Lok Sabha Question No. 4490 (UNSTARRED), answered on 2026-03-19
Subject: Implementation of MSME Framework in Chandigarh
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Manish Tewari

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 4490 TO BE ANSWERED ON: 19.03.2026

## IMPLEMENTATION OF MSME FRAMEWORK IN CHANDIGARH

## 4490.  SHRI MANISH TEWARI:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) whether  the  Government  has  examined  the  reasons  for  non-adoption  of  the  provisions  of  the Micro, Small and Medium Enterprises Development Act, 2006 in the Union Territory of Chandigarh, despite its applicability in neighbouring States and the timeline for its implementation in Chandigarh;
- (b) whether  the  absence  of  a  formal  MSME  framework  has  affected  access  to  benefits  such  as delayed payment protection, formal recognition of service enterprises and institutional support and if so, the details thereof;
- (c) whether  the  Chandigarh  UT  Administration  is  in  the  process  of  formulating  and  notifying  a dedicated MSME policy and the key features proposed therein;
- (d) whether representations have been received from industry bodies regarding lack of parity with neighbouring States in MSME facilitation and the action taken thereon; and
- (e) the steps being taken to align Chandigarh's enterprise ecosystem with national MSME policies to improve ease of doing business and promote investment?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

(a)  and (b): The Central Government supplements the efforts of the State/UT Governments through various schemes, programmes and policy initiatives for overall development and promotion of Micro, Small and Medium Enterprises (MSMEs) in the country, including Union Territory of Chandigarh. The provisions  of  the  MSME  Development  Act,  2006  are  applicable  across  the  country,  including Chandigarh.

The Ministry of MSME launched Udyam Registration Portal (URP) on 01.07.2020 to facilitate ease of registration for MSMEs. The registration is fully online, paperless and based on self-declaration. An enterprise registered anywhere in the country, including Chandigarh is eligible to avail the benefit of various schemes of the Ministry of MSME, subject to eligibility criteria. As per URP, as of now, 89,119 MSMEs are registered in Chandigarh out of which 37,035 MSMEs are engaged in services.

The Ministry of MSME launched MSME SAMADHAAN Portal, which enables MSMEs to file complaints  regarding  delayed  payments  by  buyers  online.  Further,  Ministry  of  MSME  has  launched Online Dispute Resolution (ODR) Portal as a digital, technology-enabled mechanism with an objective of  ensuring  speedy,  cost-effective,  and  transparent  resolution  of  delayed  payment  disputes  involving Micro and Small Enterprises (MSEs). All the fresh cases of delayed payment by MSEs are being filed on MSME ODR portal w.e.f 15.10.2025.

Certain  provisions  of  the  Act  require  institutional  arrangements  by  State/UTs,  including adjudication  of  delayed  payment  cases  through  establishment  of  the  Micro  and  Small  Enterprises Facilitation Council. Out of total, 161 MSEFC, 1 MSEFC is established and functional in Chandigarh.

(c): Formation of State MSME Policy for Chandigarh comes under the purview of Chandigarh UT Administration and Ministry of Home Affairs.

(d) and (e): The Ministry of MSME continues to engage with States and UTs, including Chandigarh, through  stakeholder  consultations  and  advisory  communications  so  as  to  encourage  alignment  with MSMED Acts, 2006 and the Policy initiatives of the Government of India for the MSME sector. The Ministry of MSME has taken steps to improve ease of doing business, strengthen grievance redressal and promote the growth and competitiveness of MSMEs.

Representations  from  industry  associations  and  stakeholders  are  received  from  time  to  time regarding MSME facilitation in different regions, including Chandigarh. Such representations are taken up with the concerned State Government/UT Administration and others for appropriate consideration and necessary action.

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