New Delhi

In a major step to improve the ease of doing business in Chandigarh, the Ministry of Home Affairs (MHA) has extended the Punjab Right to Business Act, 2020, to the Union Territory with a series of modifications tailored to suit its administrative setup, creating a dedicated framework for faster business approvals and investment facilitation.

The extension of the Act is expected to reduce regulatory burden, improve investor confidence and further strengthen the ease of doing business ecosystem in Chandigarh.

Businesses operating in IT parks, biotech parks, Special Economic Zones (SEZs), industrial townships, growth centres, food processing parks, or any other similar project approved by the competent authority of the Chandigarh administration or the Central government can also avail the benefits of the Act, including faster approvals and easier regulatory clearances.

The act, extended to Chandigarh, came into effect soon after a notification was issued on July 2 night, with modifications replacing references to the Punjab government and its agencies with corresponding Chandigarh authorities, effectively creating a dedicated legal framework to fast-track industrial and commercial approvals in the UT.

As per the notification, Chandigarh Bureau of Enterprise and Investment (CBEI) will be established as the nodal agency to facilitate investment proposals, coordinate with government departments, issue in-principle approvals, address investor grievances, and promote eligible enterprises. The Bureau will be headed by the UT's Secretary (Industries), while the Director of Industries will serve as the Additional Chief Executive Officer.

"In exercise of the powers conferred by Section 87 of the Punjab Reorganisation Act, 1966 (31 of 1966), the Central Government hereby extends to the Union territory of Chandigarh the Punjab Right to Business Act, 2020 (Punjab Act No. 1 of 2020), as in force in the state of Punjab," reads the notification.

Under the Punjab Reorganisation Act, 1966, the Central government can extend certain Punjab laws to Chandigarh after making suitable modifications. This is a common legal practice.

As per the notification, the words "state" and "Punjab", wherever they occur, the words "Union Territory of Chandigarh" shall be substituted; for the words "state government", "government" and "Government of the State of Punjab", wherever they occur, the words "Administrator, Union Territory of Chandigarh" shall be substituted; for the words "District Nodal Agency", wherever they occur, the words Chandigarh Bureau of Enterprise and Investment" shall be substituted; and for the words "Punjab Pollution Control Board", wherever they occur, the words "Chandigarh Pollution Control Committee shall be substituted.

The notification clearly mentioned that "competent authority" means would be any department or agency of the Chandigarh administration or a local authority, statutory board, Union territory Chandigarh owned corporation or board, Urban Development Authorities or any other authority or agency constituted or established by any law or under administrative control of the Chandigarh administration which is entrusted with the powers or responsibilities to grant or issue approvals for the establishment or operation of an enterprise in the Union Territory of Chandigarh.

Key benefits of the act include faster start of business, time-bound clearances, deemed approval, a digital single-window system, and reduced inspection burden.

With the extension of the Act to Chandigarh, officials in the MHA said, "Eligible enterprises will be able to obtain in-principle approval on the basis of a declaration of intent, enabling quicker commencement of business activities. The framework provides for time-bound processing of approvals and clearances by the concerned departments."

Under the process of deemed approval, where decisions are not taken within the prescribed period, an official privy to the development told ANI: "Deemed approvals will be generated and made visible through the designated single-window portal."

A major feature of the order is the introduction of a fully digital single-window system.

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Describing the "digital single-window system", the official said, "filing of declaration of intent, tracking of application status, issuance of certificates, inspection reports and grievance filing will be carried out electronically through the single-window portal."

Another official, known with the move, said eligible enterprises holding an in-principle approval certificate will be "protected from inspections relating to approvals during the validity period of such certificate, except in complaint-based cases as provided under the Act."