Phase-3 Industrial Area in Chandigarh: A project that never took off

Even as Chandigarh’s industrial landscape is in dire need of expansion, the UT administration continues to dilly-dally on development of Phase 3, Industrial Area, a project awaiting completion for over two decades.

Spread over 153 acres near Raipur Kalan, the area has seen only three allotments, with the land still devoid of any road, power or water infrastructure, and hope for its development in near future also remains faint.

As a result, industrialists looking to set shop in the city have been forced to look elsewhere, triggering a significant exodus to neighbouring states and allowing thousands of potential jobs to slip away over the years.

Phase 3 was envisioned in 2001 to ease congestion in the already overcrowded Phases 1 and 2, housing over 1,800 industrial plots across a combined 1,262 acres.

However, the area remains barren and largely undeveloped. Out of around 140 plots, only three have been allotted, and no construction has taken place.

In November 2022, the UT Estate Office had prepared a list of 30 industrial plots for auction, indicating some movement. However, even after more than two years, there has been no progress, leaving the prime land gravely underutilised.

A senior officer from the UT Estate Office acknowledged the lack of progress, stating, “We will soon hold an auction for the plots. So far, we have allotted only three plots, that too on the directions of the Supreme Court. A meeting in this regard will be held soon with the officers concerned.”

Meanwhile, frustration has been mounting among those directly affected by the inordinate delay.

Jagjit Singh, one of the allottees, said, “I received my allotment letter in December 2022 on the directions of Supreme Court, but the reality is far from what was promised. There is no power, no roads and the land remains barren. It’s clear that the administration is not serious about the area’s development, which is not only costing the government exchequer but also the local community in terms of lost opportunities.”

Ankush Garg, another allottee, voiced similar concerns, pointing out the lack of zoning and basic infrastructure despite repeated requests to the UT administration. “I received my allotment in December 2022 as well, but no development has been done. Then how can the administration talk about promoting ease of doing business?” he remarked.

UT chief engineer CB Ojha said some infrastructure work, like sewerage installation, was completed around 12 years ago. “We will begin further work once possession is granted,” he said.

In an attempt to generate revenue for the administration, former UT administrator Banwarilal Purohit had approved a proposal in February 2022 to sell unsold industrial, residential, commercial and institutional properties on a freehold basis. The move aimed to attract buyers and improve the ease of doing business in the city. But amid the administration’s lack of serious action and long delays, it remains unclear if Phase 3 will ever become a reality.