Solan (S Gopal Puri)
In the recently concluded winter session of the Himachal Pradesh Assembly, allegations of corruption dominated discussions between the ruling Congress and the opposition BJP.
Chief Minister Sukhvinder Singh Sukhu had accused the previous BJP government of corruption, claiming it had allotted industrial land worth Rs 123 crore to Indo Farm Ltd. for just Rs 2.81 crore.
However, the Congress government now finds itself under scrutiny for constructing a boundary wall worth Rs 8.75 crore for the same company, using funds from the centrally sponsored PM Gati Shakti scheme.
Central funds diverted?
The PM Gati Shakti scheme, designed to enhance seamless connectivity and infrastructure, is being controversially used to construct a 2-km boundary wall around Indo Farm Equipment Ltd. plot along Ratta river in the Baddi industrial area.
The Industries Department is executing the project through Himachal Pradesh State Industrial Development Corporation (HPSIDC). According to an official source, “A sum of Rs 14 crore was sanctioned for the project, with Rs 8.75 crore allocated to erect the wall along the riverbank. The first installment of Rs 3 crore has already been disbursed.”
Background of land allotment
In January 2022, Indo Farm Private Ltd. was granted a customised package for establishing an auto park in Baddi, with the promise of generating 300 jobs. Nearly three years later, the land allegedly remains unused, with no industrial activity initiated.
Chief Minister Sukhu had earlier criticised the BJP for the undervalued land allotment but is now facing criticism for the Congress government’s decision to spend significant resources to build the wall on the same land, citing rain mitigation under PM Gati Shakti as the rationale.
Bipartisan criticism
The move has sparked criticism from both BJP and Congress leaders:
BJP spokesperson Vivek Sharma questioned: “Funds under PM Gati Shakti are meant for public infrastructure development. Using them to benefit a single private firm is a misuse. Meanwhile, the Baddi Barotiwala Nalagarh Development Authority was given a mere Rs 2 lakh for broader development needs.”
Congress MLA Ramkumar Chaudhary expressed similar concerns: “The land, valued at Rs 123 crore, was sold for Rs 2.81 crore. Instead of resuming this unused plot, the state government is spending Rs 8.75 crore on a wall. This land could be reallotted to industries, earning crores for the state.”
Suresh Kashyap, BJP MP and former state president, accused the Congress government of double standards, stating: “The Congress blames the BJP for corruption inside the Assembly but engages in questionable practices outside it. This is a glaring example of hypocrisy.”
Violations and alleged favouritism
The allotment terms required the company to begin production within 24-30 months and invest Rs 150 crore of the proposed Rs 500 crore within the same period. The BJP said that these conditions remained unmet, yet the government had not taken action to reclaim the land.
Adding to the controversy, the Industries Department removed high-tension electricity lines from the allotted plot as an exception — a privilege not extended to other industries, said Congress MLA Ramkumar.
The Congress government, which criticised the BJP for favouring Indo Farm Private Ltd., now faces allegations of favouritism itself. The use of PM Gati Shakti funds to benefit a private entity raises serious questions about governance and accountability.
Of the Rs 42 crore granted under the PM Gati Shakti scheme, Rs 35 crore was allocated for creating an IT park in Palampur, while Rs 7 crore was meant for infrastructure development in the Baddi-Barotiwala-Nalagarh industrial belt.
However, doubts arise over whether a portion of the IT park funds has been diverted to benefit Indo Farm Equipment Ltd., raising eyebrows about its newfound importance for the Congress government. BJP state president Rajeev Bindal has also questioned this apparent fund diversion, adding fuel to the controversy.