Chhattisgarh Royalty Reimbursement Scheme — 50% Iron Ore Royalty Subsidy

The Chhattisgarh Royalty Reimbursement Scheme is a state subsidy that trims the raw-material bill for large steel manufacturers operating in two of Chhattisgarh's least industrialised belts — Bastar and Surguja. It is administered by the Department of Industries, Government of Chhattisgarh, and forms part of the state's wider Package for Large Enterprises in the Core (Steel) Sector.

Two cost heads are covered. A qualifying unit is reimbursed 50% of the royalty it pays to the state on the iron ore it consumes, along with 100% of the cess the state collects on coal. Because these are reimbursements rather than a single fixed grant, the rupee value differs from plant to plant — it follows what the enterprise has actually used and actually paid.

The benefit runs for years, not once. Enterprises classified under Group 1 and Group 2 receive support for 10 years, while Group 3 enterprises receive it for 15 years, counted from the start of commercial production. The policy carves out one exception for Group 1: units located in the Bilha and Dharsiva development blocks fall outside that treatment.

The scheme's purpose is to draw large-scale steel investment into Bastar and Surguja, help existing plants there expand output, support employment, and keep local steel producers cost-competitive. There is no application window to race — the incentive is rolling and always open, so eligible enterprises can approach the department once they meet the policy conditions.

• Reimburses 50% of the iron ore royalty paid to the state
• Reimburses 100% of the coal cess collected on coal
• Benefit runs 10 years for Group 1 and Group 2, and 15 years for Group 3
• Meant for large enterprises in the steel sector
• Limited to units operating in the Bastar and Surguja regions of Chhattisgarh
• Always open — no application deadline

Eligibility here is narrow and rests on three things: the size of the enterprise, the sector it operates in, and where its plant is located.

• Enterprise size: only large enterprises qualify. Micro, small and medium units are outside the scope of this incentive.
• Sector: the unit must belong to the steel industry, since the scheme sits under the state's Package for Large Enterprises in the Core (Steel) Sector.
• Location: operations must be situated within the Bastar or Surguja regions of Chhattisgarh.
• Category: the enterprise's Group 1, Group 2 or Group 3 classification fixes how long the reimbursement runs. Group 1 enterprises (other than those in the Bilha and Dharsiva development blocks) and Group 2 enterprises are covered for 10 years; Group 3 enterprises are covered for 15 years, in each case counted from the day commercial production begins.

The published conditions do not restrict eligibility by entity type, and they set out no DPIIT recognition or MSME registration requirement. The test is size, sector and geography.

Chhattisgarh Royalty Reimbursement Scheme — 50% Iron Ore Royalty Subsidy is open to startups at any stage. It is open to startups registered anywhere in India.

Chhattisgarh Royalty Reimbursement Scheme — 50% Iron Ore Royalty Subsidy accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

Recipients receive a recurring reimbursement against two specific input costs.

• 50% of the iron ore royalty paid to the state government on the iron ore the plant consumes.
• 100% of the coal cess collected by the state on coal.

On duration, Group 1 enterprises (excluding units in the Bilha and Dharsiva development blocks) and Group 2 enterprises get 10 years of benefit. Group 3 enterprises get 15 years. The clock starts when commercial production begins.

Since the scheme works as a reimbursement, the payout tracks actual consumption and the sums already paid — which is why no fixed amount is published. The effect is a direct subsidy on operating costs: it eases cash flow and improves the unit's competitiveness.

Chhattisgarh Royalty Reimbursement Scheme — 50% Iron Ore Royalty Subsidy is offered by Department of Industries, Government of Chhattisgarh, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.

There is no competition involved — no shortlisting rounds, no pitch presentations. Assessment is compliance-based and turns entirely on meeting the criteria set out in the state policy. In practice, the route looks like this:

• Application submission: the enterprise files a formal application with the designated state authority under the Package for Large Enterprises in the Core (Steel) Sector — expected to be the Department of Industries, Chhattisgarh.
• Documentation: proof of enterprise registration; evidence that the unit is a large enterprise in the steel sector; location details for Bastar or Surguja; records of the date commercial production began; and receipts showing the iron ore royalty and the coal cess that were paid.
• Verification: a committee or designated departmental officers examine the application and the supporting papers to confirm eligibility and the accuracy of the claims.
• Approval and disbursement: once verification clears, the approved reimbursement is released to the enterprise.

Before you apply to Chhattisgarh Royalty Reimbursement Scheme — 50% Iron Ore Royalty Subsidy, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.