Boost for Businesses: Centre Extends Punjab's Right to Business Act to Chandigarh
In a move aimed at enhancing the ease of doing business in the Union Territory, the central government has extended the Punjab Right to Business Act, 2020 to Chandigarh. The notification, issued by the Ministry of Home Affairs (MHA), introduces a time-bound, simplified, and digital system for granting approvals to industries and businesses. It also establishes the Chandigarh Bureau of Enterprise and Investment (CBEI) as the nodal agency for investor facilitation.
Under the notification, all references to the Punjab government and state authorities in the Act have been replaced with the Chandigarh Administration and its agencies. The newly created CBEI will replace the district nodal agency envisaged under the Punjab law and will function under the Industries Department. It will be headed by the Secretary, Industries, Chandigarh Administration, with the Director, Industries, serving as the Additional Chief Executive Officer.
The bureau will act as a single-point facilitation agency for investors by processing self-declarations, issuing in-principle approval certificates, resolving grievances, coordinating with various departments, and ensuring speedy disposal of investment proposals. It will also promote investment in the Union Territory and implement policies notified by the Chandigarh Administration for eligible enterprises.
A key feature of the extended Act is the introduction of a fully digital single-window system. All processes — including filing self-declarations, issuing approvals, tracking applications, inspections, and grievance redressal — will be carried out electronically through a designated online portal. The portal will also provide automatic deemed approvals wherever authorities fail to take a decision within the prescribed timelines, reducing delays and bureaucratic hurdles for entrepreneurs.
Applications can only be rejected if the proposed enterprise falls under prohibited categories or if there are material deficiencies, with reasons for rejection required to be communicated in writing.
The Act also brings a wide range of regulatory services under its ambit, including building plan approvals, completion and occupancy certificates, factory licences, shop registrations, pollution control clearances, fire no-objection certificates, electricity connections, and water and sewerage connections. These services will now be governed by time-bound approval mechanisms to make setting up and operating businesses in Chandigarh faster and more transparent.
The Chandigarh Administration had recently forwarded the proposal to the Union Ministry of Home Affairs, following which the Act has been adopted for the UT. Chandigarh Deputy Commissioner Nishant Yadav said the legislation is aimed at creating a simplified framework for setting up enterprises by ensuring quicker approvals through a digital single-window mechanism.
The Act would particularly benefit micro, small and medium enterprises (MSMEs) by ensuring transparency, accountability, and faster approvals for permissions related to land, labour, power, pollution control, and other regulatory requirements.
