Chhattisgarh government's new industrial policy announced on November 1 stresses on promoting industrial growth and economic activities in new regions, particularly in Naxal-affected areas of the state.
The New Industrial Policy 2019-24 was unveiled by Chhattisgarh chief minister (CM) Bhupesh Baghel at the 19th foundation day of the state and would be effective till 2024. It has also shifted focus to non-core sectors comprising aerospace engineering, aircraft repair food processing and micro, small and medium enterprises by giving them attractive sops.
"The industrial policy of the previous government focused on core sectors like mining, steel and power sectors, our focus is now on all sectors of the economy especially food processing and MSME sectors," the CM told reporters before unveiling the new industrial policy.
The policy envisions several fiscal and non-fiscal incentives to sectors specifically those which establish units in backward districts of the mineral-rich state. To ensure overall and holistic development of Chhattisgarh, the policy has classified all development blocks of the state into four categories according to their backwardness. The maximum facilities have been announced in the policy for the industries based in the backward areas.
The CM articulated that efforts are on to ensure that industries are set up in new districts of the state, especially those in the Naxal-affected areas. "Right now most industries are concentrated in Durg-Bhillai, Raipur, Korba, Raigarh belts. The new industrial policy has special incentives for industries which want to set up units in Bastar, sarguja and Kanker," Baghel informed the media.
The policy has a clear focus on food processing and other agriculture-related industries with top priority to organic fuel from paddy, ethanol refinery, and horticulture product processing.
The policy has also promised major fiscal incentives such as state GST compensation, interest subsidy, electric duty exemption and transport subsidy. It states that the GST implementation has slowed down the pace of setting up new industries in Chhattisgarh. To tackle this problem, the state government has incorporated SGST compensation in policy assuring that 65% of the net state GST paid would be reimbursed for a maximum period of 15 years.
Furthermore, the policy provides up to 70% interest subsidy on loans of up to Rs 55 lakh a year for 11 years, 100% stamp duty exemptions and a transport subsidy of up to Rs 20 lakh for a maximum period of five years.
The non-fiscal incentives envisaged in the policy include land at 30% reduced rates as well as the conversion of industrial land which is 10 year old or more from lease to free-hold, etc.
The CM added that the industrial policy has been drafted after extensive discussions with the industries and industry bodies in the state. "Before drafting the policy, I met representatives of industries, went to offices of industrial chambers and incorporated all their demands," he said.