Cheap Power, Green Energy Push and New IT Hub Plans: Himachal Opens Doors to Investors

Himachal Pradesh is positioning itself as an attractive destination for investment, with the state government working on a new industrial policy that promises lower electricity tariffs, stronger infrastructure and greater support for businesses.

Speaking at the Chandigarh Leadership Conclave and the 23rd Annual General Meeting of TiE Chandigarh, Chief Minister Thakur Sukhvinder Singh Sukhu extended an open invitation to entrepreneurs and industry leaders, saying that Himachal offers a business-friendly environment along with the government’s full support for investors.

The Chief Minister highlighted that the state already provides round-the-clock power supply and is now preparing a new industrial policy aimed at making investment even more attractive. A key feature of the upcoming policy will be reduced electricity rates for industries, a move expected to boost manufacturing and attract new businesses.

At the same time, Himachal is placing a strong focus on clean energy. Sukhu said the state is set to become a major player in green hydrogen production in the coming years. Efforts are also underway to expand renewable energy initiatives, including the establishment of BioChar plants across the state and the development of a geothermal energy project in Kinnaur.

Describing Himachal as a power-surplus state, the Chief Minister announced that the government is signing a three-year Power Purchase Agreement (PPA) with Punjab to supply electricity. Calling Punjab Himachal’s “elder brother,” he emphasized the long-standing relationship between the two neighboring states and said power cooperation would continue to grow stronger.

Sukhu also pitched Himachal as an emerging destination for the Information Technology sector. The state government is exploring the creation of data storage infrastructure and is developing an IT Park at Kandaghat in Solan district to encourage technology investments and generate employment opportunities.

Referring to the impact of GST, the Chief Minister noted that industrial areas in Himachal once contributed nearly ₹4,000 crore annually to the state’s revenues before the tax reform. After GST, that contribution has fallen sharply to around ₹150–200 crore, prompting the government to redesign industrial policies that better suit the state’s unique geographical conditions.

Addressing concerns related to natural disasters and tourism, Sukhu said the effects of climate change and global warming have led to more frequent cloudburst incidents. However, he reassured visitors that Himachal remains safe for tourism even during the monsoon season, provided people avoid rivers and seasonal streams and follow official advisories.

The Chief Minister also touched upon key infrastructure projects that could boost economic growth. He said Himachal continues to pursue its 7.19 percent share in Chandigarh through ongoing discussions, while work is progressing on the Chandigarh-Baddi railway line, a project expected to significantly benefit industrial hubs such as Baddi and Nalagarh. The rail link is targeted for completion within the next three years.

To strengthen tourism and connectivity, the government is moving ahead with the expansion of Kangra Airport and the construction of heliports across the state. Plans are also in place to introduce helicopter services connecting all district headquarters, making travel easier for both tourists and businesses.

Sukhu said the state government’s broader goal is to make Himachal Pradesh self-reliant, with special emphasis on strengthening the rural economy alongside industrial growth. He stressed that investments in sectors such as healthcare, education, tourism, rural development and information technology would play a key role in driving sustainable economic progress.

The Chief Minister added that healthcare infrastructure in medical colleges is being upgraded and that the government is also exploring opportunities in health tourism, a sector that could open new avenues for investment and employment.

With a new industrial policy on the horizon, a green energy roadmap taking shape and major infrastructure projects underway, Himachal Pradesh is seeking to position itself as a modern investment destination while balancing economic growth with sustainability and rural development.