Forest Department, ISB-Bharti Institute Sign Five-Year MoU to Unlock Rs. 22,600 Crore Forest Economy Potential.
Shimla:
The Himachal Pradesh Forest Department has signed a five-year Memorandum of Understanding (MoU) with the Bharti Institute of Public Policy, Indian School of Business (ISB-BIPP), to harness the State’s untapped forest and pastoral economy through science- and technology-enabled governance.
The MoU was signed by Principal Chief Conservator of Forests Sanjay Sood on behalf of the Forest Department and Executive Director, BIPP, ISB, Prof. Ashwini Chhatre on behalf of the institute in the presence of Chief Minister Thakur Sukhvinder Singh Sukhu here today.
Speaking on the occasion, the Chief Minister said the partnership between the Forest Department and ISB-BIPP would provide a major boost to Himachal Pradesh’s rural economy and create long-term benefits for the State. He said Himachal Pradesh was well-positioned to become one of the first states in the country to bring together science, local communities and the government to transform forest governance.
The Chief Minister said the initiative would also focus on maximising the potential of locally abundant species, including medicinal plants such as harad and bel, besides assessing the nutritional and commercial value of thangi (hazelnut).
Forest inventory identifies Rs. 22,600 crore potential
Prior to the signing of the MoU, the ISB-BIPP team presented findings from a joint forest inventory undertaken in the State. More than 500 forest guards participated in the exercise, collecting over 2 lakh tree-level records and species-tagged images. The data was combined with satellite imagery and artificial intelligence/machine learning tools and subsequently validated through field verification.
Maps have been generated for seven species—khair, bamboo, chir pine, amla, wild mango, sal and rhododendron—and published jointly under the title Counting Green Wealth.
According to the inventory, Himachal Pradesh has an estimated untapped economic potential of Rs. 22,600 crore across five key bio-resources. Amla accounts for an estimated Rs. 8,700 crore, pine needles Rs. 5,500 crore, wild mangoes Rs. 4,800 crore, sal seeds Rs. 2,400 crore and rhododendron flowers Rs. 1,200 crore.
The initiative envisages extraction based on a sustainable, species-wise “yield sweet spot” to ensure that economic utilisation does not compromise ecological sustainability.
Women-led enterprise showcased
The Pir Panjal Jungle Producer Company in Pangi, a women-owned enterprise engaged in the thangi (hazelnut) business, was highlighted as a successful example of how forest resources can support community-based enterprises.
The data generated through the initiative has already been incorporated into the working plan of the Palampur Forest Division, marking the first such application. Under the new MoU, the initiative will be expanded to other forest divisions with the eventual objective of covering the entire State.
Prof. Ashwini Chhatre said the partnership demonstrated the potential of combining rigorous scientific methods with field-level knowledge. He said more than 500 forest guards had spent months collecting the data, giving the resulting estimates strong credibility for economic decision-making.
Dr. Aarushi Jain, Director, Bharti Institute of Public Policy, ISB, said the data generated through the initiative was already being used beyond the preparation of reports. She said it was shaping the Palampur working plan and that the MoU would extend the “intelligence layer” and grazing database across the State.
Four key areas covered under MoU
The MoU will focus on four broad areas:
1. Forest Economy and Community Enterprises: Promoting women-led producer companies and strengthening market linkages for forest-based products.
2. Forest Intelligence Platform: Expanding the platform currently piloted in Palampur to other forest divisions and eventually across Himachal Pradesh.
3. Grazing Portal and Pastoral Database: Developing a database under the Himachal Pradesh Grazing Policy, 2026, linked with Aadhaar, Him Pariwar, Bharat Pashudhan and the PEHEL scheme.
4. Training and Capacity Building: Strengthening the skills and institutional capacity of Forest Department personnel and producer companies.
The initiative is expected to provide a stronger data-driven foundation for forest management, sustainable resource utilisation, community enterprises and pastoral governance while creating new economic opportunities for rural communities across Himachal Pradesh.
Principal Secretary Forest M. Sudha Devi, Principal Chief Conservator of Forests Sanjay Sood, Executive Director, BIPP, ISB, Prof. Ashwini Chhatre, Director (N), HP State Forest Development Corporation, Dharamshala, Patil Nitin Kundalik, and State Coordinator, BIPP, ISB, Neha Chakravarty were also present on the occasion.
