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Diwali cheer for startups as Chandigarh admn’s policy likely by month end
After six-year wait, Chandigarh administrator gives nod to draft; policy expected to be notified by the end of the month, coinciding with Diwali
This Diwali will bring an extra reason to celebrate for city-based entrepreneurs, as the UT administration is set to announce the long-awaited startup policy by the end of the month.
After six years of anticipation, the policy received approval from UT administrator Gulab Chand Kataria on October 1, following a presentation by the UT industries department.
After incorporating some suggestions by the administrator, UT is expected to notify the policy by October-end.
Sharing details, a senior UT officer said Kataria suggested to simplify the administrative structure in the draft policy and also to study startups in states from where the draft policy had been prepared. “Once the suggestions are incorporated, we will present the draft again before the UT administrator and are expecting to notify the policy by October end,” the officer added.
In February, the central government had extended tax benefits for startups till March 2025 in the interim budget, even as the UT administration continued to sit on readying its startup policy even after five years.
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 was extended to startups incorporated before March 31, 2025.
In the works since 2018
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 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.
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.
“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.
