Himachal CM demands compensation for environmental services, criticises RDG halt
UPSC / SSC current affairs note · Polity
Why in news
Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu has reiterated the state's demand for compensation for environmental services, citing a study valuing these services at ₹90,000 crore. He also criticised the Centre's discontinuation of the Revenue Deficit Grant (RDG) under Article 275, calling it an injustice to the state.
Background
Himachal Pradesh has long argued that its forests, rivers, and hydropower projects provide significant ecological benefits to the nation, but the state does not receive adequate compensation. The RDG, provided under Article 275 of the Constitution, was meant to cover revenue deficits of states, but its discontinuation has strained Himachal's finances.
Key facts
CM Sukhu said the state is only seeking its 'rightful dues' from the Centre.
He described the halt of RDG as an injustice, quoting the Bhagavad Gita that tolerating injustice is a sin.
A study by the Indian Institute of Forest Management values Himachal's environmental services at nearly ₹90,000 crore.
Sukhu demanded enhanced royalty from old hydropower projects and handover of projects after concession period.
He announced ₹5 crore for a B Tech course in AI at Himachal Pradesh University (HPU).
HPU will be designated as the nodal agency for green hydrogen in the future.
The state government will facilitate exposure visits abroad for teachers and students.
Prelims pointers
- Article 275 of the Constitution: grants-in-aid to states for promoting welfare of Scheduled Tribes or for meeting revenue deficits.
- Revenue Deficit Grant (RDG): part of the Finance Commission's recommendations to cover state revenue gaps.
- Indian Institute of Forest Management (IIFM): Bhopal-based institute that conducted the study on environmental services.
- Green hydrogen: clean fuel produced using renewable energy; HPU to be nodal agency.
- Himachal Pradesh University (HPU): established in 1970, located in Shimla.
Mains angles
- GS2 Polity: Centre-State financial relations – issues of fiscal federalism and revenue sharing.
- GS3 Environment: Valuation of ecosystem services and compensation mechanisms for environmental conservation.
- GS2 Polity: Role of Finance Commission in determining grants under Article 275.
- GS3 Economy: Hydropower royalty and resource revenue sharing between Centre and states.