Karnataka eases FAR norms, increases building area for industries from 65% to 75%: Patil

Bengaluru: The government has increased the Floor Area Ratio (FAR) for industrial plots from 65% to 75%, said industries minister M B Patil Thursday.

An official order has been issued by the Karnataka Industrial Areas Development Board (KIADB). The changes are expected to spur industrial growth and boost residential real estate activity in areas developed by KIADB, said the minister in a statement.

"Until now, only 65 per cent of the land in industrial plots could be used for construction. This has now been increased to 75 per cent," Patil said. "This will reduce the land required for industrial purposes. As a result, entrepreneurs will not have to spend heavily on land purchase. At the same time, more agricultural land will remain with farmers."


The minister further said that under the earlier FAR norms, investors faced several constraints. For example, if 10 acres were allotted to an industrial unit, only about 6.5 acres could be used for construction. The remaining area had to be set aside for surface parking and mandatory setbacks on all four sides of the building, he said.

Earlier, for industrial buildings up to 7 metres in height, a setback of 1.5 metres in the front and 1 metre each at the rear and on both sides was mandatory. Under the revised norms, it will be sufficient to leave 1.5 metres in the front and 1 metre on either one side, said the statement.

Similarly, for buildings up to 15 metres in height, the earlier requirement of leaving 3 to 10 metres in the front and 1.5 to 8 metres on the remaining sides has now been reduced to 2 to 6 metres in the front and 1.5 to 6 metres on the other sides.

The minister added that the revised FAR norms now allow up to 15% of the area in general industrial plots to be used for employee housing. Earlier, employee housing and industrial township development were not permitted within industrial plots. In industrial plots measuring at least 50 acres, up to 10% of the area may be used for residential and commercial buildings.

Parking norms have also been relaxed, he said. Only 2% of the plot area needs to be earmarked for parking in the case of general industries and data centres, and 3% for warehousing and logistics units. Earlier, 5% of the total industrial plot area had to be reserved for parking.

The minister further said the changes will encourage vertical development within industrial areas. "Providing land for industries has become increasingly challenging due to limited availability. The revised FAR norms have been framed keeping the interests of industry in mind," he said.

The new rules will apply to industrial areas, Special Investment Regions (SIRs), single-unit complexes, as well as residential and commercial construction projects within industrial zones developed by KIADB, he added.

According to the minister, certain farmers who lose land will have the option of receiving developed land instead of cash compensation. "As the new rules permit construction over a larger built-up area, farmers are also likely to benefit indirectly," Patil said.