633 startups in Chandigarh, but no incentives yet: Implementation guidelines, committee structures and the online application system still to be finalised

The minister said the administration was currently working on operational guidelines, incentive disbursement rules and institutional mechanisms, all of which require mandatory administrative and financial approvals. “No direct financial incentives have been disbursed yet… as finalisation of operational guidelines, committee structures, and an auditable application system is essential to ensure transparency, accountability and responsible utilisation of the earmarked annual corpus of Rs 10 crore,” the reply stated.

At the same time, the Centre highlighted growth in the number of DPIIT-recognised startups in Chandigarh under the national Startup India framework. The number of recognised startups has risen from fewer than 10 in 2016 to over 633 as of October 31, 2025. These startups have created 6,260 jobs, compared to fewer than 300 jobs in 2017, the reply said. Women’s participation has also increased, with the number of startups having at least one woman director or partner rising from fewer than 10 in 2017 to 297 in 2025.

The government further said startups from Chandigarh have received support through central schemes, including Rs 21.30 crore invested by Alternative Investment Funds under the Fund of Funds for Startups, Rs 2.89 crore approved under the Startup India Seed Fund Scheme, and credit guarantees of up to Rs 15 lakh under the Credit Guarantee Scheme for Startups. Fifteen startups have also received income tax benefits under Section 80-IAC of the Income Tax Act.

Reacting to the reply, Tewari expressed disappointment over the pace and outcomes of the UT’s startup push. “It is disappointing to note that there are only 633 startups in Chandigarh and no unicorn has been created so far, notwithstanding the fact that Chandigarh is an academic and institutional hub and there is a thriving ecosystem of the Fourth Industrial Revolution around the city,” he said.

Tewari had also sought to know whether the Centre would issue any status-report directive to the UT to ensure timely execution and transparency in implementing the policy. The reply underlined ongoing monitoring through national initiatives but did not spell out any specific timeline for making the UT’s startup portal operational or for releasing the first tranche of incentives.

The Chandigarh Startup Policy 2025, notified on April 29, 2025, by the Chandigarh Administration under the Department of Industries, seeks to position the Union Territory as a leading innovation and entrepreneurship hub, aiming to support over 200 startups in five years while emphasising inclusive growth for youth, women, transgender individuals, and underrepresented groups. It operates through a dedicated “Start-in-Chandigarh” portal for registration and services, governed by a High-Powered Committee and a Policy Monitoring and Implementation Committee, with an annual allocation of Rs 10 crore (total Rs 50 crore over five years). As of December 2025, implementation guidelines and the portal are still being finalised.

Key incentives include idea-stage grants (Rs 2 lakh for the top 20 and Rs 1 lakh for the next 50 startups via an annual competition), patent reimbursements (Rs 10,000 to Rs 50,000), certification support (up to Rs 1 lakh), workshop/conference assistance (Rs 50,000 to Rs 2.5 lakh), acceleration programme support (Rs 2-3 lakh), and subsidised office rent (Rs 5,000 per month). Non-financial benefits feature free one-year incubation, relaxed public procurement rules, labour law self-certification, and capacity-building for incubators (up to Rs 30 lakh for public and Rs 20 lakh for private). Eligibility requires DPIIT recognition, a Chandigarh office, and benefits end after 10 years or upon reaching Rs 100 crore turnover.