Chhattisgarh Industrial Development Policy 2024–30 Subsidy Consultancy

Development Block Classification (Group 1, Group 2 & Group 3)

To ensure balanced industrial growth, the Government of Chhattisgarh has categorized all 146 development blocks across 33 districts into three distinct groups. The quantum of capital subsidies, interest subvention, and tax exemptions depends on your project location:

Core Industrial Investment Incentives (Policy 2024–30)

Eligible enterprises established between November 1, 2024, and March 31, 2030, can claim multiple state financial subsidies, subject to maximum limits defined under Chapter A and Chapter B of the policy:

• Fixed Capital Investment (FCI) Subsidy: 30% to 50% subsidy on new plant, machinery, building, and land development costs. Maximum subsidy limits reach up to ₹800 Lakhs for Medium Enterprises, ₹550 Lakhs for Small Enterprises, and ₹45 Lakhs for Micro Enterprises (10% additional incentive for Women, SC/ST, Ex-Servicemen, and Agniveers).
• Net SGST 100% Reimbursement: 100% refund of Net SGST deposited in the Chhattisgarh state treasury for 5 to 12 years from commercial production date (Capped up to 150% of Fixed Capital Investment).
• Interest Subsidy on Bank Term Loans: Reimbursement of 45% to 55% of interest paid on RBI-recognized bank term loans for 5 to 8 years (Annual cap up to ₹50 Lakhs/year for MSMEs and up to ₹20 Crore/year for Thrust & Large sectors).
• 1% Project Report Fee Reimbursement (Clause 12.5 / Annex 9.8): 100% reimbursement of CA fees incurred for preparing the Detailed Project Report (DPR), calculated at 1% of Fixed Capital Investment (up to ₹10.00 Lakhs).
• 100% Stamp Duty Exemption (Annex 9.4): Full exemption from stamp duty on land purchase/lease deeds AND bank loan mortgage/hypothecation deeds executed within 3 years of loan sanction.
• 100% Electricity Duty Exemption (Annex 9.3): Full exemption from electricity duty for 5 to 12 years from commercial production commencement.
• 50% to 100% Land Diversion Fee Waiver (Annex 9.6): 50% to 100% exemption on land use conversion (diversion fees) for up to 15 to 50 acres of industrial land.

Special Provisions for Rice Mills, Agri & Food Processing (Clause 12.6)

Chhattisgarh is the rice bowl of Central India. The 2024–30 policy introduces specific rules for agri-business, food processing, and rice milling infrastructure:

• Rice Mills & Parboiling Units (Clause 12.6): Due to high density in Group 1 & Group 2 blocks, new rice mills and Fortified Rice Kernel (FRK) units receive general incentives when established in Group 3 Development Blocks.
• 100% Mandi Fee Exemption (Annex 9.5): Full exemption from mandi fees on agricultural raw material purchases for 5 years (up to ₹5.00 Crore per year), subject to a total cap of 75% of Fixed Capital Investment.
• Logistics Parks, Warehouses & Cold Storage (Clause 12.8): Cold storage units and logistics hubs built on industrial land qualify for full MSME & Large category investment promotion subsidies.

Chapter D-4: Sick & Closed Unit Revival Package (SARFAESI & NCLT)

For investors purchasing non-functional or closed industrial units via SARFAESI Bank Auctions, NCLT proceedings, or Asset Reconstruction Companies (ARCs), Chapter D-4 provides significant revival concessions:

• 100% Stamp Duty & Registration Fee Waiver: Complete exemption on sale deeds executed for acquiring closed/sick industrial units.
• New Unit Classification: The acquiring buyer is treated as a 'New Unit', making the project eligible for fresh capital subsidies, interest subsidies, and electricity duty waivers.
• Outstanding Dues Restructuring: Facility to clear outstanding principal dues, interest, and surcharges in 36 equal monthly installments.
• Transfer of Unused Subsidies: Unavailed state subsidies from the original unit are fully transferred to the new acquiring owner.

End-to-End DIC Filing & CA Certification Workflow

Claiming state industrial subsidies requires strict compliance with Department of Commerce & Industries protocols. Our firm handles the entire workflow:

Mandatory Employment Quotas (Clause 12.19)

To remain eligible for Industrial Investment Incentives under the 2024–30 Policy, every enterprise must satisfy mandatory local employment ratios for Chhattisgarh domiciles:

• Unskilled Positions: 100% of workforce must be native domiciles of Chhattisgarh State.
• Skilled Positions: A minimum of 70% of skilled workforce must be Chhattisgarh domiciles.
• Administrative & Managerial Positions: A minimum of 40% of managerial staff must be Chhattisgarh domiciles.

Statutory Disclaimer & ICAI Disclosure

Legal Disclaimer: *Rabi Agrawal & Associates is a chartered accountancy practice registered with the Institute of Chartered Accountants of India (ICAI). The information provided on this website is for educational and guidance purposes based on the Chhattisgarh Industrial Development Policy 2024–30 (Notification dated 27.05.2025). Industrial subsidies, exemptions, and loan approvals are subject to official verification, statutory approvals, and formal sanction by the Department of Commerce & Industries, Government of Chhattisgarh, District Trade and Industry Centres (DTIC), and respective financial institutions. Our firm provides professional financial advisory, audit certification, DPR preparation, and procedural guidance in accordance with ICAI regulations, and does not guarantee government approval or act as a government intermediary.*