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Chandigarh proposes self-declaration for MSMEs; 3.5-year exemption from pre-approvals
Chandigarh administration has sent a proposal to the MHA to allow new MSMEs to begin operations based on self-declaration, bypassing prior approvals for three years and six months. The plan includes swift in-principle clearances within 15 days and a phased full clearance timeline.
Why It Matters
If approved, the policy could speed up startup operations for small businesses and curb relocation to nearby areas by creating a more investor-friendly environment in Chandigarh.
Timeline
9 Events
Adopting Punjab model seen as a path to revival
April 28, 2026
Officials suggest that adopting the Punjab model could revive the city’s industrial ecosystem and provide relief to small entrepreneurs.
Over 80% of Chandigarh’s industries are service-oriented
April 28, 2026
Industry stakeholders note that over 80% of Chandigarh’s industries are service-oriented, but face restrictions when operating within industrial areas.
Commentary on policy gaps driving shifts to nearby areas
April 28, 2026
Avi Bhasin of Laghu Udyog Bharti said many industrialists have shifted to Panchkula and Mohali due to policy gaps and administrative challenges.
Chandigarh has around 65,000 MSMEs; majority micro
April 28, 2026
Chandigarh currently has about 65,000 MSMEs, with most classified as micro and concentrated in services and trading sectors.
Three-year-plus window to secure full statutory clearances
April 28, 2026
Entrepreneurs would have over three years to secure full statutory clearances under the proposed framework.
Exemption from prior approvals for a 3 years 6 months initial period
April 28, 2026
New units would be exempt from obtaining prior approvals and shielded from inspections by any UT authority for an initial period of three years and six months, if approved.
In-principle nod to be granted within 15 days
April 28, 2026
The proposal envisages in-principle approvals being granted within 15 days, allowing entrepreneurs to start setting up infrastructure while applying for full statutory clearances in parallel.
Proposal sent to MHA seeking approval for self-declaration start
April 28, 2026
The Chandigarh administration has sent a proposal to the Ministry of Home Affairs seeking approval to allow new MSMEs to begin operations immediately on the basis of self-declaration.
Punjab Right to Business Act, 2020 cited as model
2020
The Chandigarh proposal is modeled on the Punjab Right to Business Act, 2020, indicating alignment with an earlier regional framework aimed at ease of doing business.