The Chandigarh administration is preparing to implement a 'fragmentation policy' aimed at optimizing land use and supporting smaller businesses. Under this proposed policy, four kanal industrial plots can be subdivided into three smaller units of at least one kanal each, allowing for shared ownership and more efficient utilization of land. Currently, the city follows a strict amalgamation model that only allows the merging of plots, which has limited the potential for smaller businesses, particularly micro, small, and medium enterprises (MSMEs) and startups, to thrive. Industrialists have welcomed this initiative, noting that it could unlock underutilized industrial land and create valuable economic activity. The policy also aligns with broader reforms aimed at increasing the Floor Area Ratio (FAR) and relaxing building norms to adapt to Chandigarh's land constraints. The proposal is influenced by successful fragmentation policies in neighboring Punjab and is expected to enhance the efficiency of land use, ultimately leading to improvements in civic infrastructure. The administration plans to present the proposal for approval soon.