The Constitutional Conduct Group of former bureaucrats (administrative officers) has written a letter to the Chairman of the 16th Finance Commission, Arvind Panagariya, requesting special attention to the Himalayan states and demanding an increase in the green bonus for ecological services from 10 per cent to 20 per cent.
The group of 103 former bureaucrats wrote to Panagariya in a letter, “The 16th Finance Commission, under your leadership, is currently engaging with various state governments and formulating its recommendations regarding the distribution of funds from the centre to the states. We feel this is an opportune time to draw your attention to a vitally important issue. This is an issue that touches upon the environmental integrity and survival of our northern states, and one that has not received the attention it deserves in this era of climate change and global warming.”
According to the group, Himalayan states like Jammu and Kashmir, Himachal Pradesh, Uttarakhand, and Sikkim are literally “breaking apart” under the onslaught of cloudbursts, flash floods, landslides, and crumbling infrastructure. The group questioned whether the country could afford to let the Himalayas be destroyed. Don’t these Himalayan states need assistance, they asked?
According to the group, North India and its Indo-Gangetic plains cannot survive without the forests, glaciers, and rivers of Jammu and Kashmir, Himachal Pradesh and Uttarakhand. Without these, the region would soon become a desert. These rivers provide sustenance to approximately 400 million people and are the lifeline of many cities.
The group further wrote that these Himalayan states have only relatively simple sources of income – their natural resources, namely forests and rivers. This is why these are being exploited indiscriminately, especially in the name of hydroelectric projects and tourism.
In the past 20 years alone, Himachal Pradesh and Uttarakhand have transferred 11,000 hectares and 50,000 hectares of dense forest area, respectively, to non-forestry projects. The deforestation scenario is even direr in the northeastern Himalayan states.
The devastating consequences of this loss of green cover are being exacerbated by climate change, which is disrupting river systems, accelerating glacier melt, and increasing the risk of GLOFs (glacier lake outburst floods). This reckless exploitation of these states’ natural capital must be stopped immediately in the national interest.
According to the group, this crisis can be averted if only the central government and the Finance Commission understand the real wealth of these states and their contribution to the national economy and public welfare and compensate them accordingly.
Himachal and other Himalayan states should receive compensation from the Union government for their invaluable, though non-monetary, contributions, especially to the nation’s welfare and quality of life in areas such as agriculture, climate control, hydropower, carbon absorption and tourism.
The Finance Commission determines the formula for distributing central funds to states. The 12th Finance Commission took the first step in this direction when it allocated a total of Rs 1,000 crore for this purpose, known as the ‘Green Bonus.’ Himachal Pradesh’s share of this was a mere Rs 20 crore, a negligible amount.
The group further stated that the current (15th Finance Commission) weightage for forests and ecosystem services is only 10 per cent. This is grossly inadequate, especially given the urgency of climate control goals. It discourages states from increasing green cover rather than encouraging it. This weightage should be increased to at least 20 per cent. The additional 10 per cent weightage could be balanced by reducing the weightage of other indicators. For example, the weightage of ‘population’ could be reduced from 15 per cent to 10 per cent. Similarly, the weightage of ‘income gap’ could be reduced from the current 45 per cent to 35 per cent, as it penalises states with higher per capita income.
According to the group of bureaucrats, the current methodology for calculating ‘forest and ecological area’ is flawed and disadvantages mountain states because it excludes areas above the tree line. A large portion of these states’ geographical area lies above the tree line, home to snowfields, alpine meadows, and glaciers.
These areas are habitats for many rare and endangered species and hold unique ecological significance. They also act as ‘water towers,’ providing water to rivers. Ignoring the ecological value of these areas in the weightage calculation is not only unscientific but also self-contradictory. Therefore, they should be included in the definition of forests.
The People for Himalayas campaign has welcomed the demand made by former bureaucrats but also expressed some concerns. According to the campaign, the Himalayan states face a profound irony. They shoulder the responsibility of maintaining the country’s environmental balance, yet disasters, infrastructure damage, and limited economic opportunities threaten their own land and lives. In this context, the demand for a green bonus is a legitimate and necessary claim for financial justice.
“But this initiative should not simply become a new form of offsetting and compensation. If the green bonus is limited to the economic valuation of forests, carbon, or rivers, it will further deepen inequality and marginalization in the mountains. Therefore, we need not just a new fund, but structural and institutional reforms that make mountain governance, resource management, and decision-making processes equitable,” it added.
According to the campaign, “We believe that the demand for a green bonus is justified and necessary, but standards for Himalayan development must also be set, which should be discussed extensively with the governments and people of the Himalayan states.”
“This category of area can be declared as Eco-Sensitive Zone/Protected Zone and provisions should be made in this area for any kind of large-scale construction, ban on big industries, big hydro projects, prohibition on excessive widening of roads etc. The Centre will have to set standards of development under Green Bonus, only then this can be an important work of environmental conservation and protection of the Himalayas,” it added.
The campaign further stated that transparency and accountability are essential, but regulation is equally crucial. Without strong environmental regulations and enforcement, no financial incentive will be sustainable. Green funds must be aligned with rigorous ecological criteria and independent monitoring, so that they do not become a tool to promote dams, roads, and unsustainable tourism in the name of “green growth.”
According to the campaign, if implemented equitably, the green bonus could be a major step towards economic, financial, environmental, and social justice. However, if viewed solely as compensation, it will simply be another price tag on the declining Himalayan infrastructure. “We urge the Finance Commission and the Government of India to see this not as charity, but as an opportunity for reform and rebalancing, putting the Himalayas, their people, and their rights at the centre of India's climate future.”