The Himachal Pradesh High Court has directed the state government to submit detailed information on the utilisation of Local Area Development Authority (LADA) funds and Corporate Social Responsibility (CSR) funds generated through hydropower projects in Kinnaur district, observing that the matter warrants judicial scrutiny to ensure the benefits are reaching affected communities.
The direction came during the hearing of a Public Interest Litigation (PIL) concerning waste management and environmental protection in the tribal district. A division bench comprising Chief Justice Gurmeet Singh Sandhawalia and Justice Bipin Chander Negi stated that it was necessary to examine whether the funds collected from hydropower projects were being effectively utilised for the welfare and development of local communities impacted by these projects.
The PIL, filed by Sourabh Kumar Negi, highlights concerns over environmental degradation caused by hydropower construction activities. The petitioner has sought a joint assessment by the Horticulture Department and the Himachal Pradesh Pollution Control Board to evaluate the alleged damage to apple orchards resulting from hydro-blasting operations and dust pollution generated during project execution.
One of the key demands in the petition is the allocation of a fixed portion of LADA and CSR funds to create permanent green employment opportunities for local youth through an “Eco-Grid” volunteer force. The proposal aims to combine environmental conservation with sustainable livelihood generation in the ecologically sensitive tribal region.
During the proceedings, the High Court noted that hydropower projects in Himachal Pradesh provide 12% free electricity to the state. Additionally, under the state’s hydropower policy, 1% of project revenue is allocated for local area development, matched by another 1% financial contribution from the state government. In view of these provisions, the bench observed that the utilisation of the combined 2% LADA and CSR component in Kinnaur deserves closer examination.
The court was also informed that the corpus maintained by the Compensatory Afforestation Fund Management and Planning Authority (CAMPA) under the Principal Chief Conservator of Forests is proposed to be transferred to the state government.
Apart from seeking transparency in fund utilisation, the PIL calls for the effective implementation of the Solid Waste Management Rules and the Environment (Protection) Act, 1986 across National Highway-5 and other parts of Kinnaur district. It also seeks the establishment of a long-term and sustainable waste management mechanism to strengthen environmental protection in the fragile Himalayan region.
The petitioner has further proposed the creation of a judiciary-monitored “Tribal Eco-Grid Environment and Livelihood Fund”, which would pool financial resources generated through plastic buy-back schemes, the Kinnaur Gate Green Cess and environmental compensation charges. The proposed fund would support waste management operations, transportation costs and provide monthly stipends to tribal youth volunteers engaged in conservation activities.
Issuing notice on the petition, the High Court has directed the Himachal Pradesh government to place all relevant records related to the utilisation of LADA and CSR funds before the next hearing scheduled for August 17.
Disclaimer: This report has been editorially prepared using publicly available information. While every effort has been made to ensure accuracy, unintentional errors or omissions may occur. Readers are encouraged to verify important information through official sources.
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