Chandigarh: Starting a business in Chandigarh is set to become significantly easier, with the Ministry of Home Affairs (MHA) extending the Punjab Right to Business Act, 2020 to the Union Territory. The move introduces legally enforceable timelines for approvals, a digital single-window clearance system and a deemed approval mechanism aimed at reducing bureaucratic delays and making the city more attractive for investment.The notification, issued under Section 87 of the Punjab Reorganisation Act, 1966, comes into force immediately with Chandigarh-specific modifications.Faster approvals backed by lawThe Act replaces the conventional approval process with a system under which eligible enterprises can submit a single Declaration of Intent through an online portal and obtain a Certificate of In-Principle Approval, allowing them to begin establishing their businesses while completing statutory approvals simultaneously.Enterprises located in approved industrial areas will receive the certificate within five working days, while those outside industrial parks must receive a decision within 15 working days for new enterprises and 18 working days for existing businesses. If the authorities fail to decide within the stipulated period, the approval will be deemed to have been granted automatically.Digital single-window systemThe legislation mandates that the entire approval process—from filing applications and tracking status to inspections and grievance redressal—will be conducted electronically through Chandigarh Administration’s designated single-window portal.Even deemed approvals will be generated automatically through the portal without manual intervention, making the process more transparent and reducing scope for delays.Dedicated investment facilitation bureauThe Chandigarh Administration will establish a Chandigarh Bureau of Enterprise and Investment, headed by the Secretary (Industries), to function as the nodal agency under the Act.The bureau will coordinate approvals across departments, facilitate investments, monitor implementation, maintain records of applications, resolve grievances and ensure speedy clearance of investment proposals.Fewer inspections, lower compliance burdenOnce an enterprise receives a Certificate of In-Principle Approval, it will generally be exempt from routine inspections during the certificate’s validity except in cases involving serious complaints authorised by the head of the concerned department.Inspection reports must be uploaded online within 48 working hours, introducing greater accountability in the inspection process. The certificate remains valid for three years and six months, during which enterprises are expected to obtain all regular statutory approvals. Businesses may also choose the conventional approval route if they do not wish to opt for the new mechanism.Wide range of approvals coveredThe Act covers approvals issued by multiple departments, including sanction of building plans, completion and occupation certificates, fire NOCs, factory licences, shop registrations, pollution control consents, electricity connections, water supply and sewerage connections. Bringing these approvals under one legal framework is expected to substantially reduce the time required to establish new enterprises.Tailored for ChandigarhThe MHA notification adapts the Punjab law to Chandigarh’s administrative structure. It also expands the definition of approved industrial parks to include industrial estates, IT parks, biotech parks, SEZs and other projects approved by the Administration or the Centre. Miniplexes located in designated commercial or entertainment zones have also been included as eligible enterprises.BOX1 | Key changesApprovals: 5-18 working days.Deemed approval: Automatic after deadline.Single window: Online approvals and grievances.One declaration: Single application.Fewer inspections: Complaint-based.Validity: 3.5 years.New bureau: Investment facilitation.Covers: Building, fire, pollution, power, water approvals.Safeguards: Environmental norms remain mandatory.BOX2: Industry welcomes moveWelcoming the decision, Naveen Manglani, spokesman and vice-president, Chamber of Chandigarh Industries, termed it a landmark reform that would boost investor confidence and improve ease of doing business. He, however, urged the Administration to place industrial areas under the Industries Department, designate the District Industries Centre as the nodal agency, and revive regular single-window committee meetings for time-bound resolution of industry issues, saying these measures would create a truly hassle-free ecosystem for MSMEs and large enterprises.
