Mandi, a central district in Himachal Pradesh, is fast evolving into a powerhouse of infrastructure-led development, with investments exceeding ₹14,000 crore across aviation, rail, energy and tourism.
The region, long known for its spiritual heritage and natural charm, is now at the forefront of a transformation that seeks to blend economic ambition with ecological responsibility. At the heart of this push is the ambitious international airport planned at Nag Chala in Mandi. Spanning over 698 acres and cleared by the Airports Authority of India, the airport is expected to cost ₹2,000 crore. This would be the first of its kind in the hill state, capable of handling wide-body aircraft and significantly improving regional connectivity. With this, Himachal Pradesh aims to reduce its dependency on distant air terminals and give its tourism and trade sectors a direct global access point.
In parallel, the strategic Bhanupli-Leh railway line, estimated at ₹11,500 crore, promises to link Himachal with Ladakh through a high-altitude corridor. The Barmana-Mandi section is currently under land acquisition, and once completed, the 498 km line will support both civilian movement and military logistics. The project is viewed as not only a critical national security asset but also a key enabler for regional trade and employment. Tourism, too, finds its cornerstone in Mandi’s growth plans. The state government has committed ₹100 crore to the Shiv Dham spiritual tourism complex. Envisioned to replicate the twelve Jyotirlingas, the development aims to position Mandi as a year-round pilgrimage destination. However, the pace of progress has slowed due to funding constraints, underlining the need for consistent financial flows for heritage infrastructure.
Sustainability is not a side note but a central pillar in Mandi’s growth narrative. The Mid-Himalayan Watershed Development Project, supported by the World Bank, spans more than 222,000 hectares and integrates climate-resilient agriculture with eco-restoration. Within it, the Himachal Pradesh Reforestation Project stands out as the world’s largest Clean Development Mechanism (CDM) scheme. By promoting community forestry and water conservation, it aligns rural livelihoods with global carbon reduction targets. Meanwhile, the Pandoh Dam, which has served since 1977, continues to be a vital asset in Himachal’s hydroelectric ecosystem. With a 990 MW output capacity via the Dehar Power Plant, it underpins both energy production and irrigation for the region. Its role has grown more pronounced as India leans into clean energy and smarter water management to support urban expansion in the hills.
Together, these projects mark Mandi not just as a growing city, but as a policy laboratory for infrastructure development in ecologically sensitive regions. The convergence of connectivity, sustainability and heritage makes Mandi a compelling case for other Himalayan districts seeking to balance progress with preservation. As India chases its net-zero ambitions, places like Mandi could well become its most effective test beds.
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Mandi set to transform Himachal with green airport rail and tourism projects
