How to Claim 55% Interest Subsidy & 1% CA Project Report Refund under CG Industrial Policy 2024–30

Setting up or expanding a factory in Chhattisgarh involves significant bank term loans for civil construction and plant machinery. To ease debt servicing burdens for entrepreneurs, the Chhattisgarh Industrial Development Policy 2024–30 (Updated May 27, 2025) provides substantial interest subventions on bank loans and reimburses professional expenses incurred for project preparation.

In this operational guide, CA Rabi Agrawal & Associates explains how factory owners, commercial promoters, and MSMEs can claim 45% to 55% Interest Subsidy, 100% Mortgage Stamp Duty Exemption, and 1% CA Project Report Fee Reimbursement (up to ₹10 Lakhs).

1. The 1% Project Report Fee Reimbursement (Clause 12.5 & Annexure 9.8)

Under Clause 12.5 and Annexure 9.8 of the policy, the Government of Chhattisgarh recognizes that professional project preparation is essential for institutional bank funding:

• Reimbursement Rate: 100% of expenses incurred for preparing the Detailed Project Report (DPR).
• Calculation Formula: 1% of Fixed Capital Investment (FCI) in plant & machinery.
• Maximum Reimbursement Cap: Up to ₹10.00 Lakhs.

How It Works in Practice:

When you hire a Chartered Accountant firm like Rabi Agrawal & Associates to prepare your bankable DPR and CMA Data, the professional fee incurred is submitted to the District Trade and Industry Centre (DTIC) post-production for 100% state reimbursement.

2. Interest Subsidy on Bank Term Loans (Annexure 7 & Annexure 9.2)

For new micro, small, medium, and large enterprises, the state government provides an annual interest subsidy on term loans obtained from RBI-recognized scheduled banks, public financial institutions, and state financial corporations:

MSME Interest Subsidy Rates (Annexure 7 & 9.2):

For Thrust Sectors (Pharma, Defense, IT, Medical Devices, Technical Textiles), interest subsidy caps reach up to ₹20 Crore per annum for 5 years.

3. 100% Stamp Duty Exemption on Bank Mortgage Deeds (Annexure 9.4)

When a bank sanctions a term loan or cash credit facility, mortgage/hypothecation deeds executed with the sub-registrar attract substantial stamp duty fees in Chhattisgarh.

Under Annexure 9.4(b):

• 100% Stamp Duty Exemption is granted on executed loan deeds executed within 3 years from the date of loan approval by banks/financial institutions.
• Requirement: A CA Verification Certificate and DIC Eligibility NOC presented to the Sub-Registrar at the time of deed registration.

4. Key Bank Ratios Required for DIC Claim Integration

To ensure your bank loan smoothly qualifies for both bank disbursement and DIC interest subvention, your financial project report must optimize key credit ratios:

1. Debt-Service Coverage Ratio (DSCR): Maintained between 1.50 and 2.00 across the 7-year projection window.
2. Current Ratio: Maintained above 1.33 as mandated by Tandon Committee guidelines.
3. Maximum Permissible Bank Finance (MPBF): Accurately calculated working capital gap excluding non-eligible current assets.

Statutory Legal & Banking Disclaimer

Disclaimer: Rabi Agrawal & Associates is a chartered accountancy practice registered with the Institute of Chartered Accountants of India (ICAI). Bank loan sanctions, interest rates, credit limits, and loan disbursements are at the sole discretion of lending banks based on their internal credit appraisal guidelines. Government subsidies, DPR fee reimbursements, and stamp duty exemptions are subject to official verification and sanction by the Department of Commerce & Industries, Govt of Chhattisgarh, and District Trade and Industry Centres (DTIC). Our firm acts as an independent financial advisory practice providing CA audit certifications, project feasibility reports, and procedural guidance under ICAI guidelines, and does not promise guaranteed loan approval or government subsidy payouts.