Himachal’s Finances Ruined by Policy Flip-Flops and Delays, Alleges BJP MLA Prakash Rana in Assembly.
Shimla:
In a sharp attack on the ruling government, BJP MLA from Jogindernagar assembly constituency in Mandi district Prakash Rana raised serious concerns over alleged financial mismanagement and policy inconsistency during a session of the Himachal Pradesh Vidhan Sabha in Shimla today.
Representing Jogindernagar, Rana accused successive governments of contributing to the state’s deteriorating financial condition by discontinuing previous schemes and launching new ones without continuity or accountability.
Rana argued that every time a government changes, hundreds of ongoing schemes worth thousands of crores are halted, only for new projects to be introduced. According to him, this cycle is used to showcase fresh achievements rather than completing existing work, ultimately harming the state’s economy.
To substantiate his claims, Rana cited the example of a 100 MW hydropower project near Dharmpur. He stated that the project, initially approved at Rs. 430 crore in 2003 and scheduled for completion by 2010, was delayed repeatedly and only became operational in 2025. During this period, its cost reportedly escalated dramatically to around Rs. 3,200 crore.
He highlighted that the actual cost of machinery and labor still amounted to approximately Rs. 1,100–1,200 crore, raising questions about how the remaining Rs. 1,800 crore was spent. Rana claimed that a significant portion of this increase was due to interest payments, with loans taken at rates exceeding 11%, leading to a monthly repayment burden of nearly Rs. 14 crore over 30 years.
Calling the situation “alarming,” Rana questioned the accountability mechanisms in place and demanded action against those responsible for such financial overruns. He emphasized that this was not an isolated case but reflective of a broader pattern across Himachal Pradesh.
The BJP leader further stated that if the state did not have to bear such heavy interest liabilities—estimated at around Rs. 13,000 crore—it would be in a much stronger financial position. He urged the government to focus on generating its own revenue sources instead of relying heavily on central assistance.
Rana also pointed out that a significant portion of infrastructure development in the state, including roads and connectivity projects, has been funded by central government schemes. He claimed that over Rs. 2 lakh crore has been allocated to the state in the past three years by the Centre.
Concluding his remarks, Rana stressed the need for long-term planning, financial discipline, and continuity in governance to prevent further economic strain on the state.
