Himachal Pradesh Cabinet Approves TCP Rules Relaxation for Jathia Devi Mountain Township DPR Preparation

Decision and Authority

The Cabinet granted permission for preparation of a detailed project report (DPR) of the proposed Jathia Devi Mountain township by relaxing the provisions of the Town and Country Planning (TCP) Rules, 2014. The Cabinet meeting was held in the first week of August 2026 in Shimla.

This decision was taken by the State Cabinet of Himachal Pradesh, the supreme executive authority of the state government, with the power to relax planning regulations in matters of larger public interest.

Operative Details: Land and Project Scope

Land Holding: HIMUDA has already acquired two chunks of 350 bighas and 250 bighas at Jathia Devi for the township, totalling 600 bighas.

Location and Distance: The township will be located at a distance of 14 km from the capital city of Shimla. The site is situated near Jubbarhatti Airport, also known as Shimla Airport.

Planning Area: The state government had issued a notification on January 23, 2024, creating the Jathia Devi Planning Area to ensure planned and regulated development.

Planned Infrastructure: The township will have 21 bungalows, 73 villas, 31 residential apartment blocks (eight storey with parking), five apartment blocks (11 storey with parking), six commercial blocks, two mixed use blocks having 32 rooms intended for hotel use, primary school and commercial hall.

Strategic Objectives

The Cabinet gave approval for relaxing norms for setting up Jathia Devi Mountain township primarily to decongest Shimla and have an independent planned satellite city providing affordable housing.

The project responds to mounting urban pressures on Shimla, including traffic congestion, water scarcity, and inadequate housing. By establishing a planned satellite city, the government aims to shift residential and administrative activities to a new, sustainably designed township while preserving the heritage character of Shimla itself.

TCP Rules Relaxations Granted

The Cabinet allowed relaxation in setbacks, height of floors and building as the satellite township is being set up in larger public interest.

The Cabinet also granted relaxation, as per the TCP Rules, in the area to be brought under public and semi-public use.

These relaxations from the standard Town and Country Planning Rules, 2014 are intended to facilitate a more efficient and cost-effective development model appropriate to a new satellite township, while maintaining essential planning safeguards through conditions.

Mandatory Conditions and Safeguards

The Cabinet approved the real estate project subject to several conditions: no tree would be cut at the site without the prior approval of the Forest Department; the no objection certificate (NOC) for environment clearance would be submitted before commencing construction work; and the NIT or the IIT would vet the geo-technical investigation and structural design report.

These conditions underscore the Cabinet's commitment to environmental protection and structural safety, particularly important given the project's location in a sensitive hill station region subject to seismic activity and ecological constraints.

Practical Effect and Implementation Path

The Cabinet's decision permits HIMUDA to proceed with detailed project report (DPR) preparation—a critical planning and engineering phase that precedes actual construction. The DPR will incorporate the architectural and infrastructure specifications listed above within the 600 bighas of acquired land, subject to the stated conditions.

The granting of TCP rules relaxation removes a major procedural bottleneck that had stalled the project for years. However, all relaxations remain conditional on environmental and structural compliance, meaning HIMUDA must obtain Forest Department NOC and environmental clearance before breaking ground.

As of August 2026, the project remains in the planning phase. The cost of the township to be developed in the public private partnership (PPP) mode has escalated to over Rs 1,500 crore. The government is exploring PPP models after the Union Ministry of Housing and Urban Development declined to provide direct funding.