This was third such flag in the state after Kullu and Dalhousie, he said on the occasion here.
Singh also said that Rs 144 crore are being spent on various beautification plans for Shimla including restoration and renovation of two British era churches.
Under the beautification project, Rs 23 crore would be spent on restoration of Mall Road from the Telegraph Office to Shimla Club, the Chief Minister said.
The beautification plans also include restoration of Town Hall, multipurpose parking complex at Tuti-Kandi and extension of another Shimla Mall Road, he said.
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He said that in addition to various ropeway projects coming up in the state, work on the one from Jodha Niwas to Jakhu was under progress.
"I want to maintain the original status of Shimla as 'Queen of Hills' and every effort is being made by the government in this direction," the Chief Minister said.
Earlier, he inaugurated the Cash Branch of the Municipal Corporation of Shimla facilitating people to pay their bills under one roof and distributed keys of the dwelling units at Dhalli under a housing scheme for the poor, Ashiana-II, built under the urban development initiative of the government.
The Chief Minister also witnessed the band concert and march past by the Indian Army and was on the occasion by Lt. Gen. P M Hariz, GoC-in-C of ARTRAC, Shimla and Lt Gen Raman Dhawan.