Important Amendments made in the Industrial Policy to attract industries in Chhattisgarh: Permanent Capital Investment Grant now provisioned for micro as well as small and medium industries
Raipur, 9 November 2020
Soon after the formation of new government in Chhattisgarh, certain revolutionary changes were made in the industrial policy. These changes are important for redirectig the course of state’s economy towards inclusive development. Main objective of these changes is to give a matured form to the state’s economy.
Under the New Industrial Policy 2019-24, the new government of the state has notified 21 important amendments. Small industries have been given options of Capital subsidy in cash or GST completion. Till date only micro industries were eligible for cash grant. Fulfiling various demands of the industrial organizations, Government has decided to provide subsidy in cash or GST to small and medium industries as well. Special Industrial Investment Incentive Package has been announced for entrepreneurs of Scheduled Caste and Scheduled Tribe category. Benefits provided under this package, would be far better than the previous industries policies. Like the new industries, Government would also promote the old industries. Till date, Industries had to bear the total transport expenses for exporting goods from the state to other countries. Now Government would provide subsidy in the transport cost as well. Government has decided to provide a subsidy of Rs 20 lakh every year.
Under the leadership of Chief Minister Mr. Bhupesh Baghel, State Government has separately defined MSME in the new industrial policy and it has also issued the definition of extensive service entrepreneurship. As per the demands of investors, Permanent Capital Investment Grant has been provisioned for small and medium category industries as well. Earlier, it was limited to only micro industries. Evaluation period of the permanent capital investment, on expansion of the existing industries, has also been extended. To promote Steel sector, the spine of the industries in state, State Government has announced special incentive package under Be Spoke Policy. These would be the units to execute MoU with State Government.
Chhattisgarh state start-up package has been included in the policy to incorporate new ideology in industries and create new jobs. These start-ups will be provided more facilities with less formalities, as compared to the other industries. In order to promote inclusive growth, special industrial investment incentive package has been released for the entrepreneurs belonging to the Scheduled Castes and Tribes. Under this, Scheduled Caste and Tribe class entrepreneurs will get more benefits from the earlier facilities.
Through the core sector, large, mega, ultramega industries will now be given full exemption in electricity duty on setting up industries on location of any category. Now it is no longer necessary to be a 100 percent exporter of the unit for transport grant. Micro, small and medium scale industries to be set up by the eligible entrepreneurs of general category will be provided land premium on the allotment of land in the industrial areas of CSIDC and the Department of Industries. Fulfilling the much-awaited demand of entrepreneurs, State Government has reduced the land transfer fee and has increased the maximum limit for starting production.
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