April 11, 2026

HP Budget Charts Eco-Friendly Tourism Rise

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The Himachal Pradesh government has outlined an ambitious plan to enhance forest conservation and promote tourism as a major engine of economic growth, supported by significant funding and community involvement.

While presenting the 2026–27 budget in the Assembly, Chief Minister Sukhvinder Singh Sukhu introduced several initiatives aimed at increasing tourist inflow while ensuring sustainable development.

Budget Speech English-2026-27

Under the Rajiv Gandhi Vansamvardhan Yojana, afforestation has already covered 1,100 hectares, with a target of expanding it to 4,000 hectares in the next phase. The scheme will involve Mahila Mandals and Yuva Mandals, backed by an allocation of ₹55 crore.

Nearly 15,000 women are expected to participate, with each group receiving ₹1.20 lakh. Groups that achieve over 50% survival of plantations will receive an additional incentive of ₹1 lakh.

The government has allocated ₹320 crore for afforestation and ₹50 crore for forest ecosystem management. Conservation efforts will be linked with tourism through the development of 50 eco-tourism units aimed at attracting more visitors.

Plans also include the creation of geological parks at a cost of ₹903 crore, along with new water conservation measures. A Lion Safari project has been proposed to promote wildlife tourism.

Tourism, identified as a key economic sector, is expected to contribute up to 9% of the state’s GDP. Last year, Himachal Pradesh recorded 3.11 crore tourist visits.

To further strengthen the sector, ₹3,045 crore has been earmarked for tourism development, focusing on infrastructure, skill development, and sustainability.

Major infrastructure projects include the expansion of Gaggal and Kangra airports, with ₹3,349 crore allocated for land acquisition and ₹2,000 crore for development. Gaggal is planned to be developed into an “Air City” with world-class tourist amenities.

Heli-taxi services between Shimla and Dharamshala will begin on April 1, with plans to extend connectivity to all district headquarters. A provision of ₹37 crore has been made for helicopter subsidies. Additionally, Chandigarh–Sanjouli heli-taxi services will operate six days a week.

Religious tourism will also be promoted, with ₹250 crore allocated for temple trusts such as Naina Devi and Jwala Ji. Tourism complexes will be developed in Shimla, Palampur, and Spiti with a budget of ₹308 crore. Projects worth ₹155.75 crore are planned in Hamirpur district, including Dehra and Hamirpur areas.

The government is also emphasizing inclusive and sustainable tourism by promoting village tourism, traditional cuisine, and rural travel centres. Financial support will be provided to women through homestays, guiding services, and handicrafts, including loans up to ₹3 lakh and matching grants up to ₹10 lakh.

Hotel projects with 30–40 rooms will receive a 4% interest subsidy from the state government. New initiatives such as the Himalayan Snow Tourism Project and tourism villages at the panchayat level are also planned. Shimla and Manali have been designated as protected zones, with a focus on eco-friendly practices such as solar energy use and carbon-neutral tourism.

Incentives will also be provided for setting up high-end cafés and dhabas, including interest subsidies. Weekend tourism events are planned in Chintpurni, Dharamshala, and Shimla to enhance visitor engagement.

Overall, the government aims to establish Himachal Pradesh as a leading destination for sustainable tourism while maintaining a balance between environmental conservation and economic development.

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