The Industries Department, under the overall supervision of Home Secretary, looks after the all-round industrial and commercial development of the Union Territory; it provides direct assistance, regulation and coordination of industry-promoting activities. The Directorate of Industries is the main agency operating under this department but there are also several specialised agencies.
Several laws govern the functioning of this department. They include: the Industrial Development (Regulation) Act, 1956 [For small scale industries registration, the department follows the instructions of the Union Development Commissioner, Small Scale Industries], Electrical Wires, Cables, Appliances and Accessories (Quality Control) Order, 1993, The Cement (Quality Control) Order. 1995, and the Oils and Greases (Processing, Supply and Distribution Regulation) Order, 1987.

There are about 2950 Small Scale and 15 Large and Medium Scale Units in existence in Chandigarh as on date. Growth of industry for the last few years has been limited in Chandigarh as it is not an industry led city because of the limited space envisaged for industrial development at the time of original planning of the city. However, still keeping in view the fact that industry would provide crucial resource base in the city, a limited area of about 1450 acres was planned for development as industrial area mainly for the development of small scale and pollution free industries.

Out of a total of about 2950 small scale industries in Chandigarh about 40% are ancillary units producing components for the major tractor industry around Chandigarh. Light engineering industry is heavily represented, other industrial units produce mainly industrial fasteners, electrical / electronic items, machine tools, pharmaceuticals, plastic goods, sanitary fittings, steel / wooden furniture and food products etc. A number of items manufactured here are finding ready markets abroad. The total estimated annual output of industries is to be tune of Rs. 650.00 crore.

Land availability for industries being a constraint, there is hardly any scope for further expansion of industry, apart from the existing Industrial Area Phase-I and Phase-II.

The Chandigarh Administration is focusing on promotion of Information Technology (IT) industry which requires lesser space and is also non polluting. Accordingly, high speed data communication facilities for software development and its export has been arranged by providing a NODE at Punjab Engineering College (PEC), Chandigarh through the Software Technology Parks of India – STPI – (an autonomous Society under the Deptt. of Electronics, Govt. of India) which has set up an earth station at Mohali for the proposed Software Technology Park / Complex being set up by the Punjab Govt. About 10000 sq.ft. of space has been earmarked in the PEC campus for being rented out to the desirous entrepreneurs at fixed rates.

Under the Prime Minister’s Rojgar Yojana, the Department is recommending cases, after these are approved by the Task Force Committee, to the various nationalised Banks. The beneficiaries are granted loan amounting to Rs. 2.00 lacs for industry and Rs. 1.00 lac for service and business ventures. 15% subsidy is paid, subject to a maximum of Rs. 7,500/-.

Chandigarh Industrial Policy 2015