Chhattisgarh Logistics & Warehousing Policy 2025

India’s warehousing and logistics sector is growing rapidly and has emerged as one of the most profitable and stable investment avenues. With increasing demand from agriculture, industry, e-commerce, and government agencies, warehousing today offers long-term assured rental income, often considered a form of passive income.

KIP has been providing professional services in the warehousing sector since 2008, helping investors plan, develop, and monetize warehousing projects across India. In this blog, we share key insights from the Chhattisgarh State Logistics & Warehousing Policy 2025, which offers attractive incentives, subsidies, and interest support for investors.

Why Invest in Warehousing in Chhattisgarh?

Chhattisgarh is strategically located and well connected to central and eastern India. The state government aims to develop modern logistics infrastructure to support:

Agricultural warehousing
Commercial warehousing
Cold storage units
Logistics parks
Multimodal logistics parks
Inland Container Depots (ICDs)
Air cargo complexes and freight stations

This policy makes Chhattisgarh an ideal destination for long-term warehouse investments with assured returns.

Definition of Warehousing Under the Policy

The policy defines warehousing very broadly, covering storage of:

Agricultural produce
Forest produce
Industrial and commercial goods of any sector

⚠️ Important Note:
Retail showrooms are not considered warehousing units under this policy.

Warehousing projects serving state or central government agencies (such as food grain storage for FCI, CWC, or other agencies) are also eligible. Additionally, such projects may benefit from Agriculture Infrastructure Interest Subvention Schemes.

Eligibility Criteria for Warehousing Projects

To avail benefits under the policy, the following basic conditions must be met:

1. Minimum Built-Up Area

Warehouse must have a minimum constructed area of 10,000 square feet

2. Employment Conditions

100% unskilled workers must be from Chhattisgarh
70% skilled workforce must be Chhattisgarh domicile holders
40% managerial positions must be filled by local residents

These employment norms are mandatory to qualify for subsidies.

Major Incentives & Subsidy Options

1. SGST Reimbursement OR Capital Subsidy (Choose One)

Investors can opt for only one of the following options:

Option A: Net SGST Reimbursement

Reimbursement of net SGST paid on rental services
Group I: 100% reimbursement for 5 years
Group II: Up to 7 years
Group III: Up to 10 years
Maximum cap: 75% of Fixed Capital Investment (FCI)

⚠️ Once selected, this option cannot be changed later.

Option B: Capital Subsidy

Group II: 40% of eligible Fixed Capital Investment, up to ₹20 crore
Group III: 45% of eligible Fixed Capital Investment, up to ₹22 crore

Important Conditions:

Land cost should not exceed 30% of total FCI
Maximum eligible land cost considered: ₹1,000 per sq. meter
If FCI exceeds ₹10 crore, subsidy is released in equal annual installments

Interest Subsidy on Bank Loans

The policy provides strong support to reduce financing costs:

Interest Subsidy Benefits

Projects up to ₹5 crore: High interest subsidy for up to 8 years
Higher investments receive:
- Group I: Up to 50% interest subsidy for 9 years
- Group II: Up to 55% interest subsidy for 10 years
- Group III: Up to 60% interest subsidy for 11 years

Example:
If your loan interest rate is 10%, up to 6% can be reimbursed by the state government, making the project significantly more affordable and improving cash flow.

Electricity Duty Exemption

Warehousing projects also benefit from 100% electricity duty exemption:

Group I: 6 years
Group II: 8 years
Group III: 10 years

This substantially reduces operational expenses for large warehouses.

Additional Benefits

Support for technology-driven warehouses (WMS, IoT, automation)
Benefits applicable on leased or purchased land
Encouragement for logistics parks and integrated storage hubs

Conclusion

The Chhattisgarh Logistics & Warehousing Policy 2025 offers one of the most attractive frameworks for investors seeking:

Long-term guaranteed rental income
Capital subsidies up to ₹22 crore
Interest subsidy up to 60% for 11 years
SGST reimbursement and electricity duty exemption

If you are planning to invest in agricultural warehousing, commercial warehouses, cold storage, or logistics parks, Chhattisgarh can be a highly rewarding destination.

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