Chandigarh to Revamp Building Bylaws for Industrial Growth


CHANDIGARH: The Chandigarh administration is embarking on a significant overhaul of building bylaws aimed at revitalizing the city’s economic landscape, with a special focus on the industrial sector.

A high-level committee, appointed by the UT administrator and led by the deputy commissioner-cum-estate officer, has been charged with updating outdated building bylaws that have impeded industrial growth in the city.

A key proposed reform includes an increase in the permissible floor area ratio (FAR) for industrial plots, allowing for zoning parameters for plots up to 2 kanal, as well as potential amendments to ground coverage and land use norms.

This committee, composed of the deputy commissioner and 11 other representatives from various key UT departments, including the chief architect and chief engineer, aims to minimize land loss in industrial plots through modifications to existing regulations.

Addressing the urgency for these changes, a senior UT official remarked, “The industrial area requires significant deregulation; the building by-laws are a major hindrance.” Historically, stringent building regulations have eroded Chandigarh’s competitive edge against neighboring cities in Punjab and Haryana.

Reform Agenda

The committee is working on rationalizing the existing FAR permitted in Industrial Areas Phase I and II.

In 2000, an increase in FAR from 0.75 to 1.0 was granted, along with a 10% boost in ground coverage from 50% to 60% for constructing cycle sheds across all industrial plots up to 1 acre. However, the uptake was minimal due to “prohibitive” additional costs associated with this increase.

The industry has long advocated for relaxations in FAR regulations. Representatives assert, “The current FAR limit of 0.75 in Chandigarh makes many industrial operations economically unviable. In neighboring states like Punjab and Haryana, industrial areas such as Mohali, Panchkula, Dera Bassi, Barwala, and Baddi enjoy FARs ranging from 2.5 to 3.”

Another main reform objective is to replace existing architectural controls with zoning parameters for plots up to 2 kanal.

In Phases I and II, industrial plots range from 5 marla to 44 acres, with smaller plots (5 marla to 1 kanal) making up 33% of Phase I and 95% of Phase II.

Finalization of Planning Parameters for Industrial Area Phase III

The committee is also focusing on the planning parameters for Industrial Area Phase III, located near Raipur Kalan and Mauli Jagran.

While Phases I and II are fully developed, boasting over 1,800 plots, Phase III remains undeveloped.

The initiative to develop Industrial Phase III was introduced in 1977 as part of the Chandigarh Urban Complex Plan, with land acquisition occurring in 2003 and detailed planning also taking place that same year.

This new phase will feature a variety of plot sizes, from marla to 4 kanal, and the UT administration anticipates commencing the auction of these plots in the upcoming financial year.

  • Published On Jan 9, 2026 at 02:04 PM IST

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