Last month, Dhumal got a unanimous resolution passed by the state Assembly, asking the Centre to restore the package till 2013. Armed with facts and figures on the losses the state will suffer if the benefits are terminated early, Dhumal met Prime Minister Manmohan Singh and Finance Minister P Chidambaram. He not only pleaded Himachal’s case but also tried to counter claims of the neighbouring states about migration of industries to the hill state. He handed over a letter to the PM mentioning statistics from the Secretariat for Industrial Approvals (SIA) detailing year-wise investment intentions in states — these figures did not indicate any such industrial migration. According to the SIA, in 2007-2008, while Haryana received investment proposals to the tune of Rs 6,350 crore and Punjab Rs 10,737, Himachal was standing at Rs 3,596 crore.

No established industrial group from the two states moved to Himachal and most investment proposals, received by the state were from industrial houses that had little presence in the north.

After the package was announced, the state has already received investment proposals of about Rs 31,000 crore. This is a record for Himachal, which earlier depended on its tourism and fruit sectors. If even half of this intended investment materialises,the state’s economic scenario will change within 10 years.

Himachal’s biggest disadvantage is lack of infrastructure and connectivity, but that hasn’t deterred new investors. Only last week, the state’s Single Window Authority, headed by the CM, cleared proposals worth around Rs 3,100 crore. These include a Delhi-based company’s Rs 2,400-crore project to manufacture silicon solar panels at Baddi. A sugar mill, textile units, auto-spare parts and biotech units are among the 18 other projects which have been cleared. SAIL also plans to set-up its ancillary unit in Kangra district.

However, the fate of these projects hangs in peril if the package is not extended or if the Centre does not respond to the state’s call for putting proper infrastructure in place. The state Government has already spent over Rs 300 crore on the Baddi-Barotiwala-Nalagarh belt, upgrading facilities like roads, power supply, creation of land bank and preparation of a masterplan on the lines of Noida in Uttar Pradesh.

The PHD Chamber of Commerce and Industry, in a letter recently sent to the PM, has pleaded for extending the rail and air connectivity to the state for sustaining its industrial growth. “Himachal has already achieved significant industrial growth in Baddi-Barotiwala-Nalagarh , which have over 1,500 industrial units. With an Inland Container Depot (ICD) in the offing at Baddi, a rail link is necessary,” said Dhian Chand, chairman, HP Committee of PHD Chamber.

Now, there are fears that withdrawing the package will harm the hill state’s future, as many industrial units, which came here lured by the incentives, may down their shutters after having availed concessions and tax benefits to the tune of hundreds of crores.