Chandigarh: Punjab Governor and Chandigarh Administrator Gulab Chand Kataria has given the long-awaited startup policy the green light after over two years of discussions, approved during an Industries Department presentation on October 1, with Kataria recommending some adjustments.
Officials stated that these suggestions would be incorporated before the revised policy is presented again, with a notification expected by the end of the month.
The policy outlines several key initiatives, including the establishment of a seed fund with an initial Rs 10 crore corpus, which will grow to Rs 50 crore over five years.
According to reports, it also promises incentives for women-led startups, defining such units as those with women founders, co-founders, or CEOs.
At least 33% of the interest-free loans from the seed fund will be earmarked for these businesses.
Moreover, the UT Administration will support the development of co-working spaces, providing startups with free or subsidized access for up to three years.
The policy also includes provisions for capacity building, offering training for incubator staff and managers and facilitating exposure visits to leading incubation centers in India and abroad.
In parallel, the Central Government has extended tax benefits for startups until March 2025. Startups incorporated between April 2016 and March 2025 can avail tax rebates for three consecutive years within their first 10 years, provided their turnover remains below Rs 100 crore. This extension follows the Startup India initiative launched in 2016.
The Chandigarh Draft Startup Policy, initially unveiled in September 2022, aims to build a robust ecosystem by establishing a dedicated fund for startup incubation, scaling, and financial support.
Through partnerships with higher education institutions, the Administration plans to enhance existing incubators and create new ones focused on key industries relevant to the city.
