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Chandigarh administration mulls new policy to break big industrial plots into smaller biz hubs
The Chandigarh administration is considering a fragmentation policy to subdivide four-kanal industrial plots into smaller units (minimum one kanal) and enable shared ownership. The move aims to improve land-use efficiency for MSMEs and startups, moving away from the current amalgamation-based norms under Master Plan-2031. The policy may draw on frameworks used in Punjab to maximise utilisation of existing industrial land.
Why It Matters
If approved, the policy could unlock underutilised industrial land, support smaller businesses, and help retain industry within Chandigarh by offering affordable, flexible plots and expanded activity within mixed-use zones.
Timeline
2 Events
Punjab already implements fragmentation of industrial plots; Chandigarh may adapt
May 12, 2026
The article notes that fragmentation of industrial plots has already been implemented in neighbouring Punjab to promote growth and attract investment, particularly in IT and services sectors. Chandigarh’s proposed model is expected to draw from such frameworks and adapt them to the UT’s stricter planning ecosystem.
Chandigarh admin mulls fragmentation policy to subdivide four-kanal industrial plots into smaller units
May 12, 2026
The Chandigarh administration is preparing to introduce a fragmentation policy that will allow subdivision and shared ownership of four-kanal industrial plots. Under the proposed framework, a four-kanal landholding can be subdivided into three smaller units—each of minimum one kanal—facilitating multiple stakeholders to utilise a single plot more efficiently. This marks a shift from the current amalgamation model, which bans subdivision, and aligns with the Master Plan-2031 while seeking greater flexibility for MSMEs, startups and service-sector businesses.