~As always, I have had a very pleasant and restful stay in Manali. The beauty and tranquility of the Himalayas reinvigorate the body, mind and soul. I thank the Governor of Himachal Pradesh Shri V.S. Kokje, Chief Minister Shri Virbhadra Singh, the officials of his government, and the people of Manali for their warm welcome and hospitality.

Recently, there has been a change of government in the State. This, however, has brought about no change in the relations between the Centre and the State. The NDA Government’s track record of the past five years has shown that the Centre deals evenhandedly with all the States, irrespective of the party or parties in office.

During my 6-day stay in Manali, I had an occasion to discuss various issues relating to the development of the State and, specifically, the Kullu-Manali region with a cross-section of society. The Chief Minister has submitted a memorandum detailing the needs of the State. I have also received a memorandum from the state unit of the BJP in this regard.

1. In view of the financial problems faced by the Government of Himachal Pradesh, the Centre has been liberal in providing additional financial support to the State. I have accepted the request of the Chief Minister to continue to provide such support for this year, too. Accordingly, the Centre will maintain the same level of additionality for the State’s Plan size – namely, Rs.553 crore – as last year. The modalities of this additional support will be worked out by the Planning Commission in consultation with the State Government, I would like the State Government to prepare specific developmental projects, such as speedy implementation of the major irrigation project at Shahnehar, to avail this assistance. I also urge the State Government to take necessary steps to enhance its internal generation of resources.

2. Imposition of generation tax on hydro-electricity produced in Himachal Pradesh has been a longstanding demand of successive State Governments. Other States, which have considerable hydropower potential, have also made this demand. I agree that these States need new sources for increasing their revenue by harnessing their natural resources. Therefore, the Centre will look into this demand.

3. Successive Governments in the State have made representation to the Centre about early settlement of BBMB dues, on the basis of the State’s share in the hydroelectric projects of the Bhakra Nangal and Beas system. The matter is pending before the Supreme Court for a long time. The Centre will request the apex court to expedite the case. Meantime, efforts will also be made for an early ~out of court~ resolution of the matter.

4. Sustainable socio-economic development in the Himalayan area, with effective steps to protect the fragile ecology of the region, has become a matter of great urgency. The challenges faced by various States in the Himalayan range are common in many respects. One of the main challenges is to create sufficient local-level employemnt and self-employment opportunities for the youth. These challenges can be better met by maximizing people’s participation and basing our policies and programmes on the results of holistic and long-term scientific study. At present, there is no such research institute in Himachal Pradesh. If the State Government sends a proposal for establishing an Institute for Sustainable Development in Himalayan Areas, the Centre will consider it.

5. Kullu-Manali region has a huge potential to emerge as a major centre of international tourism. However, lack of proper infrastructure and amenities has seriously hampered the realization of this potential. The Centre has already sanctioned an amount of Rs.30 crore for the extension of the airstrip at Bhuntar Airport, so that larger planes may land there. However, the project has not moved further due to the State Government’s inability to acquire land necessary for the purpose. Since early completion of this project is crucial for the development of tourism in Kullu-Manali region, the Centre has decided to bear the full cost of the project. The Airport Authority of India will complete this project in three years.

6. I have been told about other infrastructure requirements of Kullu-Manali region. If the State Government submits a Master Plan for development of tourism in this region, concerned ministries at the Centre may give due consideration to it.

7. The Centre will give a grant of Re.1 crore to the International Roerich Memorial Trust, Naggar, for establishing an Art School in memory of the great artist-philosopher Nicholas Roerich. ~