Development stalls in Kangra as Himachal battles financial crisis

The state government is facing a severe financial crisis, evident from the stalling of several development projects in the Kangra district due to a lack of funds. Numerous projects, for which foundation stones were laid by ministers, are yet to be initiated. One of the worst-hit sectors is the road infrastructure. State roads are in desperate need of repairs, but the Public Works Department (PWD) is unable to act due to financial constraints. A field visit by The Tribune team to rural roads in various areas of Kangra revealed the dire condition of the infrastructure. Despite repeated pleas from local MLAs and ministers, the state government has failed to release funds for road maintenance and repairs in many constituencies.

Congress MLAs, speaking anonymously, admitted that their development proposals are languishing due to inadequate budget allocations. In contrast, projects funded by the Government of India continue without interruption, and contractors working on them are receiving timely payments.

The growing number of heavy and light vehicles has further strained the already congested state highways. Roads like Palampur– Dharamshala, Palampur– Hamirpur, and Baijnath–Ladh Bharol–Sarkaghat are in urgent need of widening. However, the state government has yet to propose or fund any project.

Despite repeated promises to prioritise the improvement of state and national highways, the government has failed to deliver. Over the past two years, the road situation has deteriorated significantly, also affecting tourism in the state due to the poor travel experience.

Adding to the crisis, the pending payments to contractors have crossed Rs 800 crore in Kangra alone. Many contractors visit the offices of executive engineers daily, hoping for payments, but are turned away due to the absence of a Letter of Credit (LOC). When the previous Jai Ram government left office in 2022, the state’s total loan liability stood at Rs 74,517 crore. In just two years, the current Congress government has raised an additional Rs 29,046 crore, pushing the total debt to a staggering Rs 1,03,563 crore. The state is now paying Rs 11,000 crore annually as interest, yet development remains invisible on the ground.