Detailed practical guide on claiming fixed capital investment subsidy (up to 45%), stamp duty exemption, and interest subvention through Directorate of Industries Raipur.
In This Article
3 SectionsChhattisgarh Industrial Policy 2024–30: Capital Subsidy Application Workflow & CA Certification
The Chhattisgarh Industrial Development Policy 2024–30 offers some of the most competitive financial incentives in India for manufacturing MSMEs, food processing units, bio-fuel plants, and green energy initiatives. Navigating the application workflow through the State Single Window System and District Industries Centres (DIC) requires meticulous documentary substantiation and Chartered Accountant certification.
1. Core Financial Incentives under Policy 2024–30
| Category | Category A Blocks (e.g. Raipur, Durg) | Category B & C Blocks (e.g. Balod, Mahasamund) | Category D & Naxal/Aspirational (e.g. Bastar, Surguja) |
|---|---|---|---|
| Fixed Capital Investment Subsidy | 25% to 30% (Max ₹50L to ₹1 Cr) | 35% to 40% (Max ₹1.5 Cr to ₹3 Cr) | Up to 45% (Max ₹5 Cr) |
| Interest Subvention | 5% to 6% for 5 to 7 years | 6% to 7% for 7 years | 7% to 8% for 8 years |
| Electricity Duty Exemption | 5 Years Exemption | 7 Years Exemption | 10 to 12 Years Exemption |
| Stamp Duty Reimbursement | 70% to 100% on Land/Building | 100% Full Reimbursement | 100% Full Reimbursement |
| Net SGST Reimbursement | 50% to 70% for 5 to 7 years | 80% to 90% for 7 to 10 years | 100% for 10 to 12 years |
2. Step-by-Step Application Timeline & Workflow
Phase 1: In-Principle Prior Approval (Before Commercial Production)
- Udyam & IES Registration: File Initial Entity Setup on the CG Single Window Clearance Portal.
- Project Report & Land Documents: Submit Detailed Project Report (DPR), land sale/lease deed, and municipal/Gram Panchayat NOC.
- Application for In-Principle Registration: Must be submitted prior to the date of Commercial Production (DCOP). Failure to apply before production commences permanently disqualifies the enterprise from capital subsidy.
Phase 2: Post-Commercial Production Filing (Within 1 Year of DCOP)
- Power Sanction & First Electricity Bill: Documenting active industrial manufacturing.
- Chartered Accountant Form-1 & Form-2 Certificates: Mandatory CA verification of eligible Fixed Capital Assets (Land, Factory Shed, Plant & Machinery).
- Bank Statement & Disbursement Proofs: Demonstrating 100% payment trail via formal banking channels (cash expenditures are summarily rejected from eligible project cost).
3. Mandatory CA Verification Checklist
As an auditing CA certifying subsidy project claims under the 2024–30 policy, the following statutory checks are strictly enforced:
- New vs Second-Hand Machinery: Subsidy is strictly prohibited on reconditioned, imported, or second-hand machinery. Tax invoices must prove original manufacturer purchase.
- Exclusion of Non-Industrial Assets: Office cars, guest house furniture, residential quarters, and boundary wall construction in excess of standard norms must be carved out of eligible capital cost.
- Direct Banking Trail (UTR Verification): Every plant & machinery invoice above ₹10,000 must be reconciled against bank statement UTR entries and vendor GST returns (GSTR-1 to GSTR-2B matching).
For complete Detailed Project Report (DPR) drafting, banking CMA coordination, and subsidy certification in Raipur, consult Rabi Agrawal & Associates.
Authored by CA Rabi Agrawal & Practice Team
Rabi Agrawal & Associates, Chartered Accountants — Head Office Raipur (CG), Branch Office Jayapatna (Odisha).