Himachal Pradesh MSMEs Struggle with Logistics & Power Costs, Says Industries Minister

High logistics, power and transportation costs continue to act as major roadblocks to industrial growth in Himachal Pradesh, said State Industries Minister Harshwardhan Chauhan, while acknowledging the difficulties faced by MSMEe in the hill state. His remarks came at the CEO's Roundtable during the HIM MSME Fest 2026 on January 4 in Shimla.

The conference focused on a B2G interaction, where CEOs from various companies shared their expectations and challenges with the state government.

Commenting on geographical location being a key challenge, he said, “From a geographical point of view, Himachal Pradesh is placed in a very static position. All raw materials have to be brought in, processed here and then finished products are transported to markets outside the state,” he said.

Addressing the conference, the minister stated that high logistics and transportation costs continue to hamper industrial growth. He pointed out concerns related to the truck union, stating that high transportation charges and restrictive practices have adversely affected businesses. While stressing the need to protect the interests of local transporters, he asserted that there should be no room for coercive practices, particularly in emerging industrial areas such as Kala Amb in Sirmour district.

The Minister further said that Himachal Pradesh must remain competitive with other states across sectors such as hospitality, mining and manufacturing, especially since the state has a limited consumer base.

“Industries here must be able to sell their products in other states at competitive prices,” he asserted.

Reiterating the Chief Minister’s assurance, Chauhan said that electricity tariffs in the state are expected to come down significantly. He informed that when officials from the Central Electricity Authority (CEA) met the Chief Minister, the proposed increase of 40 paise per unit was refused and would be refunded soon.

He added that while the state is currently going through a difficult phase, the situation is expected to improve by March 2026, and the government’s industrial policies will remain liberal.

Sharing data on recent challenges, the minister said that Himachal Pradesh suffered losses exceeding ₹10,000 crore in 2023 due to floods, landslides and cloudbursts, followed by losses of over ₹5,000 crore in 2025.

Outdated power infrastructure was another issue that was brought up during the roundtable discussion. The minister acknowledged that ageing substations and transmission issues have led to frequent power cuts, increasing production costs and affecting output and stressed the need to strengthen electricity infrastructure across the state.