'Himachal Budget should focus on infrastructure''

The PHD Chamber of Commerce and Industry has urged Himachal Pradesh government to focus on building roads in the state budget, to be presented early next month here by Chief Minister Virbhadra Singh.

The PHDCCI has submitted a memorandum to the government highlighting the need for good roads in the hill state as it lowers transportation cost, increases year round market access, incentivise farming and rural enterprises, leading to increased rural income and economic growth.

PHDCCI has also urged the state government to make a blueprint for the human resource industry to facilitate availability of technical workforce for different sectors and provide the much-needed employment to the youth of the state. Opening agricultural tech institutes to build an HR backbone for the industry can be the first step.

"PHDCCI suggests that the state government should have a focused strategy for guiding the industrialisation to make industry sustainable beyond the package. Thus a heavy boost to infrastructure development in the industrial township be given with world class physical and social infrastructure facilities," the memorandum said.

PHDCCI suggests that Himachal needs to look beyond agriculture, horticulture and think of agribusiness in today's global climate. So investments should be made in cold storages, packaging houses, logistics, processing facilities and marketing of produce.

"Himachal being a land-locked state, air connectivity will help in tapping the vast tourism potential of the state. The proposed helicopter service will help tourism industry reach remote virgin regions of state, besides more funds should be allocated for branding Himachal at a global level."

The chamber has also suggested steps to eliminate revenue deficit so that borrowings are not used to finance revenue expenditure but utilised for generating capital assets.

"The state should set up sinking funds for amortisation of all loans, including loans from banks, and liabilities on account of NSSF. This would improve the credit rating of the state when it applies for loans. The fund should be maintained outside the consolidated fund of the state and the public account and not be used for any other purpose, except for redemption of loans," the spokesman said.

In order to provide for sudden discharge of the states' obligations on guarantees, state should set up a guarantee redemption fund through earmarked guarantee fees.