In a major push to promote homestay businesses across the state, the Odisha government has issued simplified new guidelines under the ‘Odisha Homestay Establishment Scheme-2025’.
The Tourism Department notification eases compliance requirements in five key areas—trade licence, building plan approval, fire safety, electrical safety, and solid waste management—making it significantly easier for both urban and rural operators to register and run homestays.
Trade licence is now mandatory only for homestays located in urban areas. Rural owners must obtain a business licence from their respective Gram Panchayat under Section 55 of the Odisha Gram Panchayat Act, 1964. If the Panchayat is unable to issue the licence for any reason, applicants can simply submit a written self-declaration and commence operations.
Building plan approval remains compulsory for properties falling under Development Authorities, Regional Improvement Trusts, or Special Planning Authorities. However, in rural areas outside these jurisdictions, approval is required only if the plot exceeds 500 square metres or the building is taller than two storeys (G+2). Ordinary houses below these thresholds are exempt.
Fire safety certificates, as per Odisha Fire Safety Rules, are needed solely for structures that are 12 metres or taller, or have a built-up area of 500 square metres or more. Electrical safety certificates have been completely waived for homestays whose contracted electricity demand is up to 5 kW.
For solid waste management, urban homestays must produce a user-fee receipt or registration certificate. In villages, operators need to submit the Panchayat receipt if a waste-collection system exists; otherwise, a simple written undertaking confirming compliance with waste-management norms will suffice for registration.
Officials said the relaxed norms are designed to encourage more households—especially in rural and tribal areas—to convert spare rooms into tourist accommodations, thereby boosting local livelihoods and expanding Odisha’s tourism footprint. The streamlined process is expected to accelerate registrations and bring more authentic homestay experiences to visitors exploring the state’s beaches, temples, and hinterland.
