Relief is on the horizon for city’s industrial sector, as an 11-member high-level committee, headed by deputy commissioner-cum-estate officer Nishant Kumar Yadav, has recommended increasing the floor area ratio (FAR) in Phase 1 and Phase 2 of Industrial Areas from the existing 0.75 to 1.5.
An even more enhanced FAR of 2.2 has been proposed for the upcoming Phase 3 in an effort to unlock Chandigarh’s industrial growth.
The recommendations will be sent to the UT chief secretary next week and, after approval, forwarded to the UT administrator for final notification.
FAR determines the permissible built-up area in relation to the size of a plot.
Under the current FAR of 0.75, a 1,000-square-yard plot allows construction of only 750 square yards. The recommended FAR of 1.5 would allow construction of up to 1,500 square yards by permitting additional storeys. At present, only two storeys are allowed in Industrial Areas Phase 1 and Phase 2, while up to four storeys will be permitted in Phase 3.
The increased FAR would enable industrialists to significantly expand usable space without acquiring extra land, improve project viability, and enhance rental as well as resale potential, making the city’s industrial areas far more attractive for investment.
{{/usCountry}}The increased FAR would enable industrialists to significantly expand usable space without acquiring extra land, improve project viability, and enhance rental as well as resale potential, making the city’s industrial areas far more attractive for investment.
{{/usCountry}}Notably, industrial estates in neighbouring Mohali, Panchkula, Dera Bassi, Barwala and Baddi offer FAR ranging between 2.5 and 3, putting Chandigarh at a comparative disadvantage.
Industrialists have been demanding an upward revision of FAR for over two decades, arguing that Chandigarh’s restrictive norms have eroded its competitiveness against neighbouring industrial hubs.
A senior UT Administration officer and committee member said the enhanced FAR was aimed at boosting development potential and improving investment prospects.
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.
Industrialists further claimed that despite a 2018 UT notification allowing partial covering of central courtyards with polycarbonate sheets without counting it towards FAR, nearly 90% of violation notices issued in the past five years relate to such structures.
The committee, constituted on December 26 last year, includes senior officials such as the chief architect and chief engineer.
Industrialist Chander Verma said Chandigarh’s industrial areas had steadily lost their competitive edge due to restrictive building norms. “The revised FAR will bring major relief and restore investor confidence,” he said.
UT to auction 140 plots in Phase 3 from April
With the proposed FAR of 2.2, the UT Estate Office plans to auction around 140 plots in Industrial Area Phase 3 starting April.
Spread over 153 acres near Raipur Kalan, Phase 3 was conceptualised in 2001 but remained largely undeveloped due to lack of basic infrastructure and limited FAR incentives. Development finally began in December last year.
The area has been planned as a hub for high-value, non-polluting industries, including IT, electronics, biotechnology, nanotechnology, light engineering goods, automotive components, knowledge-based industries, hospitality, finance and banking, along with furniture, sanitary fittings, and handloom and handicraft units.
Plots ranging from one kanal to four kanals will be auctioned in phases, with around 10 plots in each e-auction round. The administration aims to complete the process within a year. Additionally, a few plots in Industrial Area Phase 2 will also be auctioned.