Chandigarh: In a bid to revive industrial growth and respond to long-standing demands from the business community, the Chandigarh administration is working on a comprehensive set of reforms aimed at improving ease-of-doing business, unlocking underutilised land, and strengthening the city’s industrial ecosystem.A key proposal under consideration is the possible conversion of leasehold industrial plots into freehold ownership — an issue that remained contentious for years. In a recent submission to the Central Govt, the UT administration said an expert committee would examine the feasibility of permitting such conversions.The move signals a potential policy shift. Over the past year, both the Chandigarh Administration and the Ministry of Home Affairs (MHA) maintained that there were no plans to allow leasehold-to-freehold conversions in industrial areas.According to a senior UT official, the renewed momentum follows directions from the Centre, which asked the Administration to unlock vacant and underutilised land within existing industrial clusters. The Central Govt also suggested liberalising the industrial plot allotment policy, including allowing greater flexibility in land parcels and exploring the option of converting leasehold plots to freehold to provide industries with greater ownership security and operational flexibility.UT weighs land parcel flexibility, common parking, removal of height caps in industrial areasThe Chandigarh administration is considering a series of regulatory relaxations in industrial areas, including greater land parcel flexibility, common parking provisions, and removal of height restrictions, as part of its proposed reforms to boost industrial activity.Under the proposed land parcel flexibility norms, the Administration is examining relaxations for subdivision and amalgamation of industrial plots, allowing pooling or splitting of land parcels, along with mortgage facilities for plot holders.The Administration also plans to introduce greater flexibility in development controls for industrial zones. Proposed measures include higher floor area ratio (FAR), reduced setback requirements, increased ground coverage, relaxation for smaller plots, provision for common parking facilities, and removal of height restrictions on industrial buildings.BOX1: A NODAL AGENCY FOR ALL APPROVALS WITHIN INDUSTRIAL AREASThe Chandigarh Administration plans to notify a nodal body as a single-window agency for approvals in industrial areas. The agency would manage clearances at pre-establishment, construction, utility connection, and operational stages. Its services would be chargeable to ensure adequate funding and investor accountability. Final approval powers would remain with the govt.BOX2: WHAT’S FOR MSMEChanges in rules and regulations are required to allow new enterprises to start operations immediately on self-declaration, with exemptions from approvals and protection from all inspections for an initial period (eg, 3-5 years) by any authority.The Administration is considering extending provisions for granting as many approvals, permissions, and inspections as possible on the basis of self-certification or declaration, including Consent to Establish (CTE) and Consent to Operate (CTO) for White and Green category industries, Sanitation Certificate, and verification and stamping of instruments used for commercial purposes (for low-risk weights and measures), etc.BOX3: INFRASTRUCTURE STRENGTHENING IN THE INDUSTRIAL AREASUT is considering strengthening fire safety infrastructure in industrial areas. Other common facilities under consideration include effluent treatment plants, worker safety and welfare measures, and crèche facilities.The govt or concerned authority may levy a one-time or monthly fee on industrial units for providing and maintaining these shared facilities.UT will identify available land parcels and conduct a feasibility study to assess the development of accessible and effective fire safety mechanisms in these areas.BOX4: WAY AHEADFor bringing in requisite changes, the Administration will undertake the following:The policies and rules shall be examined to identify any restrictive clause and, accordingly, shall be submitted for approval.Benchmarking across states to identify similar provisions.Feasibility analysis with concerned departments regarding pre-establishment approvals and protection from inspections.Preparation of draft Act, rules, and policy in this regard.Submission of proposal to MHA for approvals.
