Building a House in Himachal to Become Costlier: Higher Fees for Extra Construction Under New TCP Rules

Building a House in Himachal to Become Costlier: Higher Fees for Extra Construction Under New TCP Rules

S Gopal Puri
SHIMLA

The Himachal Pradesh government, led by Chief Minister Sukhvinder Singh Sukhu, has introduced major changes in the Town and Country Planning (TCP) rules, making house construction more expensive across the state.

According to the new notification issued on February 27, 2026, homeowners and builders seeking approval for extra construction beyond the permissible Floor Area Ratio (FAR) will now have to pay ₹3,000 to ₹7,000 per square meter as premium charges. Earlier, the fees were lower, but the revised structure is expected to significantly increase construction costs.

Key Changes in the New Rules

  • Premium FAR Charges: Extra construction beyond the set FAR will attract higher fees, ranging from ₹3,000–₹7,000 per sq. m.
  • Area-Based Variation:
    • Higher charges in municipal corporation and council areas.
    • Around 80% of the fee applicable in municipal panchayat and other planning areas.
    • Buildings near national or state highways may face even higher charges.
  • Basement & Parking Rules:
  • Opening a closed basement for parking will cost ₹1,500 per sq. m.
  • Misuse of designated parking space for other purposes will attract fines between ₹3–5 lakh.

Impact on Citizens

Experts believe the move will raise the cost of building houses, especially in urban and tourist regions. While the government argues that the changes aim to control urban growth, strengthen planning, and curb illegal construction, ordinary citizens and builders are likely to feel the financial burden.

S Gopal Puri

S Gopal Puri

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