Rents Revamped: Himachal’s Urban Shops to Pay Fairer Rates

The Himachal Pradesh Cabinet has rolled out a new lease policy that will finally bring shop rents across the state in line with today’s market realities. For decades, thousands of shops and stalls owned by urban local bodies have been paying “dead rents” — outdated rates as low as ₹100 to ₹500 a month — even in prime market areas.

This change affects nearly 9,000 shops under 71 urban bodies, including five municipal corporations, 29 municipal councils, and 37 nagar panchayats. These institutions depend heavily on rental income, but the wide gap between old leases and newer ones (₹1,500–₹5,000 per month) has been draining their finances.

Urban Development Minister Vikramaditya Singh explained that the new policy will reset rents for shops stuck at extremely low rates, ensure transparent lease renewals, and recover long-pending dues. Rents will now be based on circle rates, location, and type of business — whether retail, banking, or warehousing.

To prevent stagnation, the policy also introduces regular rent hikes at fixed intervals. The government believes this will strengthen municipal revenues, giving local bodies the financial stability they need to carry out development projects more effectively.