§1Who it is for

  • New micro, small and medium manufacturing units in Chhattisgarh
  • Existing MSMEs doing expansion / diversification / substitution / modernisation (conditions in Appendix-1 of the Hindi policy)

Useful if

New MSME manufacturers, especially thrust-sector units in Group-2/3 blocks, who can hire locally.

Do not spend time on it if

Rice mills outside Group-3 blocks, units in the ineligible list, or firms that cannot meet domicile hiring ratios.

§2Eligibility

  1. MSME as per MSMED Act 2020 definitions; only plant & machinery investment decides the category for this policy
  2. Udyam Aakanksha mandatory; production certificate from competent authority after start of production
  3. New enterprise = commercial production on or after 1 Nov 2024 and on or before 31 Mar 2030
  4. Thrust sector status needs the minimum plant & machinery investment printed for each product (e.g. fruits/vegetables processing Rs 25 lakh, garments Rs 50 lakh, auto components Rs 150 lakh, rural units like flour/oil mill, agarbatti, dona-pattal Rs 10 lakh)
  5. Not in the ineligible list: alcohol (except NTFP-based), sawmills, banned plastics, pan masala/gutka/tobacco, slaughterhouses, packaged drinking water, coal washeries/briquettes, lime/dolomite powder, mineral powder & slag grinding, asbestos, leather tannery, repacking; sponge iron/integrated steel/thermal power not in Bilha and Dharsiva blocks; stone crushers and rice mills/parboiling not in Group 1 and 2
  6. Rice mills and parboiling units get benefits only in Group-3 blocks and only as general enterprises
  7. State domicile share in permanent jobs: 100% unskilled, at least 70% skilled, at least 40% managerial/administrative
  8. If a unit makes thrust and other products, it gets the lower-benefit category
  9. An investor qualifying under more than one special category can claim only one

§3Benefits

  • Choose ONE: Net SGST reimbursement (general up to 75% of FCI for 5/7/9 years in Group 1/2/3; thrust up to 100% of FCI for 6/8/10 years) OR Fixed Capital Investment subsidy
  • FCI subsidy general: 30%/35%/40% (Group 1/2/3); thrust 35%/40%/45%
  • FCI caps (general / thrust): micro Rs 30/35/40 lakh and Rs 35/40/45 lakh; small Rs 250/350/450 lakh and Rs 350/450/550 lakh; medium Rs 400/450/500 lakh and Rs 700/750/800 lakh
  • Interest subsidy on term loans: general 40%/45%/50% for 5/6/7 years; thrust 45%/50%/55% for 6/7/8 years; yearly caps micro Rs 15-30 lakh, small Rs 25-40 lakh, medium Rs 35-50 lakh by group
  • Electricity duty 100% exempt for new MSMEs: general 5/7/9 years, thrust 6/8/10 years
  • Stamp duty 100% exempt on land/shed/building purchase or lease deeds and on loan deeds for 3 years
  • Mandi tax 100% exempt for 5 years for new agro/food processing and biofuel/ethanol MSMEs, max Rs 5 crore/year, total not above 75% of FCI
  • Land diversion fee 50% exempt (micro & small, up to 15 acres); 10% land allotment service charge waived for small & medium (land bank)
  • Land premium subsidy in DI/CSIDC areas: general Group 2 20%, Group 3 30%; thrust 30%/40%/50%
  • Project report 1% of FCI up to Rs 10 lakh; quality certification 50% up to Rs 10 lakh; patent 50% up to Rs 20 lakh; technology purchase 50% up to Rs 10 lakh
  • Margin money subsidy 25% (max Rs 100 lakh) for SC/ST, women, ex-servicemen, retired Agniveers, Naxal-affected, third gender and Divyang founders of new micro/small units
  • Employment subsidy: 40% of net salary for 5 years, up to Rs 5 lakh/year, for hiring Divyang, retired Agniveers, surrendered Naxalites
  • Carbon-credit technology 50% of machinery up to Rs 25 lakh; water/energy audit 50% up to Rs 5 lakh
  • Export units: 50% of transport cost to port, up to Rs 50 lakh/year for 5 years
  • SME exchange listing 50% up to Rs 10 lakh; training reimbursement of one month wage or Rs 15,000 per domicile worker (wage below Rs 50,000/month)
  • SC/ST founders: 100% land premium exemption in DI/CSIDC areas, lease rent Rs 1/acre/year

§4Norms — pattern of assistance

  1. Total package for MSMEs capped at 100% of FCI
  2. FCI subsidy paid: micro in one instalment; small in 3 equal annual instalments; medium in 5 equal annual instalments; first instalment after sanction post commercial production (back-ended)
  3. FCI includes land/land development, shed-building, new plant & machinery, power and water supply, boundary wall
  4. Date of commercial production = 45 days (micro & small) / 75 days (medium) after notified trial production, or production certificate date, whichever earlier
  5. Net SGST counts only SGST on goods/services sold inside Chhattisgarh, after input tax credit; SGST on plant & machinery and raw material not counted
  6. Additional 10% subsidy and 10% higher cap (plus 1 extra year of exemptions) for women, ex-servicemen, retired Agniveers, LWE-affected, Divyang, NRI, FDI, exporting units and foreign-technology projects; only one category can be claimed
  7. Units in eligible private industrial parks get +10% subsidy, +10% cap and 1 extra year of exemptions
  8. Training reimbursement first claim payable one year after appointment; over 5 years or up to 100% of FCI

§5Documents

Tick each one as you get it ready.

§6How to apply

  1. 1

    File Udyam Aakanksha through the One Click Single Window System

  2. 2

    After production, get the commercial production certificate from the District Trade & Industry Centre

  3. 3

    Apply online for each incentive under the 2024 rules (policy promises a 'no physical contact' online system)

§7Pros and cons

Merits

  • Some of the highest MSME capital subsidy rates in central India: up to 45% of FCI for thrust micro units in Group-3 blocks (Reference Guide p.17)
  • Micro units get the FCI subsidy in one instalment, not spread over years (p.17)
  • Interest subsidy runs alongside SGST/FCI choice, up to 55% of interest for 8 years for thrust units in Group 3 (p.17)

Demerits

  • Strict domicile hiring rule: 100% unskilled, 70% skilled, 40% managerial staff must be state domiciles (clause 5.12)
  • Net SGST option pays back only tax on in-state sales; units selling outside Chhattisgarh gain little from it (definition 22)
  • Small and medium units wait 3 and 5 years for full FCI subsidy (p.17)
  • English text is only an extract - the Hindi policy prevails if figures differ (p.2)

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Sources

  1. Chhattisgarh Industrial Development Policy 2024-30 (official Hindi PDF, Invest CG portal)
  2. Chhattisgarh Industrial Development Policy 2024-30 - Reference Guide (English extract issued by Dept of Commerce & Industries; copy hosted by foundryinfo-india.org)
  3. Invest CG - Policy & Notifications (rules under IDP 2024-30, Acts 2026)

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.