Chandigarh has recommended extending Punjab’s Right to Business Act to the Union Territory — a move that would give businesses a statutory guarantee of time-bound approvals and protection from arbitrary inspections — with the recommendation routed through the Ministry of Home Affairs.The recommendation, part of the Centre’s Deregulation Exercise 2.0, was made by Punjab Governor and UT Administrator Gulab Chand Kataria and sent to the Union Home Minister Amit Shah for formal approval recently.Deputy Commissioner Nishant Kumar Yadav, who also holds charge as Secretary Industries, said adopting the Act would be a transformative step for the city’s business climate. “Punjab’s Right to Business Act gives entrepreneurs a legal shield against regulatory harassment and mandates deemed approvals where clearances are not given within stipulated timelines. Extending it to Chandigarh will put our ease-of-doing-business commitments into law,” he told The Tribune.In two more imminent measures directly benefiting small businesses, the department has finalised a rental subsidy scheme and an interest subvention scheme under the MSME Financing Campaign, both of which are set to be formally notified by May 31.Yadav disclosed that Chandigarh has formally repealed the Punjab State Aid to Industries Act, 1935 — a colonial-era law that had been redundant for four decades — under the Chandigarh Jan Vishwas Act, clearing dead regulatory wood from the books.The proposals come against the backdrop of Chandigarh’s MSME sector growing to 65,164 registered units employing 4,68,626 people — comprising 10,028 manufacturing units, 30, 221 in services and 24,951 trading enterprises, as per the Udyam registration database updated on May 18.Speaking to The Tribune, Governor-cum-Administrator Kataria said the city must move beyond administrative reform to legislative reform. “Scores and rankings matter, but what businesses need is certainty — certainty that their applications will be cleared on time, that they will not be harassed, and that help will be available when they need it. Bringing a rights-based law to Chandigarh sends that signal clearly,” he said.On the broader reform scorecard, Chandigarh scored 89 per cent in the Centre’s Business Reform Action Plan (BRAP) 2025, submitting 100 per cent of the 434 reforms assigned to it — a dramatic climb from 71 per cent in 2022, when the UT was categorised in the “Aspirers” bracket, the lowest rung of the Centre’s Ease of Doing Business rankings.Yadav said the department had also completed a sector-wise mapping of turnaround time for setting up enterprises across IT/ITeS, health, logistics, hospitality and tourism sectors. “We now know exactly how long every clearance takes in every sector. That data will drive further reduction of red tape,” he said.Chandigarh is also in advanced discussions with RITES Ltd for preparation of a City Logistics Plan, as directed at the 4th Chief Secretaries Conference convened by the Centre.Under the World Bank-funded Raising and Accelerating MSME Performance (RAMP) programme, sanctioned at Rs 43.07 crore and running till March 2027, a dedicated three-member helpdesk has outreached 2,748 MSMEs and provided hands-on support to 1,606 units since May 2025. Over 5,100 enterprises have participated in 74 capacity-building sessions conducted by six empanelled industry associations. A scheme incentivising ZED (Zero Defect Zero Effect) and LEAN certification is also set for notification by May 31.The Micro and Small Enterprises Facilitation Council, which adjudicates delayed-payment disputes, resolved 105 of the 115 cases received in 2025-26 — a clearance rate of over 91 per cent. The council has also launched an online dispute resolution portal to bring transparency to the process.The Chandigarh Startup Policy 2025, notified in April last year with an annual budget of Rs 10 crore, is in its first phase of ecosystem building. Fifteen startups have applied, incubator onboarding is under way, and Panjab University and PHDCCI are set to conduct awareness sessions for early-stage entrepreneurs.Under PM Vishwakarma, 146 outreach camps have been held, drawing 4,119 applicants, of whom 775 completed three-step verification. Three Chandigarh artisans who participated in the Delhi Haat national fair in January recorded cumulative sales of Rs 3 lakh from their stalls — which were visited by Prime Minister Narendra Modi. Twenty-five artisans have been onboarded on the ONDC digital commerce platform and 36 have received artificial intelligence training for digital readiness.The department’s total budget outlay for 2025-26 stood at Rs 19.42 crore, of which Rs 3.59 crore — 18.48 per cent — has been spent, while Rs 8.37 crore was the budget outlay for the current fiscal 2026-27, of which Rs 16 lakh, 1.91 per cent has been utilised so far.FIVE SALIENT FEATURESChandigarh’s MSME Snapshot65,164 registered units4,68,626 jobsManufacturing: 10,028Services: 30,221Trading: 24,951The EoDB Climb2022: “Aspirers” category (bottom rung) | Score: 71%2025: Score jumps to 89% | 100% of 434 reforms submitted to DPIITRAMP — World Bank Money at WorkTotal outlay: Rs 43.07 croreMSMEs outreached: 2,748MSMEs handheld: 1,606Awareness sessions: 74Beneficiaries trained: 5,100+PM Vishwakarma PipelineEnrolled: 4,119, Verified: 775, Trained: 317, Loans sanctioned: 78PM Modi visited Chandigarh artisans’ stalls at Delhi Haat; sales: Rs 3 lakhComing by May 31, 2026Rental Subsidy Scheme for MSMEsInterest Subvention Scheme (MSME Financing)ZED/LEAN Incentive SchemePunjab Right to Business Act: Proposed for extension to Chandigarh via MHA