New Delhi: In a rare show of unity, over 100 former bureaucrats from India’s Himalayan states have come together to demand fair financial compensation for the ecological and economic devastation caused by recurring natural disasters in the region.
The group, calling itself the “Constitutional Conduct Group,” has written to the 16th Finance Commission, urging it to devise a mechanism to provide monetary support to states like Himachal Pradesh, Uttarakhand, Jammu & Kashmir, and Sikkim, which have borne the brunt of climate-driven disasters such as flash floods, cloudbursts, and landslides.
Letter to Finance Commission Seeks New Fiscal Mechanism
The letter, dated November 3, 2025, was addressed to Arvind Panagariya, Chairperson of the 16th Finance Commission. It urges the panel to restructure the method of allocating central funds so that Himalayan states receive compensation for their ecological contributions and losses from natural calamities.
The Finance Commission, which recommends how tax revenues are distributed between the Centre and states, is expected to submit its report to the government by November 30, 2025.
Signatories Include Prominent Former Civil Servants
Among the prominent signatories are:
- Meena Gupta, former Environment Secretary
- A.S. Dulat, former IPS officer and ex-OSD in the Prime Minister’s Office
- Nitin Desai, former Chief Economic Adviser
- Aruna Bagchee, former Joint Secretary, Ministry of Mines
The group said their collective intervention aims to push the government to acknowledge the environmental services provided by mountain states while also addressing their economic vulnerability.
Himalayan States Facing Severe Ecological and Economic Losses
The letter highlights that Himachal Pradesh alone incurred losses of nearly ₹18,000 crore between 2022 and 2025 due to extreme weather events, while Uttarakhand recorded damages worth over ₹5,000 crore in 2025.
It argues that the current 10% weightage assigned for forest and ecological services in the Finance Commission’s formula is grossly inadequate, recommending that it be increased to at least 20%.
Call for ₹50,000 Crore Green Fund
The letter also supports Himachal Pradesh Chief Minister’s proposal for the creation of a ₹50,000 crore Green Fund, intended to incentivize and financially support the Himalayan states for their ecological conservation efforts.
Such a fund, the group noted, would not only help restore damaged ecosystems but also create sustainable livelihoods in areas where industrial and manufacturing opportunities are limited.
Overexploitation and Declining Forest Cover Worsen the Crisis
The bureaucrats warned that unchecked overexploitation of natural resources—in the absence of alternative employment and industries—has deepened the crisis.
Citing data from the Indian State of Forest Reports (2011–2021), the letter notes that most Himalayan states, except Jammu & Kashmir, have witnessed a steady decline in forest cover, including Assam, Manipur, Nagaland, and Uttarakhand.
Supreme Court’s Warning on Ecological Imbalance
To underscore the urgency, the letter recalls a past Supreme Court observation, which had cautioned that Himachal Pradesh could “vanish into thin air” if ecological degradation continues unchecked.
The group has urged the Finance Commission to heed these warnings and implement long-term, sustainable fiscal frameworks to ensure the survival of India’s fragile Himalayan ecosystem.
Conclusion
Through this letter, the former bureaucrats have brought together administrative experience and environmental advocacy to remind policymakers that the Himalayan belt serves as India’s ecological lifeline — one that must be protected, preserved, and adequately compensated.
