Himachal signs MoU with ISB to unlock Rs 22,600 crore forest economy potential

Shimla: The Himachal Pradesh Forest Department on Thursday signed a five-year Memorandum of Understanding (MoU) with the Bharti Institute of Public Policy, Indian School of Business (ISB-BIPP) to unlock the state's estimated Rs 22,600 crore untapped forest and pastoral economy potential through science and technology-enabled governance.

The MoU was signed in the presence of Chief Minister Thakur Sukhvinder Singh Sukhu by Principal Chief Conservator of Forests Dr Sanjay Sood on behalf of the Forest Department and Executive Director of BIPP, ISB, Professor Ashwini Chhatre on behalf of the institute.

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Speaking on the occasion, Sukhu described the partnership as an important step towards strengthening Himachal Pradesh's rural economy and creating long-term economic opportunities around the state's forest resources.

"We are well-positioned to be among the first in the country to bring science, local communities and the government together to transform forest governance," the Chief Minister said.

Sukhu said the government would focus on maximising the potential of locally available species, including medicinal plants such as harad and bel, while further assessing the nutritional and commercial value of thangi (hazelnut).

The partnership follows a joint forest inventory conducted by ISB-BIPP in collaboration with the Forest Department. More than 500 forest guards participated in the exercise, collecting over 2 lakh tree-level records and species-tagged images. The data was combined with satellite imagery and artificial intelligence and machine learning tools and subsequently validated on the ground.

The findings have been compiled in a joint publication titled "Counting Green Wealth", with maps generated for seven species, including khair, bamboo, chir pine, amla, wild mango, sal and rhododendron.

According to the inventory, five major bio-resources alone have an estimated Rs 22,600 crore in untapped value. These include amla at Rs 8,700 crore, pine needles at Rs 5,500 crore, wild mangoes at Rs 4,800 crore, sal seeds at Rs 2,400 crore and rhododendron flowers at Rs 1,200 crore.

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The Forest Department said extraction would be undertaken only within a sustainable, species-specific "yield sweet spot" to ensure that economic utilisation does not compromise ecological sustainability.

The initiative also highlights the potential of community-led forest enterprises. The Pir Panjal Jungle Producer Company in Pangi, a women-owned enterprise engaged in the thangi business, was cited as an example of how local communities can participate in developing the state's forest economy.

The data generated through the inventory is already being used in the Palampur Forest Division's working plan, described as the first such application of the initiative. Under the new MoU, the model will be expanded to other forest divisions with the eventual objective of covering the entire state.

Professor Ashwini Chhatre said the credibility of the economic estimates was strengthened by the extensive fieldwork undertaken by forest guards.

"This partnership reflects what is possible when rigorous science is grounded in field reality. Over 500 forest guards spent months gathering this data, giving the estimates real credibility for economic decisions," he said.

Dr Aarushi Jain, Director, Bharti Institute of Public Policy, ISB, said the data would go beyond being a research report and would increasingly inform forest management and pastoral governance across Himachal Pradesh.

The MoU covers four broad areas: development of forest economies and community enterprises, creation of a Forest Intelligence Platform, development of a grazing portal and pastoral database, and training and capacity building for Forest Department personnel and producer companies.

The Forest Intelligence Platform will initially be piloted in Palampur before being expanded across the state. The grazing portal will be developed under the Himachal Pradesh Grazing Policy, 2026, with linkages to Aadhaar, Him Pariwar, Bharat Pashudhan and the PEHEL scheme.

The initiative is aimed at combining scientific data, digital technology and community participation to improve forest governance while creating sustainable livelihood opportunities, particularly for rural communities and women-led enterprises.

The state government said the partnership would help Himachal Pradesh move towards a model where its forest wealth is not only conserved but also sustainably utilised to strengthen rural livelihoods and the broader state economy.