Chhattisgarh Industrial Development Policy 2024-30

The Industrial Development Policy 2024-30 is a six-year industrial investment framework aligned with 'Amrit Kaal: Chhattisgarh Vision @ 2047' — tailored incentive packages for Micro, Small, Medium and Large enterprises across three development-block groups, sector-specific special packages (pharma, textiles, agro & food, electronics, AI & robotics, IT, ITeS & data centres), core-sector and solar packages, plus dedicated packages for SC/ST entrepreneurs, logistics, startups and closed/sick units.

The Industrial Development Policy 2024–30 aims to transform Chhattisgarh into a hub of industrial growth aligned with the vision of 'Amrit Kaal: Chhattisgarh Vision @ 2047'. It emphasises leveraging local resources, promoting agriculture and mineral-based industries, and fostering diversification into emerging sectors such as defence and technology. The Policy prioritises ease of doing business, employment of locals, inclusive growth, development of logistics infrastructure and active stakeholder participation.

Vision and Objectives

• •Vision: establish new dimensions of industrial development to realise 'Amrit Kaal: Chhattisgarh Vision @ 2047' and foster the holistic development of the state.
• •Create an investor-friendly environment and streamline administrative processes.
• •Encourage industries based on local resources and advanced technologies, with skill development and employment generation.
• •Promote core and emerging sectors — including IT, AI and robotics — and leverage the state's geographic advantages and natural resources.

Key Structural Clauses

• •The 2020 amendments by the Government of India to the MSME Act, 2006 (definitions of Micro, Small and Medium Enterprises) have been adopted. Tailored 'Industrial Investment Incentives' are specified for Micro, Small, Medium and Large enterprises, subject to maximum limits set by government; exemptions are in addition to financial investment incentives.
• •Incentives apply to new enterprises and to expansion / diversification / substitution / modernization of existing enterprises.
• •All development blocks are categorised into Group-1, Group-2 and Group-3; the extent of incentives is determined by group.
• •Industries are categorised into General and Thrust Sectors, with special packages for pharmaceuticals, textiles, food processing, agri-processing, NTFP processing, electrical & electronics, IT/ITeS and others; the first five anchor investors in these sectors receive extra incentives.
• •Additional 10% subsidy and a 10% higher maximum limit, plus a one-year relaxation on exemptions, for enterprises of women entrepreneurs, ex-servicemen, retired Agniveers, LWE-affected persons/families, Divyang, NRIs, FDI, exporting industries and projects using foreign technology. If an investor qualifies under more than one category, benefits may be claimed under only one category.
• •Rice mills and parboiling units are eligible only if located in Group-3 blocks and categorised as general enterprises.
• •Warehouses, logistics hubs and cold storages on industrial/commercial land are eligible for subsidies, exemptions and benefits.
• •IT and ITeS units qualifying under the Policy may be established on commercial/industrial land or land related to associated services.
• •New film production, editing, sound-recording and film-processing studios qualify for benefits equivalent to general-category industries.
• •Udyam Kranti Yojana will provide loans through financial institutions plus state subsidy to unemployed youth for new enterprises/service units/businesses.
• •Private industrial areas/parks (minimum 15 acres): 30% subsidy on investment cost excluding land (max ₹4 crore), full stamp-duty exemption and 100% reimbursement of land-conversion (diversion) charges; expansion land gets 30% subsidy (max ₹3 crore) with full stamp-duty exemption, 50% land-registration reimbursement and 100% diversion-fee exemption. Enterprises inside such parks get an additional 10% subsidy, 10% higher cap and one extra year of exemptions.
• •State-domicile employment ratio required to avail incentives: 100% of unskilled manpower, at least 70% of skilled manpower and at least 40% of managerial/administrative manpower.
• •Special provisions: a Cabinet Sub-Committee for large/strategic investments; a strengthened State Investment Promotion Board and a Chief-Secretary-chaired high-level review committee; a 'No Physical Contact' online system; and measures to minimise the time to establish industries.

Enterprise Categories (for Industrial Investment Promotion)

Only investment in plant and machinery is considered for determining the category under this Policy. The enterprise must avail 'Udyam Aakanksha' and, after production starts, obtain a production certificate from the competent authority.

Key Definitions

Development Block Groups

All development blocks are grouped into three categories; incentives rise from Group-1 (most developed) to Group-3 (least developed). Counts: Group-1 (10), Group-2 (61), Group-3 (75).

Thrust Sector Industries (minimum investment in plant & machinery)

Selected entries; where an enterprise makes thrust-sector and other products, it is eligible under the category with the lower benefit.

Ineligible Industries (entire state)

• •Alcohol distillation & alcoholic beverages (except NTFP-based); sawmills; banned polythene/disposable plastics; pan masala / gutka / supari / tobacco; slaughterhouses; packaged drinking water.
• •Coke & coal briquettes, coal screening/washeries; lime/dolomite powder; all mineral powder & slag grinding; asbestos-based; leather tannery.
• •Sponge iron / integrated steel / thermal power — only in Bilha (Bilaspur) and Dharsiva (Raipur) blocks; stone crushers/ballast and rice mill/parboiling — only in Category-1 & 2 industrially developed areas.
• •Repacking of all products; and enterprises as notified from time to time.
• •Where an enterprise makes both ineligible and eligible products, eligibility is determined after excluding the investment made for the ineligible line.

Core Sector Industries (medium & large)

Steel plants (Group-1 excluding Dharsiva & Bilha, plus Groups 2 & 3); cement, aluminium, thermal power and solar power plants (Groups 1, 2 & 3). Core-sector enterprises qualify as Large Core-sector industries unless otherwise specified.

Service Sector Industries (minimum Fixed Capital Investment)

Each package offers an either/or headline benefit — Net SGST Reimbursement or Fixed Capital Investment (FCI) Subsidy — plus a stack of interest, duty, stamp-duty and reimbursement benefits. Rates and durations vary by development-block group and by General vs Thrust sector.

A. MSME Industries (up to 100% of FCI)

Option 1 — Net SGST Reimbursement from commencement of commercial production:

OR FCI Subsidy (micro: one instalment; small: 3 annual; medium: 5 annual):

Interest Subsidy on RBI-approved term loans (period / % / yearly max ₹ lakh):

Other MSME benefits: 100% electricity-duty exemption (new units; 5–10 years by group/sector); 100% stamp-duty exemption (land/shed deeds + loan deeds up to 3 years); 100% mandi-tax exemption for agri/food & biofuel/ethanol (5 years, max ₹5 cr/yr, ≤75% of FCI); 50% land-diversion-fee exemption (micro/small, up to 15 acres); land-allotment service-charge exemption; project-report subsidy (1% of FCI, max ₹10 lakh); 25% margin-money subsidy for SC/ST/women/ex-servicemen/Agniveer/Naxal-affected/third-gender/disabled (on ₹10 cr, max ₹100 lakh); and the common subsidies in Section 4.

B. MSME Services Sector (up to 150% of FCI)

Net SGST reimbursement for 10 years up to 150% of FCI, OR FCI subsidy — Micro 35/40/45% (max 35/40/45 ₹ lakh), Small 35/40/45% (max 350/450/550), Medium 35/40/45% (max 700/750/800) for G1/G2/G3. Interest subsidy 45–55% for 6–8 years (yearly max ₹20–50 lakh). Electricity-duty exemption 6/8/10 years; 100% stamp-duty exemption; plus common subsidies.

C. Large Industries (up to 100% of FCI)

OR FCI Subsidy: General 15% (max ₹50/60/75 cr, 10 annual instalments); Thrust 30% (max ₹100/125/150 cr, 8 annual instalments) for G1/G2/G3. Plus electricity-duty exemption (6–12 years), 100% stamp-duty exemption, 50% land-registration reimbursement, 50% land-diversion exemption (up to 50 acres), mandi-tax exemption (agri/food), 75% EPF reimbursement (5 years, max ₹1 cr/yr) and common subsidies. Units investing ₹1,000 cr+ or employing 1,000+ locals may get a customised package via the Cabinet Sub-Committee.

D. Large Service Sector (up to 150% of FCI)

Net SGST reimbursement for 10 years up to 150% of FCI, OR FCI subsidy 30% — max ₹50 cr (₹50–200 cr investment) or ₹140 cr (₹200–500 cr), 10 annual instalments. Electricity-duty exemption 6–7 years; stamp duty, land-registration, land-diversion, EPF and common subsidies apply. Customised package possible at ₹500 cr+ or 1,000+ jobs.

E. Special Large-Enterprise Sector Packages

Each carries Net SGST for 12 years OR an FCI subsidy, 100% electricity-duty exemption for 12 years, stamp-duty exemption, land-registration/diversion relief, 75% EPF reimbursement, anchor-unit bonus and R&D subsidy.

Sector-specific extras: Pharma / Textiles / Agro & Food add ETP subsidy (50%, max ₹1 cr), zero-waste incentive, and clinical-trial (pharma, 50% up to ₹1 cr/trial, max 5) or export-certification (USFDA/WHO-GMP/EU-GMP etc.) reimbursements. Textiles & Agro carry an enhanced transport subsidy (75% for 10 years, up to 35% of FCI). IT & ITeS add a rental subsidy (40% of rent, max ₹50,000/month, up to 5 years). Anchor units: the first five with >₹200 cr investment get an extra 5% FCI subsidy (cap up to 110% of FCI).

F. Core (Steel) Sector — Large

Plus 100% electricity-duty exemption (10/10/15 years), 100% water-tax reimbursement (10/10/15 years), royalty reimbursement in Bastar & Surguja (50% iron-ore royalty + 100% coal cess), stamp-duty/land-registration/land-diversion relief, employment subsidies and EPF reimbursement.

G. Core (Except Steel) & Solar Power Plants — Large

Covers cement, aluminium, thermal power and small/medium/large solar plants. Net SGST for 10 years up to 80% (G1) / 90% (G2), and 15 years up to 100% (G3); 100% electricity-duty exemption 10/10/15 years; stamp-duty, land-registration and land-diversion relief; employment and training subsidies.

H. SC/ST Entrepreneurs (up to 100% of FCI)

Enhanced FCI subsidy — Micro 35–50%, Small 35–50% (max ₹255–555 lakh), Medium 35–50% (max ₹450–800 lakh) across groups and General/Thrust; interest subsidy 45–60% for 6–8 years; electricity-duty exemption 6–11 years; 100% stamp-duty exemption; 25% margin-money subsidy (max ₹100 lakh); transport subsidy up to ₹60 lakh/yr; 100% land-premium exemption in industrial areas with ₹1/acre/year lease rent; plus a 10% additional subsidy (with 10% higher limit) on a set of MSME general/service subsidies.

I. Logistics Package (up to 150% of FCI)

Net SGST for 5/7/9 years up to 75% of FCI (MSME-service), OR FCI subsidy — Micro 35–45% (max ₹1–2 cr), Small 45–55% (max ₹2.5–4.5 cr), Medium 45–55% (max ₹5–10 cr). Interest subsidy 50–70% for 6–11 years. Transportation-vehicle subsidy: 50% up to ₹35 lakh/vehicle (refrigerated, ≥9 MT) or ₹25 lakh/vehicle (logistics, ≥9 MT). Vehicle registration & national-permit fee reimbursement (100% up to 30 MT; 50% above). Additional 5% subsidy for digitalisation / community waste management / renewable-energy systems, plus packaging-centre incentives (≥70% export handling).

J. Startup Package — Financial Assistance

• •Corpus Fund of ₹50 crore and a separate Credit Risk Fund of ₹50 crore.
• •Seed funding ₹5 lakh (initial); ₹3 lakh after 6 months of production; ₹3 lakh after 18 months.
• •Rent subsidy 40% of rent (max ₹15,000/month) for 3 years; full stamp-duty exemption on land (up to 5 years) and 3 years on term loan.
• •Project-report subsidy 1% of FCI (max ₹5 lakh); quality-certification subsidy 80% (max ₹10 lakh); patent subsidy 50% (max ₹10 lakh); technology-purchase subsidy 50% (max ₹10 lakh).
• •SC/ST, women, ex-servicemen, LWE-affected and Divyang startups get +10% subsidy and one extra year of exemptions.

K. Closed & Sick Industries

• •On revival/acquisition (via NCLT / SARFAESI / financial-institution routes): full stamp-duty and registration-fee exemption, land-transfer-fee exemption (up to 5%); the unused/partly-used balance of interest subsidy, FCI subsidy, Net SGST reimbursement, electricity-duty exemption, mandi-tax exemption and various reimbursements.
• •Outstanding dues payable in 36 monthly / 12 quarterly instalments; existing utility and clearance approvals deemed valid on re-endorsement.
• •Minimum ₹10 lakh plant-and-machinery investment required; the revival package is granted only once.

A. Common Subsidies (available across most packages)

B. The Additional 10% Special-Category Top-Up

Women entrepreneurs, ex-servicemen, retired Agniveers, LWE-affected persons/families, Divyang, NRIs, FDI, exporting industries and foreign-technology projects receive an extra 10% subsidy, a 10% higher maximum limit and a one-year relaxation on exemptions. Benefits under only one category may be claimed if more than one applies.

C. Private Industrial Areas / Parks

Minimum 15 acres: 30% subsidy on investment cost excluding land (max ₹4 crore), full stamp-duty exemption and 100% land-conversion reimbursement; expansion land gets 30% (max ₹3 crore) with full stamp-duty exemption, 50% registration reimbursement and 100% diversion-fee exemption. Enterprises inside such parks receive an additional 10% subsidy, a 10% higher cap and one extra year of exemptions.

D. Udyam Kranti Yojana

Loans through financial institutions plus state subsidy for unemployed youth to establish new enterprises, service units or businesses.

E. Film Industry

New film production, editing, sound-recording and film-processing studios qualify for subsidies, exemptions and benefits equivalent to general-category industries, on commercial/industrial or diverted land.

F. Startup Ecosystem — Non-Financial

• •Self-certified exemption (initial years) from the Factories Act 1948, Shops & Establishments Act, Contract Labour Act 1970, Minimum Wages Act 1948 and Maternity Benefit Act 1961.
• •Permission to operate across all three shifts (including women, with safety arrangements); Startup Fest; single-window 'Online Udyam Aakanksha' registration.
• •Incubators: 40% of set-up cost (max ₹40 lakh); ₹5 lakh/year (divisional HQ) or ₹3 lakh/year (other districts) for up to 5 years — each incubating ≥10 (divisional) or ≥5 (other) startups.
• •If a startup avails this package, it cannot claim other similar state benefits (by any name); similarly, benefits already taken from the Government of India will not be duplicated by the state.

G. Logistics — Non-Fiscal

Height relaxation up to 24 metres (per National Building Code, with fire-safety norms) and performance-linked recognition (grading, ratings, excellence certifications) for superior logistics services.

Threshold Conditions

Document Checklist — MSME / Large Enterprise Claim

Items marked Confirmed flow directly from the Policy text. Items marked Indicative are ordinarily required to evidence a stated condition and must be reconciled with the department's operational guidelines and the live online form.

Document Checklist — Startup Package

Document Checklist — Logistics / Closed & Sick Units

1. 1Step 1 — Register on 'Udyam Aakanksha': classify the enterprise (plant & machinery basis) and, for startups, register on the Chhattisgarh Startup Portal via single-window.
2. 2Step 2 — Establish 'Effective Steps': secure lawful land possession, begin construction (≥10% capital), place a firm P&M order with advance, and submit all statutory approvals.
3. 3Step 3 — Commence production/service: obtain the commercial-production/service certificate with date from the competent authority, within the 01/11/2024–31/03/2030 window.
4. 4Step 4 — Choose the headline benefit: elect either Net SGST reimbursement or the FCI subsidy for the applicable package (this election is mutually exclusive).
5. 5Step 5 — Apply online (No Physical Contact system): file the claim with the DPR, invoices, loan sanction, GST/Net-SGST computation, employment records, land documents and category certificates.
6. 6Step 6 — Sanction & disbursement: the first FCI-subsidy instalment is released after the application is sanctioned post-commencement of production; subsequent instalments per the package schedule (micro one / small three / medium five / large 8–10).
7. 7Step 7 — Ongoing / annual claims: file interest-subsidy, EPF, training, mandi-tax, transport and Net-SGST claims year-on-year per the package period.
8. 8Step 8 — Large / strategic investments: units at ₹1,000 cr+ (or 500–1,000+ jobs, sector-dependent) route a customised-package request to the Cabinet Sub-Committee.

All subsidies, exemptions and reimbursements are being integrated into a transparent online system. Because several package-level procedures are to be notified separately, confirm the current online form and the required annexures with the District Trade & Industry Centre before filing.

Composition — Cabinet Sub-Committee

Composition — State-Level Startup Promotion Committee

• •01/11/2024: Policy comes into effect. The Industrial Development Policy 2024–30 is effective from this date; new enterprises commencing commercial production/service on or after 01/11/2024 (and up to 31/03/2030) qualify.
• •27/02/2025: Policy formally notified by the Government of Chhattisgarh, envisioning 'Amrit Kaal: Chhattisgarh Vision 2047'.
• •May 2025: First set of Cabinet amendments (chaired by CM Vishnu Deo Sai): made more employment-oriented; reduced minimum investment thresholds for hotels/resorts in Bastar & Surguja; expanded provisions across modern farming, toys, textiles, tourism and logistics; revamped the Divyangjan definition; a separate Logistics Policy announced.
• •Dec 2025 / Jan 2026: Further Cabinet amendments (reported around 31/12/2025–01/01/2026, issued mid-January 2026): new EPF-reimbursement and employment-generation incentives; wage-linked incentives extended to MSMEs in pharma, textiles, food processing, electronics, AI and IT employing 50+ persons; incentives for five-star hotels (Raipur, Durg, Bilaspur) and three-star hotels elsewhere; incentives for large private multi-speciality hospitals.
• •5-year validity (startups): Startup-unit eligibility is valid for 5 years from the date of acknowledgement on the Chhattisgarh Startup Portal.
• •31/03/2030: End of the Policy Period. The Policy runs 01/11/2024 to 31/03/2030, with the State Government empowered to review, amend or revise provisions as required.