SHIMLA: In a major decision with far-reaching implications for thousands of rural families, the Himachal Pradesh Cabinet on Friday approved the Policy for Regularisation of Certain Encroachments on Government Land, 2026, a move aimed at providing relief to landless families and marginal farmers occupying government land for residential, agricultural and horticultural purposes.
The decision assumes significance as the policy has been framed in compliance with directions issued by the Supreme Court of India, which had asked the state to formulate a legally sustainable framework for dealing with long-pending cases of occupation of government land.
The policy has now been forwarded to the Government of India for approval.
Chaired by Chief Minister Thakur Sukhvinder Singh Sukhu, the Cabinet also unveiled a major relief package for distressed farmers by approving an Agriculture Loan Interest Subvention Scheme.
Under the scheme, the state government will bear 50 per cent of the interest burden on eligible agricultural loans up to ₹3 lakh for farmers whose land is facing auction due to debt, benefiting over 6,300 farmers across the state.
In another significant decision, the Cabinet approved reconsideration of compassionate appointment cases that had earlier been rejected by various departments.
As a one-time measure, genuine cases will be re-examined and necessary relaxations provided.
The Cabinet also approved large-scale recruitment in government departments, including 400 Work Inspectors, 300 Medical Officers, 200 Staff Nurses, 250 Multi-Task Workers in the Health Department, and 162 additional technical posts comprising Operation Theatre Assistants, Radiographers and Lab Technicians. Seventy-five Assistant Professors will also be recruited for medical colleges across the state.
Employees proceeding on study leave will now receive full salary, while part-time workers completing seven years of continuous service as on March 31, 2026, will be converted into daily wagers. Job Trainees will also become eligible for 15 days of paternity leave.
In a major relief to candidates affected by the recruitment scam involving the erstwhile Himachal Pradesh Staff Selection Commission, Hamirpur, the Cabinet approved withdrawal of advertisements for 80 post codes and refund of examination fees amounting to ₹4.27 crore.
The Cabinet further approved amendments to the Himachal Pradesh NDPS Rules, 1989, paving the way for regulated cultivation, processing, manufacturing, warehousing and transportation of cannabis for medical and scientific purposes.
To strengthen healthcare infrastructure, the Cabinet approved recruitment and creation of posts in several health institutions and sanctioned the upgradation of Civil Hospital Sarkaghat to a 150-bed facility, Civil Hospital Baddi to a 100-bed hospital, and PHC Kalol to a Community Health Centre. New health facilities were also approved in Solan and Hamirpur districts.
In a welfare-oriented decision, health insurance coverage under the HIMCARE scheme will be enhanced from the existing ₹5 lakh to ₹7 lakh and ₹10 lakh under a new insurance-based model.
The Cabinet also approved Phase-IV of the Rajiv Gandhi Swarojgar Start-Up Yojana, offering 50 per cent subsidy on e-buses and 30 per cent subsidy on diesel buses to eligible beneficiaries for operating on identified routes.
Among other decisions, the Cabinet approved a special relief package of ₹84.70 lakh for 15 families whose houses were completely destroyed in fire incidents in Jubbal, Kotkhai and Rohru areas of Shimla district, reduced penalties on tractors transporting minerals for domestic use, approved the Grazing Policy-2026, and cleared the State Innovation Policy for Technical Education Institutions with an allocation of ₹2 crore.
The Cabinet also upgraded the state-level Shoolini Fair in Solan to national status and approved the elevation of several fairs across Chamba, Kangra, Solan and Mandi districts to higher categories.
Additionally, the Thakur Ramlal Girls Sports Hostel at Jubbal will be upgraded into a Government Girls School of Sports with 23 new posts.
A presentation on CBSE schools was also made before the Cabinet by the Education Department.
