Centre pushing startups, but no news of Chandigarh admn’s policy
The Chandigarh administration has been working on the policy since 2018, but it has yet to see the light of the day
Even as the central government has extended tax benefits for startups till March 2025 in the interim budget, the UT administration has not finalised its startup policy even after five years.
The administration had come close to wrapping up the policy’s draft in October last year, assuring that it will be rolled out within a month. But even after three months, there has been no progress.
As part of the Startup India initiative rolled out in 2016, the Union government had made a provision for startups incorporated between April 1, 2016, and March 31, 2024, to avail of tax rebate on their entire profit for three consecutive years out of their first 10 years of operations, provided that their annual turnover does not exceed ₹100 crore. Through the interim budget, the eligibility to utilise this benefit has now been extended to startups incorporated before March 31, 2025.
A three-day “Startup Mahakumbh”, an exhibition of startups across domains, is also being organised by the government at Bharat Mandapam in Delhi from March 18 to 20.
The Chandigarh administration began drafting the policy in 2018, two years after Prime Minister (PM) Narendra Modi unveiled the Startup India initiative, and directed UTs and states to frame their policies tailored to the needs of entrepreneurs in their regions. However, due to several flip-flops, the UT has missed multiple deadlines for enforcing the policy.
As per the draft, the administration will provide early-stage financing, interest-free loans, mentors, co-working spaces and incubators to startups.
The UT will also provide entrepreneurs assistance in getting different registrations and certificates, organising finances and labour, getting environment-related clearances and navigating other bureaucratic regulations.
UT industries secretary Hargunjit Kaur said, “Our final presentation is ready. We are just waiting for the new UT adviser to take charge, following which we expect to notify the policy soon.”
While presenting the interim budget on February 2, Union finance minister Nirmala Sitharaman had also announced a corpus of ₹1 lakh crore to promote technological innovation in sunrise sectors, saying it will be a “golden era for India’s tech-savvy youth”.
“A corpus of ₹1 lakh crore will be established with a 50-year interest free loan provided. The corpus will provide long term financing or refinancing with long tenors and low or nil interest rates,” she had said.
335 recognised startups in the city
In August last year, minister of state, ministry of commerce and industry Som Parkash had informed the Lok Sabha that Chandigarh has 335 startups recognised under the Startup India initiative. However, the UT administration is still lagging behind in implementing its dedicated startup policy for aspiring entrepreneurs, five years after its initial conceptualisation.
Naveen Manglani, vice-president of the Chamber of Chandigarh Industries, said it was incomprehensible why the administration was delaying the policy despite the high unemployment rate.
“Chandigarh 2030 and Beyond”, a vision document released in November 2022, had also taken note of the limited employment opportunities in the city.
The document noted that the government was the major employer in the city, while adding that the number of higher education institutes was limited compared to the student influx from adjoining states, resulting in a lack of concerted efforts to impart technical skills crucial for the ever-changing work environments. The document also highlighted the need for rejuvenated efforts to bring digital jobs to the city — by reinventing the scope of the IT Park and attempting to set up a film city or a media hub.
What’s in store
A wide range of resources for early stage startups, including physical infrastructure, capital, mentoring and networking, besides essential services like legal and corporate support
A robust support infrastructure, including incubators and co-working spaces
Strengthening existing incubators within technical education institutes in Chandigarh
Setting up of Chandigarh Innovation Council to boost innovation and research in sectors, such as education, health and IT
Establishment of a distinct legal entity, preferably a Section 8 company, under the Companies Act, 2013, for implementing and executing the policy.
