838 startup units registered in the last four years
At present, the Department of Promotion of Industry and Internal Trade, Government of India, has recognized a total of 1012 startup units in the state. Interestingly, a significant majority of these, numbering 838, have been registered within the last four and a half years.
The Government of Chhattisgarh’s new Industrial Policy 2019-24, aimed at encouraging startups, has shown remarkable results with the registration of 838 startup units in just four and a half years. This success was achieved, in part, through various grants for the establishment and operation of incubators, a new provision in the industrial policy. The state’s startup units have gained national recognition, leading to numerous awards and a vibrant startup ecosystem.
Statewide Recognition and Accolades for Chhattisgarh Startups
In a noteworthy achievement, the startups of Chhattisgarh have been recognized nationally due to the state government’s effective policies and their implementation. Their accomplishments include winning the Best Startup Award in four categories at the India First Tech Startup Conclave, organized by the All India Council for Robotics and Automation in Bengaluru in June 2022. Furthermore, the state was acknowledged as an Aspiring Leader in the States Startup Ranking 2021 by the Government of India, reinforcing its position as a hub for startup development.
Generous Grants and Concessions for Startup Promotion
To fuel the growth of startups, the government provides various concessions, exemptions, and grants. These include a 40 percent grant for establishing incubators, a maximum grant of Rs. 50 lakh, and an operational grant of Rs. 3 lakh per year for three years. There is also an interest subsidy of up to 70 percent, a maximum subsidy for fixed capital investment, and full exemption from stamp duty on land purchase or lease. The Net State Goods and Services Tax (Net SGST) is entirely reimbursed up to 100 percent of fixed capital investment for a maximum period of 15 years.
Additional Supportive Measures for Startups
Continuing with the efforts to promote startups, the government reimburses 40 percent of the monthly rent as a rent subsidy and provides a project report grant. Quality certification grants and grants for technical patents are also in place. To encourage technological advancement, a limit of Rs. 10 lakh is set for the maximum amount of 50 percent of the expenditure incurred under the technology purchase grant. Furthermore, partial reimbursement for participation in national and international-level seminars and workshops, along with a 50 percent exemption in land premium on allotments of land in industrial areas, is offered.
Table of Important Provisions
| Provision | Detail |
|---|---|
| Incubator Grant | 40 percent for establishment |
| Maximum Grant | Rs. 50 lakh |
| Operational Grant | Rs. 3 lakh per year for three years |
| Interest Subsidy | Up to 70 percent |
| Capital Investment Subsidy | Up to 55 percent |
| Net SGST Reimbursement | 100 percent of fixed capital investment for 15 years |
| Stamp Duty | Full exemption on land purchase or lease |
| Rent Subsidy | 40 percent of the monthly rent |
| Project Report Grant | One percent of the valid fixed capital investment |
| Quality Certification Grant | 50 percent of the amount |
| Technical Patent Grant | 50 percent of the expenditure |
| Technology Purchase Grant | 50 percent of the expenditure |
| Seminar/Workshop Reimbursement | 50 percent for national/international participation |
| Land Premium Exemption | 50 percent in industrial areas and parks |
