Himachal wants high level committee to assess financial impact; Punjab wants Special Category Status

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu and Punjab Chief Minister Bhagwant Mann on Thursday, June 11, 2026, urged Prime Minister Narendra Modi to form a high-level committee to assess the fiscal impact on the hill State and provide Special Category Status (SCS) to the western frontier State respectively.

They were speaking at the 11th Governing Council meeting of NITI Aayog held under the theme ‘Inclusive human development for Viksit Bharat’ under the chairmanship of the Prime Minister in New Delhi.

Main concerns

Mr. Sukhu said the fiscal impact was due to several key concerns, including discontinuation of Revenue Gap Grant (RDG, i.e. statutory fiscal transfers provided by the Center to certain States to bridge the gap between assessed revenue and expenditure), losses due to natural disasters, inadequate compensation from hydropower projects in terms of free energy and revenue shortfalls arising from the Goods and Services Tax framework.

Stating that Himachal has contributed to the growth of the country despite these limitations, Himachal requested that a detailed report be submitted to the Government of India by a high-level committee so that the state can get its “deserved share”.

‘Big blow’

“The discontinuation of RDG has dealt a huge blow to the State economy and ₹ 25,000 crore provided to the State is insufficient to compensate for the loss. This needs to be increased to ₹ 50,000 crore for smooth execution of development activities,” he said.

“Himachal Pradesh provides ecological services of ₹ 90,000 crore to the country, according to a study conducted by the Indian Institute of Forest Management. However, the State is not properly compensated for its contribution in preserving the ecology. The State is deprived of a fair amount of free energy on the 13,000 MW of electricity generated in the state. The State has still not received a loan of ₹ 7,000 crore from the government. The Bhakra Beas Board is bearing the brunt of natural disasters and is still awaiting the announced special assistance of Rs 1,500 crore,” Mr. Sukhu added.

90:10 financing: Mann

Mr. Mann sought a special package for revitalization of border areas and demanded 90:10 funding to SCS under all Centrally sponsored programs to Punjab, hilly states, north-eastern states and Jammu and Kashmir line.

“Punjab is a frontline state that shares a 553 km border with Pakistan. It is facing a deep and multi-dimensional crisis that includes persistent cross-border terrorism, drone-based smuggling of heroin and arms. This has resulted in an epidemic of drug addiction among youth, organized crime and daily hardships for farmers cultivating the land between the security fence and the International Border under Border Security Force escort,” he said.

“While Punjab has served as a buffer for the country against repeated hostilities from our neighbours, support from the Government of India has been grossly inadequate for the State and its border areas,” Mr Mann added.