Chhattisgarh’s latest industrial policy, effective from November 1, 2024, to March 31, 2030, marks a pivotal step in accelerating the state’s industrial transformation. Since its inception, the state has introduced multiple industrial policies, each tailored to foster growth and innovation. This latest policy— the sixth since 2001—continues that evolution, aligning with emerging economic priorities and investment trends.

Designed to attract significant industrial investments, the new policy offers a comprehensive package of incentives, including interest subsidies, state capital investment subsidies (including infrastructure support), stamp duty and electricity duty exemptions, entry tax waivers, VAT reimbursements, mandi fee exemptions, and project cost subsidies. By facilitating a business-friendly environment, the policy is set to boost industrial expansion while contributing to India’s broader vision of becoming a developed nation by 2047, as envisioned by Prime Minister Shri Narendra Modi.

Chief Minister Shri Vishnu Deo Sai emphasized that the policy is crafted with a strong focus on employment generation and longterm economic progress. “This policy is a cornerstone in our mission to build a developed Chhattisgarh in harmony with the vision for a developed India by 2047. With the state’s strategic central location, advanced transportation infrastructure, and collaborative efforts from stakeholders, Chhattisgarh is poised to emerge as a leading ‘Health Hub’ in the coming years,” he stated. He further highlighted that an industrial zone spanning 118 acres near Jagdalpur is set for development, adding another dimension to the state’s growth trajectory.

Commerce and Industries Minister Shri Lakhan Lal Dewangan reiterated the government’s commitment to attracting new industries. For the first time, the policy extends its focus to the tourism and healthcare sectors, recognizing their vast potential. In a groundbreaking move, the state has granted “industry” status to tourism, underscoring its importance as a key driver of economic expansion.

With this visionary industrial policy, Chhattisgarh is paving the way for a dynamic and diversified economic future, offering a wealth of opportunities for businesses and investors alike.

KEY FEATURES OF THE NEW INDUSTRIAL POLICY

The new industrial policy is designed to drive industrial growth, create employment opportunities, and foster socioeconomic development. A key provision of the policy is a training stipend reimbursement of ₹15,000 per individual, aimed at encouraging industries to integrate skilled professionals from Chhattisgarh into the formal workforce. By offering this financial incentive, the policy enhances the employability of the state’s youth, equipping them with the skills needed to thrive in the industrial sector and contribute to economic progress. With a vision to generate 5 lakh formal jobs over the next five years, the government is making a significant push toward employment expansion.

To strengthen its industrial ecosystem, the policy includes special incentives for high-potential sectors such as pharmaceuticals, textiles, agricultural and food processing, non-timber forest product processing, compressed bio-gas, electrical and electronics, AI, robotics, computing (GPU), and IT/ITES/data centers. By prioritizing these emerging industries, the state aims to position itself as a leader in the evolving global economy.

A standout feature of the policy is its focused support for service industries, a rapidly expanding sector in India. For the first time, MSME service enterprises and large-scale service businesses are eligible for dedicated incentives. This includes crucial areas such as engineering services, research and development, healthcare, tourism, and entertainment— reinforcing the state’s commitment to fostering innovation and sustainable economic growth.

A SPECIAL FOCUS ON MARGINALIZED GROUPS

Chhattisgarh is pioneering a transformative initiative, becoming possibly the first state in India to extend exclusive incentives to young Agniveers and Naxal-affected families, empowering them to launch their businesses. The policy also prioritizes SC/ST youth entrepreneurs by offering substantial support, including a groundbreaking provision— land in industrial areas at a nominal rate of just ₹1 per acre for these groups.

In a bid to drive inclusive growth, the policy enhances incentives for state residents, with a strong focus on marginalized communities such as Scheduled Castes (SC), Scheduled Tribes (ST), women entrepreneurs, retired Agniveers, and ex-servicemen, including those from paramilitary forces. Special benefits are also extended to individuals affected by Naxal violence, weaker sections, and third-gender entrepreneurs, ensuring that economic opportunities reach those who need them the most.

With a commitment to fostering a business-friendly environment, the state has minimized government intervention in industrial operations. By promoting self-certification and online regulatory processes, Chhattisgarh aims to cut through bureaucratic red tape, allowing businesses to function with minimal direct government interaction.

Additionally, the state has aligned its definition of micro, small, and medium enterprises (MSMEs) with central government guidelines, ensuring that local businesses receive more competitive incentives compared to other states. Through these progressive measures, Chhattisgarh is setting a new benchmark for entrepreneurship, economic inclusion, and ease of doing business in India.

INVESTMENT AND DEVELOPMENT: A BRIGHT FUTURE AHEAD

The New Industrial Policy of Chhattisgarh is already making waves, drawing strong interest from major industrial players. At the Stakeholder Connect Workshop in Naya Raipur on December 4, 2024, the state government took a decisive step by issuing “Intent to Invest” letters worth ₹32,225 crore, paving the way for substantial investments across key sectors like IT, AI, data centers, ethanol, electronics, and compressed bio-gas.

A host of industry leaders, including Shivalik Engineering, Maa Durga Iron and Steel, ABREL Green Energy, RAG Ferro Alloys, Reliance Bio Energy, Yash Fans and Appliances, Shanti Greens Biofuel, RackBank Datacenter, and others, are set to play a crucial role in this economic transformation. To ensure strategic and region-specific industrial growth, the state has categorized its development blocks into three groups with tailored incentives: Group 1 (10 blocks), Group 2 (61 blocks), and Group 3 (75 blocks). Additionally, special incentives have been earmarked for thrust sector industries where Chhattisgarh holds a competitive edge and where significant employment opportunities are anticipated.

With a strong vision for progress, the Chhattisgarh government’s New Industrial Policy is set to drive economic growth, attract cutting-edge industries, and generate abundant job opportunities, shaping a dynamic and prosperous future for the state.

INVESTMENT INCENTIVES AND MSME SUPPORT

The state government is also offering a wide range of incentives to encourage investments. These include exemptions on stamp duty and electricity duty, alongside 10 other types of investment incentives. A new 118-acre industrial area is being established for ancillary units of the Nagarnar Steel Plant in Bastar, designed to support micro, small, and medium industries. The introduction of Single Window System 2.0 will further streamline the clearance process for investors by consolidating approvals from various departments in one place. The policy prioritizes green and technology-based industries and promotes the value addition of Chhattisgarh’s rich mineral resources.

INFRASTRUCTURE DEVELOPMENT AT THE FOREFRONT

Infrastructure development remains a top priority for the state government. Significant investments are being made in road construction, with Rs. 31,000 crore worth of projects approved by the central government. Work on key projects, such as the Raipur-Visakhapatnam Economic Corridor and various railway initiatives, is progressing rapidly. Airports in Raipur, Bilaspur, and Jagdalpur are being expanded to enhance air connectivity, and the central government has approved international flights from Raipur.

DEVELOPMENT OF NAYA RAIPUR: THE NEXT IT AND INFRASTRUCTURE HUB

Chief Minister Vishnu Deo Sai also highlighted the government’s renewed commitment to developing Naya Raipur as a key modern hub. Naya Raipur, spread across 237 square kilometers, is set to become an IT, education, and health hub. The government is providing plug-and-play infrastructure at concessional rates to IT and related firms, with plans to create over 3,500 jobs in the IT sector. The trial run of the Naya Raipur Atal Nagar railway line has been completed, with an investment of Rs. 150 crore for the construction of a CBD railway station and related infrastructure.

In addition to expanding transportation networks, including three new railway stations, the government is also focused on environmental sustainability, planting 10,000 peepal trees as part of the “Ek Ped Maa Ke Naam” and “Peepal for People” campaign. The educational and healthcare infrastructure is being upgraded, with Rs. 60 crore allocated for schools and plans to establish a health hub under the Pradhan Mantri Medi City Yojana.

Taking the opportunity to underscore the government’s efforts in combating Naxalism, the Chief Minister said that this year, 213 Naxals have been killed, and nearly 1,500 have either surrendered or been arrested. He reiterated the government’s commitment to eliminating Naxalism from Chhattisgarh within the next two years. The establishment of 34 new security camps in Bastar and development projects under the Niyyad Nella Nar Yojana are key components of the state’s security strategy, he added.

CM’S VISION FOR A DEVELOPED CHHATTISGARH

The Chief Minister concluded by emphasizing that the development of Chhattisgarh is vital for the progress of India as a whole. The state is prioritizing infrastructure development, digital governance, and investment in key sectors such as manufacturing, education, and healthcare. With a clear focus on sustainable growth, the government is determined to create a developed Chhattisgarh that contributes significantly to India’s economic future.

Also Read: Synergy in Motion- Villages in Transformation

PROPOSALS TO INVEST IN THE STATE

Welspun Group, a leader in the field of plastic and textile, has shared plans to invest Rs 500 crore in Chhattisgarh. Drools Company has announced an investment of Rs 625 crore in Rajnandgaon to increase the production of pet food. A 30 MW solar power plant will also be installed by the company to meet the energy needs. Kritech Technologies has proposed to invest Rs 600 crore in the IT sector in the state. Bombay Hospital Trust has offered to invest Rs 700 crore in the healthcare sector.

Various other investment proposals were also received, some including Nantex Machinery plans to invest Rs 45 crore, Nantex Industries Rs 39.50 crore, Pidilite Industries Rs 80 crore and Vision Plus Security Rs 50 crore. Aditya Birla Group Chairman Kumar Mangalam Birla also met the Chief Minister and discussed the expansion of his industries in the state. Aditya Birla Group has expressed the possibility of investing in the field of textiles, paint and jewellery in Chhattisgarh. Tanya Dubash, Executive Director of Godrej Group, has also expressed the possibility of investment in the field of chemical fertilizers, agriculture and food processing as well as molded furniture manufacturing in Chhattisgarh.

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