7 yrs later, Chandigarh admn’s startup policy still a non-starter

It has been over seven years since the UT administration began planning a startup policy, but it still continues to be stuck in a bureaucratic maze.

After keeping it on the back burner, the administration was planning to launch the policy by the end of October 2024. Following a presentation by the UT industries department, the policy had even received approval from UT administrator Gulab Chand Kataria on October 1.

However, the UT finance department raised some queries, stalling its launch. Months later, the finance department has finally approved the policy, which will now be sent to the UT chief secretary to gain final approval from the UT administrator.

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.

A senior officer from the UT administration explained that the policy had been approved by the finance department and will now be forwarded to the chief secretary and, ultimately, the administrator for final approval. “We are hopeful of a notification in the next 10 days,” the officer said.

When asked why the policy has been held up for seven years, the officer pointed to the Covid-19 pandemic as the initial obstacle. Although the policy was finalised in 2021, and a presentation was made, delays occurred when the officer concerned was transferred, stalling progress.

Naveen Manglani, vice-president of the Chamber of Chandigarh Industries, criticised the delay: “It’s been almost seven years and the policy is still not finalised. This is a classic example of red-tapism by the bureaucracy. Chandigarh is an education hub for youth from Haryana, Punjab and Himachal Pradesh, yet it lacks sufficient job opportunities, leading to brain drain. The absence of a dedicated startup policy exacerbates the issue.”

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.