Govt changes rules, makes signing of lease agreement a must for project developers

Pratibha Chauhan
Tribune News Service
Shimla, August 3
Investors wanting to set up power projects, cement plants or any other units in Himachal will now have to sign a lease agreement with the state Revenue Department for forestland that is to be diverted. Besides, they will have to pay the lease money at five-time high rates.
The Revenue Department has amended the Land Lease Rules, 2013, making it mandatory for the investors to sign a lease agreement with the government for the use of forestland. Prior to this, the project developers were getting forestland diverted under the Forest Conservation Act, 1980, for setting up hydroelectric projects, cement plants or other projects by paying the net present value (NPV).
The Revenue Department has not only amended the lease rules but has also enhanced the lease rates from Re 1 per square metre to Rs 5 per square metre. “The project developers, who choose to deposit the entire lease amount for 40 years in one instalment, will be exempted from the enhancement in the lease rates carried out every five years,” states the notification. The latest amendment to the rules will help the government to generate the much-needed additional revenue.
Moreover, as per the notification issued by Additional Chief Secretary (Revenue) Onkar Sharma, it will be mandatory for the developers to execute the lease deed within six months after getting approval under the Forest Conservation Act.
Earlier, the project developers or any user agency did not sign a lease agreement with the government for forestland. The state government had in 2006 directed the developers to sign a lease agreement with the Revenue Department for the forestland leased to them, which they challenged in court. Now, the Revenue Department has made an amendment to the lease rules so that it becomes binding on the developers to sign a lease agreement with it.
The government had invited suggestions and objections to the Himachal Pradesh Lease (4th Amendment) Rules, 2024, on June 5, 2024, but as no objection or suggestion was received, the amendments were notified. Seeking a public response to these amendments was mandatory under the Himachal Pradesh Village Common Lands Vesting and Utilisation Act, 1974, and Section 26 of the Himachal Pradesh Ceiling on Land Holdings Act, 1972.

Himcare scheme amended, empanelment of pvt hospitals withdrawn from Sept 1

• The state government today modified the Himcare healthcare scheme to plug loopholes that were misused by people. The Health and Family Welfare Department issued the notification making the amendments to the scheme.
• As per the notification, the government withdrew the empanelment of private hospitals with effect from September 1. The second modification excluded all serving and retired government employees from the scheme with immediate effect to prevent its misuse.
• Health officials had pointed out several instances of the misuse of Himcare funds such as some government employees availing of medical reimbursement even after taking free treatment under the Himcare scheme.