Enterprises involved in Formulations, Active Pharmaceutical Ingredients (API), Key Starting Material (KSM), Drug Intermediates (DI), and Medical Devices are eligible.
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Chhattisgarh Industrial Investment Promotion for Large Pharma Industries (2024-30)
Secure Up to 100% Fixed Capital Investment Incentive for Your Pharmaceutical Project with Unique Group
The Chhattisgarh Industrial Development Policy 2024-30 introduces the robust Industrial Investment Promotion Package specifically for Large Enterprises in the Pharmaceutical Sector. This targeted policy offers industrial investment promotion up to 100% of the amount invested under fixed capital investment heads.
Whether you are establishing a new unit or planning expansion, diversification, substitution, or modernization in areas like Formulations, API (Active Pharmaceutical Ingredients), KSM (Key Starting Material), Drug Intermediates (DI), or Medical Devices, Unique Group's 15 years of expertise ensures you unlock the full spectrum of subsidies available under this powerful scheme in Chhattisgarh.
This package is designed for large enterprises undertaking new projects or expansion/ diversification/substitution/modernization of existing enterprises in the eligible pharmaceutical sub-sectors. The total industrial investment promotion can reach 100 percent of the fixed capital investment.
Key Benefits and Subsidy Components
The promotion package includes various subsidies, exemptions, concessions, and reimbursements:
1. Net SGST Reimbursement OR Fixed Capital Investment Subsidy (Choose One)
An investor must select only one of these two benefits. The selected option is irrevocable and requires an option letter with an affidavit.
- Option A: Net State Goods and Services Tax (Net SGST) Reimbursement
- Benefit: Reimbursement of the Net SGST paid.
- Duration: Up to 12 years from the date of commencement of commercial production.
- Maximum Limit: Up to 100 percent of the maximum fixed capital investment.
- Option B: Fixed Capital Investment Subsidy
- Benefit: A capital subsidy provided for the establishment of new enterprises or for expansion/diversification/substitution/modernization of existing ones.
- First Installment: Paid after the commencement of production, subject to application and approval.
- Subsidy Details (Capital Investment in Plant and Machinery):
|
Capital Investment in Plant and Machinery (₹ in Crores) |
Percentage of Subsidy |
Maximum Subsidy Amount (₹ in Crores) |
Subsidy Distribution Duration |
|
More than 50 but less than 200 |
35% |
60 |
6 years, in equal annual installments |
|
More than 200 but less than 500 |
35% |
150 |
6 years, in equal annual installments |
|
More than 500 |
35% |
300 |
6 years, in equal annual installments |
2. Financial and Tax-Related Incentives
Subsidies are offered on term loans obtained from RBI-recognized financial institutions for eligible enterprises.
|
Incentive Category |
Details of Benefit |
|
Interest Subsidy |
50% of the interest paid or interest calculated at the rate of 6%, whichever is lower. Annual limit of ₹20 crore. Provided for 5 years on term loans for plant and machinery. |
|
Electricity Duty Exemption |
Up to 12 years from the date of commercial production, applicable to new pharmaceutical enterprises. |
|
Stamp Duty Exemption |
Complete Exemption on executed deeds for purchase/lease of land, sheds, and buildings, including land lease deeds. |
|
Registration Fee Reimbursement |
50% reimbursement of the registration fee payable on the land. |
|
Land Use Conversion Fee Exemption |
50% exemption on land use conversion fees (diversion fees) for up to a maximum of 50 acres of land. |
|
New Electricity Connection Charges |
50% reimbursement of charges for new electricity connections (excluding security deposit) for eligible new enterprises. |
Note: Stamp Duty, Registration Fee, and Land Conversion Fee benefits are available for new enterprises and cases of expansion/diversification/substitution/modernization.
3. Environmental and Technology Incentives
100% Exemption for new general enterprises. Exemption for expansion/diversification is proportional to the additional investment in plant & machinery/equipment.
|
Incentive Category |
Details of Benefit |
|
Effluent Treatment Plant (ETP) Reimbursement |
50% reimbursement of ETP expenditure, up to a maximum of ₹1 crore, based on a certificate from the Chhattisgarh Pollution Control Board (CPCB). (For projects on undeveloped land or expansion/modernization cases) |
|
Zero Waste Incentive |
50% interest subsidy on loans for water recycling/harvesting and zero discharge technology infrastructure. Up to 5 years, with a maximum amount of ₹10 lakh. Requires a CPCB certificate |
|
R&D Equipment Subsidy |
20% subsidy on expenses for new R&D equipment and plants established for pharmaceutical/medical devices, maximum of ₹3 crore. |
|
Clinical Trial Reimbursement |
Reimbursement of up to 50% of clinical trial expenses, maximum of ₹1 crore per trial, up to 5 trials per unit. |
|
R&D Land/Building Stamp Duty |
Complete Exemption on stamp duty for land/building purchased/leased for Research and Development. |
|
Export Certification Reimbursement |
Up to 50% reimbursement of application fees for international certifications (USFDA, WHO, EDQM, etc.) maximum ₹15 lakh per case for up to 10 products. Requires proof of commercial export of at least ₹50 crore per product. |
|
Ayush/Phytomedicine Patent Reimbursement |
100% reimbursement of expenses if a patent certificate is obtained for Ayush and Phytomedicine products under this policy. |
|
Other Subsidies |
Project Report, Quality Certification, Technical Patent, Technology Purchase, Water/Energy Efficiency, and Transportation (for export units) Subsidies. Combined maximum limit of 2% of the fixed capital investment. |
4. Employment-Related and Special Category Incentives
|
Incentive Category |
Details of Benefit |
|
E.P.F. Reimbursement |
75% reimbursement of the EPF contribution for employees who are domicile of Chhattisgarh. |
|
E.P.F. Duration & Limit |
For a period of 5 years from the date of production, maximum eligibility of 2% of the approved fixed capital investment. |
|
Employment Generation Subsidy |
20% reimbursement of salary paid to permanent Chhattisgarh domicile employees (earning up to ₹50,000/month) for enterprises providing more than 50 permanent jobs. |
|
Employment Subsidy Duration |
Up to 5 years from employment date, maximum 7 years from the start of commercial production/service activity. |
|
Training Stipend Reimbursement |
Reimbursement for training expenses of Chhattisgarh domicile employees (earning less than ₹50,000/month). |
|
Training Stipend Amount |
Lower of one month's salary or up to ₹15,000 per person. |
|
Training Stipend Duration/Limit |
For 5 years from the start of commercial production/activity, OR up to 100% of the fixed capital investment, whichever limit is reached first. First claim payable one year after appointment. |
|
Special Subsidy for Anchor Units |
The first 5 anchor units with investment over ₹200 crore receive an additional 5% subsidy on approved FCI, extending the total subsidy limit up to 110% of total FCI. |
|
Special Industrial Investment Incentives (₹1000 Cr+) |
Additional incentives may be considered by the Cabinet Sub-Committee for enterprises investing ₹1,000 crore or more OR providing employment to 1,000 individuals. |
Why Choose Unique Group for Pharma Subsidy Consulting?
The complexity of the Chhattisgarh Pharmaceutical Policy , especially concerning the critical choice between Net SGST Reimbursement and the Fixed Capital Investment Subsidy, requires specialized consulting
- Deep Sector Knowledge: Our 15 years of expertise includes extensive work in the Pharmaceutical and Medical Devices sector, ensuring we correctly apply regulations for API, Formulations, and KSM manufacturing incentives.
- Strategic Incentive Structuring: We provide expert guidance on which option (SGST or Capital Subsidy) is most financially advantageous for your specific project's scale and timeline.
- Compliance and Documentation Mastery: We manage the stringent documentation requirements for environmental incentives (ETP, Zero Waste), R&D reimbursements, and export certifications (USFDA, WHO ), ensuring all claims are CPCB compliant and successfully reimbursed.
- Nationwide Footprint & Local Expertise: While serving clients across India (including hubs like Hyderabad, Ahmedabad, and Mumbai), our focused presence ensures tailored support for pharmaceutical investments in Chhattisgarh.
Frequently Asked Questions (FAQs)
-
Which sectors qualify as Pharmaceutical enterprises under the C-1 package?
-
What is the maximum incentive limit under the C-1 Pharmaceutical package?
The total industrial investment promotion is limited to 100 percent of the amount invested under the heads of fixed capital investment. The Anchor Unit subsidy can extend this limit up to 110% of the total fixed capital investment for the first 5 eligible units.
-
How is the Employment Generation Subsidy calculated for a Pharma unit?
Enterprises providing more than 50 permanent jobs are eligible for a 20% reimbursement of the salary paid to permanent Chhattisgarh domicile employees who earn up to ₹50,000 per month
-
Does the policy provide support for clinical trials and export certifications?
Yes. The policy offers reimbursement of up to 50% of clinical trial expenses (maximum ₹1 crore per trial/5 trials per unit). For export-related certifications (e.g., USFDA, WHO), it offers reimbursement of up to 50% of the application fee, with limits up to ₹15 lakh per case for up to 10 products, subject to proof of commercial export.