Shimla: Himachal Pradesh is already reeling under a debt burden of over Rs 75,000 crore and the state's economic situation is in a shambles. The state government is in an overdraft of Rs 1,000 crore and now the Congress government in the state has taken a loan of Rs 800 crore on Wednesday (June 8) to save the treasury from closure. The financial condition of the state was discussed in the cabinet meeting held on Tuesday under the leadership of CM Sukhwinder Singh Sukhu. The cabinet members have expressed concern over the critical financial condition of the state.
Industries Minister Harsh Vardhan Chauhan has informed that the central government has cut the borrowing limit of the state by about five thousand crore rupees annually. The economic crisis has increased due to the reduction in the borrowing limit. He said that the central government has not only reduced the borrowing limit of the state, but has also set the limit for taking financial assistance for externally aided projects. Due to which the government will not be able to get external assistance for projects worth more than Rs 300 crore in a year.
Externally aided projects worth about Rs 8,500 crore are pending with the Centre. CM Chouhan said that during the previous BJP government in the state, MoUs worth more than Rs 1 lakh crore were signed in the investment conference, but only Rs 27,000 crore investment came on the ground. CM Sukhu will hold talks with investors in Shimla for two days on projects worth more than Rs 100 crore already pending to increase investment. During this period, 20 proposals of the Department of Energy, 14 of the Department of Tourism and 46 proposals of the Department of Industry will be discussed with investors.