Haryana Government Proposes Major Industrial Policy Changes to Boost Manufacturing
In a significant move aimed at revitalizing industrial growth, Haryana's State Industry and Commerce Minister Rao Narbir Singh has proposed eliminating the longstanding 15-meter height restriction on industrial buildings across the state. This groundbreaking initiative forms a crucial component of the forthcoming Industrial Policy 2026, designed to empower factories and manufacturing facilities to expand vertically rather than being constrained by horizontal land limitations.
Addressing Land Price Challenges in Key Industrial Hubs
The proposed policy change holds particular importance for Gurgaon and Faridabad, where industrial land prices have experienced dramatic escalation in recent years. This surge has forced numerous manufacturing units to restrict their operational capacities and expansion plans due to prohibitive land acquisition costs. Minister Singh formally submitted the proposal to Chief Minister Nayab Singh Saini, emphasizing that vertical development represents an essential strategy for achieving Haryana's ambitious economic objectives by 2047.
"The exorbitant cost of land has emerged as a formidable obstacle to industrial growth across our state," Minister Singh stated. "By permitting vertical expansion, we can facilitate the growth of industrial activities within existing footprints, optimizing land utilization while supporting business expansion."
Additional Regulatory Reforms for Industrial Flexibility
Beyond the height restriction removal, the government has also proposed eliminating the mandatory requirement for a 30-foot road surrounding industrial buildings. This regulatory adjustment aims to provide industrial units with greater flexibility to implement customized safety standards while maintaining full responsibility for compliance with all applicable regulations.
These comprehensive measures are strategically designed to attract fresh investment while simultaneously supporting the expansion of established manufacturing operations within Haryana's most valuable industrial corridors. The government anticipates that these policy modifications will significantly enhance the state's industrial competitiveness and economic resilience.
Regularization Initiative for Non-Conforming Industrial Areas
In a parallel development, the state government initiated a regularization process in January for industries currently operating outside designated industrial zones. Manufacturing units situated in non-conforming areas have historically encountered numerous challenges, including legal ambiguities, restricted access to banking services, and expansion limitations.
The new regularization framework establishes specific eligibility criteria: industrial clusters comprising at least 50 factories distributed across a minimum of 10 acres of contiguous land at a single location can submit joint applications for regularization. Presently, only factories located within officially notified industrial zones receive legal recognition, leaving thousands of operations in regulatory limbo.
Scope of Non-Conforming Industrial Operations
According to government estimates, approximately 200,000 factories and manufacturing units currently operate outside designated industrial zones across multiple Haryana districts, including:
- Gurgaon
- Faridabad
- Panipat
- Rohtak
- Ambala
- Yamunanagar
- Jhajjar
- Bhiwani
- Hisar
- Karnal
- Panchkula
In Gurgaon specifically, notified industrial zones encompass IMT Manesar, Udyog Vihar phases 1 through 5, and HSVP industrial sectors. However, substantial industrial activity persists in areas such as Kadipur, Khandsa, Pataudi, and Behrampur, with numerous factories engaged in automobile manufacturing, textile production, rubber processing, and garment manufacturing sectors.
The combined impact of these policy initiatives—removing height restrictions, adjusting road requirements, and regularizing non-conforming operations—represents a comprehensive approach to industrial policy reform. By addressing both physical expansion constraints and regulatory challenges, Haryana aims to create a more conducive environment for manufacturing growth, investment attraction, and economic development throughout the state.
