Himachal Pradesh Government Releases Draft Amendment on Premium Floor Area Ratio to Boost Real Estate
Shimla: The Himachal Pradesh government has released a draft amendment to the rules related to Premium Floor Area Ratio (FAR) to promote the real estate sector. According to a notification issued by the Town and Country Planning Department on January 6, 2026, the Himachal Pradesh Town and Country Planning (Amendment) Rules, 2026 have been published in the Gazette.
The government has invited public objections and suggestions within 30 days on the draft. Under the proposed rules, developers will have to pay a prescribed fee to acquire additional FAR for real estate projects. The proposed rates are as follows:
- 0 to 0.25 Premium FAR: ₹30,000 per sq. meter
- 0.25 to 0.50 Premium FAR: ₹50,000 per sq. meter
- 0.50 to 0.75 Premium FAR: ₹70,000 per sq. meter
The government clarified that these provisions will not apply to projects that are already completed or have received a Completion Certificate. In partially completed projects, blocks that have received a Completion Certificate are also excluded.
For new or proposed projects, developers can purchase additional FAR along with initial development approval. However, the total construction will not exceed the maximum limit set by the combination of Base FAR and Premium FAR. The government also emphasized that Premium FAR is a facility, not a right, and cannot be used to legalize unauthorized construction.
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