Himachal Opens Up Basements for Parking to Tackle Urban Congestion
In a move aimed at easing the growing parking crisis in its hill towns, the Himachal Pradesh government has amended the Town and Country Planning Rules to allow building basements in urban and planning areas to be used for parking. The amendment, finalized after a draft was issued on June 16, 2025, introduces a structured fee system and strict penalties to ensure compliance.
Under the new rules, homeowners can convert their basements into parking spaces by paying ₹1,500 per square meter of built-up area. However, the space must be used strictly for parking — any deviation, such as turning it into a shop or storage area, could attract penalties starting at ₹3 lakh, increasing to ₹5 lakh after six months.
Commercial buildings face steeper charges, ranging from ₹5,000 to ₹7,500 per square meter depending on their category. Municipal bodies and planning areas will charge 80% of these fees, and to encourage participation, the government is offering a discount in Floor Area Ratio (FAR) for such conversions.
Special zones like Green Areas and Heritage Zones require direct approval from the state government, with heritage proposals undergoing review by the State Heritage Advisory Committee. To prevent misuse, private professionals who submit false information could face fines between ₹50,000 and ₹2 lakh, along with cancellation of their enforcement licenses.
The policy applies across Himachal’s 76 urban local bodies and aims to reduce roadside parking — a major contributor to traffic jams in towns like Shimla, Mandi, and Dharamshala. These areas have long struggled with limited road width and rapid urban growth, making dedicated parking a pressing need.
Still, concerns remain. Past misuse of basement spaces for non-parking purposes has undermined similar efforts, and enforcement has historically been weak. The high fee structure may also deter smaller property owners, potentially limiting the policy’s reach. Experts warn that without robust monitoring and transparent enforcement, the initiative could fall short of its goals.
While the amendment is a step in the right direction, its success will depend on how well it’s implemented — and whether it truly helps reclaim urban space for what it’s meant to be: accessible, organized, and livable.