Bhubaneswar, Aug 22: The Odisha government has relaxed the registration and certification requirements for homestays, making it easier for homeowners to enter the homestay business and giving a boost to tourism and the rural economy.

Under the Odisha Homestay Establishment Scheme, 2025, the government has simplified documentation requirements related to trade licences, building plans, fire safety, electrical safety and solid waste management.

According to the new guidelines, trade licences will be mandatory only for homestays located in urban areas. Homestays in rural areas can obtain a commercial licence from the concerned gram panchayat under Section 55 of the Odisha Gram Panchayat Act, 1964. If the panchayat does not issue such a licence, applicants can submit a written self-declaration.

The rules for building plan approval have also been eased. For rural homestays outside the jurisdiction of development authorities, regional development trusts or special planning authorities, approval will be required only if the plot exceeds 500 square metres or the building is taller than Ground+2 floors.

Fire safety certification will be required only for buildings that are 12 metres or more in height or have a built-up area of 500 square metres or more.

The government has also clarified electrical safety requirements. Homestays with a contracted electricity demand of up to 5 kW will not be required to submit an electrical safety certificate.

Similarly, solid waste management receipts or registration certificates will be mandatory only for urban homestays. In rural areas, applicants can submit a panchayat-issued waste collection receipt where such a service is available. Where no such facility exists, they can provide a declaration confirming compliance with applicable waste management rules.

The government said the simplified norms are aimed at reducing procedural hurdles, encouraging more people to establish homestays and strengthening tourism, local employment and rural economic activity across Odisha.