Chandigarh Administration Upholds Industrial Character by Banning B2C Activities
In a decisive move to safeguard the industrial identity of Chandigarh, the UT administration has resolved not to permit Business-to-Consumer (B2C) activities in Industrial Areas Phase I and Phase II. This decision is part of the proposed amendments to the Chandigarh Master Plan 2031, following recommendations from an expert committee chaired by the Deputy Commissioner-cum-Estate Officer.
Expert Committee Recommendations
The committee, formed under the UT Administrator's directives to prioritize deregulation, has emphasized maximizing land utilization. It suggests allowing additional industrial and service sector activities in these zones, but strictly limiting them to Business-to-Business (B2B) operations. Direct customer-facing businesses will remain prohibited, ensuring the areas retain their original industrial character.
Land Allocation and International Benchmarks
According to the committee's report, Chandigarh's dedicated industrial areas (Phases I, II, and III) span just 1,410 acres, or about 4.8% of the city's total area. This figure is at the lower end of international benchmarks, where global cities typically allocate 5% to 15% of urban land for industrial purposes. The committee noted that 7% to 8% is ideally required for balanced urban development. While Industrial Areas Phase I and II are fully developed with complete trunk infrastructure, the Conversion Policy of 2005 has gradually shifted some plots toward commercial use, eroding their industrial character.
Permitted and Prohibited Activities in Phase I and II
To counter this erosion, the committee has recommended expanding permissible activities in these phases, including IT/ITES, warehousing, testing labs, and certain backend services. However, a strict ban on B2C operations will be enforced. The Chandigarh Industrial Policy 2015 and its 2019 amendment already outline allowed activities, such as IT/electronics/software/hardware, ITES units, technology and research units, booster stations for IT/ITES, warehousing for general and industrial goods, authorized service centers for B2B, engineering/industrial/structural testing labs, audio-visual recording studios for social media (photo/film labs only), documentation centers for industrial designing and printing, CAD/CAM design workshops, backend services for security management, display by manufacturers (furniture, electrical goods, auto parts, welding equipment, apparel) as demonstration only, and base kitchens for restaurants and outdoor caterers without dine-in/takeaway/online operations, subject to pollution control norms. No activity involving direct service to customers is permitted under these policies.
Mixed Land Use for Industrial Area Phase III
For Industrial Area Phase III, the committee has suggested a significant shift. Out of the 153-acre zone, 60 acres currently earmarked for warehousing will be developed as a Mixed Land Use Area, incorporating residential, commercial, institutional, cultural, and recreational components. This aligns with the Government of India’s Deregulation 1.0 reforms while preserving the city's overall industrial identity.
Economic Balance and Neighbourhood Planning
The committee emphasized that Chandigarh's neighbourhood planning concept already provides ample commercial spaces in every sector, making dedicated industrial zones essential for maintaining economic balance. The administration's firm stance ensures that industrial areas remain focused on production and B2B services, preventing further commercial encroachment.
