Shimla
The Himachal Pradesh government has announced a wide-ranging development push focusing on infrastructure, drinking water, rural upliftment and governance reforms in the 2026–27 budget.
In a major boost to connectivity, the government said key road projects including the Kangra–Kullu stretch via Shilha-Badhani-Bhubu Jot will be expedited with NHAI support. The much-awaited Bhubu Jot tunnel and Mude-Bhawa road construction will also begin soon. Under PMGSY-IV, approval has been granted for 294 projects covering 1,538 km of roads at an estimated cost of ₹2,244 crore, while an additional 800 km is proposed under Batch-II.
The state also plans to construct 500 km of new roads, carry out cross-drainage works over 1,255 km, and undertake tarring of 950 km. Around 47 bridges and 1,500 km of road upgradation have also been proposed. Several key road projects worth over ₹200 crore each have received in-principle approval.
On air connectivity, heliports will be developed across districts including Kangra, Hamirpur, Una and tribal areas, while fixed-wing flights on Delhi–Shimla and Shimla–Dharamshala routes are set to operate daily under the UDAN scheme. Helicopter services on multiple routes including Chandigarh–Shimla and Shimla–Manali are also planned.
In the water sector, the government will install an ozonation-based disinfection system costing ₹15 crore in Shimla’s Sutlej-based drinking water project. Around 10,000 households will receive 24×7 water supply this year. A ₹2,000 crore comprehensive water quality improvement project using modern technologies like RO and gaseous chlorination has also been proposed.
Rural and social welfare measures include identification of the poorest families through surveys and support under the newly announced “Mukhyamantri Apna Sukhi Parivar Yojana”. One lakh vulnerable families will be covered, with provisions such as 300 units of free electricity per month and financial assistance for housing. Women beneficiaries will receive ₹1,500 per month under an expanded honour scheme.
In urban development, ₹400 crore has been earmarked for a Central Business District in Shimla and ₹200 crore for Hamirpur. Eight towns will be redeveloped as growth hubs. New township projects including “Him Chandigarh” and “Kangra Aerocity” are also planned.
The budget also focuses on youth and sports, with a ₹12 crore anti-drug campaign “Khelo Himachal–Chitta Mukt Abhiyan” and a state-of-the-art sports complex in Nadaun. Additionally, IT and innovation will get a boost with AI centres, a cyber city in Solan, and support for green energy-based data centres.
Governance reforms include digitisation of land records, expansion of online mutation services, and filling of 645 patwari posts. The government also plans to strengthen disaster preparedness with ₹400 crore allocated for flood mapping and early warning systems.
Overall, the budget outlines an ambitious roadmap aimed at strengthening infrastructure, improving public services and boosting economic growth across Himachal Pradesh.
