The Himachal Pradesh government has amended the Town and Country Planning Rules to allow basements of buildings in planning and urban areas to be opened for parking. A draft of the amendment was issued on June 16, 2025, and has now been finalised. Under the new rules, owners who want to open their basements for parking will have to pay a fee of Rs 1,500 per square meter of the built-up area. The basement can then be used only for parking purposes. If the space is used for any other purpose, a penalty of Rs 3 lakh will be imposed, which will increase to Rs 5 lakh after six months.
For commercial buildings, the charges will be Rs 5,000 per square meter and Rs 7,500 per square meter depending on the category. According to the notification, Planning Areas or Special Areas will charge 80 percent of the fee, and the same applies to Municipal Corporations, Nagar Parishads, and Nagar Panchayats. To provide this relief, the government will also offer a discount in the Floor Area Ratio for such cases.
The rules specify that only the state government can grant permission for opening basements in Green Areas and Heritage Zones. In heritage cases, proposals will also be reviewed by the State Heritage Advisory Committee. The government has also introduced strict provisions to prevent misuse of this scheme. If any private professional submits incorrect information for opening a basement, they could face a fine of Rs 50,000 to Rs 2 lakh and cancellation of their enforcement license. The Town and Country Planning Department had earlier allowed private professionals to approve maps, making this provision necessary.
There are currently 76 urban local bodies in the state, apart from separate planning areas, and these changes apply to all of them. The objective of the amendment, according to the government, is to increase parking availability in urban centers and ease traffic congestion.
Urban areas of Himachal Pradesh, especially Shimla, Mandi, and Dharamshala, have been facing severe parking shortages due to rapid urbanisation, limited road width, and lack of dedicated parking lots. The decision to allow basements to be converted into parking spaces could potentially reduce roadside parking, which has become one of the main causes of traffic congestion in hill towns.
However, there are concerns about possible misuse. In the past, basements meant for parking were often converted into shops, godowns, or living spaces, worsening the parking crisis. Although the government has imposed hefty penalties—Rs 3 lakh initially, rising to Rs 5 lakh for violations—the effectiveness of enforcement remains questionable given the history of weak monitoring in hill towns.
Another issue is the high fee structure, which may discourage small property owners from opting for this facility, limiting its overall impact. While commercial buildings are charged much higher rates, the fear is that influential builders might still find ways to bypass the rules. Experts suggest that while this amendment is a step toward addressing parking problems, strict monitoring, transparent enforcement, and regular inspections will be critical to prevent misuse. Otherwise, this could turn into yet another policy with good intent but poor implementation.
