Himachal Pradesh at a crossroads: Turbulent 2025 leaves Sukhu govt facing fiscal stress, political churn and governance tests in year ahead

Death of HPPCL chief engineer

The Sukhu government suffered a major setback in July when the Himachal Pradesh High Court ordered the transfer of the investigation into the mysterious death of HPPCL chief engineer Vimal Negi from the state police to the Central Bureau of Investigation. Negi, a native of Kinnaur district, went missing on March 10, and his body was recovered from the Gobind Sagar Lake in Bilaspur district on March 18.

The incident put the government on the defensive as it sought to retain the probe with the state police. Negi’s family staged protests, following which an FIR was registered against senior bureaucrats and unknown persons. Later, 2012-batch IAS officer Harikesh Meena, then managing director of HPPCL, was granted bail by the High Court, while Desh Raj, then director (Electrical), received pre-arrest bail from the Supreme Court. The matter remains sub judice.

Natural disasters and relief measures

Himachal Pradesh witnessed repeated cloudbursts, flash floods, and landslides during the year, resulting in the loss of lives and extensive damage to roads, power projects, and homes. The disasters once again exposed the state’s ecological fragility and the urgent need for climate-resilient infrastructure.

The Seraj Assembly constituency in Mandi district, represented by former Chief Minister and Leader of Opposition Jairam Thakur, was among the worst-affected areas. According to Revenue Minister Jagat Singh Negi, rain-related incidents claimed 454 lives, injured 498 people and left 50 missing. As many as 2,519 animals and 26,955 poultry birds perished.

The estimated damage to public and private property, agriculture, horticulture and infrastructure stands at around Rs 5,000 crore. Prime Minister Narendra Modi announced a Rs 1,500 crore relief package for the state. However, the state has so far received Rs 461 crore in disaster relief funds pertaining to the 2023 calamity.

District-wise data showed that Mandi, Kangra, Shimla, Chamba and Una suffered the highest losses.

Law and order and political sparring

Several Opposition leaders landed in legal trouble during the year, triggering sharp political exchanges. These included ayurvedic practitioner Ram Kumar Bindal, brother of BJP state president Rajiv Bindal; Brijeshwar Kashyap, son of former BJP MP Virender Kashyap; and BJP MLA Hans Raj from Churah in Chamba district, all booked on charges of rape. Hans Raj is also facing charges under the Pocso Act.

Former Independent and current BJP MLA from Hamirpur, Ashish Sharma, was booked for theft and forgery in connection with alleged illegal mining. The BJP described these cases as politically motivated, accusing the government of attempting to silence the opposition.

Congress leadership change and three years in power

After disbanding most district and block committees last year, the Himachal Pradesh Congress appointed four-time MLA Vinay Kumar as its new state president on November 22, replacing former Mandi MP Pratibha Singh. Vinay Kumar, a Dalit leader from Sri Renuka Ji and son of senior Congress leader Prem Kumar, is considered close to the Virbhadra Singh camp.

The appointment was seen as an attempt by the Congress high command to balance factions aligned with Chief Minister Sukhu and the Virbhadra Singh camp. Meanwhile, the Sukhu government marked three years in office with a state-sponsored event at Paddal Ground in Mandi on December 11. The opposition criticised the programme as extravagant, given that Mandi was among the districts worst hit by natural disasters.

The Sanjauli mosque in Shimla faced demolition orders from the Municipal Corporation court in May. (photo by Saurabh Parashar)

Drug menace and anti-chitta campaign

With 247 gram panchayats identified as drug-affected zones, the government intensified its anti-drug campaign, particularly against heroin, locally known as chitta. Walkathons and awareness drives targeting youth were organised across the state.

Members of Mahila Mandal Laghat guarding the village boundaries to prevent the entry of chitta in the night in Himachal Pradesh. (Express photo by Saurabh Parashar)

According to officiating Director General of Police Ashok Tewari, 72 repeat offenders and major drug peddlers were detained under the PIT-NDPS Act, while assets worth Rs 48 crore were seized following financial investigations. In 2025, the police registered 1,720 NDPS cases.

IGMC assault controversy

The alleged assault involving senior resident Dr Raghav Narula and patient Arjun Singh at IGMC Shimla sparked protests by resident doctors and renewed debate over hospital security and doctor-patient relations. The government terminated Dr Narula’s services and registered a case against him. Resident doctors are currently on an indefinite strike, demanding assurances from the government, including reconsideration of the dismissal.

2026: challenges ahead

Panchayati Raj elections

Conducting Panchayati Raj elections across 3,616 gram panchayats will be the government’s first major test in 2026. While polls were due in January, the government cited the continued enforcement of the Disaster Management Act as a reason for the delay. Officials said elections must be held within six months of the completion of the current panchayat term.

Fiscal stress and debt

Himachal remains under severe fiscal pressure, with debt crossing Rs 1 lakh crore. Borrowings have been required to meet salary, pension and development expenses. The Centre has already approved borrowing of Rs 7,200 crore for 2025–26, which the state has exhausted. The final quarter of the financial year is expected to be particularly challenging.

De-addiction centres and healthcare overhaul

The government has announced an allocation of Rs 20 crore for a state-of-the-art de-addiction and rehabilitation centre at Kotla Barog in Sirmaur district. Strengthening public healthcare will also be a key focus, with a proposed Rs 3,000 crore investment over two years to modernise hospitals, upgrade facilities and improve access in rural areas.

Pending guarantees and administrative shifts

Fulfilling pending election guarantees, including 300 free electricity units per household, remains a political challenge. Plans are also underway to shift select government departments from Shimla to Kangra and Dharamshala to ease congestion and promote regional balance.

As Himachal steps into 2026, the Sukhu government faces the difficult task of managing fiscal constraints, restoring public confidence and delivering on long-standing promises amid increasing economic and environmental pressures.