335 recognised firms in Chandigarh, yet no sign of start-up policy
The issue was raised in the Lok Sabha on Friday, where Union minister of state for commerce and industry Som Parkash provided start-up firms’ data for Chandigarh
The city has 335 firms that are recognised under the Startup India initiative, but five years after envisaging a dedicated start-up policy for aspiring entrepreneurs, the UT administration is still dragging its feet on implementing it.
The issue was raised in the Lok Sabha on Friday, where Union minister of state for commerce and industry Som Parkash provided start-up firms’ data for Chandigarh.
He said the Union government was also spearheading initiatives under ease-of-doing business and reducing compliance burden to create a conducive business environment. These initiatives extend greater ease to all entities/sectors/industries of the economy, including start-ups, he said.
Specifically for the start-up ecosystem, 57 such key regulatory reforms had been undertaken as of April 30, he added.
When contacted, UT adviser Dharam Pal said the policy was in the final stage and they were hopeful of notifying it within a week.
In November last year, the administration had assured to roll out the policy by December 31, as its draft was ready, but even after seven months, it is yet to see the light of the day.
UT had started drafting the policy in 2018, two years after Prime Minister Narendra Modi unveiled the Startup India Policy, and directed UTs and states to frame their own policies, tailored to the needs of entrepreneurs in their regions. But owing to several flip-flops, the UT 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 start-ups.
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.
Naveen Manglani, vice-president of the Chamber of Chandigarh Industries, said, “We fail to understand, why the authorities are not serious about facilitating ease-of-doing business in the city. Though Chandigarh is an education hub in the region, with youngsters from Haryana, Punjab and Himachal Pradesh flocking to pursue higher education here, the city lacks job opportunities, which eventually results in brain drain. The problem gets compounded in the absence of a dedicated start-up policy.”
“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 were limited when compared to student influx from adjoining states — resulting in a lack of concerted efforts to impart technical skills that are crucial for the ever-changing work environments. The document also mentioned the need for rejuvenated efforts to bring digital jobs to the city — by reinventing the scope of IT Park and attempting to set up a film city or a media hub.