Mineral-rich Chhattisgarh on Friday announced a set of hefty incentives to businesses under a new five-year industrial policy aimed at attracting investments and revving up economic growth.

The industrial policy 2019-24 offers to reimburse the bulk of the state’s share of goods and services tax (SGST), besides granting interest and capital investment subsidy to businesses. It also promises full reimbursement of electricity duty and exemption from stamp duty.

The state government’s policy document said new businesses will be reimbursed up to 65% of the net SGST paid for 15 years, capping it to the capital investment made. It also offers interest subsidy of up to ₹55 lakh for 11 years, fixed capital investment subsidy of 55% of the investment for up to a maximum of ₹24 lakh a year.

The policy also offers transport subsidy and exemption from a mandi tax to businesses. The move is aimed at promoting non-polluting industries and to bring sustainable development.

The policy will also encourage the production of electric vehicles, batteries and charging stations in the state. The industrial policy focusses on a robust single-window system.

In a statement, Chhattisgarh chief minister Bhupesh Baghel said the state had surplus power and has an investment-friendly environment. According to the policy document, the state is setting up at least one industrial area in each of its 27 districts. The plug-and-play infrastructure in these regions will help investors start operations without delay.

The state government is also creating a land bank across districts for allocation to businesses. To cut red tape, the government is acquiring land for industrial purpose, promoting bio-fuel and food processing industries.

Source: LIveMint