Chandigarh, May 20 -- The UT administration is mulling a policy revision to enhance the permissible residential component in industrial plots to house staff, especially those working late shifts. The move is part of a deregulation exercise to rationalise building norms and improve land utilisation in the city's Industrial Area. Under the existing framework, industrial plots up to one acre are allowed 2.5% residential component, while plots above one acre are permitted only 0.5% provisional Floor Area Ratio (FAR) for residential use. These provisions have long been considered restrictive by stakeholders, given the evolving industrial practices and space requirements. The revised proposal seeks to enhance these limits. For plots up to one acre, the residential FAR is proposed to be increased to 5%, effectively doubling the current allowance. For plots exceeding one acre, the permissible residential component could be raised to 2.5% FAR, marking a fivefold increase over the existing provision. The administration has simultaneously proposed stringent conditions to prevent misuse of the increased residential component. According to sources, the additional space will be allowed strictly for industrial workers, particularly those covered under welfare frameworks such as the Employees' State Insurance (ESI) system and Economically Weaker Section (EWS) housing schemes. "With the definition of the word industry being replaced by enterprise, it becomes imperative that the work ecosystem changes accordingly. Staff housing is going to be a major challenge going forward, with a congenial environment to house staff, especially those working in late shifts, being the need of the hour," said Pankaj Khanna, industrialist and a former member of the advisory council. The proposal makes it clear that under no circumstances will this residential component be permitted for commercial use, guest house operations, or any form of rental or hospitality activity. This clause has been specifically included to prevent backdoor commercialisation of industrial land, an issue that has been flagged in past policy discussions. The residential hike is being discussed alongside other proposed relaxations, including, enhancement of Floor Area Ratio (FAR), relaxation in building height and coverage norms and simplification of architectural controls. These changes are aimed at unlocking redevelopment potential in Industrial Area Phases 1 and 2, which have seen growing pressure for modernisation. Officials clarified that the proposal does not amount to permitting conversion of industrial plots into residential or commercial properties. The administration has consistently opposed large-scale change of land use (CLU) in industrial sectors due to infrastructure constraints. The policy is currently at a deliberative stage and is expected to be placed before the competent authority for approval. If cleared, detailed guidelines for implementation, eligibility, and monitoring mechanisms will be issued by the estate office....