Addressing the Delhi Startup Yuva Festival on January 14, 2026, Education Minister Ashish Sood and Chief Minister Rekha Gupta outlined a vision where the “city never sleeps” for innovation. The new policy formally recognizes co-working spaces as essential infrastructure and grants them exemptions from traditional “closing hour” regulations under the Delhi Shops and Establishment Act.
Key Highlights of the 24/7 Policy
The legalization comes with specific safety and financial incentives designed to make Delhi the most preferred destination for young entrepreneurs.
- Operational Freedom: Co-working spaces can now operate 24 hours a day, 7 days a week, allowing startups to collaborate with international clients and handle late-night deployments without legal risk.
- 100% Rent Reimbursement: Recognized startups can claim 100% reimbursement on lease rentals (up to ₹10 lakh per annum) for a period of three years if they operate out of these recognized co-working hubs.
- Infrastructure Grants: The government will provide one-time capital support for the setup of “Fabrication Labs” and incubation centers within these spaces to foster hardware innovation.
- Safety Mandates: To maintain the 24/7 status, establishments must comply with strict safety norms, including mandatory CCTV surveillance (with 30-day backups), secure transport for night-shift employees, and verified security personnel.
Benefits for MSMEs and Startups
The move is expected to drastically reduce the “hidden costs” of entrepreneurship in the capital.
| Feature | Impact on Startups/MSMEs |
| Global Alignment | Seamlessly work with US/EU partners without “under-the-radar” night shifts. |
| Asset-Light Model | No need for heavy deposits or long-term leases on private 24/7 offices. |
| Talent Retention | 24/7 access to high-speed internet, power backup, and safe environments for diverse shifts. |
| Financial Support | Access to a ₹325 crore fund for incubation, mentorship, and market linkage. |
The “Campus to Market” Initiative
Beyond real estate, the policy introduces the “Campus to Market” system. This interconnected ecosystem ensures that student-led ideas from Delhi’s schools and colleges are funneled directly into these 24/7 co-working hubs.
- Equity-Free Grants: The top six student-led startups have already been awarded ₹10 lakh each in equity-free grants to kickstart their operations in these newly legalized spaces.
Conclusion: A Global Hub by 2035
The legalization of 24/7 co-working is the first step in a 10-year roadmap to develop 5,000 high-growth startups in Delhi. By aligning local labor laws with the realities of the digital economy, the Delhi government is betting that a “round-the-clock” workspace will turn the capital into a formidable rival to Bengaluru and Hyderabad.
