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 tofour storeys will be allowed in Phase 3. The move would enable industrialists to significantly expand usable space without acquiring extra land, improve project viability, and enhance rental as well as resale potential - making the upcoming industrial area far more attractive for investment. The administration has also been considering doubling the FAR in Industrial Areas Phase 1 and Phase 2, from 0.75 to 1.50, a long-pending demand of industrialists. At present, industrial estates in Mohali, Panchkula, Dera Bassi, Barwala and Baddi offer FAR ranging between 2.5 and 3, putting Chandigarh at a comparative disadvantage. The FAR enhancement proposal has been prepared by a committee constituted under the chairmanship of the deputy commissioner and is currently under consideration. The move is expected to provide long-awaited relief to the industrial sector, where FAR has emerged as one of the most contentious issues. To accelerate industrial activity, the administration has decided to auction 140 industrial plots in Phase 3 starting April. The plots, sizes one to four kanals, will be auctioned in a phased manner, with 10 plots put up for e-auction in each round. The administration aims to complete the auction process within a year. In addition, around half a dozen plots in Industrial Area, Phase 2, will also be auctioned. The development of Industrial Area, Phase 3, over two decades after it was first conceptualised in 2001, was finally initiated in December last year. Spread over 153 acres near Raipur Kalan, Phase 3 has been planned as a hub for high-value, non-polluting industries, including IT and IT-enabled services, electronics, biotechnology, nanotechnology, light engineering goods, automotive components, knowledge-based industries, hospitality, finance and banking, along with furniture, sanitary fittings, and handloom and handicraft units. Officials said the enhanced FAR would not only fast-track the development of Phase 3 but also make the currently unsold plots commercially viable. Industrialists seeking additional built-up area will be able to purchase the extra FAR from the administration, the estate department confirmed. Industrial Area, Phase 1, is spread over 776.14 acres and Phase 2 over 486 acres. Both are fully developed with more than 1,800 industrial plots....