Chandigarh’s policy pangs: A rocky start to startup policy
First conceptualised in 2018, the Chandigarh Startup Policy continues to hang in the balance four years later, with the UT administration repeatedly going back and forth between a city-specific policy and following central govt’s norms
The Chandigarh Startup Policy is the perfect example of how flip-flops characterise the UT administration’s policy formulation, which in the end is often left in a shambles.
Six years ago, the Narendra Modi government introduced “Startup India” in 2016 to foster entrepreneurship and promote innovation by creating an ecosystem that is conducive for the growth of startups.
For nearly two years thereon, the administration contemplated over the direction to be taken on conceptualising a dedicated policy for Chandigarh, before finally deciding on one in 2018.
A draft was prepared and circulated among industrialists and entrepreneurs after holding multiple stakeholder meetings and studying policies in other states.
But after working on framing its own startup policy for nearly a year, the administration in 2019 decided to follow Government of India norms.
A year later, it reconsidered the policy’s status and once again decided that a startup policy tailored for the city’s requirements and conditions is needed.
A new draft was prepared based on the previous draft and Centre’s policy, and circulated in early 2021.
However, in another U-turn, by the end of 2021, the administration returned to following the central government norms and decided that the startups in the city will be supported as per Centre’s criteria.
But that was not the end of it. In early 2022, the administration again pushed for the formulation of a Chandigarh-centric startup policy. Now, the UT industry department is said to be giving final touches to the new draft.
“The administration is driven by the officers who man its top echelons. With these officers coming and going, the administration’s thinking also changes. Similarly, the industry department has also not seen much stability in terms of the people heading it, leaving little scope for continuity in policy formulation,” said a senior UT official.
Promoting startups
Once being promoted as an IT hub, Chandigarh has been lagging behind neighbouring cities, particularly Mohali, in terms of attracting new talent and setting up industrial units.
The 2021 draft recommended setting up a Chandigarh Seed Fund Scheme to plug the gap for early-stage startup financing in the UT, interest-free loans, empanelment of startup mentors and development of co-working spaces, besides setting up of incubators.
A startup portal (website) will also be created, which will be a one-stop platform for startups and ecosystem stakeholders, containing all relevant information and resources.
The 2021 draft also mandated that the administration set up a dedicated Entrepreneurship Centre for Women (ECW), which was envisaged as a hub for aspiring and seasoned women entrepreneurs.
“The industry representatives and also officials within the administration believe that a localised startup policy can be critical in providing the essential funding, mentorship and market access support required by startups to grow as important contributors to the local economy in terms of revenue and job creation,” said the official.