CHANDIGARH: Despite the Chandigarh administration’s ambitious reform plans, several longstanding demands—such as allowing the conversion of industrial plots to retail commercial use and permitting change of land use (CLU) in villages—are not included in the proposed reforms.
“There is a consensus within the administration that issues like change of land use and conversion in the Industrial Area are currently unfeasible. Hence, they will not be part of this reform agenda,” stated a senior UT official.
Officials highlighted that both demands pose implementation challenges.
“Chandigarh’s villages lack large contiguous land parcels necessary for CLU-based development. A cost-benefit analysis indicates that infrastructure development on smaller land areas would inflate land prices, rendering projects financially impractical. In other regions where CLU is permitted, large swathes of land are available, which is not the case in Chandigarh,” explained the official.
The UT comprises around 22–23 villages (including areas like Kajheri, Palsora, and Raipur Kalan) that fall under the Periphery Control Act of 1952 and the Chandigarh Master Plan-2031. The conversion of agricultural land for residential, commercial, industrial, or farmhouse use is traditionally strictly controlled.
“Allowing the conversion of industrial plots contradicts provisions outlined in the Chandigarh Master Plan-2031. Additionally, there are significant infrastructural constraints,” the official elaborated.
A long-standing demand from the Industrial Area has been to permit retail businesses to operate within industrial plots. Yet, despite restrictions, hundreds of plots—especially in Industrial Area Phase-II—are currently utilized as retail spaces. The Estate Office has issued numerous notices to address this misuse.
In 2005, a policy permitted the conversion of industrial plots (minimum size of two kanals) for commercial activities—such as shops, offices, banks, hotels, and restaurants—in Phases I and II. This scheme resulted in the conversion of approximately 82 to 125 plots, generating significant revenue for the administration. The permissible floor area ratio (FAR) for these plots was increased to 2.0, allowing a height limit of 30 meters.
However, the Chandigarh Master Plan-2031 explicitly states that the conversion policy will not be reinstated. Industrial units are to remain as industries due to complications arising from extensive commercial activities, like traffic congestion and parking shortages.
Instead of allowing new conversions, the Chandigarh administration is prioritizing enhancements to FAR for industrial plots in Phases I and II, permitting a higher ground coverage, relaxing setbacks and building norms, allowing mixed land use in the undeveloped Industrial Area Phase-III, and introducing reforms to improve the ease of doing business—including potential leasehold-to-freehold conversions.
Challenges of Implementing CLU
— Fragmented land: Chandigarh villages consist of small, subdivided land parcels, making CLU-based development impractical.
— Escalated infrastructure costs: Developing infrastructure on small plots would significantly increase land prices, making projects financially unfeasible.
— Legal limitations: Village areas are governed by the Periphery Control Act, 1952, and the Chandigarh Master Plan-2031, which impose strict regulations on land-use changes.
— Master Plan restrictions: The conversion of industrial plots to commercial use is prohibited under CMP-2031.
— Infrastructure strain: Extensive commercial activity in industrial zones could exacerbate issues like traffic congestion and insufficient civic infrastructure.
— Minimal available land: The city has very limited space for new CLU or large-scale commercial transformations.
