Congress-ruled Chhattisgarh government showcases start-up report card

The Congress-ruled Chhattisgarh government has claimed that the industrial policy it introduced has helped establish 838 start-ups in the past four and a half years. However, the Opposition Bharatiya Janata Party (BJP) and industry experts have stated that the policy faces several challenges.

According to a government spokesperson, the new industrial policy (2019–24) included provisions for the establishment and operation of incubators for the first time. The state is offering a 40 per cent grant on expenditure incurred for setting up new entrepreneurs. Additionally, start-ups are eligible for a maximum grant of approximately Rs. 50 lakh and an operating grant of Rs. 3 lakh per year for three years.

 

The policy also provides an interest subsidy of up to 70 per cent, with a maximum limit of around Rs. 55 lakh, for a maximum period of 11 years as an incentive. The maximum subsidy for fixed capital investment is 55 per cent, up to a maximum limit of Rs. 24 lakh. The state offers a complete exemption from the net state goods and services tax reimbursement for up to 100 per cent of fixed capital investment for a maximum period of 15 years from the date of commencement of commercial production. Stamp duty on land purchase or lease is fully exempted.

Also, the policy includes a rent subsidy, reimbursing 40 per cent of the monthly rent paid, up to a maximum limit of Rs. 8,000 per month. It also grants 1 per cent of the valid fixed capital investment, with a maximum limit of Rs. 2.5 lakh, for project report grants, and 50 percent of the amount, up to a maximum limit of Rs. 5 lakh, for quality certification grants.

According to the government spokesperson, of the 1,012 start-ups recognized by the Centre's Department of Promotion of Industry and Internal Trade, 838 were registered during the Bhupesh Baghel government since 2019.

He said the state's industrial policy helped it win the Aspiring Leader award for the development of the start-up ecosystem in the State Startup Ranking 2021 announced by the Centre in 2022. Additionally, a state-based company won 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 2022.

The incentives offered by the industrial policy have appealed to investors, according to a senior official in Chhattisgarh State Industrial Development Corporation.

While Harshdeep Singh Gumber, a start-up mentor and legal adviser, agreed with the state's claim of a high number of registered start-ups, he pointed out challenges in accessing subsidies and benefits. "The policy has benefited many, but the exact number cannot be precisely ascertained," he said.

BJP spokesperson and industrialist Kedar Gupta said if the government had implemented the plan seriously, there would have been no need to provide unemployment allowances in the state.