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Himachal Pradesh unveils three new townships under urban development push

#Builders & Projects#Residential#India#Himachal Pradesh
Last Updated : 14th Feb, 2026
Synopsis

Himachal Pradesh has announced plans to develop three new townships at strategic locations Baddi's Sheetalpur near the Chandigarh border, Morni Hills in Sirmaur district and Lunj near Kangra Airport as part of the state's broader urbanisation and housing expansion strategy. The proposals were highlighted at a meeting of the Himachal Pradesh Housing and Urban Development Authority (HIMUDA) Board, chaired by the Town and Country Planning Minister, with an initial allocation of INR 5 crore to kick-start preliminary activities. These township plans aim to modernise infrastructure, cater to rising residential demand and stimulate growth in key corridors. In addition to the township initiatives, HIMUDA is progressing residential development near Shimla under its Jathia Devi project and introducing policy reforms to streamline land pooling, buy-back and redevelopment across the state.

Himachal Pradesh has taken steps to expand its urban development framework with plans for three new townships aimed at enhancing housing supply and modernising infrastructure across high-growth corridors. The Himachal Pradesh Housing and Urban Development Authority (HIMUDA) Board approved preliminary activities for the proposed township projects during a recent meeting chaired by the Town and Country Planning Minister.


The three township projects identified for initial development include the Him Chandigarh Township at Sheetalpur in Baddi (Solan district), a Morni Hills Township in Sirmaur district's Pachhad region, and a planned Lunj Township near the Kangra Airport. These locations have been chosen for their strategic importance, poised to support residential growth, improve connectivity and broaden the state's urban footprint. An initial allocation of INR 5 crore has been made to initiate preparatory activities.

The Him Chandigarh Township project, in particular, is expected to integrate residential, commercial and social infrastructure to serve as a modern urban node along the industrial and transport corridor adjoining the Chandigarh region. The initiative aligns with the state government's broader vision of boosting real estate development in areas with strong economic linkages and long-term growth potential.

Alongside the township initiatives, HIMUDA confirmed progress on the Jathia Devi residential project near Shimla. In its first phase, 919 residential units are planned on approximately 21 bighas of land, with an estimated investment of around INR 1,327 crore, aimed at easing pressure on Shimla's core housing stock and promoting peripheral expansion.

The Board also approved various commercial and infrastructure developments in other districts, including a commercial complex in Ghumarwin (Bilaspur) and infrastructure works in Kangra's Shree Jwala Ji Shakti Vihar Colony. To support these efforts, policy measures such as a new Land Pooling Policy, a Buy-Back Policy and a Redevelopment Policy were approved, providing structured frameworks for future development and maintenance of government housing assets.

HIMUDA's decisions reflect a concerted push by the state to broaden affordable housing access, strengthen urban planning and attract more organised development activity. Special residential quotas for Olympic and Asian Games medallists, gallantry award recipients and child bravery award winners were also adopted, underscoring an inclusive approach to allotment.

The move to expand township development is expected to complement broader infrastructure and tourism investments across Himachal Pradesh, supporting balanced urbanisation while preserving the state's ecological and cultural heritage. Industry observers say such initiatives could help diversify real estate demand and support employment generation through linked construction and services activities.

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