Sukhu govt withdraws Rs 10 cr allotted for Kangra airport project; is Himachal’s fiscal crisis worse than reported?
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DHARAMSHALA: Amid Chief Minister Sukhvinder Singh Sukhu’s assurances that Himachal Pradesh is not facing an economic crisis, recent developments surrounding the much-anticipated Kangra airport expansion project are raising questions about the state’s financial management.
Reliable sources in Shimla have revealed that the Congress government has quietly withdrawn Rs 10 crore that was sanctioned only a month ago for the Kangra airport expansion, a project the Chief Minister himself has called his “dream project”.
The Rs 10 crore, which was deposited into the account of the District Tourism Office in Dharamshala, has been pulled from the treasury over the last three days. While the government has remained tight-lipped about why this token money was withdrawn, the decision has raised questions whether the state is concealing deeper financial woes from the public.
Major tourism project in jeopardy?
The Kangra airport expansion is set to be one of Himachal Pradesh’s largest infrastructure projects, second only to the Bhakra and Pong dams. In July this year, the Sukhu government made headlines by sanctioning a whopping Rs 930 crore for the project, a move that many saw as a bold step toward enhancing tourism and regional connectivity. The government followed this by issuing a notification under Section 11 (1) of the Land Acquisition Act, 2013, marking the beginning of land acquisition in 14 villages surrounding the airport.
The next phase, under Section 21 of the Act, would involve compensating the affected landowners, a process slated for October. However, with the withdrawal of Rs 10 crore earmarked for these payments, concerns have emerged over the state’s ability to honour its commitments.
CM’s claims on fiscal position come to naught
Despite the Chief Minister’s repeated claims that the state’s finances are stable, the decision to pull back such a small amount from a large project fund indicates that the government may be grappling with financial strain. The question is: Why did the government feel the need to retrieve this token sum? Is it a sign that Himachal’s economic situation is more precarious than the public is being led to believe?
Sources suggest that the district treasury in Dharamshala has been empty for the past three days, further fuelling speculation that the government is facing a liquidity crunch. If this is the case, the withdrawal of funds from a high-profile project like the Kangra airport could be a signal that the government is struggling to balance its finances.
Dream project or delayed reality?
The Kangra airport expansion, envisioned as a transformative project for the state’s tourism sector, now faces uncertainty. While the government continues to tout its commitment to the project, the withdrawal of funds raises concerns over potential delays and the sincerity of the administration’s promises.
The Sukhu government’s initial enthusiasm for the airport garnered applause when Rs 930 crore was allocated and the land acquisition process began. However, this sudden reversal has cast doubt on the future of the project and the government’s financial transparency.
What’s next for Kangra airport?
With the next step in the project requiring the issuance of compensation notices to landowners, it remains to be seen whether the government will be able to follow through on its promises. The airport’s expansion is critical not only for Kangra but for the entire state’s tourism and economic development. Any delay could have long-lasting impacts on public trust and the state’s economic outlook, say tour operators.
