In a departure from its long-standing land policy, the UT administration has issued an addendum to the proposed amendments in the Chandigarh Master Plan (CMP)-2031, paving the way for the fragmentation of plots in Industrial Area Phase-1 and Phase-2.The proposed change is expected to make industrial spaces more accessible to micro, small and medium enterprises (MSMEs), startups and service-sector players that often find larger plots unaffordable. (HT Photo for representation)The addendum, approved by the UT administrator, comes as part of the ongoing de-regulation-2 exercise aimed at optimising land use and boosting industrial activity in the city. It is to be read in continuation of the draft amendments notified on May 22.Under the revised framework, the administration has proposed to allow subdivision of larger industrial plots into smaller units, subject to approval of revised planning and zoning, along with compliance with conditions that will be detailed in a separate policy notification. This marks a shift from the existing provision under Chapter 16 of CMP-2031, which explicitly prohibits fragmentation of industrial plots.Officials in the urban planning department indicate that the upcoming “fragmentation policy” could allow subdivision of a four-kanal plot into smaller units, enabling multiple stakeholders to operate within a single industrial property.The proposal also seeks to introduce flexibility in land use by enabling mixed and multi-use operations, including light manufacturing, trading and service activities within the same premises.The proposed change is expected to make industrial spaces more accessible to micro, small and medium enterprises (MSMEs), startups and service-sector players that often find larger plots unaffordable.Former advisory council member Pankaj Khanna termed it a “much-needed initiative” that would unlock land value and spur economic activity.
Policy shift: Chandigarh administration moves to allow plot fragmentation in industrial areas
The proposal also seeks to introduce flexibility in land use by enabling mixed and multi-use operations, including light manufacturing, trading and service activities within the same premises










