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Ban on new construction in Shimla, core area declared ‘No Construction Zone’

July 30, 2026 by Uma Shankar

Himachal Pradesh government has taken a big historic step to curb the unbridled and rapid construction work in the capital Shimla. The Sukhu Cabinet has approved the proposal to declare most parts of Shimla’s most congested ‘core area’ as ‘no construction zone’.

After the implementation of this decision, there will be a complete ban on construction of new private houses or commercial buildings in very important and sensitive areas of the capital Shimla. Government buildings built for the convenience of the common people and old houses rebuilt according to their original form have been kept out of this restriction.

Now construction is not allowed in these areas

The Town and Country Planning (TCP) Department will issue a draft notification on this and seek objections and suggestions from the general public. According to the Himachal Pradesh government’s proposal, the entire area above Sanjauli Road, College of Excellence, Indira Gandhi Medical College (IGMC), Lakkar Bazaar, Ridge Ground, Rani Jhansi Park, Mall Road, Indira Gandhi Sports Complex, Clarks Hotel, Oak Over, Chhota Shimla and a wide area back to Sanjauli will come under the ambit of the new construction ban. Now construction of new buildings at private level will not be allowed in these areas.

On the cabinet decision, Town and Country Planning (TCP) Minister Rajesh Dharmani said that the purpose of this restriction is to save the greenery of Shimla. People come to the city to enjoy its forests and natural beauty, not to see the concrete jungle.

Most of the areas in Shimla where construction work is being banned were actually part of the 17 ‘no-construction green belts’ that were opened for need-based construction under the ‘Shimla Development Plan-2041’. The Supreme Court had approved this plan on January 11, 2024.

Shimla: Permit fees reduced on restricted roads

On the other hand, the Himachal government on Wednesday reduced the permit fees for private vehicles on the sealed and restricted roads of Shimla and also provided the facility of 6 months permit for the first time. The state government implemented ‘Shimla Road Users and Pedestrians (Public Safety and Convenience) Amendment Ordinance, 2026’ for the convenience of private vehicle owners in Shimla.

Vehicles are not allowed to ply on sealed and restricted roads without permits. Most of these roads provide access from different parts of Shimla to the main area of ​​the city i.e. Mall Road. Some of the major roads sealed and restricted are Navbahar to Ridge, Chhota Shimla to Mall and Ridge, IGMC to Ridge, AG Office to CTO, and Boiloganj to Assembly via Indian Institute of Advanced Study (IIAS).

Under the new ordinance, the annual permit fee for private vehicles on sealed roads has been reduced from Rs 15,000 to Rs 8,000, while the annual fee for restricted roads has been reduced from Rs 5,000 to Rs 3,000. Also, for the first time, vehicle owners can also opt for a 6-month permit. Their fee has been fixed at Rs 4,500 for sealed road and Rs 2,000 for restricted road.

About Uma Shankar

Uma Shankar writes about finance, business, and investment topics. He simplifies complex subjects like stock market, banking, tax, and cryptocurrency to help readers make informed financial decisions. Data-driven reporting is his strength.

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