Himachal Pradesh Introduces Premium FAR Charges: Real Estate Developers to Pay Up to ₹7,000 per Sq. Meter for Additional Construction
The Himachal Pradesh government has amended the Town and Country Planning (TCP) Rules, 2026, introducing new charges for additional construction under the Premium Floor Area Ratio (FAR) provision. This decision means that developers and property owners who wish to build beyond the standard permissible FAR will now need to pay a premium to the state government. The move is being viewed as a significant policy change aimed at increasing government revenue amid the state’s financial challenges.
Under the newly enforced HP Town and Country Planning (18th Amendment) Rules, 2026, developers can opt for additional built-up area while submitting their initial development plans. However, the total construction must still remain within the overall permissible limits set by planning regulations. Additionally, all building height restrictions and other planning provisions under the TCP rules must be strictly followed.
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The government has introduced a tier-based pricing system for Premium FAR. According to the official notification, developers will have to pay ₹3,000 per square metre for Premium FAR up to 0.25 of the additional built-up area. If the additional FAR exceeds 0.25 and goes up to 0.50, the charge increases to ₹5,000 per square metre.
For projects requiring more construction capacity, the charges will rise further. Developers seeking Premium FAR above 0.50 and up to 0.75 will need to pay ₹7,000 per square metre for the additional built-up area. These new rates are expected to impact project costing for real estate developers planning high-density construction in the state.
The government has also clarified that the amended rules will not apply to projects where construction has already been completed and completion certificates have been issued. In partially completed projects, the new rules will only apply to portions where construction has not yet started, allowing developers the option to opt for Premium FAR for those sections.
