The Chandigarh UT Administration has officially commenced the process of formulating a new Industrial Policy, aiming to boost investment, strengthen existing industries, and create employment. Prepared under directives from the Central Government, the policy is expected to be modeled on the Gujarat Industrial Policy, which has been a benchmark for industrial growth in India.
New Industrial Policy on the Anvil
Officials are examining the Gujarat model to design a policy that shifts focus from merely facilitating business to providing direct financial support and incentives. The objective is to reduce the cost of doing business, improve the competitiveness of local industries, and attract fresh investment. The limited availability of industrial land in Chandigarh makes it imperative to focus on modernisation, technology upgrade, and higher productivity rather than land-based expansion.
Key Proposals Under Consideration
One of the key proposals is financial assistance for certification and regulatory compliance. Industrial units spending up to Rs 10 lakh on product certification, food and quality testing, export licences, or other mandatory technical approvals may 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.
Focus on MSMEs and Modernisation
Given the constraints on industrial land, the policy will emphasise modernisation, technology upgrade, and expansion of existing units. Special attention is expected for micro, small, and medium enterprises (MSMEs), which form the backbone of Chandigarh's industrial sector. The feasibility of creating a dedicated industrial incentive fund to finance subsidy and incentive schemes is also being examined. This fund would ensure sustained financial support for industrial growth.
Consultations and Approval Process
Before finalising the draft, the UT Administration plans 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, aiming to strengthen existing measures like single-window clearance, online approvals, ease-of-doing-business initiatives, and support for MSMEs.
Industry Leaders Voice Expectations
Chander Verma, chairman of the Chandigarh Industrial Converted Plot Owners Association, expressed disappointment with the 2015 policy, stating, "The Administration made many promises in 2015 but most remained unfulfilled. We demand a people-friendly policy that protects existing industries and workers." His demands include a single-window clearance with deemed approval within 30 days for all NOCs and permissions, simplified mortgage and transfer norms for converted MSME plots, and better worker infrastructure such as dedicated parking, toilets, transport, a common effluent treatment plant (ETP), and skill centres. The association also seeks subsidies for solar power, waste management, and pollution control; priority for local MSMEs in government tenders; and incubation support for Chandigarh-based units. Additionally, Verma called for the constitution of an Industrial Advisory Council with representation from industrialists and workers, along with quarterly public reports on policy implementation. He reiterated the long-pending demand for conversion of leasehold industrial plots into freehold.
Naveen Manglani, vice-president and spokesman of the Chamber of Chandigarh Industries, echoed similar views. "The new policy should deliver on its promises rather than remain merely an announcement," he said. Manglani urged the Administration to implement 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 plots to freehold. He warned that without freehold conversion, the long-term survival of industry in Chandigarh would remain at risk. Manglani noted that while 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.
A Call for Action
Verma urged the Administration to ensure that the new policy benefits not only new investors but also existing industries and workers. Manglani called for a determined effort to translate promises into action. As Chandigarh awaits the new policy, stakeholders remain hopeful that it will transform the industrial landscape, create jobs, and boost the local economy without repeating the shortcomings of the past.
