role of power genration and tourism in devolopment of HP

Ashutosh Badhwar Roll no: 2489

MBA sec a

ROLE OF POWER GENRATION AND TOURISM IN HIMACHAL

In April 2010 when Honorable CM of Himachal Prof Prem Kumar Dhumal was interviewed by India Today state of the states on being ranked 2nd overall in the list of big states just after Punjab he said “Himachal Pradesh though having 4th highest per capita income and being 8th on the Human development index is also having a high debt Of Rs 26,000 core”. He said “Himachal being a hilly state, there are less Sources of revenue except from electricity, tourism and agriculture”. Despite this he believed that Himachal will break even by 2013 on back Of revenue generated from selling electricity and tourism. SO NOW THE ROLE OF TOURISM AND POWER GENRATION WILL BE STUDIED SEPRATELY.

H.P has tremendous hydro power potential and in course of preliminary, Hydrological, topographical and geographical investigations it has been Projected that 21,244 MW of hydro power can be generated in the state by Constructing various major, medium, small and micro hydro projects on five Perennial river basins. Despite all efforts only 6500 MW of electricity has been harnessed out of which only 326 MW only is under the control of Himachal govt and rest has been exploited by central govt and other Agencies.

HP govt has launched various schemes for the development of hydro Potential which includes ? Granting easy loan from banks and loans from International organizations ? Encouraging private sector to invest in sector, ? Govt also has special bidding and allocation process for allotting power projects to companies. ? Himachal govt has also taken steps to reduce the transmission and distribution losses which already are lowest in the country at 3% ? Apart from it govt has fragmented the state electricity board into three different entities i.e. transmission, operation and generation. ? Apart from it govt has also launched its own power generation entity i.e. Himachal Pradesh power corporation LMT.

Himachal plans to build up hydro projects mainly on perennial rivers, Which can be be used for multiple purposes like providing drinking water,Water storage facilities, water for agriculture cultivation etc

Himachal is dependent on hydro power to a large extent and this can be said because of following reasons: ? As most of the hydro resources are available in poorest areas of the state it helps in the development of those areas as the development agency will also have to make basic infrastructure for it. ? As most of the schemes are launched by central and state companies hence they work towards social development like building roads, bridges, hospitals, schools etc. ? Govt of Himachal has passed a law making it mandatory for all hydro producing companies in himachal to employ at least 70% of the total work force of from local society this helps in the development of the society. ? As himachal itself is power surplus it sells power to different sates and also to grids at higher prices and it helps govt to earn revenue from it.

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Govt also charges power generation tax which is charged at a rate of 25% per unit of the power generated by all entities in Himachal .This leads to an income of Rs 675 core per annum for the govt . In Himachal 62% of the generated electricity is sold to industrial units at higher prices which signifies industrial development. The sale of electricity to industrial units is rising at the rate of 9.2% per annum in Himachal.

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As power projects require skilled manpower which is not easily available here companies are opening training institutes.
It helps in the development of agriculture in Himachal as electricity is provided to tube wells and various other irrigation facilities. It helps in tourism growth also as it provides electricity to hotels, amusement parks, trains, bus stands, restaurants, airports, stadiums, Malls etc. It helps in the social development, poverty alleviation and regional Development of the society.

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Himachal as a state has an area of 55,673 kms which is more than the size of Switzerland but it has not been able to harness Its potential to full. Tourism on the world level has played a key Role in development of most states like the economy of Switzerland, Mauritius and Maldives is entirely dependent on it And the economy of Singapore and U.A.E is partially dependent on it.

World over for the year 2010 the global GDP increased by 3.3% to US$ 1,770 billion which will rise 4.5% to US$ 1850 billion. It generates 3 million direct industry jobs and is 9% of the global GDP.

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In India Tourism direct contribution is an 8.1% increase in real growth which is Rs 1570.5 billion or 1.9% of the total GDP. It contributes 8.8% to GDP of India and employees 24,931,000 people which is 5% of the total employment in India. On whole tourism gives employment to 45, 99, 000 people and contributes Rs 751billion to the GDP. This has made India among top 15 Most visited tourist places in the world.

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Himachal stands at 6th place after Rajasthan, Tamil Naidu, Maharashtra, Delhi and Uttar Pradesh combine and Kerala. In Himachal it is the Largest service industry with a contribution of 6.23% of the GDP And 8.78% of the total employment. Himachal is famous for Himalayan landscape and popular hill station. Many outdoor activities such as rock climbing, mountain biking, paragliding, ice-skating and skiing are popular tourist attraction apart from it people also come to visit it for its peaceful environment, rich Flora and Fauna, Glaciers, man made lakes, wild life reserves etc. It also has two UNESCO sites KALKA-SHILMA railway and Garli Pragpur village. Total tourist arrivals in Himachal in 2010 Were 13,298,748 rise of 16% out of which 454,851 were foreign Tourist.

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Recently heli taxi service was launched for high end tourists on 28 routes with fares between Rs 2000-Rs 13000. The tourist reception centers have been launched state over. Tourist information centers have come up in all important centers for the benefit of tourists so that they can get important information. Himachal has launched UNFORGETTABLE HIMACHAL as a part of Incredible India campaign of the central government.

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Plans are under way to have an international airport here.

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The spending on various infrastructure projects of tourism has increased.
Investment on training of workforce has been increased by the govt. Various new sites are being identified and being marketed.

Destinations are being marketed and with the use of internet and media all the information is now easily available.
The tribal areas which are not relatively known are also being marketed. New tourist destinations are being identified.

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Tourism helps by creating employment opportunities to people.

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Tourism helps by providing employment to both skilled and unskilled labor.
As tourism potential lies in the remotest part of the state it helps in development of that region by providing basic facilities and way of living. Tourism helps in earning foreign exchange by foreign tourist arrivals. Tourism helps in globalization as it helps in making foreign nations aware of our rich Fauna and Flora, our traditions, beliefs. Etc

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It helps to raise our standard of living by providing basic needs and more to people. A good tourism sector like of Himachal contributes heavily to the GDP of state and nation. As home stay has been launched in state it will impact all citizens as now they can also earn extra income, work and this will also help in providing employment as people will work there. It helps in the social development, poverty alleviation and regional Development of the society. Himachal which is rich in rich cultural traditions helps in passing that on to others.

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Himachal also has rich infrastructure for religious tourism of Hindus, Sikhs ,and Buddhists , many thousands – lacks of tourists who visit himachal for the paying visit to these places , helps the state to earn lots of money in national and foreign currency by way of their donations. Himachal also has a lot of scope in medical tourism and as of now the YOG centers in different part of the state help to earn foreign currency.

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It also helps in educating people of the rich cultural, social, flora and fauna, traditions etc. Recently with the growth of Himachal as sporting state it has got state many hosting wrights for national and club games which has led state to get media attention in nation and even outside. Which will lead to more tourist arrivals and hence more income.

THANK YOU



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