Gist of Economic survey 2012-13 Himachal Part 1

Economic Situation at National Level
THE Indian economy, registered a growth of 6.2 percent in 2011-12, after having grown at the rate of 9.3 percent in the preceding year.

The Eleventh Five Year Plan target was pegged at an average annual growth of 9 percent but it has registered a growth of 8.0 percent which is more than the Tenth Plan growth of 7.8 percent.

The growth rate in real Gross Domestic Product during 2011-12 has been achieved due to the growth in financing, insurance, real estate & business services (11.7 percent), transport, storage and communication (8.4 percent), electricity, gas & water supply (6.5%) and trade, hotels & restaurants (6.2 percent). 

The growth rate for the fiscal year 2012-13 is expected around 5.0 percent as per advanced estimates. 

The per capita income at current prices is estimated at 61,564 in 2011-12 as against 54,151 for the previous year recording an increase of 13.7 percent.

Economic Situation in Himachal Pradesh:

The economy of the state is expected to achieve a growth rate of 6.2 in the current financial year which is comparatively better than the national growth of 5.0

percent.

The State Gross Domestic Product (GSDP) at factor cost at constant (2004-05) prices

in 2011-12 is estimated at `41,939 crore as against ` 39,036 crore in 2010-11 registering a growth of 7.4 percent during the year as against the growth rate of 8.7

percent during the previous year.

The Per Capita Income at current prices witnessed an increase of 10.7 percent as it increased to `74,694 in 2011-12 from ` 67,475 in 2010-11. The increase in total State Domestic Product is mainly attributed to 20.0 percent increase in Community & personal services sectors, 8.9 percent in Transport and Trade, 8.1 percent in Finance & Real estate. Whereasthe Primary sector decreased by 5.2 percent.

Food-grains production, which was 14.94 lakh MT during 2010-11 has increased to 15.54 lakh MT during 2011-12 and is expected to increase to 15.80 lakh MT (anticipated) in 2012-13. The fruit production has decreased by 63.7 percent i.e from 10.27 lakh MT in 2010-11 to 3.73 lakh MT in 2011-12 and during 2012-13 (up to December, 2012) production was 4.67 lakh MT.

percentage contribution of agriculture and allied sectors in total State Domestic Product has declined from 57.9 percent in 1950-51 to 55.5 percent in 1967-68, 26.5 percent in 1990-91 and to 20 percent in 2011-12.

The share of industries and services sectors respectively has increased from 1.1 & 5.9

percent in 1950-51 to 5.6 and 12.4 percent in 1967-68, 9.4 & 19.8 percent in 1990-91 and to 18.0 and 12.3 percent in 2011-12. However, the contribution of other remaining sectors showed a favourable shift i.e. from 35.1 percent in 1950-51 to 49.7 percent in 2011-12.

Hydro power: Though the private sector participation in terms of investments in this sector has been encouraging but the smaller projects has been reserved for investors from Himachal Pradesh only (up to 2 MW) and preference will be given for projects up to 5 MW.

Tourism Industry

A ` 428 crore project with the assistance of World Bank has been implemented to create infrastructure for tourism development in the State.

Two new ambitious schemes “Har Ghar Kuch Kahata Hai” and “Har Gaon Ki Kahani” has been initiated to give boost to Nature, Adventure, Historic, Religious and Rural tourism. “Home Stay” is another scheme which has been initiated to promote rural tourism in the State.

Heli Taxi service and Himachal Hat has been started to promote tourism and cultural heritage of the State.

Information Technology

Government has introduced HIMSWAN, SUGUM, Hospital Management Information System (HMIS), Common Services Centers(CSCs), and State Data Centre(SDC), AGRISNET, e-Procurement, Content Service Provider(CSP) and e-Samadhan systems to bring efficiency and transparency in administration.

Himachal Pradesh is the first state in the country to launch e-samadham for redressal of public grievances.

Himachal has the distinction of 1st State in the Country to commission the State Wide Area Network(HIMSWAN).

“Aryabhatta” Geo- Informatic and Space Application Centre(AGISAC) has been set up at Shimla.

Climate change mitigation

Government has launched Community Led Assessment, Awareness, Advocacy

& Action Programme(CLAP), Aryabhatta Geo-Informatics & Space Application Centre(AGISAC) and Management of Plastic Waste.

Inflation

Containment of inflation is on the priority list of government. Himachal Pradesh

Working Class Consumer Price Index No. during 2011-12 increased by 8.5 percent in

November, 2011 as against 9.3 percent at National level, which clearly shows better management of price situation in the state.

Five year plan

The aggregate size of the 11th Five year Plan has been projected at ` 13,778.00 crore.

However, the proposed annual plan for 2012-13 has been fixed at `3,700.00 crore which will be 12.12 percent higher than the plan size of current year 2011-12.

Major achievements on the path of Socio-Economic resurgence are:-

The State had succeeded in getting 7.19 percent share in all BBMB hydel projects in

the State under Punjab Reorganisation Act.

To strengthen the Agrarian Economy of the State, 12 percent of the total State Budget is being spent on this vital sector. Various schemes (` 300.00 crore scheme of Doodh Ganga Yojna, ` 353 crore Pt. Deen Dayal Kisan Bagwan Samridhi Yojna & `321 crore Crop Diversification ) have been implemented to raise the income of the farmers and to create self employment opportunities to the youths of rural areas. Under Pandit Deen Dayal Kisan Bagwaan Samridhi Yojna, an area of about 10.15 lakh sq.metre has been brought under Poly House cultivation.

7,913 MW hydro power has been harnessed out of 23,000 MW identified potential. During the financial year 2010-11, 2,045 million units of electricity were generated.

National Rural Employment Guarantee Yojna implemented all over the State from 1st April, 2008. Under this scheme 152.20 lakh man days were generated and 3,85,305

families were benefitted.

To change the negative attitude towards the girl child “BETI HAI ANMOL Yojna” has been started. A provision of birth grant of `5,100 is deposited in the Post Office in favour of girl child born in BPL family(2 girls) till she attain the age of 18 years.

Under Mukhya Mantri Kanyadaan Yojna the marriage grant of `11,001 has been given to 355 girls.

Under Atal Swasthya Seva scheme free Ambulance is being made available within

35 minutes to all in case of illness and emergency.

Under “Matri Seva Yojna” free institutional deliveries of expectant mothers, irrespective of their income are being done in all Government hospitals in the State.

For redressal of public grievances ”Prashashan Janta Ke Dwar” camps has

been organized in various parts of the State from time to time.

STATE INCOME AND PUBLIC FINANCE

During 2011-12 about 13.69 percent of state income has been contributed by agriculture sector alone.

Per capita income of Himachal Pradesh at current prices in 2011-12 stood at `74,694. This shows an increase of 10.7 percent over 2010-11 (`67,475).

Sectoral Contribution

The sectoral analysis reveals that during 2011-12, the percentage contribution of Primary sectors to total G.S.D.P. of the State is 19.15 percent, Secondary Sector 40.20 percent, followed by Community and Personal Services 18.14 percent, Transport, Communications and Trade 14.91 per cent and Finance and Real Estate 7.60 per cent. Tertiary sector which is comprised of sectors like trade, transport, communications, banking, real estate & business services, community and personal

services has also witnessed change in its share. Its share in G.S.D.P. for the year 2011-12 is 40.65 percent.

Sectoral Growth

Primary sector, which includes Agriculture, Forestry, Fishing, Mining and Quarrying, during 2011-12, witnessed a negative growth rate of 5.2 per cent.( due to decrease

in fruit production this sector registered a negative growth.)

The secondary sector, which comprises Manufacturing, Construction and Electricity, Gas and Water Supply registered a growth of 8.0 percent

GROWTH RATE DURING FIVE YAER PLAN

Tertiary Sector: 12.9

Transport, Storage, Communications and Trade: This group of sectors shows a growth of 8.9 percent during 2011-12. The communication component of this sector has shown a growth of 14.7 per cent

Finance and Real Estate: This sector comprises Banking and Insurance, Real Estate, Ownership of dwellings and Business Services. It witnessed a growth of 8.1 percent in 2011-12.

Community and Personal Services: The growth in this sector during 2011-12 was 20.0 percent.

FOOD SECURITY AND CIVIL SUPPLIES:

Targeted Public Distribution System

The total families for distribution of essential items have been divided in four categories viz;

i) Above Poverty Line (APL)

ii) Below Poverty Line (BPL)

iii) Antyodaya (Poorest of the poor)

iv) Annapurna (Indigent)

              AGRICULTURE AND HORTICULTURE

The state of Himachal Pradesh is the only state in the country whose 89.96 percent as per 2011 census of population lives in rural areas.

Out of the total geographical area of 55.67 lakh hectare the area of operational holdings is about 9.68 lakh hectares and is operated by 9.33 lakh farmers.

The average holding size comes to 1.04 hectare.

Distribution of land holdings according to 2005-06 Agricultural Census shows that 87.03 percent of the total holdings are of small and marginal farmers. 12.54 percent of holdings are owned by semi medium/ medium farmers and only 0.43 percent by large farmers.

Below 1.0          Marginal

1.0-2.0               Small

2.0-4.0               Semi Medium

4.0-10.0             Medium

10.0-                  Above Large

About 81.5 percent of the total cultivated area in the State is rainfed.

The State received an average rainfall of 1,435 mm out of which Kangra district gets the highest rainfall followed by Sirmour, Mandi and Chamba.

Fruit Processing Plant Parwanoo District Solan

                 ANIMAL HUSBANDRY AND FISHERIES

Sheep Breeding Farms

Jeori (Shimla), Sarol (Chamba),Tal (Hamirpur), and Karachham (Kinnaur)

One Ram centre at Nagwain in District Mandi

In view of the increasing demand for pure Hoggets and the established popularity of the Soviet Marino and American Rambouillet in the Pradesh, the state has switched over to pure breeding at the existing Govt. farms.

Angora rabbit farms for distribution of rabbits to the breeders are functioning at Kandwari (Kangra) and Nagwain (Mandi).

Breeds of cows: Upgradation of indigenous cattle is being carried out by cross breeding with Jersey and Holsten.

In buffalo upgradation with Murral bull is being popularized.

One horse breeding farm at Lari in Lahaul and Spiti district has been established with the objective to preserve Spiti breed of horses

One Yak breeding farm has been also established in the premises of horse breeding Lari.

DOODH GANGA YOJNA: Doodh Ganga Scheme has been launched in collaboration with NABARD in the State. The benefits of this scheme include:

• Bank Loan of `5.00 lakh for purchase of 10 cows and construction of shed for them

including 10 percent share of Beneficiary.

• Bank Loan to the tune of `18.00 lakh for purchase of cold chain milk transportation system.

• Bank Loan to the tune of `24.00 lakh for establishing Milk products making units.

• There is provision of 25 percent subsidy on loan for farmers of General category and subsidy of 33.33 percent for farmers of SC/ST category.

Livestock Insurance Scheme: The Livestock Insurance Scheme was started in March 2006 in District Mandi and Kangra. Now extended to Hamirpur, Shimla and Chamba with objective to save livestock owners from loss in the event of death of high yielding cattle and Buffalo.

Cows and Buffaloes giving 5 litre or more milk per day are insured under this scheme.

Premium of Insurance kept at 5.15 percent for 3 years and 2.91 percent for 1st year which is being paid by the Government and owner 50 percent equally.

Backyard Poultry Farming: Under Backyard Poultry Project 2-3 week old chicks of coloured Strain variety i.e. Chabro are supplied to the farmers of the State. These chicks are produced at the two hatcheries i.e. Nahan and Sundernagar, strengthened

under the Centrally Sponsored Scheme “Assistance to State Poultry Farms”.

Diseases for which free vaccination is being provided to livestock owners are FMD, BQ, Enterotoxaemia, PPR, Raniket Disease Marek’s disease and Rabies under this project.

Bhed Palak Samridhi Yojna

Under this scheme Nabard is being implemented venture capital fund for which District Kullu and Shimla have been selected for Rabbit Development. Under this project landless, marginal farmers, individual farmers, self help groups are intedned beneficiaries for setting up rearing units and preference is to be given to traditional shepherds, women and SC/ ST farmers. For this purpose commercial banks, regional banks, regional rural banks and state cooperative banks will provide the funds for which ceiling is as given under:-

1. Under this component the rearing Sheep and Goats (40+2) an amount of ` 1.00 Lakh will be given. 33.33 percent of the total outlay, subject to maximum of ` 33,000 will be given as subsidy and beneficiary will have to pay minimum of 10 percent of total cost.

2. Under this scheme 500 sheeps and 25 goats will be given to beneficiary for breedings units and an amount of `25.00 lakh is the total outlay. 33.33 percent subsidy of total outlay and maximum of `8.33 lakh will be paid to the beneficiary. The concerned person will have to pay 25 % of the total Project Cost.

3. Rabbit rearing units : Under this scheme an amount of `2.25 lakh will be the total financial outlay and 33.33 % of total amount and maximum of ` 75,000 will be given to concerned beneficiary and minimum 10 percent total cost will have to pay beneficiary. Commercial Banks, Regional rural banks, State Co-operative banks are the eligible financial institutions for this scheme.

FISHERIES AND AQUACULTURE

The reservoir of Himachal Pradesh has the distinction of highest per hectare fish production in Govind Sagar and highest sale price value of fish catch in Pong Dam in the country.

Precious cold water fish fauna such as Schizothorax, Golden Mahseer and exotic Trouts. Cold water reservoirs of the the state have shown their potential with the successful completion of ambitious Indo-Norwegian Trout farming Project

FOREST AND ENVIRONMENT

Forests in Himachal Pradesh cover an area of 37,033 square kilometers and form about 66.5 percent of the total geographical area of the state.

World Bank Aided Mid Himalaya Watershed Development Project

Himachal Pradesh Mid Himalaya Watershed Development Project has been launched in the State w.e.f. 1.10.2005 for a period of 6 years with a total cost of `365 crore. Project cost is to be borne by the World Bank and the State Government at 80:20 ratio and 10 percent of the Project cost is to be contributed by the beneficiaries.

Eco-Tourism

The circuit includes:

1. Kullu-From Kullu to Kothi via Manali

2. Shimla-From Mandli to Dodra Kwar

3. Kinnaur-Shongtong to Pooh

4. Bilaspur-Shri Naina Devi Ji area.

WATER RESOURCE MANAGEMENT

Jalmani Programme Under this programme Simple Stand Alone Water Purification System based on UV technology and terafil system are being installed in Rural Schools. Total 3746 Purification System have been installed up to 31st March, 2012.

IRRIGATION:

Out of the total geographical area of 55.67 lakh hectares of Himachal, only 5.83 lakh hectares is the net area sown. It is estimated that ultimate irrigation potential of the state is approximately 3.35 lakh hectares. Out of this, 0.50 lakh hectares can be

brought under irrigation through major and medium irrigation projects and balance 2.85 lakh hectares of area can be provided irrigation through minor irrigation schemes by different agencies.

The only major irrigation project in the state is Shahnehar Project in Kangra District. On completion of this project an irrigation potential of 15,287 hectares shall be created.

The work on the medium irrigation projects was taken in hand in the state during fifth plan. Since then 5 medium projects creating a CCA of 13,586 hectares in the state have been completed. The completed projects are Giri Irrigation Project (CCA 5,263 hectares), Balh Valley Project (CCA 2,410 hectares), Bhabour Sahib Phase-I (CCA 923 hectares), Bhabour Sahib phase-II (CCA 2,640 hectares) and the changer area in district Bilaspur (CCA2350 hectares). culturable command area(CCA)

INDUSTRIES AND MINING

The Government of India has approved the introduction of a new credit linked subsidy programme called Prime Minister’s Employment- Generation Programme (PMEGP) by merging two schemes namely PMRY and REGP that were in operation till 31.3.2008 namely Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP) for generation of employment opportunities through establishment of Micro enterprises in rural as well as urban areas.

MINING

Good quality limestone, which is one of the ingredients in the manufacture of cement, is available in plenty in the state. Presently Six Cement plants (two units) of ACC at Barmana, District Bilaspur,(two units),of Ambuja at Kashlog District Solan (one unit)of M/S J.P. Inds. at Baga-Bhalag and (one unit) of M/S CCI at Rajban District Sirmaur are already in operation.

The establishment of other three major plants at Sundernagar, District Mandi, (M/s Harish Cement (Grasim), Gumma- Rohaha, District Shimla, (The India Cement Ltd.) at Alsindi, District Mandi (M/s Lafarge India Ltd.) are underway and accordingly mining leases have been granted in their favour. For establishment of a large Cement Plant at Broh Shind, District Chamba, MoU has been signed by the Govt. with J. P. Industries and mining lease application is pending for want of joint inspection report of the area applied for the grant of mining lease.

LABOUR AND EMPLOYMENT

As per 2001 Census, 32.31 percent of the total population of the Pradesh is classified as main workers, 16.92 percent marginal workers and the rest 50.77 percent as non-workers.

POWER

Through preliminary hydrological, topographical and geological investigations, it has been estimated that about 23,000 MW of hydel potential can be exploited in the state by  constructing various major, medium, small and mini/micro hydel projects on these five river basins. Out of this hydel potential only 8,368 MW has been harnessed by various agencies which also includes 473 MW by H.P.S.E.B.Ltd.

Assessed Potential

Yamuna                                        817

Satluj                                        10,361

Beas                                           5,357

Ravi                                            2,958

Chenab                                       2,973

Self Identified/New Identified      534

                                         Total 23,000

Hydro Power Policy

Projects upto 2 MW capacity are exclusively reserved for bonafide Himachalis and in

projects above 2 MW and upto 5MW Himachalies will get preference by way of extra marks to enable them to compete with the Non- Himachalies.

The Government of Himachal Pradesh will get royalty in shape of free Power from the

Small Hydro Electric projects @ 6 percent for first 12 years, 15 percent for the next 18 years and 24 percent for the remaining period of project agreement. In addition 1 percent (one percent) Free Power will also be provided by the project developer towards Local Area

Development Fund (LADF) over and above the normal royalty during the entire life of the Project.

Rajiv Gandhi Grameen Vidyutikaran Yojana was launched in April, 2005

VARIOUS PROJECTS UNDER STATE/CENTRE/JOINT/ PRIVATE SECTOR AND HIMURJA

State Sector

1. Andhra                                             Yamuna

2. Giri                                                   Yamuna

3. Gumma                                            Yamuna

4. Rukti                                                 Satluj

5. Chaba                                              Satluj

6. Rongtong                                         Satluj

7. Nogli                                                 Satluj

8. Bhaba                                               Satluj

9. Ganvi                                                Satluj

10 Binwa                                               Beas

11.Gaj                                                   Beas  

12. Baner                                              Beas

13. Uhl-II (Bassi)                                   Beas

14. Larji                                                 Beas

15. Khauli                                              Beas

16. Sal-II                                                Ravi

17. Holi                                                  Ravi

18. Bhuri Singh P/H                              Ravi

19. Killar                                                Chenab

20. Thirot                                               Chenab

21 Baba Augmentation                         Satluj

Central/Joint Sector

Bhakra                                                          Satluj (1478 MW)

Nathpa Jhakri                                               Satluj (1500 MW)

Baira Siul                                                      Ravi

Chamera-I                                                     Ravi

Chamera-II                                                    Ravi

Chamera-III                                                   Ravi

Uhl-I(Shanan)                                               Beas

Pong Dam                                                     Beas

B.S.L                                                              Beas

Private Sector

Baspa-II                                                                  Satluj

Karchham Wangtoo                                              Satluj

Sumez                                                                    Satluj

Beas Kund                                                              Beas

Malana-II                                                                  Beas

Malana-I                                                                  Beas

Patikari                                                                    Beas

Toss                                                                        Beas

Sarbari-II                                                                 Beas

Allain Duhangan                                                    Beas

Upper Joiner                                                          Ravi

Budhil                                                                     Ravi

PROJECT UNDER EXECUTION

i)             State Sector

Bassi Augmentation                                      Beas

Ghanvi-II                                                       Satluj

Uhl-III                                                            Beas

Kashang-I                                                     Satluj

Kashang-II&III                                              Satluj

Sawara Kuddu                                             Yamuna

Sainj                                                             Beas

ii)            Central/Joint Sector

Parbati-II                                                      Beas

Parbati-III                                                     Beas

Koldam                                                         Satluj

Rampur                                                        Satluj

     (iii) Private Sector

Neogal                                                         Beas

Fozal

Tangnu-Romai Stage-I                                Beas

Tangnu-Romai Stage-II                               Yamuna

Lambadug                                                   Yamuna

Baragaon                                                     Beas

Baner-II                                                        Beas

Raura                                                           Beas

Sorang                                                         Satluj

Tidong-I                                                        Satluj

Chanju-I                                                        Satluj

Kut                                                                Ravi

Lower Uhl                                                     Satluj

Kurmi                                                            Beas

Rala                                                              Satluj

Upper Nanti                                                  Satluj

Jogini                                                            Satluj

Nanti                                                             Satluj

Paudital Lassa                                              Satluj

Roura-II                                                        Yamuna

Brua                                                              Satluj

Jeori                                                              Satluj

Under H.P.S.E.B. Ltd.

Uhl Stage-III

Ghanvi Stage-II

Projects under construction/ implementation stage through HPPCL are as under

1.    Sawra Kuddu HEP (111 MW): Sawara Kuddu HEP (111 MW) is being contemplated as a run of river type development on Pabbar river a right bank tributary of ton’s river which is a major tributary of Yamuna river in Shimla District.

2.    Integrated Kashang HEP (243 MW): Integrated Kashang HEP (243 MW) envisages utilization of waters of Kashang and Kerang Streams, tributaries of the river Sutlej comprise four distinct stages in kinnaur district

3.    Sainj HEP (100 MW): Sainj HEP has been contemplated as a run of the river      development on river Sainj, a tributary of River Beas in Kullu District

4.    Shongtong Karcham HEP (450 MW) Shongtong Karcham Hydro electric project is a run-of – river scheme on the river Sutlej in District Kinnaur

5.    Renuka Dam HEP (40 MW): Renukaji dam project conceived as a drinking water supply scheme for the National Capital Territory of Delhi envisages construction of 148m high rock fill dam on river Giri at Dadahu in Sirmaur district