Chandigarh: UT’s startup policy ready to hit ground after 7 years
To boost entrepreneurship, the administration has set aside ₹90 lakh for an annual competition; in this the top 20 startups will receive a grant of ₹2 lakh, along with incubation support for a year, while the next 50 runners-up will receive ₹1 lakh each
Setting the wheels in motion for what could be a game changer for the entrepreneurs, UT administrator Gulab Chand Kataria has finally given a nod to the UT startup policy. The policy had been hanging in balance for the past seven years.
Under the Chandigarh startup policy (CSP-2025), financial incentives worth up to ₹10 crore will be provided annually to support startups. They will also get other financial benefits, including subsidised rental rates, IT and quality certifications, patent filing fees, conference participation and acceleration program fees.
To boost entrepreneurship, the administration has set aside ₹90 lakh for an annual competition. In this the top 20 startups will receive a grant of ₹2 lakh, along with incubation support for a year, while the next 50 runners-up will receive ₹1 lakh each.
On the other hand, under the seed-stage startups, the eligible ventures will receive up to ₹7 lakh, with an additional ₹2 lakh for women-led or transgender-founded startups. Early growth-stage startups can receive up to ₹12 lakh. To address the funding gap, ₹4.6 crore has been earmarked for the same.
After keeping it on the back burner, the administration was planning to launch the policy by the end of October 2024, but could not finalise it then.
However, the finance department approved the policy in February and sent it for final approval to UT administrator. The final nod for the same was received on April 7. A senior officer from the UT administration said, now we have got the final approval from UT administrator and we are hopeful that the notification will be released within a week.
The policy first began taking shape in 2018, two years after Prime Minister Narendra Modi unveiled the Startup India Policy, urging UTs and states to draft their own policies tailored to the needs of regional entrepreneurs. However, due to several flip-flops, the UT missed multiple deadlines for implementing the policy.
In August 2023, the startup issue was raised in the Lok Sabha, with minister of state for the ministry of commerce and industry Som Parkash revealing that there are currently 335 startups recognised under the Startup India Initiative in Chandigarh. However, the UT administration is still lagging in implementing a dedicated policy to support aspiring entrepreneurs, five years after the initial proposal.
The “Chandigarh 2030 and Beyond” vision document, released in July 2023, also highlighted 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.