The Himachal Pradesh Cabinet on Thursday approved Chief Minister Virbhadra Singh’s declaration of Dharamshala as the state’s second Capital, ANI reported. The announcement precedes the state budget presentation on March 10. The move gains significance as the ruling Congress is vying for a re-election in the Assembly polls, which will be held in late 2017.

On January 18, Singh had declared Dharamshala the Capital while stating that its significance and history made it a deserving candidate, reported The Tribune.

The chief minister had said that the city held special importance and value in lower areas of the state such as Chamba, Hamirpur, Kangra and Una districts. Dharamshala is located in Himachal’s Dhauladhar range. Singh had said that the city attracted people from across the world and tourism had changed the town’s fortune.

Politically, too, Dharamshala comes next to Shimla in the state. “A full-fledged Winter Session of the Vidhan Sabha was held for the first time outside Shimla in December 2005,” said Singh. As many as 12 Winter Sessions of the state Assembly have been held in Dharamshala.