be requested to bear the cost of CA & NPV for PMGSY projects in the State by making these costs a part of the DPR of roads under PMGSY.

ii) Downward revision of habitations for current eligible habitation of 250 + to 100 + for considering roads under PMGSY

The norm of eligible habitations of population of 250 + is based on Census data for the year 2001. As per core network data (based on 2001 Census) there are about 3,218 habitations having population of 100 plus (but less than 250) and are, hence, not eligible to be considered under PMGSY. The NITI Aayog is

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requested to take up the request with the concerned Ministry to revise the population norms under PMGSY to ensure that the habitations with 100 plus population in hill states also become eligible under this scheme.

iii) Approval under Forest Conservation Act, 1980 for construction of roads under PMGSY

The completion timeline of PMGSY has now been pre-poned by Govt. of India fixing new target of connecting all eligible habitations by March 2019. The State is making its efforts to prepare the DPRs but involvement of forest land needs more time for getting clearances under FCA, 1980. If DPRs are not prepared before December, 2017 many eligible habitations will remain unconnected under this scheme. The Government of India may kindly be requested to delegate the powers to give approval under FCA, 1980 to the State up to 5 hectare of forest land on the analogy of similar powers delegated to LWE (Left Wing Extremist) affected districts in the country. In this regard, even one time relaxation shall be appreciated.

5. Fisheries

Climate of Himachal Pradesh especially in Kullu, Mandi, Chamba, Shimla, Kinnaur districts, some parts of Kangra and Sirmour districts is very much suitable for world famous trout fish farming. Department of Fisheries H.P. has standardized the technology of rainbow trout farming at Indo-Norwegian Trout Farming Project Patlikuhl in district Kullu with the assistance from Norwegian counterpart and disseminated the same to private sector providing technical and financial assistance to local farmers for trout fish farming. Cold, crystal clear and running water which is rich in dissolved oxygen is major requirement for trout farming; hence most of trout units have been established on the banks of rivers and Nallahs. Due to heavy rains and flash floods, high risk is involved in trout farming. During rainy season and floods, sometimes entire trout units get flooded resulting in mass motility of fish and fish seed causing heavy loss to the trout growers. Disruption of water supply due to heavy silt load during rainy season is another cause of fish mortality and loss to trout growers. As per norms under Blue Revolution Scheme, Unit input cost of one raceway of trout has been worked out to be around Rs. 2.50 lakh including cost of fish seed and feed and one ton of trout fish is produced from one such raceway the market value of which is around Rs. 5.00 lakh. Thus a trout grower’s earning is Rs. 2.50 lakh from one trout unit annually. But many trout growers of the state have suffered heavy losses during rainy seasons due to heavy silt load and floods and have left the profession of trout farming. Keeping in view, the above facts trout famers are asking to provide insurance facility of their livestock to compensate the loss caused due to heavy rains and floods.

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Till today 675 trout raceways have been constructed in the state by 315 trout growers with the financial assistance from Fisheries Department under various schemes. Presently trout culture is being practised in 475 raceways and 415.0 MT trout fish is being produced annually in private sector and department has fixed a target of establishing 1000 units and production of 1000 metric tonnes of trout fish by 2020 but viewing the threat and hazards from natural calamities, the farmers are very much scared and not coming forward to adopt trout culture.

Now, as per demand of trout growers, department proposes to provide Live Stock insurance facility to them so that more and more new farmers take up, trout farming and improve their economic status. Department has contacted various insurance companies regarding insurance of Trout Fish live stock but most of them did not agree for it and now we have received a policy from united insurance Company to provide Live Stock Insurance to trout fish. They have informed that premium of insurance of livestock in one raceway will be Rs. 18688/- (copy of policy documents enclosed) which comes out to be approximately 7.5% of the input cost i.e. Rs. 2.50 lakh. Department proposes to provide insurance cover to trout fish farmers for their livestock with 2% of the input cost to be borne by the farmer and remaining amount 5.5% of input cost to be borne by the Govt. If this proposal is approved then total premium has been worked out to the tune of Rs. 88,76,800/- for 475 units and out of which State Government and Central Government share would be Rs. 65,01,800/- and Farmers share would be Rs. 23,75,000/-.

The NITI Aayog may take up the issue with the concerned Ministry requesting it to extend insurance cover to trout farmers.

6. Industries

1. Some of the Centrally Sponsored Schemes like Assistance to State for Infrastructure Development of Exports (ASIDE) are still not available to Himachal Pradesh in the fund sharing pattern of 90:10 in this sector. The Government of India may consider providing this benefit to Himachal Pradesh on the pattern of other schemes which are being shared in the ratio of 90:10.

2. Restoration of freight subsidy scheme 2013 and extension of Central Capital Investment Scheme 2013 on the pattern of North Eastern States and J&K.

3. Introduction of some incentives as detailed below for attracting industrial investment to the State:-

Site Development, Roads within and connecting industrial area should be considered as a part of Detailed Project Report (DPR) under Modified Industrial Infrastructure Upgradation Scheme (MIIUS) and Trade Infrastructure of Export Scheme (TIES).

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Sharing of the 100% burden by Government of India after the implementation of GST in respect of the area based central excise exemptions and sales tax incentives under the State industrial policy.

The Himalayan States should be connected with major freight corridors and export platforms for easy access and dispersal of goods.

All major industrial corridors of the State should be connected with Railways in order to reduce cost and competition which will further help in reducing pollution due to reduction in road traffic.

Forward integration of major produce of the Himalayan States with national and international markets should be facilitated by the Central Government by means of providing market linkages (virtual and physical).

In this regard, the State Government of Himachal Pradesh has already submitted suggestions for the kind consideration of Government of India in relation to New industrial Policy for Himalayan Sates vide letter No. Ind.-A(F)6-2/2017 dated 14 th

June, 2017 (Copy enclosed at Annexure “I”).

7. MGNREGA

There is disparity in the minimum wage rates notified under MGNREGA by Government of India and the minimum wage rates notified by the State Government. The current level of minimum wage rates approved by Government of India under MGNREGA is Rs. 179/- per day for non-tribal areas and Rs. 224/- tribal areas whereas these rates are Rs. 210/- and Rs. 263/- for non-tribal areas and tribal areas, respectively as notified by the State Government. Disparity in wage rates is adversely affecting implementation of MGNREGA in the State. Intervention of NITI Aayog is requested to ensure the wage rate parity under MGNREGA.

8. Providing funds for National Ambulances Service-108 under NHM in 90:10 ratio

As per these guidelines funding pattern for Himachal Pradesh under national Health Mission is 90:10. However, for national Ambulance Service-108 which is also one of the programme of National Health Mission, the funds to this State are being allotted in the ratio of 20:80 (20% of Central Assistance). This service is operating in the State very successfully and upto the satisfaction of the people residing in far-flung areas of the State. This service has proved more useful to the poor in the hilly and geographically difficult conditions. Right from the date of introduction of this service in the State, several precious lives have been saved. The State Government is not is position to bear the 80% share. The State Government has requested vide D.O. letter No. HFW-H-EMRT/NAS/Budget/2013

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dated 15.1.2016 (copy enclosed at Annexure “II”) to GOI Ministry of Health and Family Welfare that this service be included under the funding pattern of 90:10 so that the essential service may not be disrupted due to financial constraints.

9. Inadequate releases under Sarv Shiksha Abhiyan

The Ministry of Human Resources Development has inevitably been releasing the amounts less than the originally PAB approved outlays since the financial year 2014-15 under SSA. During 2014-15, the PAB approved outlay was Rs. 250.65 crore and the Ministry was to release an amount of Rs. 162.92 crore during the course of the financial year [65% share as it used to be shared in proportion of 65:35 {GoI: GoHP} during that year]. However, the Ministry ended up releasing Rs. 37.62 crore short of the approved share which not only resulted in short falls in implementation of the action plan for 2014-15, but these shortfalls were also viewed as basis for reducing the outlays further during next financial year by the Ministry. This has resulted in a double blow to the State Government’s efforts in implementation of the SSA. Same holds true for the financial years 2015-16 and 2016-17 which have ended up getting Rs. 189.26 crore and Rs. 255.89 crore less releases respectively, from the MoHRD. NITI Aayog intervention is requested to convince the Ministry to ensure releasing of full amount against the committed amount under PAB.

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