Chandigarh: Major boost to industry as panel allows FAR to be hiked to 2

For perspective, under the current FAR of 0.75, a 1,000-square-yard plot can have a built-up area of 750 square yards

In a major policy shift aimed at reviving industrial growth in Chandigarh, an 11-member committee has allowed the Floor Area Ratio (FAR) in Industrial Area, Phases 1 and 2, to be increased to 2, effectively allowing industries to construct nearly three times more built-up space than earlier.

Industry representatives have also urged the administration to extend similar FAR relief to smaller plots ranging from five marla to one kanal, (HT File)

FAR determines the permissible built-up area relative to the size of a plot. For perspective, under the current FAR of 0.75, a 1,000-square-yard plot can have a built-up area of 750 square yards. The restriction on built-up space is aimed at managing the infrastructure load, environmental impact, and development density in these areas.

With the revised FAR of 2, the permissible built-up area would increase to 2,000 square yards.

Implementation likely before June-end

The file is currently with the UT chief secretary and will be sent to the administrator shortly before being forwarded to the Ministry of Home Affairs. As the Ministry has set a deadline of June 30, 2026, for implementing the revised FAR norms, the UT administration is expected to send the file by April-end.

The committee, constituted on December 26 last year, which includes senior officials such as the chief architect and chief engineer of UT, had initially proposed the FAR to be increased from 0.75 to 1.5, but revised it to 2 following feedback from stakeholders.

In Industrial Area, Phase 3, which is yet to be developed, the administration has proposed the FAR to be increased to 3, from the existing 2.5. This is aimed at bringing it at par with neighbours Mohali and Panchkula.

Long-pending demand of industrialists

For over two decades now, industrialists in Chandigarh have been demanding an upward revision of FAR. Pointing out that Mohali and Panchkula allow a higher FAR, ranging between 2 and 3, industrialist Chander Verma said Chandigarh’s industrial areas have steadily lost their competitive edge due to restrictive building norms. “The revised FAR will bring major relief and help restore investor confidence,” he said.

Industry representatives have also urged the administration to extend similar FAR relief to smaller plots ranging from five marla to one kanal, in line with concessions already granted to plots above two kanals.