State eases land lease norms for HIMUDA

The Revenue Department has revised the Himachal Pradesh Land Lease Rules, 2013, allowing the Housing and Urban Development Authority (HIMUDA) to obtain land leases for up to 80 years. A formal notification issued by the department states that while the government will not grant leases beyond 40 years in general, an exception has now been created exclusively for HIMUDA, permitting lease periods to stretch to 80 years.

The amendment, titled the Himachal Pradesh Lease (Amendment) Rules, 2025, has been issued under the powers granted by the Himachal Pradesh Village Common Lands Vesting and Utilisation Act, 1974 and the Himachal Pradesh Ceiling on Land Holdings Act, 1972. The government has also invited objections and suggestions from the public within a month.

Previously, in April 2023, the Congress government had curtailed the maximum lease period from 99 years to 40 years. This change applied to sectors such as hydropower, cement, mining and industrial projects. The reduction was driven by concerns over rapidly diminishing government land and repeated instances where land allotted to major projects either remained unused or was diverted for unrelated activities.

However, the same 40-year cap posed practical challenges for housing projects, especially those executed by HIMUDA, which typically require longer tenures for planning, financing and completion. The latest amendment aims to address this gap by offering a more workable timeframe for residential development.

While the general cap of 40 years remains intact, lease periods can still be extended by 5, 10, 15 or more years depending on specific cases. The new relaxation for HIMUDA marks a targeted shift to support long-term housing needs without altering the broader land conservation objectives of the state.