Business Shimla Himachal Pradesh (HP)

Himachal proposes ₹10,000–₹15,000 crore tourism push with Kangra airport expansion

Chief Minister Sukhvinder Singh Sukhu announced plans to invest between ₹10,000 crore and ₹15,000 crore over five years to develop tourism infrastructure, boost air connectivity and promote high-end and sustainable tourism, including ₹3,000 crore for Kangra airport land acquisition.

Himachal proposes ₹10,000–₹15,000 crore tourism push with Kangra airport expansion
©Illustration AI Anjali Nair / we-news.com

Shimla: Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Sunday unveiled an ambitious plan to mobilise between ₹10,000 crore and ₹15,000 crore for the state’s tourism sector over the next five years, prioritising infrastructure, air connectivity and high-end tourism, officials reported.

Major allocations for aviation and regional connectivity

The CM said the state would earmark ₹3,000 crore specifically for land acquisition to expand Kangra airport, enabling larger aircraft operations and, the government expects, higher tourist arrivals. In addition, the state has committed ₹35 crore under a Viability Gap Funding (VGF) mechanism to support flight operations within Himachal Pradesh.

At the closing ceremony of the Koti Golf Cup-2026 at the Naldehra Golf Course in Shimla district, where more than 80 players participated, Sukhu said efforts are also on to connect all district headquarters with heliport facilities and to introduce connecting flights from Shimla to improve regional access.

Focus on high-end and sustainable tourism

The state government said the investment drive will focus on developing infrastructure suited to higher-value tourism markets while promoting sustainability. As part of these efforts, the administration has leased out 60 eco-tourism sites, which have so far yielded ₹22 crore in revenue for the state exchequer.

"The expansion of Kangra airport will allow larger aircraft to operate, which is expected to increase tourist arrivals and boost tourism activities throughout the state," Sukhu said at the event, according to official notes.

What the numbers imply

Planned allocations and initiatives cited by the state provide an early picture of priorities and likely impacts:

  • Airport expansion (₹3,000 crore) — land acquisition to enable larger aircraft, potentially increasing inbound tourist capacity and facilitating direct connections.
  • VGF support (₹35 crore) — targeted subsidies to make regional flight routes viable until commercial demand grows.
  • Eco-tourism revenue (₹22 crore) — evidence of early returns from sustainable tourism leasing, which the government says will be scaled up.

Chief Minister Sukhu framed the plan as part of a broader push to make Himachal Pradesh "self-reliant" and implement policy reforms aimed at sustaining higher tourist footfall and receipts.

Local projects and sites named

While the CM highlighted the Naldehra Golf Course as a scenic and financially important asset — noting efforts to make it self-sustainable — officials also flagged a drive to develop supporting infrastructure across districts, including heliports and connecting flights to Shimla. The announcement did not, however, release a detailed list of projects, phasing or financing partners beyond the land-acquisition earmark and the VGF figure.

Potential economic effects and considerations

For residents and businesses, the plan aims to deliver several outcomes if implemented as described:

  • Improved accessibility could shorten travel times and increase tourist numbers, benefiting hotels, restaurants, travel operators and local artisans.
  • Investment in higher-end tourism may raise per-visitor spending but could change local demand patterns and require upskilling of the hospitality workforce.
  • Land acquisition for airport expansion will require careful handling to address compensation, environmental clearances and community concerns, particularly in ecologically sensitive hill areas.

Analysts typically note that announcements of large public investment need detailed project reports, timelines and private-sector participation to translate into actual economic outcomes. The government has not publicly disclosed a detailed implementation schedule or the split between public and private financing for the ₹10,000–₹15,000 crore envelope.

Background and next steps

The CM made the announcement at the conclusion of the two-day Koti Golf Cup-2026 on October 24–25. Rural Development and Panchayati Raj Minister Anirudh Singh was present and is reported to be overseeing efforts to make the Naldehra Golf Course financially self-sustaining.

Item Figure
Planned tourism investment (5 years) ₹10,000–₹15,000 crore
Land acquisition for Kangra airport ₹3,000 crore
VGF for flight operations ₹35 crore
Eco-tourism sites leased 60 sites; ₹22 crore revenue

State authorities will need to publish detailed project reports, environmental assessments and timelines for major components such as airport expansion and heliport rollouts for stakeholders to assess feasibility. For travellers and local entrepreneurs, the immediate indicator to watch will be announcements of route approvals, airline partnerships and tender notices for infrastructure works.

Officials at the event underlined the government’s intention to combine improved connectivity with sustainable site management to ensure long-term benefits for the state's economy and communities.

Anjali Nair
Anjali AI AI Business Desk Editor online

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