The Uttarakhand Cabinet, under the leadership of Chief Minister Pushkar Singh Dhami, convened on May 28, 2025, at the state secretariat in Dehradun, approving eleven significant proposals that mark a comprehensive approach to state development across multiple sectors. The meeting resulted in groundbreaking decisions including the state’s first yoga policy, revolutionary healthcare reforms through cashless treatment systems, and substantial industrial policy updates aimed at boosting local employment and economic growth. These decisions collectively demonstrate the government’s commitment to infrastructure development, healthcare accessibility, industrial promotion, and social welfare, positioning Uttarakhand as a progressive state that balances traditional values with modern developmental needs.
·Healthcare Sector Reforms and Financial Support
The cabinet approved a transformative healthcare policy that introduces a comprehensive cashless treatment system for state employees, pensioners, and their dependents through the Golden Card scheme. This revolutionary decision aims to eliminate the financial burden on government servants and their families when seeking medical treatment, ensuring immediate access to healthcare services without upfront payments. The new system represents a significant step toward universal healthcare coverage within the state government ecosystem, potentially serving as a model for broader healthcare reforms across the state.
The implementation of this cashless treatment system addresses long-standing concerns about healthcare accessibility and affordability for government employees and retirees. By removing the immediate financial barrier, the policy ensures that medical emergencies and routine healthcare needs can be addressed promptly without families having to arrange funds or wait for reimbursements. This initiative aligns with the state’s broader vision of providing comprehensive social security to its workforce and their dependents.
In a crucial decision to address payment delays in the healthcare sector, the cabinet sanctioned a loan of Rs 75 crore to the Health Department. This funding is specifically designated for clearing pending payments to hospitals under the Atal Ayushman scheme, ensuring that healthcare providers receive timely compensation for services rendered to beneficiaries. The decision acknowledges the critical importance of maintaining cash flow in the healthcare system to ensure uninterrupted services and support for medical institutions.
Recognizing the challenges faced by family members accompanying patients to medical facilities, the cabinet approved the establishment of accommodation and food facilities for caregivers at Dehradun and Haldwani Medical Colleges. Following the AIIMS Rishikesh model, the government will provide land for these facilities, which will be constructed using CSR funds and operated at affordable rates. This compassionate policy addresses a significant gap in healthcare support infrastructure, acknowledging that patient care extends beyond medical treatment to include support for family members who often face accommodation challenges during extended hospital stays.
Industrial Development and Employment Generation
The cabinet approved the Uttarakhand Mega and Industrial Policy 2025, a comprehensive framework designed to promote industrial growth and attract investments across different scales of enterprises. This policy divides the state into four distinct zones, each offering specialized facilities and incentives specific to current industrial requirements in the area. The policy structure includes detailed investment categories ranging from large-scale industries requiring Rs 50-200 crore investments with minimum employment of 50 people receiving 10% subsidies, to ultra-large industries with Rs 200-500 crore investments employing at least 150 people with 15% subsidies.
The policy framework extends to mega industries requiring Rs 500-1000 crore investments with 300 minimum employment positions, and ultra-mega industries demanding investments exceeding Rs 1000 crore with over 500 employment opportunities. This tiered approach ensures that industries of various scales can find appropriate support and incentives, promoting balanced industrial development across the state. The five-year validity period of this policy provides sufficient time for investors to plan and execute their projects while ensuring periodic review and updates based on changing economic conditions.
In a significant move to boost local employment and strengthen the regional economy, the cabinet modified procurement regulations to allow local contractors to undertake projects worth up to Rs 10 crore. This decision represents a substantial increase from previous limits and demonstrates the government’s commitment to empowering local businesses and ensuring that development benefits reach grassroots level. By reserving larger projects for local contractors, the policy creates more substantial employment opportunities within communities and helps retain economic benefits within the state rather than allowing them to flow to outside contractors.
This initiative is expected to have multiplier effects on the local economy, as local contractors are more likely to source materials, labor, and services from within the region. The policy change also recognizes the growing capacity and capabilities of local contractors, providing them with opportunities to scale up their operations and develop expertise in handling larger projects.
Cultural and Tourism Development
In a historic decision that acknowledges the state’s spiritual heritage and potential for wellness tourism, the cabinet approved Uttarakhand’s first comprehensive yoga policy. This groundbreaking initiative aims to establish the state as an international yoga destination while creating employment opportunities and promoting health and wellness among residents. The policy framework includes the development of five specialized yoga hubs across the state, strategically located to maximize accessibility and impact.
The financial incentive structure of the yoga policy demonstrates the government’s serious commitment to this sector, offering 50% subsidies for yoga-related enterprises in mountainous regions and 25% subsidies in plain areas. Additionally, the policy includes direct support for yoga instructors through a reimbursement system of Rs 250, ensuring that qualified professionals are motivated to establish and maintain yoga training centers. This comprehensive approach addresses both infrastructure development and human resource requirements for building a robust yoga ecosystem in the state.
The yoga policy aligns perfectly with Uttarakhand’s image as a spiritual destination and leverages the state’s natural beauty and peaceful environment to attract domestic and international wellness tourists. By formalizing yoga promotion through policy support, the state positions itself to capture a significant share of the growing global wellness tourism market while preserving and promoting its traditional knowledge systems.
Administrative and Regulatory Reforms
The cabinet approved modifications to the Uttarakhand Service Sector Policy 2024, introducing important provisions that prevent subsidy duplication in areas where service sector institutions already exist. These changes ensures efficient utilization of government resources by targeting subsidies toward areas with genuine need for service sector development. These policy changes demonstrates the government’s commitment to policymaking based on practicality of the implementation of such policies and optimal resource allocation.
In response to safety concerns, the cabinet decided to include methyl alcohol in the Uttarakhand Poison Possession and Sale Regulations. This addition strengthens the regulatory framework governing dangerous substances and enhances public safety measures. The decision reflects the government’s active role for identifying and addressing potential health and safety risks through appropriate regulatory mechanisms.
The cabinet approved the creation of eleven new positions in the Tea Development Board, demonstrating the government’s commitment to strengthening institutional capacity in the agricultural sector. This expansion will enable the board to better serve tea growers and promote the development of the tea industry in the state. Additionally, amendments to the Government Accounts Cadre Rules were approved, which simplifies the administrative processes and improving operational efficiency in financial management.
The cabinet also approved the Revised Clerical Staff Service Rules 2025, updating employment regulations to reflect current administrative needs and ensuring that recruitment and service conditions remain relevant to contemporary requirements. These administrative updates collectively contribute to improved governance and more effective public service delivery.
CONCLUSION
The May 28, 2025 Uttarakhand Cabinet meeting represents a important moment in the state’s developmental history, with decisions giving positive impacts on not one but many sectors of public welfare including healthcare, industry, culture, and administration which shows us the active approach of Chief Minister Pushkar Singh Dhami`s led government towards good governance as per Directive policies of the Constitution. The approval of the state’s first yoga policy with substantial healthcare reforms and industrial development initiatives, puts Uttarakhand in position as a leader for sustainable growth while preserving its cultural identity. The emphasis on local empowerment through contractor opportunities and the comprehensive support system for various sectors indicates a government focused on complete development approach that benefits both urban and rural populations so that no person is left out.
These decisions collectively reflect a strategic vision towards protecting Uttarakhand’s natural and cultural assets while building modern infrastructure and systems. The healthcare reforms ensure immediate benefits for government employees and their families, while the industrial policy and yoga initiatives promise long-term economic growth and employment generation. The administrative reforms strengthen institutional capacity and regulatory frameworks, creating a foundation for effective implementation of these ambitious policies. As these initiatives move from approval to implementation, they have the potential to significantly transform Uttarakhand’s economic landscape and enhance the quality of life for its citizens.
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