Located about 14 km from Shimla city, Jathiya Devi has been identified for an ambitious urban development project to be executed by the Himachal Pradesh Housing and Urban Development Authority (HIMUDA). The project was conceived by the state government with the approval of the Centre in 2014. Notices pasted across the area — including at the Jathiya Devi Panchayat Bhawan — invited residents to submit objections and suggestions by December 29 regarding a proposed Social Impact Assessment (SIA) study.
The project, first conceptualised in 2014, has now triggered widespread opposition across several villages, with residents fearing displacement, loss of livelihoods, and inadequate compensation. On January 10, Gram Panchayat Bagi, which has at least eight revenue villages out of 11 that were identified to be acquired for the township, passed an unopposed resolution not allowing their land to be acquired.
The Jathiya Devi Township Project
Jathiya Devi is a place under the Gram Panchayat Bagi. The place derives its name from the existence of an old Jathiya Devi shrine in the area. The proposed township is envisioned as a planned satellite mountain township to ease pressure on Shimla, create new economic hubs, and promote sustainable, disaster-resilient urban growth.
Strategically located along state highway (SH) — 16 and national highway (NH) — 5, the township lies 3–4 km from Shimla Airport at Jubbarhatti and about 20–22 km from ISBT Shimla. The terrain ranges between 1,300 and 1,500 metres above sea level, comprising ridges, valleys, and seasonal streams.
According to the SIA study, held in November 2025 pertaining to the township, the township will span around 249 hectares, of which 35 hectares is government-owned land. The proposed land use includes residential zones (55.16 ha): housing for high income group (HIG), medium income group (MIG), low income group (LIG), and economically weaker section (EWS). Commercial areas (13.36 ha) and non-polluting industrial zones (15.7 ha). Recreational and green zones (16.42 ha). River development areas (16.56 ha). The proposed widened roads (13.78 ha), utility services, smart transport systems, helipad connectivity, and eco-sensitive planning area were other features of the township. Phase 1 of the township proposes 895 residential units across HIG, MIG, LIG, and EWS categories, along with commercial and industrial components over 84.22 hectares, while green and river development zones will cover another 33 hectares.
Villages identified for acquisition
The SIA report said around 249 ha (approximately 2,959 bighas) across eight villages have been identified for potential acquisition. These villages are: Chanan (568 bighas), Panti (109 bighas), Aanji (396 bighas), Shilli Baghi (699 bighas), Majhola (78 bighas), Shilru (214 bighas), Dhanokari (270 bighas), and Kyaragi (303 bighas).
These villages fall under rural Shimla, primarily within the Gram Panchayat Bagi. Additionally, Manjiyari village (around 441 bighas) in Mamlig tehsil of neighbouring Solan district has also been identified. According to the SIA report, 386 households will be directly affected, with 158 households facing potential livelihood disruption. Indirect impacts include loss of access to common property resources (CPRs) and shared land-use systems.
The protest
Residents argue that the proposed acquisition threatens fertile agricultural land, ancestral homes, and centuries-old social and religious structures. “We were told that entire villages — including agricultural land and houses — would be acquired. The government wants to build homes for newcomers by displacing people who have lived here for generations,” said Neeraj Thakur, who opposed the project during the December 29 public hearing.
The resolution was passed with a clear and full majority. “Although to pass a resolution we need a 1/4 majority of 120 households out of 418 houses, but the resolution was signed by 280 people from each family”, said Naresh Kumar Thakur, pradhan of Gram Panchayat Bagi.
He also said, “A long time back, HIMUDA had acquired more than 250 bighas for the mountain township. So far, not a single brick has been laid on the acquired land. That land was infertile. But this time, the government says it will acquire agricultural land along with the houses of residents.”
Compensation concerns
The notices, issued under Section 5 and Rule 8 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, sought public input on the acquisition as suggested by the SIA study. According to HIMUDA and revenue officials, the compensation is to be paid on the basis of current land prices and collector rates in the area.
Although villagers decided to boycott the acquisition without considering what to be offered in the shape of compensation, many believe that the lands in the villages are joint properties and owners will not get a lot of money in compensation.
“My brothers and I own 12 bighas collectively. After division among sons and grandsons, how much will each get? Agriculture is our livelihood. The government must clarify compensation before moving ahead,” Hira Singh Thakur, 84, one of the villagers, said.
The SIA report
Chapter 3 of the SIA acknowledges that land acquisition may lead to displacement and the removal of constructed assets, including seven temples, five schools, around two dozen shops, water canals and other physical structures and residential houses.
However, the report projects significant benefits, claiming the township will create employment opportunities and economic mobility, improve access to education, healthcare, and markets, integrate rural areas into major economic corridors, promote social upliftment, skill development, and local entrepreneurship and emphasise environmental sustainability, reduced fuel consumption, and inclusive recreational spaces.
View of HIMUDA
HIMUDA CEO and Secretary Surender Kumar Vashisht has sought to allay fears, stating that no land will be acquired forcibly. “We are not going to acquire any land against the wishes of locals. The December 29 hearing was only the first step in a long process. We already have around 262 bighas, and we want to expand, but not by displacing people,” he said. He added that residential houses would be excluded from acquisition and that provisions exist for kitchen gardening and protection of livelihoods. “A middle path is being explored so that fertile land and houses can be excluded,” Vashisht said. The CEO also claimed that the land of the eight villages is not too fertile.
What’s next
Conceived over a decade ago, the Jathiya Devi township has faced repeated delays due to funding constraints. Phase I is now being initiated using state resources, with central funding still awaited. Whether the project moves forward in its current form will depend on how authorities address local resistance, compensation concerns, and environmental safeguards. For now, the future of Himachal Pradesh’s first planned mountain township remains uncertain — caught between the promise of planned urban growth and the deep-rooted fears of those who call these hills home.
One of the proposed areas to be acquire for the township in Jathiya Devi. (Photo: Saurabh Parashar) 
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