Policy guide
Chhattisgarh Industrial Development Policy 2024-30
A plain-language guide to the structure of the state's main industrial incentive policy: who it covers, how units are classified, which incentive heads exist and what conditions attach. Rates and limits are confirmed against the notification for each project.
The Industrial Development Policy 2024-30 is the framework under which the Government of Chhattisgarh offers incentives to manufacturing and eligible service enterprises setting up or expanding in the state during the policy period. It is administered through the Department of Commerce and Industries, the Directorate of Industries and the District Trade and Industries Centres (DTIC), with the Single Window System used for applications.
The policy has been amended since notification, and further circulars and clarifications are issued from time to time. This page describes the architecture of the policy so that a promoter can follow the eligibility discussion. The figures that drive a decision are taken from the gazette text in force on the relevant date and confirmed, where needed, in writing with DTIC.
How a unit is classified
| Dimension | What it determines |
|---|---|
| Unit type | New unit, expansion, diversification or modernisation, each with its own definition and tests (for expansion and diversification, additional investment, capacity and employment conditions). |
| Size | Micro, small, medium or large by investment in plant and machinery under the policy's own thresholds, which differ from the Udyam limits. |
| Sector category | Thrust sector (listed products, with a minimum investment per product), General, Core sector, or Service sector (listed activities with minimum investment). A mixed-product unit takes the lower category's terms. |
| Block group | Every development block is assigned to Group-1, Group-2 or Group-3, with higher incentives in the less developed groups. The block of the specific site governs. |
| Special category | Uplifts for women entrepreneurs, ex-servicemen, Agniveers, Naxal-affected persons, persons with disabilities, NRI/FDI/exporters, and a separate package for SC/ST entrepreneurs, each with ownership and other tests; an employment-linked multiplier may stack. |
| Exclusion list | An annexure lists activities not eligible at all, and activities not eligible in particular block groups. This is checked before anything else. |
Incentive heads
- Fixed Capital Investment (FCI) subsidy: a grant calculated as a percentage of eligible fixed capital investment, subject to a ceiling and paid over a period, with the percentage, ceiling and period varying by size, sector and block group.
- Net SGST reimbursement: reimbursement of the state GST paid in cash on eligible sales over a period, as an alternative to the FCI subsidy. The election is made once by affidavit and is irrevocable. In practice it suits consumer-facing units with in-state sales; for B2B manufacturers the FCI route is usually the realistic one.
- Interest subsidy: a percentage of interest paid on the term loan, subject to an annual ceiling and a period.
- Stamp duty exemption on land purchase or lease and on loan documents, where applicable.
- Electricity duty exemption for a period, where applicable.
- Other heads such as support for quality certification, patents, technology, environment infrastructure and skill development, each with its own conditions.
- Large and mega projects are addressed through separate provisions and, above thresholds, customised packages.
Conditions that recur in every case
- Registration with DTIC and, where applicable, in-principle approval before commercial production.
- Investment evidenced through bank trail and certified by a chartered engineer and a chartered accountant in the prescribed formats.
- Local employment: the policy prescribes minimum proportions of state-domicile workers at unskilled, skilled and managerial levels.
- Continued operation for a prescribed period after the incentive, with recovery provisions on closure or sale.
- Claim filing within the prescribed window after commercial production.
- Compliance with other laws: pollution consent, factory licence and sector regulations.
Where promoters get it wrong
- Assuming the block group from the district name.
- Treating the policy's size thresholds as the Udyam limits.
- Electing Net SGST because the headline percentage looks higher, without modelling the cash SGST actually payable.
- Starting production and then registering.
- Including GST, land beyond the permitted share, or second-hand or ineligible items in the eligible investment.
Official references
- Department of Commerce and Industries, Government of Chhattisgarh (industries.cg.gov.in)
- Chhattisgarh Single Window System (industries.cg.gov.in)
- Chhattisgarh State Industrial Development Corporation (csidc.in)
Official portals and notifications are the authority on current conditions. Links are provided for reference and may change.
Check how the policy applies to your unit
The classification takes a short conversation; the written note takes a few days.