Credible

Chhattisgarh
Experience a State designed
to deliver on its promise

A Business Guide
 Credible
Chhattisgarh
SURAJPUR
BALRAMPUR
KORIYA

SURGUJA
JASHPUR

KORBA
MUNGELI

BILASPUR
RAIGARH
KABIRDHAM
JANJGIR CHAMPA

BEMETARA BALODABAZAR

RAIPUR
DURG MAHASAMUND
RAJNANDGAON

BALOD

DHAMTARI

GARIABAND

KANKER

KONDAGAON
NARAYANPUR

BASTAR
BIJAPUR
DANTEWADA

SUKMA

Message
From the Chief Minister of Chhattisgarh
Today, Chhattisgarh is being increasingly
recognized as a leading brand for attracting
investments in the Country and Credible
Chhattisgarh is resonating across business
houses. Limitless opportunities and the
pro-business environment are the underlying
currents strengthening the credibility of the State.
Economic and social development is focussed
on comprehensive and sustainable growth of
Chhattisgarh and in creating gainful employment
opportunities. Equally, business in sunrise sectors
is instrumental in significantly contributing
towards development. We have undertaken
numerous reforms to develop a robust and
investor friendly business ecosystem, ensuring
transparency, faster service standards
and automation of backend processes.
Our consistent efforts in this direction stand
attested by the Department of Industrial
Policy and Promotion (DIPP), Government
of India, and the World Bank led Ease
of Doing Business Ranking, which place
Chhattisgarh in the top five investor friendly
destinations in India.
Doing Business in Credible Chhattisgarh
Driven by an industry friendly ecosystem,
Chhattisgarh is a power surplus State and rich in
natural and mineral resources. Ranking amongst
the richest Indian states in terms of mineral
wealth, Chhattisgarh has 28 varieties of major
minerals, including diamonds across 205 mines.
Our State ranked first in India for coal, tin and
dolomite production in 2014-15. It is the only
producer of tin concentrate in India. And the list
is endless, which makes Chhattisgarh a unique
value business proposition.
It is this exceptional combination of development
through value addition to natural resources and
diversification of industries, led by innovation
and technology that places Chhattisgarh amongst
the preferred business destinations in India.
Business opportunities across a variety of sectors
are to be leveraged with dynamic business plans,
incentives and new growth corridors having
been unveiled by the State. Naya Raipur in itself
represents a huge investment opportunity in
infrastructure.
I invite all potential investors, industrialists,
and young entrepreneurs to experience Credible
Chhattisgarh: a State which promises you
a profitable future. Come be our partners
in progress as we lay the foundations of
a new era of growth in the State.
Dr. Raman Singh
Honble Chief Minister
Chhattisgarh
Message
Chhattisgarh offers a competitive cost of
doing business. An economical cost of
industrial land, rentals, power tariff, raw
materials, manpower, low cost of living and
best in class fiscal incentives for setting up
and operating business, make the State
a preferred destination. Centrally located
in the Country, the State offers an added
advantage of being able to grow into a hub
to cater to and operate across regional
markets in India. I invite business and
industry to join us in this journey of
dynamic growth and development under
the visionary leadership of Dr. Raman Singh,
Honble Chief Minister of Chhattisgarh.
Shri Amar Agrawal
Minister Commerce & Industries,
Urban Administration & Development
and Commercial Tax
Chhattisgarh
Message
Strong core sector industries such as
iron, steel, cement and thermal power
have traditionally provided the growth
thrust to Chhattisgarh. Today, in this new
digital era, the State is focussing on the
development of non core sectors, providing
new opportunities to MSMEs (Micro Small
and Medium Enterprises) to prosper in
the State as well as facilitating an enabling
ecosystem for large industries. Major
businesses and players have a presence
in the State. Today, Chhattisgarh with its
world class infrastructure and high quality
talent represents a natural choice for doing
business.
Shri Chhagan Lal Mundra
Chairman
Chhattisgarh State Industrial Development Corporation Limited
(CSIDC)
 4.2 Chhattisgarh State Industrial
Development Corporation (CSIDC) 21
4.3 Chhattisgarh Infotech
Promotion Society (CHiPS) 21
4.4 Naya Raipur Development
Authority (NRDA) 22
4.5 Chhattisgarh Environment
Conservation Board (CECB) 22
4.6 Department of Commerce & Industries 22
5 Policies and Incentives 23
5.1 Industrial Policy 2014-19 23
5.2 Agro & Food Processing
Industries Policy 2012 26
5.3 Chhattisgarh Food Processing Mission 27
5.4 Electronics & IT/ITeS Policy 2014-19 27
5.5 Automotive Industry Policy 2012 29
5.6 Solar Policy 2012-17 30
6 Framework for Setting up
Industry in Chhattisgarh 31
6.1 Flowchart for Setting up Industry
in Chhattisgarh 32
6.2 Single Window Clearance System
One Stop Solution 33
7 Abbreviations 35
8 Contact Us 36

Table of

contents
1
1.1
Chhattisgarh An Introduction
Location and Demography
1
1
1.2 Economic Growth 2
1.3 Industrial Potential 6

2 Advantage Chhattisgarh 11
2.1 Availability of minerals and metals 11
2.2 Availability of Power 12
2.3 Connectivity 12
2.4 Additional locational advantages 13
2.5 Rich in land and water 13
2.6 Rich in Agriculture 13
2.7 Rich Forest cover 14
2.8 Naya Raipur, First Greenfield
Smart City of India 15
2.9 Hot spot for Tourism 16
2.10 Competitive cost of doing business 16
2.11 Talent 17

3 Ease of Doing Business

in Chhattisgarh 19

4 Institutional Framework for

Investment Promotion & Facilitation 21
4.1 State Investment Promotion Board
(SIPB) 21
 1 Doing Business in Credible Chhattisgarh Doing Business in Credible Chhattisgarh

Chhattisgarh Population (in M)

1
12.71
Female
10.36

12.83
Male
10.47

25.54

Chhattisgarh
Total
20.83

0 5 10 15 20 25 30

An Introduction
n 2001 n 2011

Chhattisgarh Population
(in M) - Rural and Urban

5.94
Urban
Chhattisgarh is the best Since its creation in 2000, the State of 4.18
Chhattisgarh has endeavoured to become a
fiscally managed State. The State has made significant
preferred business destination in India. It shares 19.60
Rural
The development expenditure borders with seven states Odisha, Jharkhand, 16.65
strides in the past decade
Madhya Pradesh, Uttar Pradesh, Maharashtra, The literacy levels have
of the State (as apercentage of Andhra Pradesh and Telangana. 25.54
Total increased from 64.66 in 2001
GSDP) is highest in the country. 20.83
to 70.28 in 2011 (Census)
Chhattisgarh has been one of the fastest growing
(Source: State Finances - A study of budgets of 2013-14, RBI,
states in India. Strong core sector industries such
0 5 10 15 20 25 30 The sex ratio in the State is 991,
Year 2013-14)
as iron, steel, cement and thermal power have n 2001 n 2011 which is better than the national
traditionally imparted it a high growth thrust. average of 940 and ranks third
The State accounts for 15% of the total steel Key Socio Economic and in the Country
produced in the Country. It has one of the highest Demographic Indicators of the State
mineral reserves in the Country. With 44% of the Indicator 2001 2011
States land under forests, Chhattisgarh accounts Census Census

for 12% of Indias forests. Identified as one of Population Density 154 189

the richest biodiversity habitats, the State of Literacy Rate (7 years 64.66 70.28
and above)
Chhattisgarh has some of the most dense forests
Chhattisgarh has been ranked in India with a rich wildlife and over 200 non-
Sex Ratio (Number of 989 991
Females per 1000 Males)
second with regards to timber forest products, which offer a tremendous (Source: Census of India, 2001 & 2011)
potential for value addition. Business friendly
cumulative value of Industrial
policies and a proactive administration make 1.2 Economic Growth
Entrepreneurs Memoranda Chhattisgarh a preferred investment destination. The GSDP of Chhattisgarh was estimated to be
(IEMs) since 2010. The State has USD 32 billion (on current prices) in 2014-15.
1.1 Location and Demography
attracted IEMs worth USD 107.6 With a total geographical area of 135,000 sq Chhattisgarh is amongst five states in the
billion {14% of the total IEMs km, Chhattisgarh is the tenth largest state in Country that grew faster than the national
the Country. The State comprises of 27 districts. average growth rate during the 11th Five Year
worth USD 781.2 billion across With a 25.54 million population, Chhattisgarh Plan period (2007-12).
the country from 2010 and accounts for about 2.11% of Indias total
population. The Per Capita GSDP of the State has been
2015 (July)}
increasing consistently and registered more than
(Source: Department of Industrial Policy and Promotion, a two fold growth between 2004-05 and 2013-14.
Govt. of India ), 1 USD=INR 64 [US Forex, 2015]
 3 Doing Business in Credible Chhattisgarh Doing Business in Credible Chhattisgarh 4

Per Capita Income in Industry sector growth drivers

Chhattisgarh in USD (In current prices)
5.17%

2014-15 1007 4.39%

Electric Gas & Water Supply
2013-14 915
13.71%

2012-13 841 6.84%

Construction
2011-12 728
11.04%

2010-11 643 21.89%

Manufacturing
2009-10 549
9.52%
0 200 400 600 800 1000 1200
11.21%
Mining & Quarrying
(Source: Directorate of Economics & Statistics of Chhattisgarh)
0 5 10 15 20 25

n 2005-06 n 2013-14

The Per Capita Income in the State increased Per Capita GSDP Sectoral contribution (Source: Directorate of Economics & Statistics of Chhattisgarh)

from USD 205 in 2002-03 to USD 1006 in in USD at current prices to the economy in 2014-15
2014-15. Services Sector
2013-14 1091.20
The Services sector contributed the highest to the
The sectoral composition of the Gross State States economy, driven primarily by banking,
Domestic Product (GSDP) shows a prominence 2012-13 982.34 22%
insurance, transport, communications and other
of the Services sector with a 40% share. services.
2011-12 884.69
40%
Chhattisgarh GSDP 2010-11 746.38 Services sector growth drivers
in USD B (In current prices)
2009-10 633.70 15.55%
2014-15 3284 38%
12.13%
2008-09 628.70
2013-14 2892 Community & other services

2007-08 531.34 11.37%

2012-13 2554 n Agriculture n Industry n Tertiary
8.93%
2006-07 450.39
2011-12 2256 (Source: Directorate of Economics & Statistics of Chhattisgarh) Banking & insurance

2005-06 367.44 7.74%

2010-11 1866
8.55%
2004-05 335.36 Industry Sector
2009-10 1553 Trade hotel & restaurants
0 200 400 600 800 1000 1200 Chhattisgarh is widely known for its rich mineral
2008-09 1515 resources and is a major resource base for major 5.80%

(Source: Directorate of Economics & Statistics of Chhattisgarh)

mineral related industries. The mineral industry 4.83%
2007-08 1254 accounts for almost 80% of the total industrial Transport, Storage & comm
units in the State. In the year 2005-06, the 0 2 4 6 8 10 12 14 16
2006-07 1045 Agriculture and Industry sectors contribute 22% industry sector grew 44.34% with manufacturing,
and 38% respectively to the States economy. The mining and quarrying being key contributors. n 2005-06 n 2013-14
2005-06 834
average annual industrial growth rate was 9.32% The sector grew 39.44% in 2013-14, which was Exports
between 2003-04 and 2013-14, which was higher primarily propelled by the construction and
2004-05 748 Chhattisgarhs total exports were USD 1.2 billion
than the national average of 7.25% during the manufacturing sub sectors driven by the ongoing
0 1000 2000 3000 4000 in the year 2013-14. Nearly 75% of the exports
same period. infrastructure development initiatives in the come from Bhilai and the remaining largely from
n GSDP State. Urla, Bhanpuri and Sirgitti.
(Source: Directorate of Economics & Statistics of Chhattisgarh)
 5 Doing Business in Credible Chhattisgarh Doing Business in Credible Chhattisgarh 6

Export trend in USD M Percentage of Investment Percentage contribution in investment through IEMs between 2010 and 2015 (July)
in the Year 2014 as per IEMs filed

2013-14 1203 Orrisa 17%

Chhattisgarh 14%
2012-13 839 18%
40% Gujarat 13%
2011-12 399
7%
Maharashtra 10%
2010-11 547 10% Madhya Pradesh 8%

2009-10 262 6% 5% West Bengal 8%

0 200 400 600 800 1000 1200 1400 4% Andhra Pradesh 7%

10%

(Source: Chhattisgarh State Industrial Development Corporation) Karnataka 7%

Tamil Nadu 4%
n Chhattisgarh n Andhra Pradesh n Gujarat
Key Export Items (in USD M)
n Goa n Karnataka n Maharashtra 2%
Rajasthan
Particulars 2012-13 2013-14 n Orrisa n Others
Iron & steel 303.69 435.53 Bihar 2%
Ores, slag and ash 199.56 336.77
Others 8%
Cereals 235.86 271.59
Nuclear reactors, boilers, 14.31 59.39 IEMs filed worth~USD 25.31 billion 0 2 4 6 8 10 12 14 16 18
machinery and mechanical
appliances, parts thereof
in the year 2014, which was
highest in the Country in 2014 1.3 Industrial Potential amongst others, have a substantive presence
Articles of iron & steel 28.61 27.58
Second best State for attracting Traditionally the core sector has been driving in the State.
Aluminium & articles thereof 4.89 22.98
growth and investments in the State. Major
(Source: Chhattisgarh State Industrial Development Corporation) investments, as per IEMs since Indicated below are the key sectors which have
industry players like Ambuja, Birla, Essar, Jindal,
2010 (till July 2015) J K Lakshmi, Lafarge, L&T, NMDC, Vedanta, attracted investment in the State:
Chhattisgarh is a major producer of iron and
steel in the Country. About one-fifth of the total
Investment Intents (MoUs) of more
iron ore produced in the Country is mined in the than USD 8.53 billion signed by the
State. Some of the best quality iron ore deposits State in the financial year 2015-16
in the world are to be found at the Bailadila
mines, south of Chhattisgarh. With more than
66% super high grade iron content that is free
from sulphur and other deleterious materials, the Investment intents (million USD) through
iron ore from this region is considered the best MoUs in 2015-16 (till November) Steel & Allied Cement Power
for manufacturing steel. 154 45
9
Investment 225
317
Chhattisgarh accounted for over 40% of the total
proposed investment of more than USD 25.3
billion, as per IEMs filed in the year 2014.
3879
Chhattisgarh attracted IEMs worth USD 107.6
billion {14% of the total IEMs worth USD 781.4 Aluminium Mining IT/ITeS
billion across the country from 2010-2015 (July)} 3906

Continuing its investment focus journey,

Chhattisgarh signed MoUs worth more than
USD 8.5 billion in financial year 2014-15 (till
November) across coal gasification, steel & n Steel & Infra n Coal Gasification n Stone
n Defence n Electronics n Food Processing n NRE
power, defence equipment manufacturing, food-
processing, NRE and IT/Electronics sectors. (Source: Department of Commerce & Industries
Defence Food Processing Electronics
 7 Doing Business in Credible Chhattisgarh Doing Business in Credible Chhattisgarh 8

Additionally, the State has identified a list of Chhattisgarh. Major industrial regions in the profitable railway zones in India, contributing Engineering Park (Bhilai)
sunrise sectors, which are receiving a special State are highlighted below: about 17% in revenues of the Indian Railways W ith Bhilai Steel Plant and other ancillaries,
impetus and are outlined below. Durg district is the metallurgical hub of the
Raipur Region Korba Region State
Agribusiness and food processing Rich reserves of minerals, limestone and coal Known as the Power Capital of India, the E ngineering Park is established in Bhilai on
Automotive make Raipur district one of the key industrial region has rich reserves of coal and bauxite 121 Ha of land
Defence centres in the State Connected with Bilaspur and 200 kms from 1 50 units based on engineering products,
Electronics Naya Raipur city is the administrative State the Raipur airport machine tools, auto components, casting and
Engineering capital and the Government proposes to Major industries present in the region forging
Handicraft develop the city into a new world class capital operate in the areas of mining (coal and
Healthcare city bauxite), electricity generation and aluminum Aluminium Park (Korba)
IT/ITeS Raipur has 158 large and mid scale industries production Aluminium Park to cater to downstream
Logistics and warehousing with prominent players such as Monnet Ispat, industries spread across 140 Ha in area
Minor forest produce Jindal, Century Cement, Lafarge, Ambuja Durg-Bhilai Region P roposed industries: aluminium cables
New & Renewable Energy Cement, Ultratech Cement Rich in mineral deposits especially iron ore, and conductors, casting utensils, bus body
Pharmaceuticals limestone and quartzite structures, auto components, aluminium
Textiles & Apparels Bilaspur Region Well connected by road and 50 km away from wheels, foils, aluminium powder, dross
The presence of South Eastern Coalfields Ltd the Raipur airport refinery and dross based articles
Industrial Regions in Chhattisgarh in theregion has ensured thriving operations Major players located in the region include
Chhattisgarh State Industrial Development for the ancillary industrial units in the area Bhilai Steel Plant Steel Authority of India Commercial Ready to Operate Infrastructure
Corporation Ltd (CSIDC) is the nodal The Sirgitti Industrial Growth Centre spread (SAIL) and ACC Udyog Bhawan (Raipur)
agency designated for the development and over 338 Ha is located in this region The Borai Industrial Growth Centre spread
maintenance of industrial areas as well as Bilaspur is also the zonal headquarter of over 397 Ha is a major industrial region Commercial complexes at
industry related infrastructure development in SEC Railway Zone, which is one of the most S
 iltara, Raipur
Industrial Infrastructure S
 irgitti, Bilaspur
Key industrial infrastructure in Chhattisgarh D
 angania, Raipur
Major industrial areas in Chhattisgarh includes eight notified industrial areas, four
Industrial Area Details Sector/ Industries large industrial areas and seven industrial parks Shopping complexes at
Urla (Raipur) O  n the outskirts of Raipur city on NH 200 375 Ha  teel, aluminium and ancillaries
S besides other upcoming industrial infrastructure R
 aipur
area, including peripheral industrial areas of Sorora, Food processing
projects in the State. B
 ilaspur
Sondongri, Gondwara, Gogaon Electrical & Electronics
418 industries with more than USD 66 million Chemical
investment Silk, Textiles, Jute Major Industrial Areas Central Business District in Naya Raipur
Siltara (Raipur) 1 3 km from Raipur spread across 1,185 Ha S  ponge iron units
USD 110 million investment Ferro alloy units
Cooking gas bottling plant Large Industrial Areas Special Economic Zones (SEZs)
Bhanpuri-Rawabhata L
 ocated near Raipur and spread over an area of  ore sector ancillaries
C Dagori (Bilaspur) Two Special Economic Zones are being
(Raipur) about 200 Ha Construction materials Tilda (Raipur) developed in Chhattisgarh
Food processing
Machinery & fabrication
Lara (Raigarh)
Sirgitti (Bilaspur) L  ocated on the outskirts of Bilaspur city on NH 200  hemical
C
Silphari (Bilaspur) Solar SEZ in Rajnandgaon
spread over an area of about 338 Ha Food Processing B
 eing developed by Lanco Solar Private Ltd.
324 industries with a fixed investment of USD 70 Steel, aluminium and ancillaries Key Industrial Parks across 250 acres
million Auto and components
T
 he SEZ will cater to the solar equipment
Tifra (Bilaspur) S
 pread over about 65 Ha located on the outskirts  hemicals & gases
C
of Bilaspur city on NH 200 Footwear Metal Park (Raipur) manufacturing industry
Ayurvedic drugs Spread across 87.57 Ha at Rawabhata (12 km O
 perational 100 MWPA polysilicon and wafer
Food processing
from Raipur) manufacturing facility (by Lanco Solar Private
Borai (Durg)  djacent the new Durg Bypass off NH 6
A  ponge iron
S
0.5 km from the Rasmada railway station Confectionery Proposed downstream metal industries like Ltd.)
Spread over an area of approx. 451 Ha Machinery & fabrication tower manufacturing, windmills, nut bolt,
44 industries with fixed investment of more than Fabric pigments
USD 20 million Pipes & tubes
hand tools, forgings, castings, utensils, auto IT/ ITeS SEZ in Naya Raipur
Food processing components, cutting tools, ties & fixtures, M
 ulti sector complex being developed by
Rani Durgawati L
 ocated in Bilaspur spread over an area of about F  ood processing railway track material, wire ropes, electrical Naya Raipur Development Authority (NRDA)
(Pendraroad) 20 Ha Core sector ancillaries and modular furniture S
 tate of the art facility for manufacturers and
Heavy & Light Industrial Located in Bhilai C  ore sector ancillaries service providers
Area, Bhilai Machinery & fabrication
Chemicals & gases F
 ocus on IT/ITeS and Electronics
 9 Doing Business in Credible Chhattisgarh
Strengthening Railway Infrastructure
in Chhattisgarh
Industrial Rail Corridor
546 km of rail network, which constitutes
more than 45% of the present rail network of
1,187 km in the State, will be added over the
next 4 years through PPP
Government of Chhattisgarh has signed
an MoU with SECL and IRCON for the
development of three rail corridors in joint
venture partnership
Three rail corridors project worth USD 1.5
billion are being developed:
Dalli-Rajhara to Jagdalpur 235 km
East Corridor (Khasaria-Korba) 180 km
East-West Corridor (Gevra RoadPendra)
131 km
Upcoming and Proposed Industrial
Infrastructure Projects
Electronic Manufacturing Cluster
Spread over 28.32 Ha, an Electronics
Manufacturing Cluster is being established in
Sector 22 of Naya Raipur
The proposed EMC will have a world class
ecosystem for electronics manufacturing
industries
Facilities proposed in the EMC include a
product design house, tool room, testing,
calibration and certification facility, printing
and packaging facilities
MoUs worth USD 155 million proposed
investment in the EMC
Mega Food Park
Located in Dhamtari, a mega Food Park
is being developed over 68.68 Ha
Dhamtari region is rich in paddy, horticulture
and pisciculture
The Food Park is 1.5 km from the Raipur-
Jagdalpur-Hyderabad NH 30 Dhamtari falls
in the Mahanadi Basin, the lifeline
of Chhattisgarh
Another private mega Food Park - Indus
Best Mega Food Park - is being developed
in Raipur over 26 Ha
Plastics Park
CSIDC along with the Government of India
(as per Plastics Park Scheme) plans to develop
a Plastics Park in Rajnandgaon district
Doing Business in Credible Chhattisgarh
(near Raipur) to promote the plastics industry
in the State
The Project spread over 100 Ha area is
proposed to be implemented through
an SPV
The Park is to be developed inviting
participation from entities, joint ventures
and consortia possessing experience in the
plastics industry and/or development and
management of plastics parks
Dr. Shyama Prasad Mukherjee Udyog Avam
Vyapar Parisar, Chhattisgarh Trade Centre,
Sector 23, Naya Raipur
Spread over an area of 40 Ha, the Chhattisgarh
Trade Centre is designed to host national
and international meetings, conferences and
exhibitions
Facilities include an exhibition pavilion,
convention centre, cultural ground, seminar
halls, a crafts village and food court
Design of the Trade Centre is based on
effective utilisation of energy
MSME Technology Center, Bhilai
A Technology Centre at Bhilai with an outlay
of USD 17 million under the World Bank
funded TCSP project of the Ministry of MSME,
Government of India, has been approved
Focus on improving access to technology,
providing skill upgradation and offering
advocacy support to MSMEs with a high
growth potential
The catchment area has leading units in steel,
power and cement to cater to the engineering
market within and outside the State.
11 Doing Business in Credible Chhattisgarh Doing Business in Credible Chhattisgarh 12

2
Advantage
Chhattisgarh
Chhattisgarh is amongst the youngest and fastest A
 ccounting for 36% of Indias tin ore reserves, W
 ith an uninterrupted quality power supply,
growing states of India, which offers immense Chhattisgarh is the only State producing tin the State offers an attractive power tariff slab
opportunities for business and development. concentrates in India; to many focus sectors like IT/ITeS, Electronics,
Powered by factors critical to business Chhattisgarh ranked first in India for coal, tin and other manufacturing focussed sectors.
development, namely, good governance, and dolomite production in 2014-15. The State
essential infrastructure coupled with a surplus accounts for 4% and 36.5% of the Countrys 2.3 Connectivity
of power, a stable labour environment, talent diamond and dolomite reserves respectively. Centrally located in the country, Chhattisgarh
pool, abundant mineral resources, and a diverse offers locational advantages to be leveraged
forest produce all make Chhattisgarh a 2.2 Availability of Power both in terms of a regional logistics hub as well
leading business destination. Chhattisgarh is acknowledged as a power as from the standpoint of accessibility to vast
surplus State. It is self sufficient in power and consumer markets in the neighbourhood.
2.1 Availability of minerals ensures an uninterrupted 24x7 power supply A new Integrated Container Depot (ICD) across
and metals across the State. Korba district in Chhattisgarh 40 Ha area is being developed by CONCOR
is known as the Power Capital of India; in Naya Raipur. This will be in addition to the
Chhattisgarhs contribution to all India An abundance of minerals makes prices existing ICD in Raipur and would further boost
mineral/metal production of cement, steel and aluminium lower in direct exports from the State.
Aluminium Steel/Sponge Iron Tin Chhattisgarh in comparison to other states
15% 30% 100%
in the Country; Air connectivity
Coal Iron ore Dolomite Chhattisgarhs large coal reserves present a Swami Vivekananda Airport in Raipur has
22.60% 19.80% 36.50% huge opportunity for electricity generation; been the recipient of National Tourism Award
Installed power capacity in Chhattisgarh was for the best airport in India in the
Diamond
11.24%
Cement
15%
Limestone
7.60%
13,728.39 MW as on August 2015. 33% of the non-metro category in 2012-13 and 2013-14;
installed capacity belongs to the State and the The Raipur airport received 0.93 million
(Source: Prashasanik Prativedan 2014-15, Government of Central government with the remaining 67% passengers and handled more than 8,000
owned by private players; flights in 2014-15. Connectivity with
Chhattisgarh)

C hhattisgarh ranks amongst the richest
Indian states in terms of mineral wealth. It is
well acknowledged for 28 varieties of major
minerals, including diamonds, spread across
205 mines;
Chhattisgarh ranked fifth in terms of value of
major mineral production in India with a 9.8%
share in 2014-15;
In the 12th Five Year Plan (2012-17), the State
Government plans to increase the power
generation capacity to 30,000 MW;
Electricity tariff in Chhattisgarh is
significantly lower than the national average;
Being a power surplus State, Chhattisgarh is
an ideal destination for high power consuming
industries like cement, aluminium, iron &
steel, paper, fertilisers and chemicals;
Chhattisgarh would be augmented with the
commencement of international flights;
Two additional airports will add to the
States existing air connectivity with Airports
Authority of India (AAI) having agreed to
establish civil airports at Bilaspur and Raigarh
in partnership with the Government of
Chhattisgarh. Further, a new green field civil
airport is proposed in Jagdalpur;
13 Doing Business in Credible Chhattisgarh Doing Business in Credible Chhattisgarh

C
 hhattisgarh has eight air strips located at 2.5 Rich in land and water Chhattisgarh produced 0.64 M MT of spices
Bhilai, Bilaspur, Korba, Raigarh, Jagdalpur, O ver 6,000 Ha of identified land parcels for in the year 2014-15. Major spices like chilli,
Ambikapur, Jashpur and Sarangarh regions. industrial development across 11 districts of ginger and turmeric produced in the State
the State; constitute around 78% of the total spices
Road connectivity H igh rainfall: over 130 cm annually drained by produced in Chhattisgarh;
35,241 km of total road network; three major river basins; Chhattisgarh produced 47,000 MT of flowers
Highway network of 2,289 km with 12 An abundance of natural resources with a low during 2014-15. The marigold variety
national highways; population density; comprised 57% of the total flower produce
Construction of an additional 3,000 km road C ompetitively priced land and water available followed by gladioli and tuberose at 12% each;
network with an investment of USD 2.34 in plenty. The States 76 cold storage units have
billion by 2018 on the basis of an Annuity/ a capacity of 0.38M MT for perishable
BOT/Loan from the Asian Development Bank. 2.6 Rich in Agriculture agricultural produce;
K nown as the Rice Bowl of India, Chhattisgarh Chhattisgarh ranked sixth in the Country
Road infrastructure in the State is rich in agriculture with 43% of its 135 lakh in fish seed production and inland fish
Road Type Road Length (Km) Ha area under cultivation; production in 2014-15. Chhattisgarh produces
National Highways 2,289 Rice is the major crop of the State covering 1.1 M MT milk annually. Milk consumption
State Highways 5,240 66% of the total cropped area. Pulses, oil seed in the State is estimated to reach 3.7 M MT by
Major district Roads 10,539
and horticulture occupy rest of the cropped 2020;
Rural roads 19,462
area at 17%, 5% and 2% respectively; A growing population, an increasing per
Chhattisgarh is also a major producer of capita income, a high rate of employment and
Total road length 35,241
maize, cereals, pulses; rapidly changing food habits and lifestyle
(Source: Ministry of Road Transport & Highways)
of the people in the State are driving growth
Rail connectivity Production of key horticulture produce in the agro and food processing sector in the
Highest contributor to Indias rail freight
in Chhattisgarh in 2014-15 State.
Major Produce Production Key Produce
accounts for one-sixth of the total national in 2014-15
freight revenue; (M MT)
2.7 Rich Forest Cover
The State has an existing rail network of Fruits 2.16 Banana, Mango,
1,187 km. An additional 546 km of rail line is Papaya, Guava, Area under forest in Chhattisgarh
Jackfruit etc.
planned through a State SPV; Forest Type Area % of Biodiversity
Vegetables 5.7 Tomato, Brinjal, Potato, (sq. km) Geographical status
The State is seamlessly connected with nearly Ladyfinger, Cauliflower, Area
all major cities in the Country, including Cabbage etc.
Sal Forests 19,682 14.56 Very Rich
Chennai, Kolkata, Mumbai, New Delhi, Spices 0.64 Chilli, Ginger, Turmeric,
Teak Forests 5,858 4.33 Fairly Rich
Coriander, Others
Ahmedabad, Allahabad, Bengaluru, Cochin, Mixed 34,230 25.32 Rich
Medicinal Plants 0.06 Eucalyptus Citriodora,
Pune and Hyderabad. Jam Rosa, Aloe Vera, Forests
Lemon Grass Total 59,772 44.21
2.4 Additional locational Flowers 0.05 Tuberose, Marigold, (Source: Chhattisgarh Minor Forest Produce Co-operative
Rose Federation)
advantages
Located in the seismically safest zone of the (Source: Department of Horticulture, Government of Chhattisgarh)

Indian subcontinent; Trade potential of MFP in Chhattisgarh

Significantly far from any hostile international C hhattisgarh grows 6% of total papaya Category of Species/Produce Estimated

border; produced in the country. Additionally, it is a MFP Trade

(USD M)
Access to a potential market of a cumulative major contributor of horticulture produce like
Nationalised Tendu leaves and 110
population of about 500 million (about 40% turmeric, ginger, guava, tomato, brinjal, okra, Gums, Sal seed,
of Indias population) across seven bordering pea and cabbage; Harra

states, which contributes 38% to Indias GDP; Maize production in Chhattisgarh increased Non Imli, Mahua, Lac, 126

Potential to become a logistics hub for to 0.75 M MT in 2014-15 from 0.23 M MT in -Nationalised Kosa, Mahul Leaves,
Chironjee Baibaring,
central India with exports to Asian markets 2012-13; Vanjeera, Kalmegh,

(Singapore, China, Korea and Japan) Production of fruits and vegetables doubled Amla etc.

being targeted through the Vizag port, in Chhattisgarh between 2008 and 2014. Total 236

approximately 500 km from Raipur. Additionally, the area under fruits and (Source: Chhattisgarh Minor Forest Produce Co-operative
Federation)
vegetable crops increased at a rate of 61% and
36% respectively during the same period;
15 Doing Business in Credible Chhattisgarh
Naya Raipur will be the flag bearer of a
resurgent Chhattisgarh. It will reflect the
rich heritage and natural beauty of the
State while marching ahead to become
Indias best planned and modern city
Dr. Raman Singh
Honble Chief Minister, Chhattisgarh
R ich in biodiversity with 44% of the States
geographical area covered by forests;
22 varied forest sub types present in the
State. Chhattisgarh is home to more than 200
varieties of medicinal plants;
Apart from timber, minor forest products like
Tendu leaves, Sal seeds, Gum, Lac, Tamarind
and several other medicinal plants provide a
means of livelihood to the tribal population in
Chhattisgarh;
Chhattisgarh accounts for more than 43% of
total lac produced in India;
Known as the Herbal State of the Country,
Chhattisgarh produces 312 species of
commonly traded medicinal plants. Out of
about 19,000 populated villages in the State,
about 11,200 are located within a 5 km of the
forest perimeter;
Minor Forest Produce offers significant trade
potential and the State is implementing
numerous programmes to realise its full
potential.
Doing Business in Credible Chhattisgarh 16
2.8 Naya Raipur, First Greenfield 2.9 A Hot Spot for Tourism 2.10 Competitive Cost of Doing
Smart City of India The State offers more than 125 tourist business
Spread across 237 sq km, Naya Raipur is the destinations across four mega circuits,
first greenfield smart city in India; Fourth including the Countrys biggest waterfall Capital Cost
planned State Capital of the Country, after Chitrakot besides wildlife, forests and ~ Lower
 cost of land
Gandhinagar, Chandigarh and Bhubaneswar; historical sites; ~ L
 ower cost of construction due to competitive
With over 2,500 Ha of public spaces, parks Chhattisgarh has 3 national parks, 11 wildlife pricing of steel and cement
and landscaping with 26% of green area, Naya sanctuaries, 30 plus significant waterfalls, ~ L
 ower cost of raw materials (metals)
Raipur is the first Indian city to be surrounded multiple caves and an untouched natural ~ Fiscal
 incentives
by a 500 m wide green belt; topography; ~ Capital
 subsidy
Included in the JNNURM scheme, Naya The State is home to the largest tribal ~ Interest
 subsidy
Raipur is a demonstration city under the population in India: 42 tribes, including 5 ~ Discount
 on land premium
GEF/World Bank assisted Sustainable particularly vulnerable tribal groups;
Urban Transport Project (SUTP) that is being Annual Sirpur National Dance and Music Operating Cost
implemented by the Government of India; Festival organised by the State Government, ~ L
 ower cost labour
The Administrative Capital of Chhattisgarh, attracts tourists from all across the world. ~ L
 ower cost of electricity
Naya Raipur houses State administration Dussehra in Bastar is another major tourist ~ L
 ower cost of living
buildings. World class amenities and attraction in Chhattisgarh; ~ L
 ower rentals
initiatives in the pipeline in Naya Raipur Natural splendours like mysterious caves ~ L
 ower cost of production
include star hotels, a golf course, a theme and the finest waterfalls coupled with an ~ F
 iscal Incentives
township, amusement park, a logistics enchanting wildlife and untouched greens can ~ E
 lectricity duty exemption
hub, jungle safari, convention centre, IT mesmerise and pleasantly surprise any tourist
SEZ, shopping malls, multiplexes and an visiting Chhattisgarh; P
 ower tariff in Chhattisgarh is lower than the
Electronics Manufacturing Cluster (EMC); A rich cultural heritage the land of hallowed national average;
An international cricket stadium with the shrines, tribal culture and an ageless art with C
 ost of metals and cement is lower in the State
second highest seating capacity in the Country an ethnic tribal culture embedded at its core; owing to local manufacturing;
The Knowledge Hub of Chhattisgarh with Rich in dance forms, musical instruments, C
 ost of land in the State is lower than in
universities, research and institutional clothes, handicrafts, festivals, the State other parts of the country on account of a low
complexes, including IIM, IIIT and a national foresees large private sector participation in population density;
law university; the tourism sector. C
 ost effective transportation and logistics;
Bus Rapid Transit System (BRTS) and 80 km of C
 ost of construction in Chhattisgarh is
non motorised cycle track competitive;
 17 Doing Business in Credible Chhattisgarh Doing Business in Credible Chhattisgarh

Cost of housing (USD per sq.ft.) Growth in professional education infra

in the State
Year 2000 3 State universities
Naya Raipur 55 116 government colleges
226 private colleges
Hyderabad 94 Year 2015  State universities
7
1 central university
Bangalore 188 6 private universities
204 government colleges
Mumbai 313 256 private colleges
Top institutes- IIT, IIM, IIIT, NIT,
Delhi 234 AIIMS, National Law University

0 50 100 150 200 250 300

P resence of NIT, IIT, IIIT, IIM, National Law
(Source: Ernst & Young analysis) University and Indira Gandhi Agriculture
University make Chhattisgarh the knowledge
hub of central India;
Cost of Industrial land (USD per sq.ft.)
Annually, 30,000 professionals pass out
of the educational institutions system in
Naya Raipur 13 Chhattisgarh;
Chhattisgarh produces about 75,000 Graduates
Hyderabad 55 and Post Graduates annually;
It is the Second Government - after South
Bangalore 234 Africa - to make Right to Skills an enforceable
right
Delhi 281 Largest public skill programme in India: over
0 50 100 150 200 250 300 0.28 million youth trained in last three years;
Residential livelihood colleges at district level
(Source: Ernst & Young analysis)
2,400 plus registered Vocational Training
Partners in the State
C
 ost of living in Raipur and other cities in
Chhattisgarh is significantly lower compared
to other parts of India.

2.11 Talent
The State has made significant progress in the
field of higher education since its inception
and has developed an excellent educational
ecosystem;

Professional educational infrastructure

Educational Number Intake Capacity
Institutes
Engineering 49 18,870
Polytechnic 43 7,120
MBA 36 2,640
MCA 12 900
Total Intake 29,530
Capacity
19 Doing Business in Credible Chhattisgarh
3
Ease of Doing
Business in
Chhattisgarh
It is a matter of great pleasure
and pride to be recognised and
acknowledged at the national
level as one of the top five States
providing a congenial business
environment. In addition to this,
the Competitive Cost of Doing
Business is another major offering,
which makes Chhattisgarh the most
preferred Investment Destination.
The State has already signed
MoUs worth USD 7.81 billion in
investment intent. Investor and
investment interest are at the core
of all departmental initiatives and
the State of Chhattisgarh is fully
committed to extending its support
to business enterprises and making
them an integrated partner in the
inclusive development of the State.
Dr. Raman Singh
Honble Chief Minister of Chhattisgarh
Chhattisgarh has been ranked fourth among
32 States and Union Territories in the country,
as part of the first authentic and comprehensive
assessment ever undertaken in India for Ease
of Doing Business ranking.
Top five states
in Ease of Doing Business
Rank State Score
1 Gujarat 71.14%
2 Andhra Pradesh 70.12%
3 Jharkhand 63.09%
4 Chhattisgarh 62.45%
5 Madhya Pradesh 62.00%
The ranking is in accordance with the detailed
assessment undertaken by the Department of
Industrial Policy and Promotion, Government of
India, and validated by the World Bank. It covers
285 parameters spanning the following areas:
i. Setting up a business;
ii. Allotment of land and obtaining
construction permit;
iii. Complying with environmental procedures;
iv. Complying with labour regulations;
v. Obtaining infrastructure related utilities;
vi. Registering and complying with tax
procedures;
vii. Carrying out inspections;
viii. Enforcing contracts.
Ease of Doing Business Strategy
Single window clearance mechanism under
the State Investment Promotion Board (SIPB)
for investment promotion in industrial
projects;
Common Application Form (CAF);
Integrated and automated approval processes;
Reduction in the number of approvals
required for setting up and operationalising
business;
Service standards with standard time frames
with provisions of deemed approval;
Information dissemination with user guides
to facilitate users;
Self certification/third party inspection in
practice.
Departmental Initiatives
Department of Industries
Transparency and predictability through
appropriate user guides, help desk support
and website information dissemination;
ICT enabled single window clearance under
SIPB;
Legal changes to make the services list
more comprehensive and in line with the
Government of India recommendations;
Online grievance redressal and business
facilitation helpline.
Department of Labour
Online registration and grant of licences under
the Factories Act, 1948;
Factory licence with validity for five years
instead of the earlier duration of one year;
Waiver of licence to establishments having
less than 50 labourers under the Industrial
Employment (Standing Orders) Act, 1946
Licence for contractors under the provisions
of The Contracts Labour Regulation and
Abolition Act, 1970;
Registration of principal employers
establishment under The Contracts Labour
(Regulation and Abolition) Act, 1970;
2nd rank in Labour regulations and reforms
3rd rank in Setting up of business
4th rank in Carrying out inspections
4th rank in Enforcing contracts
Doing Business in Credible Chhattisgarh 20
F actory building plan approval provided as
a service through the single window system;
Provision for self certification granted to
IT/ITeS.
Department of Commercial Taxes
Single Sign On to business entities for the
purpose of all State taxes;
VAT registration certificate (in case of non
sensitive goods) is issued within one working
day from the date of application;
No professional tax;
Risk based inspection related to tax
compliance;
Advance tax ruling for State level taxes on the
lines of the Income Tax Act;
Comprehensive information dissemination on
service delivery through user guides;
Online system for registration, return, refund
for various taxes applicable in the State;
Fully functional help desk and support
centres;
Risk analysis based on an objective criteria for
boosting business confidence.
Department of Urban Development
Online application and payment for NOCs,
stability certificate, building structural plan,
registration under Shops and Establishment
Act, 1958;
List of all documents required for the
application process is posted online;
Service standards with a defined time frame
for application approval and inspection.
Chhattisgarh Environment Conservation Board
Single return for various environment/
pollution related Acts (under the purview
of State Pollution Control Boards);
Online registration for various environment/
pollution related compliances (for those under
the purview of the State Pollution Control
Boards);
Auto renewal of Consent to Establish basis self
certification/third party certification;
Auto renewal of Consent to Operate basis self
-certification/third party certification;
Well defined inspection procedures complete
with provisions published on the Department
website, which include inter alia submission
of inspection reports within 72 hours.
21 Doing Business in Credible Chhattisgarh
4
Institutional Framework
for Investment Promotion
& Facilitation
4.1 S tate Investment Promotion
Board (SIPB)
The State Investment Promotion Board (SIPB)
headed by the Honble Chief Minister assists
investors/entrepreneurs to set up projects in
the State. SIPB takes up investment proposals
more than INR 10 crores (approximately USD
1.6 million) in value. Investment proposals
below INR 10 crores (approximately USD
1.6 million) are facilitated by the District
Investment Promotion Committee.
SIPB has been notified as the nodal agency
for implementation of the Single Window
Clearance System (SWCS). SIPB has developed
an ICT (Information & Communication
Technology) enabled single window system,
which allows investors to apply online for
various approvals required to set up business
in the State.
SIPB has been entrusted with industrial
promotion and assistance, including
marketing, export promotion and supply of
raw materials to micro and small industries.
SIPB assists in establishing rate contracts of
reserved items required by the government
departments for industrial infrastructure
development, upgradation and maintenance
of industrial areas as well as basic
infrastructure facilities.
4.2 Chhattisgarh State Industrial
Development Corporation
(CSIDC) light industry projects, non polluting industry
Chhattisgarh State Industrial Development
Corporation (CSIDC), a Government of
Chhattisgarh undertaking, is the nodal
agency for the development of industrial
infrastructure.
The functions of CSIDC include land
maintenance, entering into joint ventures,
managing PPPs, export promotion and
maintenance and upgradation of industrial
areas.
CSIDC has prepared and implemented the
roadmap for the development of industrial
infrastructure.The key objective of the
roadmap is to attract private investment,
execute investment promotion activities
and operationalise industrial infrastructure
projects with the participation of the private
sector.
4.3 Chhattisgarh Infotech
Promotion Society (CHiPS)
Chhattisgarh Infotech and Biotech Promotion
Society (CHiPS) is the nodal agency for
Electronics, IT/ITeS for propelling IT growth
and implementation of IT plans in the State.
CHiPS is a registered society promoted by
the Government of Chhattisgarh. The Chief
Minister heads the High Powered Governing
Council of CHiPS.
CHiPS is involved in the implementation of
various mega IT Projects like CHOiCE, e-Gram
Suraj, e-Procurement, SWAN, e-Treasury,
Bhuiyan and GIS. IT projects are drawing
upon the services of e-governance experts and
consultants from amongst corporates and the
academia.
4.4 Naya Raipur Development
Authority (NRDA)
Naya Raipur Development Authority
(NRDA) is a special area development
authority established by the Government of
Chhattisgarh under the Chhattisgarh Nagar
Tatha Gram Nivesh Adhiniyam, 1973, for the
development and administration of Naya
Raipur. As part of the developmental activities,
NRDA is developing infrastructure, utility and
social projects through various procurement
methods such as PPP, engineering
procurement contracts, rate contract etc.
NRDA facilitates implementation of large scale
clusters and parks in the Naya Raipur region.
4.5 Chhattisgarh Environment
Conservation Board (CECB)
Environmental laws, namely, the Water
(Prevention and Control Pollution) Act
Doing Business in Credible Chhattisgarh 22
1974 and the Air (Prevention and Control
of Pollution) Act, 1981, have been enacted
for the prevention and control of water
pollution, maintenance and restoration of
wholesomeness of water as well as for the
prevention, control and abatement of air
pollution respectively.
In congruence with the other Central and
State Pollution Boards, the CACB came into
existence to meet the objectives outlined in the
aforementioned Acts.
4.6 Department of Commerce
& Industries
The primary responsibility of the Department
of Commerce and Industries is the
economic development of the State through
industrialisation and promotion of trade &
commerce. The Department plays a catalytic
role in the establishment of micro, small,
medium, mega and ultra mega projects to
create employment opportunities and develop
industrial areas through an increase in
investment, trade and export.
The Department of Commerce & Industries is
the nodal department for ensuring ease of doing
business in the State through the implementation
of the provisions of the Chhattisgarh Audyogik
Nivesh Protsahana Adhiniyam 2004 and defining
various procedures for investment related
business approvals in the State.
23 Doing Business in Credible Chhattisgarh
5
Policies
and Incentives
5.1 Industrial Policy 2014-19
The Industrial Policy has been implemented in
the State for executing the Five Year action plan
for industrial development with a special focus
on emerging sectors.
Key Objectives
To promote Make in Chhattisgarh in alignment
with the national agenda of Make in India
To bring the State at par with the industrially
developed states of the country, by leveraging
the positive environment created for overall
and rapid industrialisation of the State
To promote new industrial sectors of growth
in the State with a focus on pollution free and
skill based industries
To create a conducive environment for the
promotion of exports and to attract foreign
investments through the establishment of
special industrial zones
To ensure a balanced industrial growth with
a focus on developing industrially backward
areas of the State
To facilitate participation of the private sector
in the construction and maintenance of
industrial infrastructure
To increase the Per Capita Income and GDP of
the State
To ensure balanced industrial growth by
facilitating commercial viability for businesses
in industrially backward areas of the State
To provide relatively more economic benefits
to the weaker sections of the society such as
SC/ST, the Disabled, Retired Soldiers, Naxal
affected families and Women Entrepreneurs,
bringing them into the mainstream
To provide opportunities to the private sector
in the construction and maintenance of
industrial infrastructure
To enhance employment opportunities
through value addition to the available
mineral and forest resources
To ensure participation of industries in the
skill development of the local people
To increase the storage capacity for the
agriculture produce/products in the State,
especially in rural areas
Incentives and Concessions for Priority
Industries
Interest Subsidy
Micro and Small Industry: Upto 60% of the
total interest paid with a maximum limit INR
30 lakhs per year
Medium and Large Industry: Upto 60% of the
total interest paid with a maximum limit INR
40 lakhs per year
Mega projects and Ultra mega projects: Upto
70% of the total interest paid with a maximum
limit INR 100 lakhs per year
Special Economic Package for Scheduled Caste
(SC)/Scheduled Tribe (ST): Upto 75% of the
total interest paid with a maximum limit INR
120 lakhs per year
Doing Business in Credible Chhattisgarh
Fixed Capital Investment Subsidy
Micro and Small Industry: 35% of the fixed
capital investment with a maximum limit of
INR 80 lakhs
Medium and Large Industry: Upto 45% of the
fixed capital investment with a maximum limit
of INR 120 lakhs
Mega projects and Ultra mega projects: Up
to 50% of the fixed capital investment with a
maximum limit of INR 500 lakhs
Special Economic Package for SC/ST: Up to
50% of the fixed capital investment with a
maximum limit INR 500 lakhs
Electricity Duty Exemption
For all categories of industry: Full
exemption upto 10 years (from the date of
commencement of commercial production)
Special Economic Package for SC/ST: Full
exemption upto 12 years from the date of
commercial production
Stamp Duty Exemption - 100%
Exemption from Entry Tax
Upto 7 years
Exemption/concession in land premium on
allotment of land in industrial areas/industrial
parks
Small, Micro, Medium Industry: Upto 60%
exemption in land premium
Large, Mega projects/ultra mega projects:
Upto 25% exemption in land premium
Special Economic Package for SC/ST: 100%
exemption in land premium shall be given on
land allotment for establishing industries and
service enterprises. Rate of lease rent will be
INR 1 per acre per year
Project Report Subsidy
For all categories of industry: 1% of the fixed
capital investment; maximum limit INR 2
lakhs
Special Economic Package for SC/ST: 1% of
the fixed capital investment; maximum limit
INR 2.5 lakhs
(Source: Priority Industries as per Industrial Policy 2014-19;
For details on incentives, please refer to Policy document)
 Doing Business in Credible Chhattisgarh
Quality Certification Subsidy
Small, Micro & Medium Enterprises: 50% of
expenditure for certification; maximum limit
INR 1 lakh
Special Economic Package for SC/ST: New
and existing Micro, Small and Medium
category industries - 60% of the amount spen;,
maximum limit INR 1.25 lakhs for obtaining
certification
Technology Purchase Subsidy
For all categories of industry: 50% of
expenditure for patent; maximum INR 5 lakhs
Special Economic Package for SC/ST: Small,
Micro, Medium , Large industry and Mega &
Ultra Mega Projects - 60% of the amount spent
on purchase of technology; maximum limit
INR 6 lakhs
Technical Patent Subsidy
Small, Micro & Medium Enterprises: 50%
of expenditure for patent, maximum limit
of INR 5 lakhs
Special Economic Package for SC/ST: Small,
Micro, Medium, Large, Mega & Ultra Mega
Enterprises - 60% of expenditure for patent,
maximum limit of INR 6 lakhs
industries in the State to value add to the rich
Margin Money Grant
Women Entrepreneurs, Retired Soldiers and
Naxal affected families and entrepreneurs
in the Disabled class in the State to get 25%
Margin Money Grant on a capital cost of
INR 500 lakhs for the establishment of new
industry, the maximum limit being INR 35
lakhs
Special Economic Package for SC/ST:
25% Margin Money Grant on a capital cost
of INR 500 lakhs for the establishment of
new industry, the maximum limit being
INR 40 lakhs
Industrial Award Scheme
At the State level: First, second and third
prizes of INR 1,00,000/-, INR 51,000/- and
INR 31,000/- respectively, along with a citation
Special Economic Package for SC/ST: Every
year first, second and third prize along with a
citation at the State level with the prize money
(Source: Priority Industries as per Industrial Policy 2014-19;
For details on incentives, please refer to Policy document)
5.2 Agro & Food Processing
Industries Policy 2012
Agro and Food Processing Industries Policy
2012 focusses on promoting the downstream
natural agro and food produce of the State.
Key Objectives
To enhance farmer income in the State
Value addition to the agriculture produce,
fruits & vegetables and pulses & oilseeds in
the State
Generation of new employment opportunities
in the sector
Incentives & Concessions
Reimbursement Concession in Value Added
Tax and Central Sales Tax
Maximum limit is 150% of the fixed capital
investment upto a maximum period of
10 years, whichever is completed earlier
Entry Tax
100% exemption for a period of 7 years from
the date of commencement of commercial
production
Electrical Duty exemption
1 00% exemption for a period of 10 years from
the date of commencement of commercial
production
Doing Business in Credible Chhattisgarh 26
P rovision for secured storage for agriculture
produce, pulses & oilseeds and fruits &
vegetables in the State
Ensure better price of agriculture produce for
the farmers in the State
Reduction in the cost of production of
agricultural products as well as marketing and
branding facilitation
Ensure availability of quality food materials
to the public at appropriate prices
To promote agricultural diversification of
horticulture and other cash crops through
the agro and food processing industry in
Chhattisgarh
Mandi Tax exemption
T
 otal exemption leviable on agro products
shall be granted to the agro & Food Products
Processing units for a period of five years;
maximum limit 75 percent of the fixed capital
investment of the unit.
Facility on Contract Farming
P
 rovisions of the Chhattisgarh Krishi Upaj
Mandi Act 1972 are applicable in the State.
Single Licence System
SalePurchase can be undertaken in the
notified Krishi Upaj Mandies in the State
27 Doing Business in Credible Chhattisgarh
5.3 Chhattisgarh Food
Processing Mission
The Chhattisgarh Food Processing Mission
was notified in January 2016 on the lines of the
National Mission on Food Processing (NMFP),
to provide additional incentives to the food
processing sector in Chhattisgarh
Key Objectives
To encourage investment in the food
processing sector
To promote technology upgradation and
modernisation in the food processing industry
To develop cold chain infrastructure in
Chhattisgarh
To encourage establishment of primary
processing centres for food processing in
Chhattisgarh
Scheme for technology upgradation,
establishment and modernisation of the food
processing industry
Applicable to the cost of plant & machinery and
technical civil works
@ 25% upto INR 50 lakhs in general areas
@33.33% upto INR 75 lakhs in ITDP areas
(Integrated Tribal Development Project)
Scheme for cold chain, value addition
and preservation infrastructure
Grant-in-aid @35% of the bank appraised
project cost, including Interest during
Construction (IDC), upto INR 5 crores per
project
Interest subsidy @6% upto a maximum of INR
2 crores for a period of 5 years from the date of
completion of the project
Scheme for the setting up of Primary
Processing Centre (PPC)/Collection Centre (CC)
in rural areas
Grant in aid @ 50% of the project cost with a
maximum of INR 2.50 crores
Exemption on Stamp Duty
100% exemption from payment of Stamp Duty
on direct purchase/lease on allotted land
Scheme for reefer vehicle
G
 rants-in-aid @ 50% of the cost of new reefer
vehicle upto INR 50 lakhs
Doing Business in Credible Chhattisgarh 28
5.4 Electronics & IT/ITeS
Additional Incentives
Policy 2014-19
1. Micro, Small and Medium Enterprises
The IT/ITeS and Electronics industry has been
Incentive for Quality Certification - MSME Units established in the State are entitled to an incentive
identified as a priority sector by the State in
by way of reimbursement of 50% expenditure on ISO9000, ISO-14000 or other similar national/
services sector. The Electronics & IT/ITeS 2014-
international certifications, the maximum limit being INR 7.00 lakhs. A unit can avail of this
19 Policy has been released with the objective
incentive for a maximum of two quality certifications per unit per annum.
of promoting talent and high job creation in
Incentive for Technical Patent - Units established in the State are entitled to an incentive by way
the sector to be able to contribute to the socio-
of reimbursement of 50% expenditure on technical patents in the name of the unit with a maximum
economic development of the State.
limit of INR 10 lakhs. The Unit can avail of this incentive for a maximum of two technical patents
per unit per annum.
Key Objectives
Subsidy on Bandwidth Charges - MSME Units established in the State are entitled to a subsidy
To encourage investment in Electronics,
by way of reimbursement of 30% of the total charges paid towards availing of internet bandwidth
Information Technology and Information from ISP, the maximum limit being INR 3 lakhs per annum.
Technology enabled Services in the State
To develop Naya Raipur and other major 2. Large Investors
cities of the State as Electronics and IT hubs Entrepreneurs with an investment of more than INR 100 crores during the Policy period may be
considered for additional incentives over and above the incentives given in the Policy on a case
Skill development of local youth in accordance
to case basis.
with the requirements of the Electronics,
Information Technology and Information IT infrastructure developers possessing experience in IT infrastructure development on more than
3 lakh sq ft area over 5 years, with an investment of more than INR 100 crores, may be considered
Technology Enabled Services related industry
for additional incentives over and above the incentives given in the Policy on a case by case basis.
Promote development of IT Hubs/IT Park
by providing incentives to investors for IT
infrastructure development
Special Incentive Package
The Units, which commence commercial production during the financial year 2015-2016 with
Incentives & Concessions
a minimum of 500 employees are entitled to following incentives during the Policy period
~ Preference in the evaluation process by way of award of bonus points in Technical Evaluation
Interest Subsidy
equivalent of 5% of the maximum score in IT related tenders of the Chhattisgarh Government;
75% of the total interest paid for 7 years;
~ Free of cost advertising space, if available, in Government sponsored events for IT units in the
maximum limit of INR 60 lakhs per annum
State.
The State would ensure uninterrupted quality power supply at the most competitive tariff
Fixed Capital Investment Subsidy
to the units.
Upto 50% of the fixed capital investment,
Relaxation in working hours, work shifts and employment of women under the Shops &
excluding the cost of land with maximum
Establishments Act.
limit of INR 150 lakhs per unit
Relaxations under the Industrial Disputes Act and Contract Labour Act to all Electronics,
IT and ITeS units in the State at par with Special Economic Zones.
Rebate on Land Premium
Permission to Electronics, IT and ITeS units for self certification of reports, returns. All units under
Rebate upto 80% of the land premium for
this Policy are declared essential service under Essential Services Maintenance Act.
units established within notified IT areas
Rebate on Lease/Rental Space
Reimbursement upto 50% of lease or rental
charges for a period of 3 years; maximum
limit of INR 10 lakhs
Exemption on CST and Entry Tax
100% exemption on CST and Entry Tax for
10 years
Electricity Duty Exemption
100% exemption on electricity duty upto
12 years
29 Doing Business in Credible Chhattisgarh Doing Business in Credible Chhattisgarh 30

5.6 Solar Policy 2012-17 T o contribute to long term energy and

The Chhattisgarh Solar Energy Policy 2012
has been framed to leverage the National
Solar Mission and develop opportunities for
investment in the New and Renewable Energy
sector.
Key Objectives
To encourage, develop and promote solar
power generation in the State
To meet the growing demand for power in an
environmentally and economically sustainable
manner
To enhance private sector participation in solar
power generation
To create a favourable environment for
the development of solar manufacturing
capabilities within the State
ecological security of the State
To promote Off-Grid Solar applications to
meet the energy needs of the vulnerable
sections of society residing in distant areas
To enhance universal access to clean energy
To encourage a decentralised, distribution
generation system in the State
To create opportunities for direct and
indirect employment in solar generation,
manufacturing and related support industries
To efficiently utilise the available wastelands/
non industrialised unused land for solar
generation
To create skilled and semi skilled talent for the
sector
To encourage innovative projects for solar
power generation

Incentives & Concessions

Electricity Duty Exemption Land for Grid Connected Project

5.5 Automotive Industry Policy 2012
The Automotive Industry Policy 2012
encourages the establishment of automotive
(automobile, two wheelers, three wheelers,
passenger and commercial vehicles, earth
movers, agricultural utility vehicles, auto
components etc.) and non core sector industries.
Key Objectives
To encourage the establishment of non core
Incentives & Concessions
All Solar Power projects are exempt from It is the responsibility of the project developer
payment of Electricity Duty (ED) on auxiliary to acquire the land required for the project as
sector industries in the future
consumption and captive consumption within per the policy of the State
T o attract a minimum of USD 3000 million
the State Depending on the availability, Government
in investments in the automotive industries
State Government extends the facility land can be made available to the project
sector and create 20,000 additional
of ED Exemption to Solar Power Plants developer as per the prevalent State Policy.
employment opportunities over next ten years
commissioned uptil March 2017 Terms and conditions of States Model
To encourage establishment of micro,
Rehabilitation and Resettlement policy, as
small, ancillary and medium industries
VAT amended from time to time, are applicable for
in the automotive industry to foster local
VAT for all the equipment/material required acquisition of private land by the Government
entrepreneurship and create direct and
for solar power projects included in the list for setting up solar power generation plants
indirect employment opportunities
notified by Energy Department is entitled for
exemption by the Commercial Tax Department

Value Added Tax reimbursement

Limited to a maximum 115% of the capital
investment for original and ancillary units for Exemption from payment of Entry Tax
a maximum period expiring before 18 years, 1 00% rebate on purchase of the first raw
whichever is earlier materials for the project for a period of 8 years

Rebate in Central Sales Tax Exemption from Stamp Duty

For a period of 18 years 50% on the rate 1 00% on sale/lease related documents of land,
prevailing at that time buildings, sheds and flat

Exemption from Registration Fee

Rebate in Electricity Duty 1 00% exemption on land, buildings, sheds
For the period of 10 years from the date and flat
of commencing commercial production
31 Doing Business in Credible Chhattisgarh Doing Business in Credible Chhattisgarh 32

6
Framework for General Framework of Processes for Setting up Industry in Chhattisgarh

Setting up Industry
Business Establishment
in Chhattisgarh

in Chhattisgarh Large

IEM A from
Ministry of C&I
MSME

Udyog
Akanksha DTIC

6.1 Outlined
 below are the nodal departments/agencies and the Building on
Land with Own
process flow for setting up industry in Chhattisgarh. The nature CSIDC/DI
Own land
Building Rent/Lease
of approvals depends upon the type of industry to be set up.
Facilitation of approvals and clearances required for setting up
and doing business in the State are part of the services offered by Layout & Building
Consent to
establish from
the SIPB. Plan Approval
CECB

Electricity Connection Water Connection NOC by Registration

Registration NOC
(After Building (After Building Local under Boiler
under Fire,
Construction Construction Bodies, Commercial Registration
Labour Acts if any
/existing building) /existing building) if any Taxes
Nodal Departments/Agencies involved in Setting up Industry in Chhattisgarh
Issuance of Registration Land Approvals Pollution/ Water Electricity Labour
IEM/ Udyog under VAT/ Allotment & for layout Environment & Factory
Akanksha CST Diversion and building Licence Post commencement of
plans Commercial Production

DIPP, Govt. Commercial CSIDC/Dept. Urban/Town CECB, Water Chhattisgarh Labour

of India/ Tax of Industries, & Country Government Resource State Power Department/ Large MSME
DTIC- Department Revenue Planning of Department Distribution Local Bodies
Govt. Of Department, Department/ Chhattisgarh /PHED Company
Chhattisgarh Govt. of Local Bodies IEM A from Commercial Production Certificate
Chhattisgarh Ministry of C&I from the concerned DTIC
33 Doing Business in Credible Chhattisgarh Doing Business in Credible Chhattisgarh

6.2 S ingle Window Clearance
System One Stop Solution
The Government of Chhattisgarh has set up
a Single Window Clearance System (SWCS),
which provides the investors with one Window
or a single point of contact (SPoC) for handling
all information, data, documents and for
coordinating between different departments.
SIPB is the nodal agency designated to provide
SWCS. Investors can submit all standardised
information and documents at a single entry
point (physical or electronic) in the form of a
Combined Application Form (CAF) to fulfill
regulatory requirements. For details, please visit
www.industries.cg.gov.in

Single Window Clearance System

DEPARTMENT
Investor Single Window System OF COMMERCE
Submits CAF
& INDUSTRY
with supporting S
 hare information related to
documents opportunities, land, project, state LABOUR
approval processes etc DEPARTMENT

S
 elect, sort, filter investor information ENERGY
DEPARTMENT
Update R
 oute it to respective government
on project departments CG POLLUTION
approval status CONTROL BOARD
U
 pdates responses to the investor
URBAN
DEPARTMENT

COMMERCIAL
TAXES

REVENUE

State Investment Other Departments/

Investor Promotion Board Agencies
35 Doing Business in Credible Chhattisgarh Doing Business in Credible Chhattisgarh 36

7 8
Abbreviations Contacts

Secretary Managing Director

CAF Common Application Form
Commerce & Industries Chhattisgarh State Industrial
CAGR Cumulative Average Growth Rate
Mantralaya Development Corporation
CECB Chhattisgarh Environment Conservation Board
Naya Raipur 492002 Udyog Bhawan
CGWA Chhattisgarh Ground Water Authority
Chhattisgarh, India Telibandha
CHiPS Chhattisgarh Infotech Promotion Society
Tel +91 771 2535434 Raipur 492006
CSIDC Chhattisgarh State Industrial Development Corporation
Email: singhsk2@ias.nic.in Chhattisgarh, India
CSPDCL Chhattisgarh State Power Distribution Company Ltd
Email: csidc.cg@nic.in
CSPTCL Chhattisgarh State Power Transmission Company Ltd
Convener
DTIC District Trade and Industries Centre
State Investment Promotion Board CEO
EMC Electronics Manufacturing Cluster
Near Mantralaya Chhattisgarh Infotech Promotion Society
GoCG Government of Chhattisgarh
Renuka Dwar, Shashtri Chowk 3rd Floor, State Data Centre Building
GoI Government of India
Raipur 492001 Opposite Circuit House
GSDP Gross State Domestic Product
Chhattisgarh, India Civil Lines
IEM Industrial Entrepreneurs Memorandum
Email: sipb.cg@nic.in Raipur 492001
IT SEZ Information Technology Special Economic Zone
Chhattisgarh, India
MoEF Ministry of Environment, Forest & Climate Change
Director of Industries Email: ceo@chips.com
MSME Micro, Small & Medium Enterprises
Udyog Bhawan
NOC No Objection Certificate
Telibandha CEO
NRDA Naya Raipur Development Authority
Raipur 492006 Naya Raipur Development Authority
ROC Registrar of Companies
Chhattisgarh, India 1st Floor, Utility Block Capital Complex
SIPB State Investment Promotion Board
Email: dtic-directorate.cg@gov.in Sector 19
SPV Special Purpose Vehicle
Naya Raipur 492002
WRD Water Resource Department
Chhattisgarh, India
SECL South Eastern Coalfields Ltd.
Email: ceo@nayaraipur.com
IRCON Ircon International Limited

Note: All figures and data are in USD. The figures and data for incentives are in INR.
37 Doing Business in Credible Chhattisgarh

This publication is a general guide on Chhattisgarh. Details on resource availability, latest policies,
schemes, etc. and appropriate advice should be sought before taking any decision or action.
All data graphics are indicative and not to scale.
Knowledge Partner

February 2016