The Town and Country Planning Department Himachal Pradesh has introduced a premium Floor Area Ratio (FAR) policy for real estate and urban construction projects in Himachal Pradesh under the Himachal Pradesh Town and Country Planning (Eighteenth Amendment) Rules, 2026.
The new regulations were notified through two gazette notifications issued on February 27, 2026, with the aim of ensuring planned urban expansion and promoting sustainable construction practices across the state.
Under the revised provisions, developers can now obtain additional construction area beyond the standard FAR limit by paying specified charges to the government. Premium FAR allows builders to increase the permissible floor space of a project in exchange for a fee, enabling higher-density development in designated areas while also generating funds for strengthening urban infrastructure.
A graded fee structure has been introduced for purchasing additional FAR. Developers can avail extra FAR up to 0.25 by paying ₹3,000 per square metre. For additional FAR between 0.25 and 0.50, the charge will be ₹5,000 per square metre, while FAR between 0.50 and 0.75 will be available at ₹7,000 per square metre.
Officials clarified that the new provisions will apply only to projects that are yet to start construction or are currently under development. Projects that have already been issued completion certificates will remain outside the scope of the amended rules.
In addition, the department has made compliance with the Himachal Pradesh Energy Conservation Building Code 2018 mandatory through the 17th Amendment Rules for commercial, institutional and real estate buildings with a built-up area exceeding 750 square metres, including hotels, hospitals, educational institutions and commercial complexes.
The updated regulations also require installation of electric vehicle charging points in all new commercial and public buildings.
To promote eco-friendly construction, the government has introduced incentives for green buildings. Projects that obtain recognized green certification will be eligible for an additional 0.25 FAR at no cost. However, developers who claim the benefit but fail to secure the required green rating will face a penalty amounting to ten times the standard fee.
Officials stated that the amendments are designed to maintain a balance between urban growth, infrastructure capacity and environmental sustainability while giving developers regulated flexibility through the premium FAR system.
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