SHIMLA: The Himachal Pradesh Governor, Vishnu Sadashiv Kokje, on Tuesday sounded a note of caution about fresh challenges the State would have to face this year after a scanty rainfall and snowfall during this past winter.

In his inaugural address to the budget session of the 10th Himachal Vidhan Sabha, the Governor said the shortage would pose grave difficulties for the rural sector and create hardships in the summer. "All would have to strive hard to meet the expectations of the people," he said calling upon members to rise above party lines to meet the situation.

In his hour- long speech, the Governor listed a number of achievements of the Congress Government which would shortly complete its three years in the office. He said the State economy grew at the rate of 8 per cent in past two years and was expected to maintain the same this year also. The plan size had gone up from Rs. 1400.38 crores in 2004-05 to Rs. 1607.86 crores in 2005-06 and highest priority had been given to the social sector with 45.48 per cent of the total plan size.

He said the internal State revenue had been increased by the successful implementation of Himachal Pradesh Value Added Tax Act 2005. Nearly Rs. 529.23 crores had been collected up to December 2005 which was 31.76 per cent more than the last year.

Mr. Kokje said that Himachal had been adjudged first among the States in the country in the implementation of the 20- point programme and was maintaining equitable distribution of income through employment generation and infrastructure creation. The hydro projects in the State, including the money spinner 1500 MW Nathpa Jhakri, had started paying rich dividends and the total potential had gone up from 3942 MW to 6067 MW in December last year. Two more State- owned projects, Larji (126 MW) and Khauli (12 MW), were to be completed in March this year, Mr. Kokje said.

He said the Government had invited global tenders on build, own, operate and transfer (BOT) basis last year for projects totalling 1767 MW. This year tenders for another 3964.5 MW had been invited for constructing 28 more projects. Smaller hydro projects of up to 5 MW of capacity were given to private parties through the Government- owned HIMURJA agency, he said.

The Governor talked in detail about the achievements made in road connectivity, drinking water, rural electrification, agricultural, aquaculture and horticultural improvements, education, health and forestry sectors. He said some externally- aided projects like GTZ of Germany and DIFID of the UK were helping in giving a big thrust to the forestry development in the State. A third one with the help of World Bank was being started, he said.

Since 90 per cent of population was living in villages, the State Government was giving a great thrust to rural development and poverty alleviation programmes by implementing Gramin Rozgar Yojnas and creating Self Help Groups, the Governor said.

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