Although it sends just four MPs to the Lok Sabha, the battle over Himachal Pradesh which is the next state to hold an Assembly election after the BJP's spectacular victory after Gujarat, has become so intense as to reach unreal proportions.
For both the BJP and the Congress, winning the election - likely to be held mid or late February - has become a prestige issue.
Accordingly no party is leaving any stone unturned in its effort to win over Himachal voters.
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An ambitious industrial development package announced by the Central government, including 100 per cent excise duty exemption for ten years, capital investment subsidy for plant and machinery and income tax exemption for units in Himachal regardless of location, was notified today.
This includes relaxation of norms under the PM Rozgar Yojana (PMRY) of the upper age from 35 to 40 to include more voters, doubling of the scale of subsidy from Rs 7500 to Rs 15,000 and an increase in the ceiling of margin and subsidy from 12.5 per cent to 20 per cent of project cost. More sops are to follow, for the election schedule is yet to be announced.
One of the most important elements in the state's economy is procurement systems for the apple crop produced by the state which has been made more transparent.
Till about four years ago the nexus between the packager and the commission agent was so strong that apple growers got almost nothing for their crop especially in conditions of glut.
However, apple growers' cooperatives promoted by the state government have had a significant role in stabilising prices.
At the political level, the BJP has recently recast its election committee to include former Chief Minister Shanta Kumar on it.
Shanta Kumar's influence is unchallenged in the Kangra district which sends 17 out of 68 seats to the assembly.
Although the rivalry between sitting Chief Minister PK Dhumal and Shanta Kumar, who believes the BJP can form governments only because of his efforts, is the BJP's worst kept secret, Madan Lal Khurana's inclusion in the election committee is calculated to prevent clashes between Kumar and Dhumal.
Himachal has more than 3 lakh government employees who represent 30 per cent of the electorate. Almost all employees are also owners of agricultural land in the state.
The package announced by the centre is addressed at this section and is expected to swing votes in the BJP's direction.
The fact that Himachal is virtually the PM's second home and that from time to time he has announced projects for the state is also expected to work in favour of the BJP.
While the BJP will try to utilise governance as a trump card in the Himachal election, the Congress is suffering from a double disability.
Secularism or the lack of it is unlikely to figure because the percentage of Muslims is so small as to be practically negligible.
And while the BJP has ruled out any alliances with anyone, the Congress is still debating whether to enter into an understanding with Sukh Ram in the state, indicating some ambiguity on the chief ministership.
The election is crucial for the Congress for other reasons. Morale in the Congress is so low after the reverse in Gujarat that if the party does not demonstrate an electoral victory, dissident voices might start making themselves heard about the political credentials of the top leadership.
As it is, the post-mortem session of the Congress Working Committee (CWC) to discuss the Gujarat election earlier this week saw subtle one-upmanship at work.
Arjun Singh criticised the Congress's departure from secularism in Gujarat but Manmohan Singh, said that the BJP could not be allowed to become the sole custodians of Hindus.
In order to retain her control over the party, Sonia Gandhi has to demonstrate that her leadership is not seen as a liability for the party.