Himachal forest department, ISB sign MoU to tap Rs 22,600 crore forest economy potential

CHANDIGARH: The Himachal Pradesh Forest Department has signed a five year MoU with the Bharti Institute of Public Policy, Indian School of Business (ISB BIPP), to tap an estimated Rs 22, 600 crore in untapped forest and pastoral economy throughout five bioresources.

Key points

• The Pir Panjal Jungle Producer Firm in Pangi, a women owned enterprise in the thangi (hazelnut) business, was presented as a working example.
• Maps have additionally been generated for seven species, including khair, bamboo, chir pine, amla, wild mango, sal and rhododendron, and published jointly as 'Counting Green Wealth'.
• Over 500 forest guards spent months gathering this data, giving the estimates real credibility for economic decisions.
• It were combined with satellite imagery and AI/ML and then validated on the ground.
• We are well positioned to be among the first in the country to bring science, local communities and the administration together to transform forest governance.

Notably, the MoU was signed at Shimla on Wednesday by Principal Chief Conservator of Forests Dr Sanjay Sood on behalf of the Forest Department and Executive Director, BIPP, ISB, Prof Ashwini Chhatre on behalf of the organisation.

Ahead of the signing of the MoU, the ISB BIPP team presented findings from a joint forest inventory, in which more than 500 forest guards collected over 2, 00, 000 tree-level records and species tagged images. It were combined with satellite imagery and AI/ML and then validated on the ground.

For context, the inventory estimates Rs 22, 600 crore in untapped value throughout five bioresources: amla (Rs 8, 700 crore), pine needles (Rs 5, 500 crore), wild mangoes (Rs 4, 800 crore), sal seeds (Rs 2, 400 crore) and rhododendron flowers (Rs 1, 200 crore), with extraction restricted to a sustainable, species wise 'yield sweet spot'.

In practice, the Pir Panjal Jungle Producer Firm in Pangi, a women owned enterprise in the thangi (hazelnut) business, was presented as a working example.

Meanwhile, the data is already being applied in the Palampur Forest Division's working plan, the first such instance, and the MoU will extend this to further divisions, eventually covering the entire state.

Speaking on the occasion, Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu remarked the partnership between the Forest Department and ISB BIPP is a vital step towards strengthening Himachal's rural economy and will benefit the state for years to come.

"We are well positioned to be among the first in the country to bring science, local communities and the administration together to transform forest governance. As we build on this momentum, I look forward to expanding this initiative to maximise the potential of abundant local species, such as medicinal plants like harad and bel, and further assessing the nutritional and commercial value of thangi (hazelnut), " he remarked.

Prof Ashwini Chhatre, Executive Director of the Bharti Institute of Public Policy, Indian School of Business (ISB BIPP), remarked, "This partnership reflects what is feasible 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."

"The data does not stop at a report. It is already shaping Palampur's working plan, and this MoU extends that intelligence layer and the grazing database state wide, " remarked Dr Aarushi Jain, Director, Bharti Institute of Public Policy, ISB.

Notably, the MoU covers four areas: forest economy and community enterprises, including building women led producer firms and market linkages; a Forest Intelligence Platform, piloted in Palampur before a state wide rollout; a grazing portal and pastoral database under the Himachal Pradesh Grazing Policy, 2026, linked to Aadhaar, HimParivar, Bharat Pashudhan and the PEHEL scheme; and training and capacity building for Forest Department staff and producer businesses.

Taken together, the developments around himachal forest department, ISB sign MoU to tap Rs 22, 600 crore forest point to a situation that is still moving, and the coming days should bring more clarity.