Chandigarh Administration Proposes Major Industrial Plot Reforms
The Chandigarh administration is gearing up to introduce substantial regulatory relaxations for plots in the city's industrial areas. These proposed changes aim to address long-standing industry concerns while optimizing land utilization in Chandigarh's industrial zones.
Key Proposed Changes in Industrial Plot Regulations
Officials have revealed that the administration is preparing to implement several significant modifications to existing industrial plot regulations. The most notable changes include:
- Increased Coverage Limits: The existing 60% coverage limit for industrial plots would be revised upward, allowing for more construction on available land.
- Elimination of Central Courtyard Requirement: The mandatory central courtyard provision, currently applicable across all industrial plots, would be replaced with front and rear setbacks.
- Reduced Open Area Requirement: With these changes, the mandatory open area requirement would drop significantly from the current 40% to between 5% and 10%.
- Regulatory Framework Shift: Architectural controls for plots up to two kanals would be replaced with zoning parameters, aligning them with regulations governing larger plots.
Background and Rationale for Regulatory Changes
The proposed reforms follow recommendations from a high-level committee constituted by the UT administrator and chaired by the deputy commissioner/estate officer. This committee was specifically tasked with identifying necessary deregulations for Chandigarh's industrial areas, with particular emphasis on reducing land loss within industrial plots.
Officials explained that the central courtyard requirement, originally designed to provide natural light, ventilation, and space for loading and unloading operations, has become increasingly impractical over time. "With modern alternatives available for lighting and ventilation, the courtyard's original purpose has evolved significantly," noted a senior UT official. "Loading and unloading operations no longer require central open spaces, and the growing service sector in industrial areas has made the courtyard a substantial impediment to business growth."
The administration's move also aligns with broader directives from the central government, which has been urging cities with limited land resources to optimize their land utilization more effectively.
Addressing Longstanding Industry Concerns
The issue of coverage norms in Chandigarh's industrial belt has been contentious for years, with hundreds of plot owners receiving substantial penalty notices from the estate office for covering their courtyards. These penalties, levied as building violations, have accumulated significantly over time.
Industry representatives reveal that penalty rates are calculated at Rs 240 per square foot per month. For a one-kanal plot with a central courtyard measuring approximately 1,800 square feet, covering the entire courtyard would result in a monthly penalty of around Rs 4.3 lakh, escalating to approximately Rs 5.1 crore annually. In some cases, accumulated penalties have exceeded the actual value of the plots themselves.
While the administration permitted partial courtyard coverage using polycarbonate sheets in 2019 for storage purposes, confusion has persisted regarding even temporary coverage arrangements. This uncertainty has led to delays in issuing no-objection certificates and approvals, with officials indicating that nearly 80% of violation notices relate to technically permissible temporary courtyard coverage.
Impact and Implementation Timeline
The proposed changes are expected to benefit a substantial portion of industrial plot owners in Chandigarh. Industrial Areas I and II together comprise plots ranging from 5 marlas to 44 acres, with smaller plots between 5 marlas and one kanal accounting for 33% of plots in Phase I and 95% in Phase II.
Officials have clarified that "a final decision is in process and is awaiting competent authority approval." Once approved, these regulatory relaxations could significantly transform industrial operations in Chandigarh, providing greater flexibility for businesses while addressing longstanding compliance issues that have plagued the industrial sector for years.
The administration has also indicated that with more than 5,000 penalty notices currently pending, a one-time amnesty scheme may be considered alongside these regulatory changes to provide comprehensive relief to affected industrial plot owners.
