Himachal Introduces New Urban Development Rules, ₹3000–₹7000 Per Sq Meter Fee for Additional FAR
Shimla: The Town and Country Planning (TCP) Department has implemented new rules related to urban development and the real estate sector in Himachal Pradesh. Two notifications issued on February 27, 2026, were published in the official gazette on Friday. Through these notifications, Premium FAR (Floor Area Ratio) and the Energy Conservation Building Code have been made mandatory. The government said the amendments aim to promote planned development in urban areas and encourage environmentally sustainable construction.
Under the Town and Country Planning (18th Amendment) Rules, 2026, real estate projects will now be allowed to purchase additional Premium FAR. The department has also fixed the fee structure for this provision. For up to 0.25 (250 square meters) additional FAR, a fee of ₹3,000 per square meter will be charged. For 0.25 to 0.50 FAR, the fee will be ₹5,000 per square meter, and for 0.50 to 0.75 FAR, the charge will be ₹7,000 per square meter. This facility will apply only to projects that have not yet started construction or are currently under construction. Projects that have already received completion certificates will not be covered under the new rule.
Additionally, under the 17th amendment, commercial, public, and real estate buildings with a built-up area of more than 750 square meters will be required to comply with the Himachal Pradesh Energy Conservation Building Code (HPECBC) 2018. This will include hotels, hospitals, educational institutions, and commercial complexes.
Moreover, all new commercial and public buildings must install electric vehicle charging points. To promote environmentally friendly construction, the government has also introduced incentives for green buildings. Buildings that obtain green ratings from recognized institutions will receive an additional 0.25 FAR free of cost. However, if a project fails to achieve the required green rating, it will have to pay a penalty ten times higher than the normal fee.
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