CHANDIGARH: The Chandigarh administration is poised to raise the floor area ratio (FAR) for industrial plots in Industrial Area Phase 1 and 2. In response, the Chandigarh Industrial Converted Plot Owners Association has requested an increase in FAR, revisions to height norms, and a new policy framework for converted commercial plots.
Back in 2005, under the Conversion Policy, approximately 125 industrial plot owners transitioned to commercial activities by paying substantial conversion charges, which ranged from Rs 20,000 to Rs 30,000 per square yard, adding around Rs 1,200 crore to the government’s revenue.
Chander Verma, the president of the Chandigarh Industrial Converted Plot Owners Association, stated, “Despite contributing significantly and investing heavily in construction, plot owners currently operate under a restricted FAR of 2.0 and a maximum height of 30 metres. A large portion of the allowable built space is taken up by essential services, utilities, staircases, lifts, parking areas, and common spaces, limiting effective commercial usage and economic viability.”
The association has made multiple requests to raise the FAR from 2.0 to at least 2.5, but a decision is still pending.
Recent reports indicate that enhancing the FAR in industrial zones has been proposed by the relevant panel and is being reviewed.
Considering this potential policy change, the association argues that principles of fairness and equitable planning require an appropriate increase in FAR for converted plots, which have already paid significant conversion fees and operate under commercial guidelines.
Verma elaborated, “We believe the FAR for converted plots should be raised to a minimum of 2.5, or higher, to align with current planning standards and regional competitiveness. The limit of 30 metres for height should also be revised to facilitate the practical use of the increased FAR. Additionally, should FAR for industrial plots increase, no commercial activities should be permitted in these properties that could negatively impact the functioning of converted commercial plots.”
The association insists on a clear policy that distinguishes land use and permissible activities between industrial and converted commercial properties, ensuring that the significant funds invested in conversion do not become economically unviable.
They have also called for a new, detailed Building Plans Policy tailored specifically for converted commercial properties.
The association highlighted that commercial spaces often require internal modifications and structural adjustments due to the frequent changes in occupiers and business formats. The current policy lacks clarity on this front, treating these properties similarly to industrial plots or small SCOs in sector markets, which is inappropriate given their unique commercial nature and scale.
Verma concluded, “A rational adjustment of FAR, height norm revisions, and a specialized policy framework will enhance project viability, boost investor confidence, ensure organized development, safeguard legitimate commercial investments, and improve long-term revenue generation for the administration.”
