Shimla: Environmental protection has a cost, and Himachal Pradesh wants its due. Raising the issue strongly in the Vidhan Sabha, Chief Minister Sukhvinder Singh Sukhu said the state is not being compensated despite providing ecological services worth nearly ₹90,000 crore to the country.
Speaking during his budget speech, Sukhu said Himachal plays a vital role in conserving forests and safeguarding water resources that benefit several northern states. He pointed out that the state’s rivers support agriculture and drinking water supply far beyond its boundaries, while its forest cover contributes to maintaining environmental balance at the national level.
“The state is bearing the cost of conservation, but the benefits are shared nationally,” he said, reiterating the demand for a structured “Green Bonus” to compensate Himachal for its ecological contribution.
Sukhu said a significant portion of Himachal Pradesh falls under forest cover, and environmental safeguards often restrict large-scale development projects. This, he noted, impacts the state’s revenue potential while increasing its responsibility towards conservation.
What is ‘Green Bonus’?
The concept of a Green Bonus refers to financial compensation provided to states that preserve forests, biodiversity, and natural resources which contribute to environmental stability at a national level. States like Himachal Pradesh, Uttarakhand, and those in the Northeast have long argued that strict environmental regulations limit their industrial growth and revenue generation, while they continue to provide vital ecological services such as carbon sequestration, water security, and climate regulation.
A Green Bonus is seen as a mechanism to offset this imbalance by rewarding states for maintaining ecological balance and compensating them for the opportunity cost of limited industrialisation.
Why Himachal is Demanding It
Himachal Pradesh has a significant portion of its geographical area under forest cover, and its fragile mountain ecosystem restricts large-scale industrial expansion. The state government has consistently maintained that while it contributes immensely to environmental protection, it faces financial constraints due to limited avenues for revenue generation.
Sukhu reiterated that the state’s role in sustaining rivers and protecting forests has national importance, and therefore, a structured compensation mechanism from the Centre is justified.
Financial Concerns and Policy Push
The demand for a Green Bonus also comes at a time when the state is grappling with financial challenges. The Chief Minister indicated that additional support from the Centre would not only recognize Himachal’s ecological contribution but also help strengthen its economy.
He urged the Central Government to consider the demand seriously and evolve a policy framework that ensures fair compensation to hill states for their environmental services.
The issue of Green Bonus has been raised by Himachal Pradesh in the past as well, but it has yet to see concrete implementation at the national level. With the latest push during the budget session, the state government appears set to take the matter up more strongly with the Centre.
