Nahan (Himachal Pradesh), Aug 15 (IANS): Himachal Pradesh Chief Minister Virbhadra Singh Friday announced a 10 percent hike in dearness allowance for the state government employees and pensioners from Jan 1, 2015.

While addressing the gathering in Nahan town on the occasion of the Independence Day, the chief minister also announced that land for an Indian Institute of Management would be given at Dhaula Kuan, near Nahan.

Virbhadra Singh earlier hoisted the national flag in Nahan, some 150 km from state capital Shimla.

Addressing a gathering, he said: "We are grateful and will ever remain indebted to those valiant soldiers who had shown us the light of freedom by sacrificing their own life for the sake of the nation."

Remembering the first chief minister late Yashwant Singh Parmar, Virbhadra Singh said Parmar played a significant role in the formation of the state.

The chief minister announced a government engineering college would be opened at Kotla near Jeuri in Shimla district.

He said to ensure adequate employment for the youths, as many as 93 industrial units have been given clearance to be set up in the state, which will provide employment to 8,500 people.

He said the state government has regularised the services of contractual workers who have completed six years of their service, besides regularising daily wagers completing seven years of service.