R Krishna Das
The deafening sound of explosions and gunshots will soon be replaced with the buzz of machines in Chhattisgarh’s Bastar region, a pocket infamous globally for deadly Maoists violence.
The Chhattisgarh Industrial Development Policy 2024-30 envisages “Amrit Kaal: Chhattisgarh Vision 2047”, aiming to set new benchmarks in industrial growth while fostering overall economic and social development in the state. The policy focuses on leveraging Chhattisgarh’s rich natural resources and strategic location to create a thriving industrial ecosystem, boosting employment and investment opportunities.
The policy, which aims to transform the State into a self-reliant industrial hub, has given special focus on Bastar. Once a Maoists den, the region is set to shape as a manufacturing hub. The new industrial policy has ensured that the vision is realised.
Since the formation of the state, various industrial policies have been conceptualised and implemented to promote growth, and the latest policy is the sixth one implemented since 2001. The policies have been constantly evolving to meet the changing needs and goals of industrial development in Chhattisgarh. The new policy introduces several incentives to promote industrial investment in the state.
The incentives include interest subsidy, state capital investment subsidy (including infrastructure subsidy), stamp duty exemption, electricity duty exemption, entry tax exemption, value added tax (VAT) reimbursement, mandi fee exemption and project cost subsidy, etc. The state’s strategic central location, coupled with modern transport infrastructure and active participation of stakeholders, will help transform Chhattisgarh into a ‘healthcare hub’ in the coming years.
In addition, the state is set to begin construction of an industrial area on 118 acres of land near Jagdalpur—the headquarters of Bastar. The government is keen to attract more industries to the state. For the first time, this policy encourages investments in tourism and healthcare. The state government has recently given the tourism sector the status of an “industry”, recognising its significant potential for growth. The focus on emerging sectors is part of the state’s effort to establish itself as a leading industry. A key feature of this policy is support to service industries, which is an emerging sector in India. For the first time, this policy provides specific incentives for MSME service enterprises and large-scale service enterprises. This includes sectors such as engineering services, R&D, healthcare, tourism and entertainment.
Chhattisgarh is possibly the first state in India to provide special incentives to young Agniveers and Maoists-affected families to start their own businesses. Additionally, the policy provides special support for young entrepreneurs from Scheduled Castes/Tribes. A unique provision is the provision of land for these groups at a nominal rate of one rupee per acre in industrial areas. The policy also provides enhanced incentives for residents of the state, with special emphasis on marginalised communities including Scheduled Castes. The policy also provides enhanced incentives to residents of the state, with special emphasis on marginalised communities including Scheduled Castes (SC), Scheduled Tribes (ST), women entrepreneurs, retired Agniveers and ex-servicemen (including those from paramilitary forces). The policy also provides special incentives for Maoists-affected persons, weaker sections and third gender entrepreneurs, ensuring that these groups receive targeted support for economic upliftment and entrepreneurship. The policy ensures minimum government interference in the establishment and operation of industries.
To reduce bureaucratic hurdles, the state aims to promote self-certification and online processes for industry-related processes, eliminating the need for businesses to directly approach government offices unless necessary. Chhattisgarh has also revised the definition of micro, small and medium enterprises (MSMEs) in line with the central government’s definition to make incentives more competitive compared to other states.
The state’s new industrial policy has already caught the attention of industrial giants. During a stakeholder connect workshop in Naya Raipur on December 4, 2024, the state government issued “Investment Intent” letters worth Rs 32,225 crore for investments in key sectors such as IT, AI, data centres, ethanol, electronics, compressed biogas, etc. Leading industrial clusters like Shivalik Engineering, Maa Durga Iron & Steel, ABREL Green Energy, RAG Ferro Alloys, Reliance Bio Energy, Yash Fans & Appliances, Shanti Greens Biofuel, Rackbank Datacenter, etc. are set to contribute to this economic transformation. To further strengthen these efforts, the state has classified its development blocks into three categories to ensure targeted incentives. Group 1 consists of 10 blocks, Group 2 consists of 61 blocks and Group 3 consists of 75 blocks, each with different levels of investment and incentives. Along with this, there are provisions for additional incentives for key industries where the state has a competitive advantage and where future employment opportunities are likely to arise. With a clear focus on the future, the new industrial policy of the Chhattisgarh government will lead the state towards a bright and prosperous future, leading to a prosperous economy and ample employment opportunities for the people.
The new industrial policy aims to create more than 5 lakh jobs in the next five years. Chhattisgarh is on its way to becoming one of the fastest growing economies in the coming decade in sectors such as textiles, pharmaceuticals, artificial intelligence, defence, energy and medical tourism. The government aims to ensure complete elimination of the Maoists problem by March 2026, paving the way for peace, stability and a new beginning in all the affected areas.
The state government has given special provision of special package for these sectors: Pharmaceuticals, Textiles, Agro & Food Processing, Non-wood forest product processing, Compressed Biogas, Electrical & Electronics, Artificial Intelligence (AI) Robotics & Computing (GPU) and IT/ITES/Data Centres.
“This policy has been developed with the goal of generating employment and building a developed Chhattisgarh in line with the vision of a developed India by 2047. This policy has been formulated not only to promote industrial development but also in line with the national vision of a developed India by 2047 envisioned by Prime Minister Shri Narendra Modi,” Chhattisgarh Chief Minister Vishnu Deo Sai said.
The state has launched the One-Click Single Window System 2.0, which will drastically reduce the approval time and help Chhattisgarh to be ranked among the top states in terms of ease of doing business. Single Window System 2.0 has been developed. This system integrates online application, departmental approval and subsidy disbursement. Our streamlined and transparent system ensures that all approvals for industrial establishments are provided with a single click.
The Chief Minister laid the foundation stone of a semiconductor manufacturing plant to be built by Polymatech Electronics Pvt Ltd, one of the country’s leading semiconductor producers, in Nava Raipur. The company will invest Rs 1,143 crore to set up the state’s first large semiconductor unit. The unit will be spread over an area of 1.5 lakh square feet and is estimated to manufacture 10 billion chips by 2030. These chips will be used in telecom, 6G/7G technologies, laptops and power electronics. The establishment of this plant is expected to generate significant employment for local youth.
The new industrial policy includes over 350 policy reforms aimed at improving the single-window clearance system and ease of doing business. These reforms will directly benefit investors in the steel sector. Industries adopting green energy will be eligible for special grants. The recently held Energy Summit received investment proposals worth about Rs 3.5 lakh crore, including Rs 57,000 crore earmarked for hydropower projects.
Solar energy production is also progressing rapidly under the Pradhan Mantri Suryaghar Free Electricity Scheme. The state government is giving additional subsidies in addition to the central government subsidy for installing solar power plants of various capacities in homes. Apart from this, a provision has also been made to sell the excess electricity produced in homes, so that families installing solar panels in their homes can sell the electricity saved from their energy use.
The new Industrial corridors are being developed rapidly and new industrial parks are being set up. The government is giving special grants to the private sector for setting up these parks., the industry department officials said.
Total investment proposals Rs 1,23,073 crore, 20,627 new employment opportunities, Chhattisgarh attracted total investment of Rs 1,63,749 crore in FY 2025 and 3.71 per cent share of India’s cumulative investment inflows.
Chhattisgarh aims to double its Gross State Domestic Product (GSDP) to Rs 10 lakh crore by 2030.
