NEW DELHI: The Ministry of Home Affairs (MHA) has extended the Punjab Right to Business Act, 2020, to the Union Territory of Chandigarh with modifications tailored to its administrative framework, marking a significant step towards improving the ease of doing business and accelerating investment approvals in the city.
The Act came into force in Chandigarh following a notification issued late on July 2. Officials said the move is aimed at reducing regulatory hurdles, strengthening investor confidence and creating a streamlined legal framework for faster industrial and commercial approvals.
Under the new framework, businesses operating in IT parks, biotech parks, Special Economic Zones (SEZs), industrial townships, growth centres, food processing parks and other projects approved by the Chandigarh Administration or the Central government will be eligible for benefits under the Act, including quicker approvals and simplified regulatory clearances.
A key feature of the notification is the establishment of the Chandigarh Bureau of Enterprise and Investment (CBEI) as the nodal agency for investment facilitation.
The Bureau will coordinate with government departments, process investment proposals, issue in-principle approvals, address investor grievances and promote eligible enterprises.
It will be headed by the UT Secretary (Industries), while the Director of Industries will serve as the Additional Chief Executive Officer.
The notification, issued under Section 87 of the Punjab Reorganisation Act, 1966, empowers the Central government to extend Punjab laws to Chandigarh with suitable modifications.
It replaces references to the Punjab government and its agencies with corresponding Chandigarh authorities, creating a UT-specific implementation framework.
Accordingly, references to the "State" and "Punjab" have been replaced by the "Union Territory of Chandigarh", while "State Government" now refers to the Administrator of the Union Territory of Chandigarh.
The Chandigarh Bureau of Enterprise and Investment replaces the District Nodal Agency, and the Chandigarh Pollution Control Committee takes the place of the Punjab Pollution Control Board.
The notification also broadens the definition of the "competent authority" to include departments and agencies of the Chandigarh Administration, local authorities, statutory boards, UT-owned corporations, urban development authorities and other bodies empowered to grant approvals for establishing or operating enterprises.
Officials said the Act introduces several investor-friendly measures designed to improve the business environment.
Eligible enterprises will be able to obtain in-principle approval based on a declaration of intent, enabling them to commence business activities without waiting for all statutory clearances.
Government departments will be required to process applications within prescribed timelines.
"Another major reform is the provision for deemed approvals. If a department fails to decide on an application within the stipulated period, approval will be automatically generated and reflected on the designated single-window portal," officials said.
The Act also provides for a fully digital single-window system through which businesses can submit declarations, track applications, obtain certificates, access inspection reports and file grievances online.
To reduce compliance burdens, eligible enterprises holding valid in-principle approval certificates will be protected from routine inspections related to approvals during the validity of the certificate. Inspections will be permitted only in complaint-based cases or as otherwise provided under the Act.
The officials said the extension of the legislation is expected to make Chandigarh a more attractive destination for investment by ensuring greater transparency, faster approvals and a more predictable regulatory environment.