Dehradun: In a series of decisions aimed at boosting economic growth, social welfare, and administrative efficiency, the Uttarakhand Cabinet, chaired by Chief Minister Pushkar Singh Dhami, approved 11 proposals during its meeting on Tuesday. Among the highlights, the panel endorsed a significant reduction in VAT on natural gas and doubled monthly pensions for artists and writers. However, the long-standing demand for equal pay for equal work among Uttarakhand Power Corporation Limited (UPNL) employees has been referred to a Cabinet sub-committee for further deliberation. These measures are expected to provide relief to various sectors, from agriculture to healthcare, aligning with the state’s vision for sustainable development.
The most impactful fiscal decision was in the finance sector: the Cabinet stamped approval on slashing the VAT rate on natural gas from 20% to 5%. This move, welcomed by industrialists, is projected to lower production costs and attract investments in green energy. Finance Secretary Dr. Apoorva Dev Pandey noted, “This aligns with national energy policies and positions Uttarakhand as a hub for affordable, eco-friendly fuel, potentially saving industries up to 15% on operational expenses.”
In agriculture, relief was extended to apple growers in disaster-hit areas like Dhurali and surrounding regions. The support price for Royal Delicious apples was set at Rs 51 per kg, while Red Delicious fetches Rs 45 per kg. Agriculture Minister Ganesh Joshi stated, “This intervention safeguards our Himalayan farmers amid climate challenges, where apple cultivation contributes over 15% to the state’s horticultural GDP.” The decision covers areas ravaged by recent landslides and floods, benefiting thousands of smallholders.
Cultural preservation received a boost with the monthly pension for artists and writers hiked from Rs 3,000 to Rs 6,000, impacting around 1,200 recipients. Culture Minister Rita Bisht emphasized, “This enhancement honors Uttarakhand’s folk traditions and literary heritage, ensuring creators can focus on their craft without financial distress.”
Under the Ease of Doing Business initiative, following central directives, low-risk residential or small commercial buildings can now secure map approvals directly from empanelled architects, formalizing a previously provisional deviation. This streamlining is anticipated to cut approval times by 50%, aiding small entrepreneurs and homeowners.
Industrial development saw expanded ground coverage norms for MSME and industrial units, facilitating larger footprints without compromising safety. In a structural overhaul, the Bamboo and Fiber Development Council underwent changes, shifting technical staff recruitment from UPNL to outsourcing mode. Thirteen positions will now be filled on contract or outsourcing basis, enhancing operational flexibility.
Healthcare reforms dominated the agenda. The Cabinet approved full insurance-mode operation for Ayushman Bharat and Atal Ayushman schemes, with the Golden Card shifting to hybrid mode. Claims below Rs 5 lakh will be processed via insurance, while those exceeding will use the trust model. Employee contributions, adjusted for inflation, will rise from Rs 250 to up to Rs 450, ensuring scheme sustainability for over 5 million beneficiaries. Health Minister Dr. Ranjit Singh Rawat said, “This hybrid framework guarantees timely payouts and broader coverage, reducing out-of-pocket expenses for the underprivileged.”
Pension benefits were extended to work-charged employees in the Irrigation and Public Works Departments, providing retirement security to thousands of contractual workers. In medical education, the Uttarakhand Medical Education Service (Amendment) Rules were cleared, raising the retirement age for professors and associate professors from 50 to 62 years. Dedicated departments for super-specialty services were established, and four new posts were created at the Swami Ram Cancer Institute in Haldwani to bolster oncology care.
At Srinagar Medical College, the equal pay issue for 277 employees was forwarded to a sub-committee, mirroring the UPNL referral. Additionally, specialist doctors serving in remote and ultra-remote areas will receive a 50% additional allowance, benefiting approximately 300 professionals and incentivizing postings in challenging terrains.
Discussions on the advertisement policy were tabled for the next meeting. Chief Minister Dhami, addressing the media post-meeting, remarked, “These decisions prioritize public welfare and growth, propelling Uttarakhand toward self-reliance by 2026. From farmers to frontline doctors, every stakeholder will feel the impact.”
The approvals come amid the state’s push for a 7%+ GDP growth trajectory, with experts predicting enhanced investor confidence and reduced rural distress. Implementation timelines have been set, with monitoring committees to ensure swift execution.