The Karnataka government has approved important changes to industrial land development rules to improve land use and attract new investments. The revised norms apply to industrial areas developed by the Karnataka Industrial Areas Development Board and are aimed at strengthening manufacturing, logistics, and allied sectors.
One major change is the increase in permissible ground coverage for industrial plots. Developers can now use up to 75 percent of the plot area for construction. Earlier, the limit was 65 percent. This allows better use of available land and reduces wasted space within industrial layouts.
The government has also revised the Floor Area Ratio based on road width. Industrial plots located on wider roads will now be allowed higher FAR. Plots along roads wider than 30 metres can have an FAR of up to 5.2. For plots on narrower roads, FAR limits will range between 2.45 and 4.8. This change supports vertical development without the need for additional land.
Another key update is the introduction of a premium FAR option. Developers can now obtain extra built-up area by paying a premium linked to the land allotment value. This provides greater flexibility for multi-storey factories, flatted factory projects, and large warehouse developments, especially in land-constrained industrial zones.
The revised norms are expected to support flatted factory developments. These projects allow multiple small and medium enterprises to operate within a single building. Such formats are increasingly preferred by MSMEs due to shared infrastructure, better space efficiency, and lower costs.
Overall, the policy changes align with Karnataka’s broader strategy to improve ease of doing business. By allowing higher-density development and efficient land utilisation, the state aims to boost industrial growth and strengthen investor confidence across key industrial corridors.
Also read: Satellite Town Ring Road to Feature Dedicated Crossings for Two-Wheelers
