Dhumal takes issue of generation of tax with Union government

Prof. Prem Kumar Dhumal, Chief Minister has raised the levying of generation tax issue under Article 288 of the Constitution of India, with the Union Finance Minister, Shri P.Chidambaram. In a letter written to the Union Finance Minister, he reminded of the budgetary announcement made by the then Union Finance Minister revealing the intention of the Government of India to permit hydel generating states to levy generation tax over the hydel potential available in respective states with a view to help small hilly states become financially viable. He said that the issues required examination at the appropriate level and decided in favour of the small hilly states to deliver them legitimate relief.

Chief Minister said that the available hydel potential was the most valuable natural wealth available with the state benefitting neighbouring states not only of their water requirements but also generating hydel power in public, joint venture and private sector. He said that in majority of cases the state had not been getting any legitimate share in the hydro projects executed by the BBMB in the state while the state had paid heavily for construction of the projects since thousands of families were rendered homeless for having surrendered their limited land holdings to pave the way for the construction of the projects. He said that majority of those were still awaiting rehabilitation as the state had been raising the sensitive issue with the concerned state governments but no amicable solution had emerged so far. He said that the oustees were running from pillar to post to get their grievances redressed while the state government was also pursuing their case vigorously.

Prof. Dhumal wrote that the logic of Parliamentary Standing Committee on finance had also referred to the ‘exemption in exceptional cases’, and Himachal Pradesh being an exceptional case, had uptill now been denied its legitimate share in a number of cases, which included share under reorganization of states as well. He said that the state had limited resources of income while the natural potential available with the state had to be protected for the benefit of the nation and was exploited upto the limit the environment and other conditions permit. He said that state was carrying industrial expansion activities with utmost care and ensuring that the ecological balance of the region was not disturbed. He said that the state was paying heavily to the benefit of the neighbouring states and other beneficiaries, instead getting nothing for all the facilities it was extending to them. He said that the state deserved to be compensated adequately as it was also enlisted in the ‘ Special Category State ’ list of the Union Government.

Chief Minister urged the Union Finance Minister to restore the Special Industrial Package to its original announced date of March, 2013. He said that Himachal Pradesh was new to the industrial expansion but had utilized the period to create necessary required infrastructure for development of industrial areas and on making the same available the industrial expansion took place at a rapid pace as a large number of multinational companies had opted to invest in the industrial friendly and infrastructure filled environment of the state. He said that it was the vision of former Prime Minister Shri Atal Behari Vajpayee who understood the developmental requirements of the state and included Himachal Pradesh in the ‘Special Industrial Package’ list of the Union Government.

Prof. Dhumal said that the Union Government needed to come forward to get the dues cleared from the neighbouring states on various accounts so that the state could shoulder its developmental and social welfare responsibilities more perfectly and progress ahead to keep pace with rest of the country. He said that people of Himachal Pradesh were peace loving, hard working and God fearing and understand their rights and duties very well. He said that the state government was committed to protect the interests of the state and its people and would raise issues at all fronts to get the legitimate rights restored to the people. He said that the legitimate demands of the people should not be ignored and taken seriously since with the economic strengthening of the state the Union of India would get strengthened to emerge as the super power of the world in coming years.