Chandigarh, Jan. 26 -- In a significant relief for industrialists and a strategic move to curb the migration of industries to neighbouring states, the UT administration has proposed increasing the Floor Area Ratio (FAR) in the upcoming Industrial Area, Phase 3, from 0.75 to 2.5, bringing it on par with neighbouring Mohali and Panchkula.

FAR determines the permissible built-up area in relation to the size of a plot. Under the existing FAR of 0.75, a 1,000 square yard plot allows construction of only 750 square yards. The proposed FAR of 2.5, however, would permit construction of up to 2,500 square yards by allowing additional storeys.

While only two storeys are permitted in Industrial Areas Phase 1 and Phase 2, up to four storeys will be...