History and Geography

Himachal situated in the heart of the Western Himalya, identified as "Dev Bhumi" is believed to be the abode of God and Goddesses. The entire State is punctuated with stone as well as wood temples. The rich culture and traditions has made Himachal unique in itself. The shadowy valleys, rugged crags, glaciers and gigantic pines and roaring rivers and exquisite flora and fauna composes the symphony that is for ever Himachal.

The north-eastern part of the State is decorated with snow-covered, silver-headed mountains, halcyon lakes and green stretches of prairies. The State is rich in flora and fauna. In the north it is contiguous to Jammu and Kashmir, and in the south-east, it adjoins the hilly areas of Uttar Pradesh. In the south and on the western side, the territory is bordered by Haryana and Punjab respectively, whereas on the east it borders Tibet.

The State came into being as a union territory in April 1948, as a result of integration of 30 princely states spread over 27,000 sq. km. In 1954, when another 'C' class State of Bilaspur merged with Himachal Pradesh, its area increased to 28,241 sq. km. The position remained unchanged till 1966, when on reorganisation of the states, the hilly areas of Punjab were merged with the state increasing its size to 55,673 sq. km. Proportionately, the population also increased from 1.4 million to 2.8 million, now standing at 60,77,248 according to census 2001.

AGRICULTURE

Agriculture being the main occupation of the people of Himachal Pradesh has an important role in the economy of the State. It provides direct employment to about 71 per cent of the main working population. Income from the agriculture and allied sector accounts for nearly 22.5 per cent of the total State Domestic Product. Out of the total geographical area of 55.673 lakh hectares, the area of operational holding is about 9.99 lakh hectares owned by 8.63 lakh farmers. The marginal and small farmers constitute 84.5 per cent of the total land holdings. The cultivated area in the State is only 10.4 per cent. About 80 per cent of the area is rain-fed.

Under the diversification approach, major emphasis is being laid on the production of off-season vegetables, quality vegetable seeds, potato and ginger besides soybean, oilseeds and pulses. A project-based approach has been adopted to increase vegetable production. At present, about 41,500 hectare area is under vegetable production with production level of 7.85 lakh tonne. Loanee and non-loanee farmers have been covered and initially maize, rice, wheat, barley and potato crops have been brought under the purview of the scheme. To educate the farmers about the latest technical know-how, the extensive network in the State has been energised for achieving accelerated growth in Agriculture, H.R.D. and water conservation, with proper natural resources management been accordingly prioritised.

HORTICULTURE Nature has endowed Himachal Pradesh with a wide range of agro-climatic conditions, which have helped the farmers to cultivate a large variety of fruits ranging from temperate to sub-tropical. The main fruits under cultivation are apple, pear, peach, plum, apricot nut fruit, citrus fruits mango, litchi, guava and strawberry, etc. The total area under fruit cultivation, which was only 792 hectare in 1950, has increased to more than 2 lakh hectares. Similarly, the fruit production has also increased from 1200 MT in 1950 to 6.92 lakh tonnes in 2005. The target for fruit production for year 2005-2006 has been fixed 7 lakh tonnes. Horticulture generates gross domestic income of about Rs. 1000 crore annually.

The Horticulture Technology Mission for the integrated development of horticulture is being implemented with a total outlay of Rs. 80 crore during the tenth five-year plan period. This Mission is based on the "end to end approach" taking into account the entire gamut of horticulture development with all backward and forward linkages in holistic manner. Under this scheme four centres of excellence are being created in different Agro-Climatic Zones with common facilities like water harvesting, vermicompost, greenhouses, organic farming and farm mechanisation.

ROADS

Roads are the lifeline and major means of communication in the predominantly hilly State of Himachal Pradesh. The tremendous potential inherent in various fields in Himachal Pradesh could not be exploited for economic growth in the past due to lack of means of communication. Out of its 55,673 km area, 36,700 km is inhabited and its 16,807 inhabited villages are scattered over slopes of numerous hill ranges and valleys. When the Pradesh came into existence in 1948, there were 288 km of roads, which has gone up to 23,788 km. The State has 8 National Highways having a total road length of 1,235 km.

HYDRO-POWER GENERATION

Himachal Pradesh has immense hydro-potential in its five river basins. Chenab, Rabi, Beas, Satluj and Yamuna which emanates from the western Himalayas pass through the State. The strategy of development in the power sector comprises of expeditions actualisation of the Hydro Electric Potential and introduction of power sector reforms to bring efficiency in the sector and provide high quality power to the consumers at reasonable rates besides availability of abundant power to industrial and tourism sectors. The total identified potential in the State stands at 21000 M.W which is one fourth of India's total hydro-power potential. Presently out of this 6,067 M.W has already been harnessed by various agencies. Projects aggregating to 7,602 M.W are under execution. It is on the cards that State will have about 11,000 M.W actualised potential by the end of 11th Plan.

There is no denying the fact that the way the Government has embarked upon an accelerated Power Development Programme. The State is speedily moving towards a "Power State" of the Country. All the census villages in the State have been electrified and now left out hamlets are being covered.

INDUSTRIAL GROWTH

Industrial development has been given big boost in the State. Pollution free environment, abundant availability of power and rapidly developing infrastructure, peaceful atmosphere responsive and transparent administration are some of the added attractions and advantages that the entrepreneurs get in Himachal Pradesh. 315 large and medium and about 32,709 small-scale industrial units with an investment of about Rs. 4255.78 crore had been set up in the state generating employment for 1.86 lakh persons. The sector is contributing 15 per cent to the State Domestic Product and the annual turnover on this account is about Rs. 6000 crore.

The State has formulated a new Industrial Policy and Incentive Rules - 2004, which provides attractive packages to the entrepreneurs for setting up of Industrial Units in the State. 42 industrial areas and 15 Industrial Estates with all basic amenities have been developed in the State.

With a view to provide umbrella support to existing and new ventures, the State government has set up a State Level Single Window Clearance and Monitoring Authority (SLSWCMA) in Himachal Pradesh under the Chairmanship of Chief Minister to give permission to the entrepreneurs to set up industrial units in the State. This also discuss and solve all industry related and inter-departmental issues, monitor and review the progress of units already approved and proposed to be set up. This Authority is also focusing its attention on the development of quality infrastructure. Presently 7040 industrial units with an investment of about Rs. 18045.30 crore envisaging employment to about 2.52 lakh persons have been approved. A proposal is also underway of setting up Special Economic Zone in Kangra, Una and other districts with an estimated cost of Rs.5000 crore.

The Central Government has also given attractive package for setting up of Industrial Units which also includes Income Tax Holidays. The State Government is also giving several attractive incentives including exemptions in excise duty.

INDUSTRY

Himachal Pradesh has made significant progress in the field of industrialisation in the past few years. There are 196 large and medium and about 30,839 small-scale industrial units in the state. This sector is contributing around 14 per cent to the State Domestic Product.

INFORMATION TECHNOLOGY

The Government of Himachal Pradesh has developed an IT Vision-2010 in collaboration with NASSCOM to make Himachal Pradesh an IT destination. Under the IT policy, it has been decided to accord the status of Industry to all IT projects, including IT related services and educational institutions. As such, all the incentives available to Industry under the presently applicable Industrial Policy will also be made available to the IT units in the State.

The use of IT in governance is aimed at having SMART (Simple, Moral, Accountable, Responsive and Transparent) government. The State Government official website at "http://himachal.nic.in" is a web portal providing citizen centric services to the citizens and it has got interfaces for getting inputs from the grass root level. The State Government is also in the process of creating an H.P. State Wide Area Network (HIM SWAN), which will also be connected to the Internet. In the Phase-I of HIMSWAN, H.P. Secretariat Local Area Network was established with a provision to provide LAN connectivity to every third person. All IT units in the State have been given Income Tax holiday up to 2007. Information Technology Park is proposed to be set up in the State in Solan district.

BIO-TECHNOLOGY

Keeping in view the importance of bio-technology, a separate Department of Bio-technology has been set up and the State's own Biotechnology Policy has been formulated. The Government proposes to give sales tax holiday to all Bio-Technical Units in the state up to 2012. Income Tax Holiday for the first 5 years and 30 per cent rebate thereafter and Central Excise Exemption 100 per cent for the first 10 years.

IRRIGATION AND WATER SUPPLY

Net sown area in the State was 5.83 lakh hectares till 2004.Villages have been provided the facility of drinking water, over 13,000 hand pumps have been installed in the State so far. For better reform in water supply and irrigation sector, the State Government has taken up a WASH project with the total cost of Rs. 339 crore for irrigation as well as for drinking water supply schemes with Gesellschaft for Technische Zuoammeuorbeit (GTZ).

Rs. 40 crore new drinking Water Supply Scheme has been launched for Shimla town. The Government of India has approved 471 schemes of Rs. 7.33 crore under Swajal Dhara Programme. 49 small-scale irrigation schemes of Rs. 16.31 crore have been sanctioned by Centre Government to supplement the efforts of State to meet out irrigation and drinking water supply to the people.

FORESTRY

The total geographical area of the state is 55,673 sq. km. As per record, the total forest area is 37,033 sq. km. Out of this, 16,376 sq. km. area is not fit for tree growth comprising alpine pastures, area under permanent snow, etc.

The cultivable recorded forest area is only 20,657 sq. km. Efforts are being taken to bring maximum area under green cover by implementing State's own projects, Government of India's projects and also through external aided projects. The World Bank has also been sanctioned a Rs. 365 crore Integrated Watershed Development Project for the Mid Himalayas. 545 panchayats of 42 developmental blocks in 10 districts would be covered during the next six years. Tere are 2 National Parks and 32 wild life sanctuaries in the State. Total area under wild life sanctuaries is 5562 Km area under National Parks is 1440 Km and total area of Protected Area Network is 7002 Km.

EDUCATION

Education is important for over-all development of a State. Himachal Pradesh has emerged as the third best State in terms of over-all development and performance. The achievements of past three years have been lauded by India Today Survey and has been adjudged number one State in Primary Education and teacher student ratio. Himachal Pradesh has witnessed literacy revolution as we are second only to Kerala in literacy. State has about 15,000 educational institutes, including three Universities, two Medical Colleges, one Engineering College in the Government Sector and a number of technical, professional and other educational institutions. The literacy percentage of the State according to 2001 Census is 77.13 which is much higher than the national average of 65.38. The State Government’s emphasis now is to ensure qualitative improvement in the education besides need based expansion. Sarva Siksha Abhiyan an ambitious project worth Rs. 532 crore is being evolved with main objective to achieve universalisation of elementary education with the sole aim to spread the light of knowledge to every nook and corner of the State.

TOURISM

Tourism Industry in Himachal Pradesh has been given very high priority and the Government has developed an appropriate infrastructure for its development which includes provision of public utility services, roads, communication network, airports, transport facilities, water supply and civic amenities, etc. The State Government is poised to transform the State into "A Destination for All Seasons and All Reasons". The State Tourism Development Corporation contributing 10 per cent to the State exchequer. The corporation contributes more than Rs. 2.00 crore per annum by way of Sales tax, luxury tax and passenger tax. In the year - 2005, Tourist arrival in the State were 7.1 million of which 2008 lakh were foreigners.

The State has a rich treasure of places of pilgrimage and anthropological value. The State has also the pride of being the home to Rishies like Vyas, Prashar, Vashist, Markandey and Lamas, etc. Hot water springs,historic forts, natural and man-made lakes, shepherds grazing their flock are sources of immense pleasure and joy to the tourist.

The State Government is aiming at promoting sustainable tourism, encouraging private sector to develop tourism related infrastructure in the State without disturbing the existing ecology and environment. The main thrust is an employment generation and promoting new concepts of tourism in the State. In order to increase the duration of the stay of the visitors/tourists a special emphases is being laid on the development of activities-based on tourism.

For the promotion and development of the State from tourism point of view, the Government is focusing on the following areas :

1. History related tourism
2. Identification of new areas/tourist destinations and promotion of Village tourism
3. Improvement of Infrastructure
4. Pilgrimage tourism
5. Tribal tourism
6. Eco-tourism
7. Health tourism
8. Promotion of Adventure tourism
9. Wildlife tourism
10. Cultural tourism

For the year 2005-06, there is an allotment of Rs. 444.01 lakh for the development of tourism in the State. A sum of Rs. 7.50 crore for the development of Kullu-Manali-Lahaul & Spiti and Leh Monastic circuit, Rs. 21.00 crore for Kangra, Shimla and Sirmaur Circuit, Rs. 16.00 crore for Bilaspur-Mandi and Chamba circuit and Rs. 30.00 lakh for construction of tourism information centre at Manali has been sanctioned by Govt. of India, Rs. 67.57 crore Central financial assistance received for 1545 projects in respect of festivals and other major events.

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