Chandigarh, May 12 -- In a policy shift aimed at optimising land use and supporting smaller businesses, 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 - of minimum one kanal - allowing multiple stakeholders to utilise a single plot more efficiently. At present, Chandigarh follows the amalgamation model, which means only the merger of adjoining plots is allowed while subdivision is prohibited. It also strictly follows the Chandigarh Master Plan-2031, barring any land-use changes, given its limited land availability. The proposed policy marks a departure from these rigid norms and is expected to benefit MSMEs, startups and service-sector businesses that often find large industrial plots financially inaccessible. Officials believe the new policy could unlock underutilised industrial land, much of which remains partially vacant despite plot sizes ranging from 5 marla to 40 acres. Industrialist Pankaj Khanna, a former member of the advisory council, said, "This is a welcome and much-needed initiative in today's business environment. It will help unlock large land parcels and create value-added economic activity." Siddharth Gupta, another industrialist, said, "The proposed policy will facilitate efficient use of vacant spaces, which is vital for a landlocked city like ours." The move comes amid growing recognition within the administration that Chandigarh's land resources are highly constrained and fragmented, making traditional expansion models unviable. Officials have previously ruled out large-scale change of land use (CLU) and conversion of industrial plots into commercial spaces, citing infrastructure limitations and legal restrictions. In its place, the administration has been exploring alternative reforms such as increasing Floor Area Ratio (FAR), relaxing building norms and allowing mixed land use in select industrial zones. The proposed fragmentation policy fits into this larger reform agenda by maximising utilisation of existing industrial land. The fragmentation policy is also expected to bring greater flexibility to industrial activity by enabling a mix of manufacturing, trading and service operations within the same premises. It will also eventually lead to a parallel upgrade of civic infrastructure, including sewage networks, water supply, electricity distribution and fire safety infrastructure, in these areas. Naveen Miglani, vice-president of the Chamber of Chandigarh Industries, said higher FAR and fragmentation policies are essential to prevent industries from shifting to Mohali and Panchkula. "Affordable FAR is crucial for industry expansion, jobs, and revenue. Plot fragmentation and amalgamation is also needed to create smaller, viable plots for MSMEs and ensure efficient land use. We further request permission for more activities under the Micro, Small and Medium Enterprises Development Act to fully utilise industrial plots." Fragmentation of industrial plots has already been implemented in neighbouring states like Punjab to promote growth and attract investment, especially in IT and services sectors. Chandigarh's proposed model is likely to draw from such frameworks while adapting them to the UT's stricter planning ecosystem. The proposal is currently under consideration and is expected to be placed before competent authorities for approval....