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The Karnataka government has revised building regulations for industrial plots under the Karnataka Industrial Areas Development Board (KIADB), increasing permissible built-up limits to enhance land use and attract investment. The changes, effective from early February, raise the maximum floor area ratio (FAR) that developers can achieve up to 5.2 for plots along wider roads through a premium payment mechanism, marking a significant rise from earlier limits. Ground coverage norms have also been relaxed. The revised framework applies across industrial areas, special investment regions and integrated townships, enabling greater vertical development, multi-storey factories, multi-level warehousing and mixed-use developments. Authorities said the move aims to optimise land utilisation and support denser, higher-output industrial and commercial growth, particularly in and around Bengaluru's key corridors. Industry bodies welcomed the reforms as a boost to investment climate and industrial expansion.
The Karnataka government has amended its building regulations for industrial plots managed by the Karnataka Industrial Areas Development Board (KIADB), significantly increasing permissible built-up area limits in an effort to boost investment and optimise land use within industrial corridors. The revisions, notified early this month, expand both the ground coverage and the floor area ratio (FAR) available to developers and investors. Advertisement
Under the updated norms, plots situated along roads wider than 30 metres can now achieve a FAR of up to 5.2, subject to payment of a premium. This represents a marked increase from earlier FAR limits, which generally restricted development to around 3.25 times the plot area in similar contexts. FAR the ratio of built-up floor area to the size of the plot governs the intensity and vertical scale of development on a given land parcel. Higher FAR allowances enable more construction within the same land footprint, supporting taller structures and higher density activity.
The revised framework also introduces graduated FAR levels tied to road width, expanding development capacity on narrower roads as well. Plots along roads of 24-30 metres can achieve up to 4.8 FAR, those on 18-24-metre roads up to 4.0 FAR, and plots on 12-18-metre roads up to 3.6 FAR. Even roads under 12 metres in width benefit from increased buildable area compared with previous regulations. Corresponding changes to ground coverage and setback requirements further enhance usable construction space.
The government said the policy aims to improve land utilisation and attract larger industrial and commercial investments by enabling greater vertical development. Industry bodies welcomed the move, saying it unlocks previously underused land in high-demand industrial areas and could encourage models such as multi-storey factories, flatted factories and multi-level warehousing, which are particularly relevant for micro, small and medium enterprises.
The broader application of the revised norms to special investment regions, integrated industrial townships and infrastructure projects under KIADB's ambit is expected to have ripple effects across Karnataka's industrial landscape. With land availability increasingly constrained in key growth corridors particularly around Bengaluru the policy is seen as a step towards facilitating higher development intensity, attracting investment and improving economic output per acre of land.
State officials also said the reforms align with wider ease of doing business initiatives and could support mixed-use developments that integrate manufacturing, logistics, commercial and worker housing components within single complexes, contributing to regional growth over the coming years.
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