Most of the victims were locals and the bus was on its way from Shainshar to Kullu. The accident occurred close to Shainshar in the Sainj valley.
Kullu Deputy Commissioner Ashutosh Garg said the Sainj-bound bus fell into the gorge at around 9.15 a.m.
The injured have been admitted to Regional Hospital in Kullu town.
Eyewitnesses said the administration has been facing a tough time extricating the victims from the badly-mangled bus.
People in the area began the rescue operation even before the local authorities reached the spot.
Expressing grief over the accident, Prime Minister Narendra Modi said the bus accident in Himachal Pradesh’s Kullu is heart-rending and announced Rs 2 lakh each for the next of kin of those who lost their lives.
“The bus accident in Kullu, Himachal Pradesh is heart-rending. In this tragic hour my thoughts are with the bereaved families,” Modi was quoted as saying in a tweet by his office.
“I hope those injured recover at the earliest. The local administration is providing all possible assistance to those affected,” he said.
Chief Minister Jai Ram Thakur announced Rs 5 lakh to the next of the kin of the deceased, whereas Rs 15,000 as immediate relief for the injured. He said free treatment would be provided to the injured.
Chief Secretary Ram Subhag Singh had directed the Financial Commissioner, Revenue, and the Divisional Commissioner of Mandi to reach the accident spot to supervise the rescue operation.