Yes, hostel is compulsory for all students in NIT Durgapur. However, if you are a local resident or facing health issues, then special permission can be provided for you to stay at home.

"National Institute of Technology, Durgapur (an autonomous institute of National Importance under MHRD, Govt. of India) is a fully residential institute. Hence, all students are required to stay, if not permitted otherwise, in the hostels of the institute. The rules and guidelines for management of the halls of residence have been framed for smooth functioning of the institute "

Go through the official PDF for more information

https://old.nitdgp.ac.in/all_pdf16/General%20conduct%20and%20discipline.pdf