Chandigarh Industrial Plot Owners Push for Enhanced Development Norms
The Chandigarh administration is poised to increase 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 formally requested a corresponding enhancement of FAR, a revision of height restrictions, and the establishment of a comprehensive policy framework specifically for converted commercial plots.
Historical Context and Financial Contributions
In 2005, under the city's Conversion Policy, approximately 125 industrial plot owners chose to convert their properties for commercial activities. This decision required them to pay substantial conversion charges, ranging between Rs 20,000 to Rs 30,000 per square yard. Collectively, these payments contributed an estimated Rs 1,200 crore to the government exchequer, representing a significant financial investment in the region's development.
Current Operational Constraints
Chander Verma, President of the Chandigarh Industrial Converted Plot Owners Association, highlighted the ongoing challenges faced by these plot owners. "Despite such significant financial contribution and heavy investments in construction, converted plot owners are presently operating under a restricted FAR of 2.0 along with a maximum permissible height of 30 metres," Verma stated. He explained that a substantial portion of the permissible built-up area is consumed by mandatory services, utilities, staircases, lifts, parking norms, and common areas. This limitation severely restricts effective commercial utilization and reduces the overall economic viability of these properties.
Formal Demands and Proposed Solutions
The association has already submitted multiple representations to the authorities, formally requesting an enhancement of the FAR from the current 2.0 to a minimum of 2.5. However, this matter remains undecided. With recent reports indicating that a competent panel has proposed enhancing FAR in industrial areas, the association argues that principles of parity, equity, and fair planning demand a proportionate enhancement for the converted plots.
Verma outlined the association's core demands:
- The FAR for converted plots should be increased to a minimum of 2.5, or an appropriately higher figure, aligning with present planning standards and regional competitiveness.
- The current height restriction of 30 metres must be suitably revised to enable the practical utilization of any enhanced FAR.
- If FAR is increased for industrial plots, there should be no permission granted for commercial activities within those industrial properties. Such permissions could adversely affect or disturb the functioning and economic viability of the duly converted commercial plots.
Call for a Clear and Differentiated Policy
The association has strongly advocated for the issuance of a clear and unambiguous policy that distinctly differentiates land use and permissible activities between standard industrial plots and converted commercial properties. This measure is deemed essential to protect the substantial monies paid for commercial conversion and to prevent these investments from becoming economically redundant.
Furthermore, the association has demanded the drafting of a new and comprehensive Building Plans Policy specifically tailored for converted commercial properties. Verma contended that in commercial buildings, occupiers and business formats change frequently, necessitating need-based internal modifications and structural adjustments. The present policy framework lacks clarity in this regard, often treating these buildings on par with industrial plots or small shop-cum-office (SCO) units in sector markets—an approach the association deems inappropriate given the distinct commercial nature and scale of their properties.
Expected Benefits of Policy Revisions
Verma emphasized the potential positive outcomes of accepting their proposals. "Such rational enhancement of FAR, revision of height norms, and issuance of a differentiated policy framework will improve project viability, strengthen investor confidence, ensure orderly development, protect legitimate commercial investments, and enhance long-term revenue generation for the administration," he concluded. The association's push represents a significant effort to align regulatory frameworks with the evolved commercial landscape of Chandigarh's industrial areas.
