HPTDC, in coffin: Ram Subhag Singh, Jairam Thakur blue eyed boy is in the catbird seat in Sukhu government , is BJP and Congress are Birds of the same feather flocks together

The appointment of Ram Subhag Singh as the Principal Advisor to Chief Minister Sukhvinder Singh Sukhu has reignited debates about the overlap of bureaucratic and political interests in Himachal Pradesh. Singh, a seasoned bureaucrat who served in critical capacities during the Jai Ram Thakur-led BJP government, remains a contentious figure owing to his alleged role in controversial decisions, including the proposed privatization of HPTDC hotels. Critics see his current role in the Congress-led government as emblematic of the political equivalence between the BJP and Congress, suggesting that both parties prioritize loyalty over transparency.

The recent developments surrounding the Himachal Pradesh Tourism Development Corporation (HPTDC) and its hotels have reignited discussions about the previous government’s policies under Chief Minister Jai Ram Thakur, particularly regarding the privatization of state assets. The backdrop of these discussions is the recent order by the Himachal Pradesh High Court to close 18 loss-making hotels operated by HPTDC, which the court labeled as “white elephants” due to their financial inefficiency and low occupancy rates. During Jai Ram Thakur’s administration, there was a significant push towards privatizing state assets, including HPTDC hotels and tea gardens, under the guise of attracting investment. This strategy was publicly documented on government websites and was a point of contention during legislative sessions. Notably, Mukesh Agnihotri, then Leader of the Opposition, accused Thakur’s government of selling off state resources, coining the term “Himachal on Sale” to describe these policies. These accusations led to Ram Subhag Singh, then Additional Chief Secretary of the Tourism Department, being removed from his position due to the controversies surrounding these privatization efforts.Fast forward to today, Ram Subhag Singh has been appointed as a principal advisor to the current Chief Minister, Sukhvinder Singh Sukhu, after his retirement. This appointment raises questions about his role in the previous government’s policies and whether he had any involvement in the decisions that led to the proposed sale of HPTDC hotels. Critics argue that his continued influence in tourism policy could perpetuate similar privatization strategies that may not align with public interest.The recent court ruling has highlighted ongoing issues within HPTDC concerning financial management and operational efficiency. The High Court’s directive to close 18 hotels stems from years of sustained financial losses and an inability to provide promised benefits to retired employees. Justice Ajay Mohan Goel emphasized that maintaining these unprofitable properties is a burden on the state exchequer and that public resources should not be wasted on them. Under Sukhu’s leadership, there is a potential for a shift in how tourism is managed in Himachal Pradesh. The current administration faces pressure to rectify past mismanagement while balancing public expectations regarding state-owned assets. The involvement of former officials like Ram Subhag Singh could complicate efforts for transparency and accountability if they are perceived as continuing previous policies that favored privatization over public service.

Context of Controversy:

1. HPTDC Privatization and Allegations: The Himachal Pradesh Tourism Development Corporation (HPTDC) faced severe scrutiny during the BJP regime when proposals were floated to privatize the operation of its loss-making properties. With 35 out of 55 HPTDC hotels running in deficit, the BJP government argued that an “Operate and Manage” (O&M) model involving private players was essential for sustainability. However, opposition parties, particularly the Congress, labeled this as a “Himachal on Sale” policy, accusing the government of attempting to hand over public assets to private entities under the guise of reforms.

   Ram Subhag Singh, then ACS of the tourism department, was a key figure during this period. Allegations of his involvement in crafting and advocating these policies led to him being shifted out of the tourism portfolio, though he remained influential in administrative circles.

2. Shift to the Sukhu Government: After retiring from service, Singh was reappointed as Principal Advisor to the Chief Minister under the Congress-led government, a move that surprised many. Critics argue that this decision indicates an institutional tendency to favor well-connected bureaucrats, irrespective of past controversies or affiliations. Singh’s reappointment for an additional two-year term only deepens this narrative.

Administrative Continuity or Favoritism?

Proponents of Singh’s appointment argue that his experience and administrative expertise are assets to the Sukhu government. Given the economic challenges faced by Himachal Pradesh, including high debt and unemployment, a seasoned bureaucrat might provide stability and continuity. However, critics highlight that this reliance on a single individual reflects poorly on the state’s bureaucratic structure, raising questions about the availability of fresh talent and the inclusiveness of appointments.

Impact on Public Perception:

The decision has eroded public trust, with many viewing it as evidence of collusion between the two dominant political parties. For instance, opposition during the BJP regime to Singh’s role in the HPTDC policies has been conspicuously absent from Congress leaders now that he is part of their administration. This undermines the credibility of political critiques and strengthens the perception that BJP and Congress are “birds of the same feather,” prioritizing shared networks of influence over principled governance.

The Himachal Pradesh High Court has issued strong directives regarding the management of loss-making hotels run by the Himachal Pradesh Tourism Development Corporation (HPTDC). It ordered the closure of 18 unprofitable hotels, describing them as financial burdens or “white elephants.” Justice Ajay Mohan Goel emphasized that these properties were draining public resources without yielding adequate returns. The court instructed HPTDC to cease their operations by November 25, 2024, making the corporation’s Managing Director personally accountable for ensuring compliance with this order.

The court pointed out several inefficiencies, including the failure to attract tourists to HPTDC properties despite the state’s thriving tourism sector. It suggested exploring partnerships with private entities or expert bodies to revive these properties and make them financially viable. Justice Goel noted that strategic collaboration could potentially transform the loss-making units into profitable ventures while preserving jobs and enhancing tourism infrastructure.

Additionally, the court highlighted mismanagement in the corporation, such as delays in paying post-retirement benefits to employees, with dues amounting to over ₹35 crore as of August 2024. These financial irregularities underscore broader systemic issues within HPTDC, raising concerns about its ability to sustain operations effectively.

The verdict reflects the judiciary’s concern over inefficient use of public funds and underscores the need for urgent reforms in the management of state-owned tourism properties. However, the directive has sparked debates, with concerns about job losses and the potential privatization of heritage assets. The state government has indicated its intent to carefully consider the implications of the order and devise strategies to balance financial viability with socio-economic responsibilities.

Allegations have emerged against Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu, accusing him of favoring BJP interests while leading a Congress government. Critics, especially within political circles, have pointed to his alleged proximity to former BJP Chief Minister Prem Kumar Dhumal, creating a perception of bipartisan compromises for personal or strategic benefits.

Background and Allegations

1. Accusations of Pro-BJP Policies: Opposition leaders and critics have alleged that Sukhu’s administration has made decisions that align with BJP’s ideological and political goals. For instance, some Congress insiders have voiced concerns about Sukhu being lenient on BJP-linked industrialists and policy frameworks, potentially undermining Congress’s ideological stand.
2. Personal Proximity to Dhumal: Sukhu’s relationship with Prem Kumar Dhumal has sparked controversy, with accusations of personal ties influencing governance. Some reports suggest that Sukhu’s interactions with Dhumal go beyond formal political protocols, leading to suspicions of cross-party negotiations. This has raised eyebrows among Congress leaders, especially those critical of BJP’s policies.
3. BJP’s Response: BJP leaders have responded by accusing Sukhu of playing double games, alleging his government is embroiled in baseless controversies while criticizing the BJP. This tug-of-war adds complexity to the state’s already volatile political environment.

   Sukhu has a long history in politics, having risen through the ranks of the Congress party over several decades. His leadership style and strategies have sometimes been viewed as accommodating to rival factions, which critics argue could lead to compromises that favor the opposition party.

Analysis

1. Impact on Congress Leadership: These allegations, whether substantiated or not, can harm the Congress’s internal cohesion. Leaders critical of Sukhu might perceive him as diluting Congress’s stance against the BJP, leading to factionalism.
2. Public Perception: For the electorate, these accusations might create confusion about the state government’s priorities. While some voters may appreciate bipartisan cooperation for development, others may view it as compromising core party principles.
3. BJP’s Strategic Gain: The BJP could leverage these allegations to question the Congress’s unity and governance, thus maintaining political pressure on Sukhu’s administration.

Although the allegations of Sukhu safeguarding BJP interests remain largely speculative, they highlight the intricate web of relationships and strategies in Himachal politics. Transparency in governance and clear communication of policy decisions will be critical for Sukhu to address these concerns and strengthen his leadership within Congress. Meanwhile, the BJP will likely continue exploiting these claims to destabilize the Congress-led administration.

Implications for HPTDC:

HPTDC, long considered a jewel of Himachal’s tourism sector, is symptomatic of deeper issues in public-sector management. Successive governments have failed to effectively address its operational inefficiencies, instead resorting to temporary fixes like privatization proposals. The lack of a comprehensive policy framework for tourism development, coupled with controversies like the Singh episode, threatens to diminish public confidence in the organization.

Critical Takeaways:

1. Need for Transparent Appointments: The reliance on retired bureaucrats with controversial legacies highlights a failure to nurture young talent and ensure meritocracy. This undermines not only the state’s administrative framework but also its ability to inspire confidence among the unemployed youth.
2. Political Hypocrisy: The shift in Congress’s stance toward Singh from criticism under BJP to quiet acceptance in its own administration exemplifies opportunistic politics. This reinforces the belief that the two parties, despite ideological differences, often operate similarly in power.
3. Focus on Systemic Reforms: Rather than recycling bureaucrats with mixed track records, Himachal Pradesh’s political leadership needs to prioritize structural reforms in tourism and other sectors. Public-sector organizations like HPTDC require innovation and professional management to thrive in a competitive market.

The Ram Subhag Singh episode serves as a microcosm of the broader governance challenges in Himachal Pradesh. The interplay of political patronage and bureaucratic favoritism not only compromises transparency but also stifles new opportunities. For a state grappling with economic challenges, these issues demand urgent attention and reform. Only by fostering accountability and inclusivity in governance can Himachal Pradesh hope to address its systemic inefficiencies and rebuild public trust.

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