Shimla – The Himachal Pradesh government is considering implementing new rules for homestays operating in urban areas. The proposed regulations include levying commercial rates for electricity and water, a move aimed at standardizing the operation of homestays and ensuring fair contributions to the state’s revenue.
This decision, however, will not impact homestays in rural areas. The cabinet sub-committee discussed the proposal in its second meeting and plans to send its suggestions to the cabinet for final approval.
The state government has formed a cabinet sub-committee to regulate homestay activities, which will submit its report following another meeting scheduled for next week. During the recent meeting, the committee deliberated on the proposal to apply commercial charges for utilities to urban homestays, exempting rural homestays from this rule.
“The sub-committee is still in the discussion phase, and the final decision will be made by the cabinet,” a source stated. “The recommendations will include amendments to existing rules to ensure the state government benefits from the homestay operations.”
Currently, over 4,000 homestay units are operating in Himachal Pradesh. The government aims to introduce new provisions to bring these units under regulatory compliance, ensuring the state receives appropriate benefits from the growing homestay sector. Despite the GST paid by these units, the state government has not been receiving adequate benefits. Additionally, many units have been utilizing electricity and water at domestic rates, which the new rules aim to change for urban homestays.
There is also concern about unauthorized homestays operating without adherence to regulations. The committee discussed ways to address these issues, including stricter enforcement of licensing and compliance with established rules.
Monday’s meeting was chaired by Industry Minister Harshvardhan Chauhan, with Public Works Minister Vikramaditya Singh and Panchayati Raj Minister Anirudh Singh in attendance. Labor Department Commissioner Mansi Thakur provided detailed information on the current state of homestay units. Thakur highlighted the significant number of homestays in urban areas and the potential decision to implement commercial rates for their utilities.
The proposed changes reflect the government’s effort to regulate the homestay industry, ensuring that urban homestays contribute fairly to the state’s revenue while maintaining support for rural homestay operators. The cabinet’s final decision will determine the implementation of these new regulations.
