Comprehensive CA guide to Chhattisgarh Industrial Development Policy 2024-30 (Updated May 2025). Group 1, 2, 3 block lists, 30%-50% FCI grants, 100% Net SGST refunds, electricity duty waivers & DIC claim process.
In This Article
5 SectionsThe Department of Commerce & Industries, Government of Chhattisgarh, notified the Industrial Development Policy 2024–30 (effective November 1, 2024 to March 31, 2030, updated as per departmental notification dated May 27, 2025). This policy offers unprecedented financial incentives for setting up new manufacturing plants, service enterprises, expansion projects, and sick unit revivals across all 33 districts of Chhattisgarh.
For factory promoters, MSME entrepreneurs, rice millers, and corporate investors, understanding the block categorization and statutory subsidy limits is critical to maximizing financial returns and securing bank project finance.
In this comprehensive guide, CA Rabi Agrawal & Associates breaks down the complete subsidy structure, Group 1/2/3 development block classifications, Fixed Capital Investment (FCI) grant limits, Net SGST reimbursements, and the mandatory CA certification workflow.
1. Statutory Policy Framework & Regional Block Categorization (Annexure-4)
To promote balanced regional development, the Government of Chhattisgarh has classified all 146 development blocks across 33 districts into three distinct groups:
Group 1 (Developed Blocks — Standard Incentives)
Includes industrially developed urban blocks:
- Raipur District: Dharsiwa Block.
- Bilaspur District: Bilha Block.
- Durg District: Durg, Dhamdha, Patan Blocks.
- Raigarh District: Raigarh Block.
- Janjgir-Champa District: Akaltara Block.
- Korba District: Korba Block.
Group 2 (Developing Blocks — Enhanced Incentives)
Includes developing industrial blocks:
- Raipur District: Tilda, Arang, Abhanpur Blocks.
- Gariyaband District: Gariyaband, Fingeshwar Blocks.
- Mahasamund District: Mahasamund, Saraipali, Pithora Blocks.
- Dhamtari District: Dhamtari, Kurud Blocks.
- Bemetara District: Bemetara, Saja, Berla, Navagarh Blocks.
- Rajnandgaon District: Rajnandgaon, Dongargaon, Dongargarh Blocks.
- Kabirdham (Kawardha): Kawardha, Bodla, Sahaspur, Lohara Blocks.
- Surguja & Bastar: Ambikapur, Jagdalpur Blocks.
Group 3 (Backward Blocks — Maximum Incentives & High Subsidies)
Includes high-priority backward and tribal blocks:
- Gariyaband: Chhura, Deobhog, Mainpur Blocks.
- Mahasamund: Bagbahara, Basna Blocks.
- Dhamtari: Magarlod, Nagri Blocks.
- Balod: Daundi-Lohara Block.
- Rajnandgaon: Chhuria Block.
- Kabirdham: Pandariya Block.
- Gaurela-Pendra-Marwahi: Marwahi Block.
- Sarangarh-Bilaigarh: Bilaigarh Block.
- Korba: Pali, Kartala, Podi-Uproda Blocks.
- Entire Bastar Division: Kanker, Kondagaon, Dantewada, Sukma, Bijapur, Narayanpur.
2. Core Investment Subsidies under Policy 2024–30
Eligible enterprises commencing commercial production between November 1, 2024, and March 31, 2030, can claim multiple state financial incentives:
A. Fixed Capital Investment (FCI) Subsidy (Annexure 7 & 9.1)
Covers investment made in land, land development, shed/building construction, new plant & machinery, electricity supply installation, and boundary wall:
| Enterprise Classification | Group 1 Block Subsidy | Group 2 Block Subsidy | Group 3 Block Subsidy | Maximum FCI Subsidy Limit |
|---|---|---|---|---|
| Micro Enterprise (Investment ≤ ₹1 Cr) | 30% to 35% | 35% to 40% | 40% to 45% | Up to ₹45 Lakhs (Single Installment) |
| Small Enterprise (Investment ≤ ₹10 Cr) | 30% to 35% | 35% to 40% | 40% to 45% | Up to ₹550 Lakhs (Disbursed over 3 Yrs) |
| Medium Enterprise (Investment ≤ ₹50 Cr) | 30% to 35% | 35% to 40% | 40% to 45% | Up to ₹800 Lakhs (Disbursed over 5 Yrs) |
| Large Manufacturing (Investment > ₹50 Cr) | 15% to 30% | 15% to 30% | 15% to 30% | Up to ₹150 Crore (Disbursed over 8-10 Yrs) |
Note: 10% additional subsidy and 10% higher maximum limit are granted to Women Entrepreneurs, SC/ST, Ex-Servicemen, Agniveers, and Naxal-affected individuals.
B. Net State Goods and Services Tax (Net SGST) 100% Reimbursement
- Reimbursement Period: 5 to 12 years from date of commercial production.
- Reimbursement Cap: Up to 100% to 150% of Fixed Capital Investment.
- Applies to Net SGST actually deposited in the Chhattisgarh state treasury on intra-state sales.
C. 100% Stamp Duty Exemption (Annexure 9.4)
- 100% exemption on land purchase/lease deeds executed for industrial units.
- 100% exemption on bank loan mortgage and hypothecation deeds executed within 3 years of bank loan sanction.
D. 100% Electricity Duty Exemption (Annexure 9.3)
- Full exemption from electricity duty for 5 to 10 years for MSMEs, and up to 12 years for Large/Thrust sectors.
3. Mandatory Domicile Employment Quotas (Clause 12.19)
To maintain eligibility for industrial investment incentives, every enterprise established in Chhattisgarh must adhere to mandatory local employment ratios:
- Unskilled Labour: 100% native domiciles of Chhattisgarh State.
- Skilled Labour: Minimum 70% native domiciles of Chhattisgarh.
- Administrative & Managerial: Minimum 40% native domiciles of Chhattisgarh.
4. Step-by-Step DIC Claim & CA Certification Workflow
┌───────────────────────────┐ ┌───────────────────────────┐ ┌───────────────────────────┐
│ 1. Udyam Akanksha Filing │ ───► │ 2. Bank Loan & DPR │ ───► │ 3. Land Diversion & NOC │
│ Single Window Portal │ │ Clause 12.5 CA DPR Fee │ │ Stamp Duty Exemption Deed │
└───────────────────────────┘ └───────────────────────────┘ └───────────────────────────┘
│
▼
┌───────────────────────────┐ ┌───────────────────────────┐ ┌───────────────────────────┐
│ 6. Disbursal Payout │ ◄─── │ 5. FCI Audit & CA Cert │ ◄─── │ 4. Production Certificate │
│ Annual Subsidy Disbursal │ │ Fixed Capital Audit │ │ Joint DTIC Physical Audit │
└───────────────────────────┘ └───────────────────────────┘ └───────────────────────────┘
- File Udyam Akanksha Online: Must be filed on the Chhattisgarh Single Window portal prior to starting civil construction or issuing firm machinery purchase orders.
- Obtain Commercial Production Certificate (CPC): Apply within 45 days (Micro/Small), 75 days (Medium), or 100 days (Large) from trial production start.
- CA Fixed Capital Audit: Certified Audit Report by a Chartered Accountant verifying asset expenditure, machinery serial numbers, and capital investment ledger.
Statutory Legal & Policy Disclaimer
Disclaimer: Rabi Agrawal & Associates is a chartered accountancy practice registered with the Institute of Chartered Accountants of India (ICAI). This article is published for general informational and guidance purposes based on the Chhattisgarh Industrial Development Policy 2024–30 (Departmental Notification dated 27.05.2025). Government subsidies, tax exemptions, and DIC approvals are subject to formal verification and official sanction by the Department of Commerce & Industries, Govt of Chhattisgarh, and District Trade and Industry Centres (DTIC). Our firm provides independent financial advisory, audit certification, and procedural guidance under ICAI guidelines, and does not guarantee government approval or act as a government intermediary.
Authored by CA Rabi Agrawal & Practice Team
Rabi Agrawal & Associates, Chartered Accountants — Head Office Raipur (CG), Branch Office Jayapatna (Odisha).