June 18, 2025

Current context: The Himachal Pradesh government is considering a public-private partnership (PPP) model to develop a satellite township at Jathia Devi, aiming to decongest Shimla. ​

Key Highlights:

  • Project Objective: Establish a satellite township 14 km from Shimla to relocate government offices and create housing societies, reducing congestion in the state capital. ​
  • Land Acquisition: The Himachal Pradesh Urban Development Authority (HIMUDA) has acquired 35 hectares and plans to acquire an additional 100 hectares for the township. ​
  • Planning Area Notification: On January 23, 2024, the Town and Country Planning Department designated Jathia Devi as a Planning Area, incorporating 177 villages from Shimla and Solan districts for structured development. ​
  • Funding Challenges: The state sought ₹500 crore from the Union Ministry of Housing and Urban Affairs under the Urban Challenge Fund but has yet to receive a response, prompting consideration of the PPP model. ​
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