Chandigarh least business-friendly in India

The Union Territory has achieved 29th rank, same as last year, in the fourth edition of ‘Business Reform Action Plan’ rankings for states and UTs for 2019

Chandigarh may boast of being the first planned city of Independent India and educational and political hub of the region, but when it comes to ease of doing business, the Union Territory has shared the bottom rank with seven other states in 2019.

Chandigarh is tied with Arunachal Pradesh, Manipur, Meghalaya, Nagaland, Odisha, Sikkim and Tripura at the 29th position. (HT FILE)

The capital of two states has achieved 29th rank, same as last year (2017-18), in the fourth edition of ‘Business Reform Action Plan’ rankings for 2019, released by the Union finance minister in New Delhi on Saturday. Haryana is ranked 16th and Punjab 19th.

Chandigarh is tied with Arunachal Pradesh, Manipur, Meghalaya, Nagaland, Odisha, Sikkim and Tripura at the 29th position.

Andhra Pradesh has topped the rankings, with Uttar Pradesh at second and Telangana at third positions.

Business Reform Action Plan rankings began in 2015 with an objective to introduce healthy competition among states and UTs and thereby attract investments and increase the ease of doing business. Chandigarh achieved 24th rank in the inaugural report, but was placed last in 2016 .

The Business Reform Action Plan 2018-19 contained a list of 80 reforms (187 reform action points) including access to information and transparency enablers, availability of land, environmental registration enablers, obtaining electricity connection, labour regulation enablers, single-window system, environmental registration enablers, land administration and transfer of property and sector-wise enablers.

Of the 187 reform points, Chandigarh only implemented nine, and there was no action on the remaining 178. As per the ranking report, the reforms were implemented in some points falling under access to information, obtaining electricity connection, and environment, but the performance was “not good”.

Calling the rankings extremely disappointing, Pankaj Khanna, president, Industries Association of Chandigarh, said: “The administration needs to take concrete steps in consultation with all stakeholder to reverse this situation.”

Naveen Manglani, president, Chamber of Chandigarh Industries, said: “The main reason of low ranking was non-implementation of Chandigarh Industrial Policy 2015. Major issues are non-conversion of leasehold industrial plots to freehold and no increase in floor area ratio. The rigidity of rules is leaving no scope for growth and ease of doing in business. Chandigarh’s loss is Punjab and Haryana’s gain.”