HIMUDA Board Approves Land Acquisition for Mountain City Township

The Decision

HIMUDA received approval from its board to acquire land to establish a new township Mountain City, near Jubbar-Hatti Airport in the suburbs of Shimla, to decongest the state capital. The township was framed as a counter-magnet city to decongest Shimla city.

The decision was made at the 52nd meeting of the Board of Directors (BoD) of HIMUDA, presided over by Chief Minister Sukhvinder Singh Sukhu. The estimated cost of the project is approximately Rs 1,373 crore.

Project Scope & Features

The project is likely to invigorate economic activities and employment in the area while creating an ultra-modern city with state-of-the-art infrastructure, incorporating advanced seismic technology. The township will have all facilities, including hospitals, colleges, schools, banks and parks, so that a sizeable population in Shimla considers moving to Jathia Devi.

Land Acquisition & Area

HIMUDA has already acquired 35 hectares of land for the township's initial development, with plans underway to acquire an additional 100 hectares to support further residential, commercial, and administrative infrastructure. Around 2,600 bighas were required for the project, with Rs 1,300 crore to be spent on it.

On 23 January 2024, the Town and Country Planning Department officially notified Jathia Devi as a Planning Area, with the designated area including 177 villages from Shimla and Solan districts.

Land Acquisition Process & Community Concerns

In January 2026, the Public Works and Urban Development Minister stated that no compulsory or forceful land acquisition will be carried out for the proposed satellite township at Jathiya Devi near Jubbarhatti airport, and that the interests of local residents would be given top priority, with not even an inch of land taken without public consent.

As of January 2026, the panchayat of Bagi located in the suburbs of Shimla passed a resolution opposing the proposed land acquisition, with residents of eight villages (Chalan, Mashla, Kyargi, Shilaila, Patti, Panjari, Odi and Shilu) demanding immediate withdrawal of the land acquisition proposal.

Chief Minister's Directives

Chief Minister Sukhu emphasised the importance of adopting the latest construction techniques and leveraging information technology platforms to enhance HIMUDA's presence and service to the public, and recommended the adoption of electronic measurement books (e-MBs) to streamline record-keeping and reduce the dependence on physical documentation.

Concurrent Decisions at the Same Board Meeting

The Board of Directors approved a one-time settlement (OTS) policy for allottees across the state who had encountered disputes concerning payment dues, offering them an opportunity to settle their long-pending payment dues at a significantly reduced rate. This policy was intended to ease the financial burden on the public while providing HIMUDA with consolidated resources for reinvestment.

Directions were also issued to make a provision to regularise the attics of buildings under the One Time Settlement Policy and also to make its policy in accordance with the decision taken by the state government regarding the attic.