Mon Dec 22 18:57:59 UTC 2025: Summary:

This article, published in The Hindu’s e-paper on December 23, 2025, focuses on the financial challenges faced by Himachal Pradesh due to its significant forest cover and ecological importance. It argues that while these forests provide valuable ecosystem services benefiting the entire nation, the state receives insufficient financial compensation to offset the costs of their preservation and the limitations this places on its development. The author, Archana Vaidya, highlights historical and current methodologies used by Finance Commissions to allocate funds based on forest cover, criticizing their inadequacies and calling for the 16th Finance Commission to address these issues. She emphasizes that Himachal Pradesh’s unique geographical features, including snow-covered regions and alpine pastures, which hold significant ecological value, need to be considered when calculating financial allocations. Ultimately, the article advocates for a more equitable system that adequately compensates Himachal Pradesh for its role in protecting national ecological security.

News Article:

Himachal Pradesh Seeks Fair Compensation for National Forest Benefit

Shimla, December 23, 2025 – Himachal Pradesh is advocating for increased financial assistance from the central government, citing the immense ecological value of its forests and the disproportionate burden it faces in preserving them. In an opinion piece published in The Hindu’s e-paper, natural resource management consultant Archana Vaidya argues that the current financial mechanisms fail to adequately compensate the state for the ecosystem services its forests provide to the entire nation.

Vaidya highlights the report of the Institute of Forest Management Bhopal, which estimates the annual economic value of Himachal’s forests at ₹3.20 lakh crore, including carbon sequestration, ecosystem services, biodiversity, water provisioning, and regulatory services. Despite this substantial contribution, existing regulatory instruments and financial allocations do not fully address the state’s needs.

The article points to the historical evolution of financial compensation mechanisms, noting that while Finance Commissions have incorporated forest cover as a criterion for tax devolution, the current methodology remains flawed. Vaidya criticizes the exclusive reliance on dense forest data, neglecting the ecological significance of snow-covered areas, glaciers, and alpine pastures.

“These regions, though devoid of vegetation, hold immense ecological value and should be factored into financial considerations,” Vaidya emphasizes.

The call for a re-evaluation of the financial framework comes as Himachal Pradesh grapples with the challenges of disaster management and sustainable development. The state government hopes that the 16th Finance Commission will address these long-standing issues and ensure a more equitable allocation of resources, recognizing the vital role Himachal Pradesh plays in safeguarding the nation’s ecological security.

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