Chandigarh Administration takes U-turn on conversion of industrial plots into commercial ones

Tribune News Service

Chandigarh, August 26

The UT Administration has taken a U-turn on the conversion of industrial plots into commercial ones in the industrial area of the city.

Citing the Chandigarh Master Plan-2031, the UT Urban Planning Department has clarified that converting industrial plots into commercial ones is not an option in the city, and the policy related to such conversion cannot be reintroduced according to the Master Plan 2031.

After the meeting of the UT Administrator’s Advisory Council (AAC) held on August 18, 2023, the UT Administration had announced that it would release a draft policy for the conversion of industrial plots into commercial ones. Presiding over the meeting, the then UT Administrator Banwarilal Purohit had directed the Administration to allow the conversion of plots in the industrial area for business-to-consumer (B2C) activities, which broadly include shops, offices, banks, hotels, restaurants, training institutions, multiplexes, banquet halls, etc.

The issue was brought to the committee’s attention by various members, prompting the request for a formal reply.

However, in the action taken report, which will be presented during the coming AAC meeting, the Estate Office stated that the reply had been sought from the Urban Planning Department and it had been intimated that the Chandigarh Master Plan-2031 states that “the Conversion Policy shall not be reintroduced and the industrial units shall be maintained as industries”, since conversion of land use of industrial sites into commercial activity has created manifold problems. Moreover, as per the plan of Chandigarh, ample commercial spaces have been provided in each sector of the city.

The earlier conversion policy of 2005 was withdrawn on September 18, 2008. Under the previous policy, commercial activity could be started at industrial plots after a payment of fee either by conversion of land use or by fresh construction in accordance with guidelines of the architectural department. The same policy was to outline the conditions under which the industrial areas can be transformed into commercial zone.

Further, the Estate Office stated that the Ministry of Home Affairs (MHA) had turned down the UT Administration’s proposal for conversion of industrial/commercial plots from leasehold to freehold.

The AAC, which is comprised of 60 members and is headed by the UT Administrator, was established to advise the Chandigarh Administration on the city’s developmental issues. A new council is constituted every two years.

Under the council, there are 10 standing committees constituted for various sectors, including education, urban development, environment, health, urban planning, law and order, sports, transport and traffic management.