The Central Government has taken a major step to improve the ease of doing business in Chandigarh. It has extended the Punjab Right to Business Act, 2020 to the Union Territory with suitable changes. The move creates a digital single window system for businesses to get approvals and permits.
What the notification says
The Ministry of Home Affairs issued the notification under Section 87 of the Punjab Reorganisation Act, 1966. This section allows the central government to adapt laws from Punjab for use in Chandigarh. The notification makes clear that the Act will now work in Chandigarh with necessary adjustments.
According to the notification, references to the Punjab Government will now mean the Administrator of the Union Territory of Chandigarh. The Act also creates a separate institutional mechanism that fits the Union Territory's administrative structure.
Digital single window for businesses
The Punjab Right to Business Act, 2020 was originally designed to reduce the regulatory burden on businesses, especially micro, small and medium enterprises (MSMEs). It provides an online single window where businesses can apply for various approvals, permits and licences in one place.
With the extension to Chandigarh, businesses in the Union Territory will now have access to this digital platform. The move will bring key permissions like building plans, fire No Objection Certificates (NOCs), licences and utilities under one digital platform.
What this means for businesses in Chandigarh
For entrepreneurs and companies operating in Chandigarh, this reform simplifies the process of starting and running a business. Instead of visiting multiple government offices for different approvals, they can now use a single online portal.
The reform aims to make the regulatory process faster, more transparent and less time-consuming. This is part of the central government's broader push to improve India's ranking in ease of doing business.
Our Take: A practical step forward
In our view, this is a sensible and practical reform. Extending a proven law from Punjab to Chandigarh avoids the need to draft a completely new law from scratch. The digital single window approach directly addresses one of the biggest complaints businesses have — the hassle of dealing with multiple government departments separately.
However, the success of this reform will depend on how well the digital platform works in practice. A good law on paper is not enough — the system must be user-friendly, reliable and backed by efficient government staff. If implemented well, this could set a model for other Union Territories to follow.