Himachal Pradesh: State Government hikes bus fare, reclaims key hydropower projects to boost finances

ANI April 5, 2025 255 views

The Himachal Pradesh government led by Sukhvinder Singh Sukhu has implemented two bold financial strategies to address the state's economic challenges. By doubling bus fares and reclaiming key hydropower projects from central PSUs, the state aims to improve its fiscal health and assert more control over local resources. The government argues these are necessary steps to ensure long-term sustainability and protect state interests. Despite potential public backlash, the administration remains committed to making tough economic decisions.

"People will understand the tough decisions in tough times." - Harshwardhan Chauhan, Industries Minister
Shimla, April 5: Grappling with a deepening financial crisis, the Sukhvinder Singh Sukhu-led government in Himachal Pradesh has approved a bus fare hike and reclaimed key hydropower projects from central PSUs.

Key Points

1

Minimum bus fare doubled from Rs 5 to Rs 10 to combat HRTC losses

2

State reclaims four major hydroelectric power projects from SJVNL

3

Taking back 180 MW Baira Suil Hydro Project from NHPC

4

Strategic move to strengthen state's economic rights

The Cabinet has approved a hike in the minimum fare for bus travel across the state. The fare has been doubled from Rs 5 to Rs 10, citing the mounting losses incurred by the Himachal Road Transport Corporation (HRTC).

The government defended the move as essential to keep the "public transport system afloat."

The decision is expected to evoke strong reactions from the public, but the government maintains that it is a necessary step under the current fiscal stress.

Simultaneously, the Cabinet also approved the takeover of four major hydroelectric power projects from the central public sector company Satluj Jal Vidyut Nigam Limited (SJVNL).

These projects that the government is going to take over include, Sunni Project (382 MW), Luhri Stage-I (210 MW), Dhaulasidh Project (66 MW) and Dugar Project (500 MW)

Additionally, the state government will reclaim the 180 MW Baira Suil Hydro Project in Chamba from NHPC, which has completed its 40-year agreement period.

The Sukhu government has been critical of the previous BJP administration for allegedly compromising Himachal's interests by allocating these projects to central PSUs without securing adequate benefits for the state. The move to take back control is being seen as part of the current government's push to reclaim economic rights and strengthen state revenue through better management of its resources.

While briefing the media on the cabinet decisions, Harshwardhan Chauhan, Industries Minister, said that the people of the state would understand the decisions of the state government.

"People will understand the tough decisions in tough times. We are not running away from our responsibilities. Whether it's strengthening transport or reclaiming our hydropower rights, the focus is on long-term sustainability for Himachal," he said.

The dual decisions, increasing bus fares and reclaiming hydropower projects, reflect the state's urgent need to improve its financial health while also asserting more control over local natural resources.

Reader Comments

R
Rahul K.
Doubling bus fares is going to hit daily commuters hard. I understand the financial situation but wish they had considered a more gradual increase. The hydropower move seems smart though - our state should benefit from our own resources! ⚡
P
Priya S.
Finally some action on the hydropower projects! These should have never been given away in the first place. The bus fare hike stings but if it means better maintained buses and reliable service, I can live with it.
A
Ankit M.
As a student who relies on HRTC buses daily, this fare hike is really disappointing. Couldn't they find other ways to cut costs? Maybe reduce political travel allowances first?
S
Sunita R.
Good decisions overall! The hydropower projects will bring long-term benefits to our state. The bus fare increase is tough but necessary - HRTC was running at huge losses. Better to pay slightly more than have the service collapse completely.
V
Vikram J.
I hope the government has a solid plan to manage these hydropower projects. Taking them back is one thing, but running them efficiently is another. Fingers crossed this works out for Himachal's future! 🙏
N
Neha T.
While I support reclaiming our resources, the timing of the bus fare hike during peak tourist season seems questionable. Tourists won't feel the pinch as much as locals who depend on these buses every day.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Tags:
Himachal Pradesh Sukhvinder Singh Sukhu Bus Fare Hike Hydropower Projects HRTC SJVNL Economic Reform
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