Chhattisgarh Industrial Development Policy 2024–30 | Boosting Investment & Growth Opportunities

The Government of Chhattisgarh has taken a major step toward promoting sustainable and eco-friendly industries through its Industrial Development Policy 2024–30. One of the key focus areas under this policy is the Biomass Briquettes and Pellets sector, which plays a crucial role in reducing carbon emissions and utilizing agricultural waste efficiently.

List of Subsidy that avail by MSME of Biomass Business

Fixed Capital Investment Subsidy or Net SGST reimbursement Subsidy (Any one)
Interest Subsidy
Electricity Duty
Stamp Duty exemption
Project Report Subsidy
Quality Certification Subsidy
Reimbursement of Training Expenses for Employees.
Employment Subsidy for Persons with Disabilities, Retired Agniveers, and Surrendered Naxal Individuals
Environment Management Project Subsidy.
Water and Energy Efficiency Expenditure Reimbursement Subsidy.
Margin Money Subsidy.

1 Fixed Capital Investment (FCI) Subsidy

The subsidy is provided based on the enterprise’s size and the categorization of the development block.

Enterprise Level	Category of Area	Percentage of Subsidy on Fixed Capital Investment	Maximum Capital Subsidy (Amount in Lakhs)
Micro	Group 1	35%	35
	Group 2	40%	40
	Group 3	45%	45
Small	Group 1	35%	350
	Group 2	40%	450
	Group 3	45%	550
Medium	Group 1	35%	700
	Group 2	40%	750
	Group 3	45%	800

Disbursement Note: The subsidy is disbursed in one installment for Micro enterprises, over three equal installment in three years for Small enterprises, and over five equal installment in five years for Medium enterprises.

Net SGST Reimbursement

This incentive provides reimbursement of the net State Goods and Services Tax paid, calculated from the date of commercial production, up to a maximum of 100% of the fixed capital investment.

Enterprise Level	Category of Area	Percentage of Subsidy on Fixed Capital Investment	Duration
Micro Small Medium	Group 1	100% Of FCI	Up to 6 years
	Group 2		Up to 8 years
	Group 3		Up to 10 years

Note: The policy states that an enterprise can avail only one of the following two benefits based on a selected option:

Fixed Capital Investment (FCI) Subsidy.
Net SGST reimbursement.

Once the selection is made, the chosen option is irrevocable. The investor must submit an option letter along with an affidavit in the format prescribed by the department to select this option.

2 Interest Subsidy

Eligible micro, small, and medium new or existing enterprises will receive an interest subsidy on term loans obtained from financial institutions.

Enterprise Level	Category of Area		Maximum limit per annum and duration
Micro	Group 1	45%	Rs. 20 Lakhs and 6 years
	Group 2	50%	Rs. 25 Lakhs and 7 years
	Group 3	55%	Rs. 30 Lakhs and 8 years
Small	Group 1	45%	Rs. 30 Lakhs and 6 years
	Group 2	50%	Rs. 35 Lakhs and 7 years
	Group 3	55%	Rs. 40 Lakhs and 8 years
Medium	Group 1	45%	Rs. 40 Lakhs and 6 years
	Group 2	50%	Rs. 45 Lakhs and 7 years
	Group 3	55%	Rs. 50 Lakhs and 8 years

3. Electricity Duty Exemption

Enterprises operating in the Biomass Sector will receive a complete exemption from electricity duty from the date of commercial production:

Group 1: Up to 6 years.
Group 2: Up to 8 years.
Group 3: Up to 10 years.

4 Stamp Duty and Land Exemption

New enterprises and expansion/ diversification/ substitution/ modernization projects established by eligible MSME entrepreneurs receive a Complete Exemption from stamp duty on executed deeds for the purchase/lease of land, sheds, buildings, and related land lease deeds, as well as deeds related to loans/advances within three years of loan approval.

A 50 percent exemption is granted on Land Use Conversion Fees (diversion fees) for industrial purposes, up to a maximum of 15 acres.

Comment: The enterprise must implement the incentive prior to the operation of the unit. The subsidy serves as an exemption rather than a reimbursement.

5. Project Report Subsidy

Reimbursement of expenditure incurred on the project report will be provided at 1% of the fixed capital investment, up to a maximum of ₹10.00 lakh.

6. Quality Certification Subsidy

50% reimbursement of expenses, up to ₹10 lakh per certification, will be provided for obtaining specified quality certifications (ISO-9000, ISO-14000, ISO-18000, ISO-22000, BIS, ZED, BEE, Agmark, Euro standards, or other equivalent national/international certifications).

7. Reimbursement of Training Expenses for Employees

For eligible new enterprises in the thrust sector, reimbursement for training expenses will be provided. The employee must be a domicile of Chhattisgarh and earn less than ₹50,000 per month. Reimbursement is based on one month’s salary paid by the employer (or up to ₹15,000 per person, whichever is lower). The duration is 5 years, or up to 100% of the fixed capital investment, whichever is reached first.

8. Employment Subsidy for Persons with Disabilities, Retired Agniveers, and Surrendered Naxal Individuals

New and existing eligible micro, small, and medium enterprises will be reimbursed 40% of the net salary/remuneration for providing permanent jobs to these specified individuals, for a period of 5 years, up to a maximum of ₹5 lakh annually.

9. Environment Management Project Subsidy

A subsidy of 50% of the machinery cost, up to a maximum of ₹25 lakh, will be provided to micro, small, and medium enterprises that adopt technology for environmental management leading to carbon credit gains and reduction of carbon footprint.

10. Water and Energy Efficiency Expenditure Reimbursement Subsidy

Reimbursement of 50% of the expenditure incurred on water/energy audits, up to a maximum of ₹5 lakh, for enterprises aiming to reduce energy consumption and manage water usage.

11. Margin Money Subsidy:

A margin money subsidy of up to 25% of the capital cost, capped at ₹100 lakh, for a capital cost up to ₹10 crore, is available to new micro and small service enterprises established by entrepreneurs from Scheduled Caste/Tribe, women entrepreneurs, retired ex-servicemen, individuals affected by Naxalism, transgender persons, and persons with disabilities.

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