Process to draft new Chandigarh Industrial Policy begins

The UT Administration has initiated the process of drafting a new Industrial Policy aimed at making Chandigarh more attractive for investment, strengthening existing industries and generating employment.

Being prepared under the directions of the Central Government, the proposed policy is expected to be modelled on the Gujarat Industrial Policy.

According to officials, the Gujarat model is being examined, and the new policy is likely to shift its focus from merely facilitating business to providing direct financial support and incentives to industries. The objective is to reduce the cost of doing business, improve the competitiveness of local industries and attract fresh investment.

One of the key proposals under consideration is financial assistance for certification and regulatory compliance. Officials said industrial units spending up to Rs 10 lakh on product certification, food and quality testing, export licences or other mandatory technical approvals might receive partial reimbursement, subject to eligibility and policy provisions.

The Administration is also considering concessions in electricity charges, government fees and other statutory levies to reduce operational costs for industries.

Given the limited availability of industrial land in Chandigarh, the proposed policy will focus on modernisation, technology upgrade, expansion of existing industrial units and higher productivity. Special emphasis is expected to be placed on micro, small and medium enterprises (MSMEs).

The officials said the Administration was also examining the feasibility of creating a dedicated industrial incentive fund to finance subsidy and incentive schemes under the new policy.

Before finalising the draft, the UT is expected to hold consultations with industrial associations and other stakeholders. The proposal will then be sent to the Central Government for approval.

The new policy will also review the provisions of Chandigarh’s 2015 Industrial Policy. The existing measures, including the single-window clearance system, online approvals, ease-of-doing-business initiatives and support for MSMEs, are likely to be strengthened.

Chander Verma, chairman of the Chandigarh Industrial Converted Plot Owners Association, said the UT Administration had made several promises in the 2015 Industrial Policy, but most remained unfulfilled.

“As we await the new policy, we demand a people-friendly industrial policy that protects existing industries and workers,” Verma said.

Among the association’s key demands are a single-window clearance system with deemed approval within 30 days for all NOCs and permissions, simplified mortgage, transfer and change-of-use norms for converted MSME plots. The association has also demanded better worker and infrastructure support, including dedicated parking, toilets, transport, a common effluent treatment plant (ETP) and skill centres in Industrial Area.

The association has sought subsidies and handholding support for solar power, waste management and pollution-control measures, priority for local MSMEs in government tenders and incubation support for Chandigarh-based units. It also seeks the constitution of an Industrial Advisory Council with representation from industrialists and workers, along with quarterly public reports on policy implementation.

“We urge the Administration to ensure this policy benefits not only new investors but also those who run industries and the people who work in them. The unfulfilled commitments of 2015 must not be repeated,” Verma said, reiterating the long-pending demand for conversion of leasehold industrial plots into freehold.

Expressing similar views, Naveen Manglani, vice-president and spokesman for the Chamber of Chandigarh Industries, said the new Industrial Policy should deliver on its promises rather than remain merely an announcement.

“The proposed policy is a welcome step, but only if it implements the key recommendations of the Task Force constituted under the PMO’s Deregulation Exercise 2.0, including higher floor area ratio (FAR), liberalised activities, additional incentives and conversion of leasehold industrial plots into freehold,” he said.

Without conversion to freehold, the long-term survival of industry in Chandigarh would remain at risk, Manglani said, adding that although the 2015 Industrial Policy was comprehensive and prepared after extensive consultations, most of its provisions were never implemented.

“With the Government of India pushing ease of doing business, we hope the Administration shows greater seriousness this time. Chandigarh cannot afford another policy that exists only on paper,” he added.