In a significant policy change, Chandigarh's 11-member committee has approved an increase in the Floor Area Ratio (FAR) for the Industrial Area, Phases 1 and 2, from 0.75 to 2. This adjustment allows industries to build nearly three times more space, increasing the permissible built-up area from 750 square yards to 2,000 square yards on a 1,000-square-yard plot. The decision aims to revive industrial growth and restore competitiveness with neighboring regions like Mohali and Panchkula, which currently permit higher FARs. The revised FAR is expected to be implemented by June 30, 2026, following necessary approvals from the UT administration and the Ministry of Home Affairs. Industrialists have long advocated for this change, citing restrictive building norms as a barrier to growth. The committee's initial proposal was to increase FAR to 1.5, but it was revised to 2 after stakeholder feedback. Additionally, there are plans to raise the FAR to 3 for the yet-to-be-developed Phase 3 of the Industrial Area.